7 Steps to Becoming a Forex Trader
There are many ways in which you can become a forex trader or enjoy learning about forex trading. With so many tips and suggestions, you may find it a daunting task to figure out where to start.
However, these simple 7 steps to becoming a forex trader may be more helpful.
Whether or not you approve of forex trading to make additional income is a matter of your personal opinion. However, what you may not realize is that you are already part of the forex trading market when you buy something in a store that comes from another country. The funds you give to buy a foreign product have to be converted into the funds of that country in order to pay for the goods and thus you are already in a sense a forex trader.
However, by learning to become a forex trader, you are taking this to the next level, making money on the transactions that take place all over the world, every second minute, hour, day, week and month of the year.
Do not be fooled by those who will tell you that learning forex trading is easy. The reality is that forex trading is a gradual learning process that requires strict self-discipline and self-control. It is a challenging way of making money through investing in foreign currencies, but not so difficult to make it impossible. It is definitely far easier to do forex trading in many senses than doing stock trading.
However, what you will require to start forex trading is:
- A wide screened computer or laptop
- A fast internet connection – not dial-up
- Forex learning resources
- A demonstration dummy forex account for practicing with fake money and real-life forex signals, charts,
- Currency pairs and a solid and easy to use forex trading platform
- Be willing to learn all you can about forex trading
- Eventual live forex trading small account with a reputable forex broker
- Enough money that you can afford to lose
- A love of the financial markets
- The ability to analyze forex trading signals
- The ability to use your analysis for solid forex trading strategies
- Patience and
- Common sense
You will need to follow these simple forex trading steps, but of course, you need to educate yourself about the market and all the terminologies and calculations, so taking a reputable course is essential before you can use these:
- Decide if you can handle trading and what variety of forex trading you wish to do
- Understand clearly how forex trading profits and losses are made
- Gather all the critical tools needed for creating forex strategies and executing solid trades
- Learn and learn again as much as you can about the forex business
- Practice daily in creating forex strategies, reading signals and executing forex trades – analyze your mistakes or losses rationally and learn from them
- Only open a live forex account when you have proven to yourself that you have the confidence and abilities needed to do forex trading – be realistic as you will lose some money and make profits at other times
- Keep records of all of your forex trades, strategies and analytical observations – what works and what does not work and why.
And, start your live trading with a good forex no deposit welcome bonus.