How to Start Forex Trading – Very Useful For Forex Beginners Who Have Low Budgets to Start!
Every beginner knows what is forex trading but the only one question for them is to how to start. As of now there are many tools, trading systems and software that are in use in daily trading. The big mistake that every beginner does is that they get tempted to the hype of forex trading robots or to some forex trading software and they start trading and finally end up with loss.
I am not against to the forex trading robots or to any software, but my point here is that it is not the right time to use a forex trading robot or a software when you are as beginner. We can use the robots and software at a later stage.
Here is a step by step plan on “How To Start Trading”. So let’s start.
Plan For The First 15 Days – Phase 1:
Before you start trading you should always know the basics and the terminology related to the forex market. This is not a big problem. If you Google it, you can get lot information which you can’t even digest. At this stage nothing to hurry up, first finish off the basics of trading. Normally 10 to 15 days of time is really good enough for any average Joe to be ready with basics. But we shall put it to 15 days of time.
Note: At this stage my kind request is not to get tempted to start real trading. Please do not start.
When you start learning basics in the first 15 days, along with it you also need to get register with any forex brokerage firm which is in this industry for a long time and very reliable. I suggest you to go for Easy Forex Brokerage firm or Forex Yard Brokerage firm as they are very reliable and the registration is completely free.
After registering you can use their demo accounts for your practice and they will never force you to start real trading. So you can take enough time to practice on their demo accounts. Practice on the demo accounts as much as possible until you feel comfortable with them and this practice is really needed.
Be patient. There is still a long way for us to go and do not start real trading!
Plan for the Next 10 Days – Phase 2:
Now in phase 2, you need to learn when to start a trade by finding the entry points and also need to learn when to exit the trade by finding the exit points. For this you need to learn in depth of what technical analysis is and what fundamental analysis is. You can Google them, but you cannot put them in an order to learn.
I kindly request you to go through all the information on technical analysis and fundamental analysis steadily, but do not hurry up. This is very critical phase which you need to concentrate a lot because this is the point where you exactly learn what is the real trading and this phase leads you to become a forex winner. To learn about all the useful technical analysis methods and fundamental analysis methods, normally 10 days is good enough.
Even now please do not start real trading.
Plan For The Next 15 Days – Phase 3:
The next 15 days you need to apply what you have learned till now and practice on demo accounts of either Easy Forex Broker or Forex Yard Broker.
Watch any of the TV channels such as NBC News, CNN Money, Forex News Channel, etc which provides you the Forex news. Now pick the points in the forex news. Now start co-relating the news with what you have learned in technical analysis and fundamental analysis and you need to find the entry and exit points for a trade.
Daily try to find at least 8 to 10 profitable entry points and exits points and start trading on your demo account. Make a note of all the entry points which have given you the profits and also remember the factors depending upon which you have derived that profitable entry point. Practice this for at least 15 days and at the end of 15th day you will be able to find at least 5 best profitable entry and exit points a day. Finding the best profitable trades is nothing but building a forex strategy.
So end of 40th day you will be in a position to trade on real account. Till now you have practiced the trades on a demo account so there will not be any involvement of emotions but once you start trading with real account emotions come in and they may lead you into loss. So you need to control your emotions and need to exit the trades as per your calculated exit points. Now you can go little advanced and try some automated tools such automated forex signal software which can generate the entry and exit points for you.
All the hard work in 40 days needs to be done by you as there won’t be any mentor for you other than yourself. Right now there are some online forex mentors who can mentor you such as FAP Winner as they are the best till now in mentoring the beginners. But they will charge you around $300 a one time payment. It is up to you to decide it or practice by yourself.