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Chapter 3: How do I get started trading the Forex Market?
How do I get started trading the Forex Market?
The first question you need to ask yourself before you even consider becoming involved in forex currency speculation or investing is do you truly have disposable income to fund your account with? Disposable income means income that is free for use, which you wouldn’t really be affected emotionally or physically by if you lost it. The bottom line is that most traders start out trading money that they actually need for other things such as credit card payments or other life necessities, when you begin your trading career using money that would be better used elsewhere, you set yourself up for disaster. Unless you truly do not need or care much about the money in your trading account, you will naturally become emotionally involved with your trading, and when this happens you have essentially dug your own forex trading grave.
Assuming that you do have disposable income to trade with, let’s discuss some of the first steps you need to take in order to get your forex trading career off to a successful start.
• Obtain quality education – It is important that you obtain a quality education in the basics of forex trading before you progress any further. This means getting a thorough education in what the forex market is, why you should trade it, strategies to trade it with, money management, and trading psychology.
• Practice – Once you have received a quality forex trading education it is time open a demo account and practice all that you have learned. Most all forex brokers offer unlimited demo trading, so take advantage of it and trade the particular forex trading strategies that seem the most effective to you. Once you “master” one or two specific forex strategies and have made consistent demo or “fake” money with them, you can think about opening a live account. Demo trading is good for ironing out all the details, but it is devoid of the emotions you will encounter while trading real money. Therefore, don’t become fearful of real-money trading by becoming a perpetual demo trader, eventually you will have to switch to the real thing if you want to learn what it really takes to be forex trader.
• Patience – Once you do go live you will need to have patience. A big mistake that many beginning traders make is thinking they are going to get rich quick. Trading is at best a get-rich-slow game. You aren’t going to double your trading account in a week, a month, or even a year, and if you do than you are not developing the proper trading habits and your success will quickly crumble leaving you worse off than you ever thought possible.
• Persistence – Losses are part of the game in forex. You will have to check your ego at the door and learn to accept losses each week or month. You need to view your forex trading as a business and losses as the cost of operating such a business. Most professional traders actually only win around 50% of their trades, they know how to maximize their winning trades however, so that they far exceed their losers, this is the key to making money in the forex market and should be your primary goal as a trader.
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المصدر | 4uinvestment
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