Learning forex trading is mostly about learning how to deal with yourself. Sure there are technicalities that you need to learn in order to actually start trading forex, but the real struggle comes with learning how to control yourself.
The first thing that most people that are interested in forex trading have to overcome before learning forex trading is the perception that forex is a way to get rich quick. There are websites everywhere that are touting forex as the end all solution to getting rich. This is mostly because of forex leverage, which allows you to trade much larger amounts than what is in your account.
This myth is persisted because people want to believe it and because taking money away from new traders is easy as they are desperate to succeed. If you offer to sell them something that will solve all their problems with forex trading, they will buy it eagerly. This cycle is repeated many times until the new traders are broke, so itâs important that you approach forex trading with the right attitude. Forex trading is an investment vehicle, nothing more.
So, once youâve dismissed forex trading as a get rich scheme, itâs time to roll up your sleeves and get to work. Here is a list of steps that youâll have to go through to get things going.
1. Start Reading
The first thing to do is get educated. A forex education is the first key to success. Learn forex trading terms and methods and avoid the urge to just jump in and start trading. Read everything you can get your hands on.
2. Research Some Brokers
Start looking into forex brokers. Read some forex broker reviews and spend some time on their websites.
3. Open Some Demo Accounts
After narrowing down a short list of brokers, open some forex demo accounts to actually try them out. Some forex brokers only allow demo accounts for 30 days so make sure to read the fine print.
4. Try Some Forex Strategies
After figuring out the basics of how to operate the forex trading account, try out some different trading strategies and see what works for you. The more time you spend making trades, the more you will really start to understand how forex trading works.
5. Open a Live Account
The final and biggest step is opening a real account. Start with a smaller amount in the account and trade to the best of your ability. Go for smaller wins early on, and adjust your targets as you get more comfortable with market movements.
If youâve made it to this point and you havenât gone crazy, youâre in good shape. If youâre wondering why I would advise caution even after you spent so much time practicing, itâs because once your hard earned money is really on the line, it becomes harder to keep a clear head to make trading decisions. Fear and greed tend to take over. Fear of losing money, or the greed of needing to make more money. Both emotions are forex trading account killers.
The main thing to keep in mind is just to go slow and take your time getting started. Give yourself a chance to learn and get confident with making trading decisions. Otherwise, youâll become an emotional sleepless mess, not to mention, youâll bankrupt yourself. Keep your head up, and when you make mistakes, learn from them and go back into trading rearmed. This will ensure your longevity with forex trading and hopefully earn you a little money.