Forex, short for Foreign Exchange. The largest and most liquid market there is, with a daily turnover of $5 Trillion.
With the right broker anyone with little money can access it by opening a trading account and just like that you become a trader. But before you start you need to follow some basic steps and have some basic knowledge at least, which is needed in order to succeed as a trader and needless to say self-discipline and patience are also key important factors that go hand in hand.
So, you ask yourself. “What basic knowledge and steps do I need to follow?”
Choosing the Right Broker
You first need to find a trusted and regulated broker. Look for a broker that offers you a top-tier technology platform with excellent trading conditions. A very good customer support is also important.
Practice on a Demo Account
Practice makes perfect and most forex brokers allow you to open a free demo account so you can learn and practice. This is especially essential if you are a newbie. On a demo account you may familiarize yourself with the platform as well as to develop a successful trading strategy that works on real account.
While practicing you should consider learning how to trade responsibly by implementing risk management and managing losses. It is advisable to treat trading on demo as if it were real. Experience in advance what does and what does not work before jumping to real account.
Educate Yourself
To become a forex trader, you are required to educate yourself extensively. The more you learn the better chance you have to become a successful forex trader.
Learn what moves the market and how to properly read charts and forecast price movements. You are also required to understand how to technically analyse charts and follow fundamental news and stay up to date with economic events that can influence the market.
These days with free and countless educational material, youtube videos and webinars there are no excuses, and anyone can make it big as a forex trader and achieve consistent profits with the right approach.
Choose a Trading Strategy
Your personality and character will determine your strategy. Are you an intra-day trader? Swing trader or long-term trader? Perhaps a scalper?
You only can answer the above questions and only after you
have practiced seriously you can define your trading strategy. You should have the will to discover various trading styles then choose one that suits you and keep improving it as you keep learning.
You will notice that one strategy works for a particular currency pair and you may need to use another strategy for a different pair.
It takes commitment and patience to finally come up with a good trading strategy that works but it is imperative.
FINAL THOUGHTS
Becoming a successful forex trader is an exciting journey if you work with a plan and a strategy.
Nothing should be complicated unless you choose to complicate things. Forex trading is easily accessible from any device and anyone can become a trader if you do your homework.
It is worth noting that once you register a trading account with a broker you will be assigned an experienced Account Manager who will guide you through the steps and ready to assist you and answer your questions whether you are an experienced trader or a beginner.
