As of today, forex is the largest market in the world. It has over 4 Trillion US dollars turnover every single day.
Trading forex allows you to use high leverage in order to trade large amounts with minimal investment capital. It is very important to follow the steps below otherwise you may lose a lot of money instead of gaining the profits.
Learn all there is to it. You won’t be able to trade forex without the basic knowledge of spreads, currency prices, indicators and ways to analyze the market. Keep in mind that learning forex is an ongoing process which is likely to continue through your trading career.
Find Reliable Broker
You need a good, trusted broker to trade with; a broker that doesn’t trade against you and earns his living on your losses. To guarantee protection from bucket shop brokers, join regulated and licensed brokers only. With help of internet you can find out whether the broker you have selected follows the rules and is regulated by any authority.
There are lots of currency pairs you can trade, however it might be a good idea to stick to just one pair in the beginning. Focus on the pair, learn which technical and fundamental factors causes the pair prices to change and how.
Choose Trading Platform
The process of trading platform is closely related to the selection of the broker. Each broker offers trading platforms with certain features and trading conditions. You need to figure out which platform suits you the best. Some of the main features to consider are:
Download vs web-based
Metatrader or in-house (broker designed) platform
Accurate trading prices
Reliable order and transaction execution
Accurate market analysis and news
Strong security protection
Minimal system downtime
Allows different trading styles including, swing, hedging and swap-free accounts
Have a System and a Plan
You need a plan to follow. Compose a system that provides you with indication of when to enter and when to exit trades. Test it on demo accounts and carefully invest it into your daily routine. Discipline and consistency are the main keys to your online trading success in forex.