There is no doubt in the fact that forex trading is a complex industry with its subtilities and peculiarities. The desire to become a trader is not enough – it takes patience and time to learn everything and achieve financial goals.
In this article, we are going to tell you about ten steps
that will help you to start your path to potential profitability and financial
independence.
So, what are we waiting for? Let’s begin.
Learn the basics
The knowledge of basics – is the foundation of everything.
When you’re starting trading, you probably will get acquainted with a lot of
terms and phrases you have never heard before. Learning it will help you to
carry out deals and build a trading career with minimum losses because of
ignorance.
Get a broker
As you will start doing your first steps, you need a broker
to trade with. Each broker has different tools, trading platforms, and has its
own amount of initial deposit. So, anyone can choose the one that will fit them
and their requests.
Open a trading account
There are various account types the broker can offer to you
proceeding from the trading conditions. Be sure, there is a demo account
available, cause in case of any doubt about the trading process or strategy you
have chosen, you can always try it on the demo version.
Set up a trading platform
The most widespread trading platforms every reputable broker
has in their ‘’portfolios’’ are the Metatrader 4 and the Metatrader 5.
Actually, the number of trading platforms you can choose
from is much more than just 2, but the MetaQuotes company is an absolutely
leader among all of the available options.
Manage the risks
It seems like managing the risks and developing the risk
management plan are the last thing you need to think about, but when any force
major happens, solid risk management is the one thing that will help you to
solve the situation.
Analyze the markets
The ways how you can carry out this is using fundamental
analysis and technical analysis. The first one is about how certain events and
news affect market conditions and the technical analysis gather information
about market conditions with indicators and charts.
Place the trades
When you have already carried out the first six steps above
you will be ready to place your first trades (of course after practicing it on
the demo account).
Note that making a profitable deal can take some time so be
patient with yourself and the trading process.
Select a trading style
There are a lot of trading style options you can choose
from. The choice depends on the trading goals you have and the time you spend
trading. For example, if you have some short-term goals and can’t spend a lot
of time on a trading process then you can try day trading instead of scalping
or other styles.
Keep a trading journal
A trader should always keep a trading journal. This is where
you write down what you do when it comes to trading, including the good and bad
trades. You should also track your profits and losses so it will help you
understand what works and what doesn’t and make more profit in the future.
Never stop learning
The last step concludes all the things we talked about
above. Even when you reached a certain level where you can consider yourself an
above-average trader, never stop following the updates and learn something new.
This is the only proven way not to give away the positions.
Conclusion
So, we have covered the ten steps you need to take in order
to start trading forex. To wrap it up we will add that practice makes
everything perfect, so try and use this information in practice and hone your
trading skills.