subject: Make Money Online by Becoming a forex trader from home [print this page] Make Money Online by Becoming a forex trader from home
How to become a Forex Trader and Make Money Online
To become a forex trader is not a case of studying a collage course or taking an exam, it is more like a business opportunity to invest some savings into a liquid market with potentially very high returns. There are many ways to do this. You can have little intervention yourself by using a forex managed account that will cost you between 30-50% of you winnings or you can go it alone and attempt to decipher this volatile market yourself with the outset to make money online.
It is the go it alone decision through a spread betting platform that can see you speculating on the currency market in no time at all. It is this scenario that we are going to address in this article and how to get started.
To become a forex trader you will need to gain some experience in the market; the only way to do this is to trade the live marketplace. Obviously you do not want to be staking real money at this stage so opening a demo account with one of the spread betting companies is always a good idea; you can try a company like Capital Spreads or Meta Trader 4.
It is important that you do not get impatient when trading with demo money and jump straight into a real money account after your first few wins, wait until you have experienced some losses so you can see how to manage your money correctly. Forex trading is at some time or another going to hit you with some losses you need to aim to getting it right 80% of the time that way a well managed account should be able to sustain these losses and come out on top at the end of the month.
There is a general rule which you can stick to when it comes to money management and that is not to risk more than 5% of you trading balance. If you hit a 20% loss rate you will still sustain a trading balance with this amount.
As a forex trader the next and biggest thing you will need to learn is how to decipher technical data. Technical data is displayed in chart form which allows the trader to see where the price has been and which overall direction it is moving. There are lots of different indicators that come with your charts that will help you make a trading decision such as; moving averages, pivot points, Bollinger bands, Fibonacci retracements. It is the understanding of this data that will help you to become a forex trader.
