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Getting Started In Forex Trading


Many try to trade Forex, but only a few succeed. Here are some pointers to get you started. Most Forex traders trade from home with their own equipment and their own software. If you have a substantial amount of capital at risk, you will want the best tools available. You can start part-time, while maintaining your current income. This is a good strategy, since it reduces the need to succeed when you have the most to learn.

Initially, it makes sense to select one or two currency pairs, to specialize and learn the intricacies involved. The EUR/USD is a common starting point but any high-volume pair will do. Start by reviewing the many broker websites and studying their material. There is an abundance of guides and helpful information, take your time! It is better to start slowly, to absorb as much as you can before risking your capital unnecessarily.

Forex involves substantial risk. So start with a “demo” account at one of the major brokers. You can experiment with fake money, as though you are really trading. This way you can test out ideas that are new to you, and you can make all the basic mistakes without losing your money. One of the first aspects to learn, is risk control. If you don’t learn this quickly, your demo account will reach a zero balance quickly. Yes, you can make substantial profits if you take high risks, but you cam also lose all your capital quickly.

Aside from all the technical aspects and terminology. You will also need to learn to manage your emotions. Trading is often emotional, because there is real risk and reward involved. Keep your priorities in mind at all times, they should take precedence over your emotions. This is actually difficult to achieve! You will need to monitor your positions, your trades as they progress, while ignoring all the emotional input and most importantly the news! Excellent traders learn to monitor the news, but do not let their trading be governed by it. What the market is actually doing, is far more important than what the news is announcing. Those two can be in conflict much of the time!

After some time you will learn a strategy that suits your abilities and your ambitions. You may need to adjust and improve on this strategy, but it is important to clearly define your trading method. Only after you have experience and have defined a sound trading method, should you risk real capital my moving from a demo account to a real brokerage account. Traders who make this transition too quickly usually regret it, so be cautious and methodical as you are getting started in Forex trading.

Additional Resources;

How To Get Started In Forex Trading

How To Make Money In Forex

Learn Forex Trading
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Topics: Forex, Psychological | Comments Off

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