Most Internet visitors have heard about Forex also known as Foreign Exchange market at least once. There's truly a whole lot of information about it that came out last years. Forex is really huge - nearly 3 trillions of dollars are exchanged daily on the planet! This sum is often used in ads, that often sound like "3 000 000 000 000 dollars - take your piece of cake, that's very easy!"
Well, unfortunately that's not true, that's just a marketing trick and nothing more. Without the proper knowledge and trading skills you won't get any profits as a forex trader at all, you'll just lose your money. It all comes down to your knowledge, skills and trading experience. But how to get those skills and experience? Where to start? In this article I want to give you the basic steps every beginner should make.
As a forex trader you surely should know the basic terminology. That's where that "forex novice tutorials" really come into play! There are literally hundreds of them all over the Internet and some of them are free. Just pick one or two and read them carefully. Many forex starters don't begin their trading for too long. They keep consuming and absorbing information while their trading experience is almost zero. I recommend to study your first tutorial for some time but then begin to do your exact steps in your trading practice.
Many tutorials and guides recommend to start from mini-forex accounts to feel the real money on the one hand, but not to risk too much capital on the other hand. I agree - it's the best choice available for my opinion. A lot of forex brokers offer mini accounts, and I'll recommend one of them at the end of this article (see the resourse box for the details). You need to learn the basics of technical and fundamental analysis. Then begin to study trading indicators, pick yourself a currency pair and make some trial deals. Just buy, sell and see what happens. Try to experiment with different currencies, charts, indicators etc.
After you feel yourself comfortable with your trading platform, you need to pick yourself a trading system. There are a lot of them offered to the public today. My advice is: don't make things too complex and complicated, just pick some free simple forex trading strategy and try it on your mini-forex account. Remember: only result matters, not the complexity of the system. If it's too difficult, you'll fail in mastering it and won't make any profit. So my advice for your first trading system is: as simple as possible.
Ok, so what now? Testing. You need to test your strategy and, if it doesn't prove itself, pick another one. A lot of traders recommend to test on paper or on demo accounts, while other say mini-forex is best for this purposes. I think that if you can put several hundred dollars for testing your system, just do it. A lot of forex starters did well on demo but failed after opening a real account so it's better for you just to get used to real money. But please don't make your initial deposit too high, it'll make no difference for your trading, remember that your first purpose in just to gain the basic experience. My advice for the first mini-deposit is two hundred - one thousand dollars, that will be quite enough.
About the Author
I am a freelance writer and write in many areas including finance, advertising, investments and trading.I recommend you to try out this Forex Trading Platform. No Download. Open Account in 5 Minutes. Trade USD vs. All Major Currencies. Start for As Little As $100. Leverage Up to 200:1. Use Your Credit Card to deposit funds. See you later!
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