subject: How to Start Trading on the Forex Exchange - A Beginners Guide [print this page] "Trading currencies for beginners" is a common search term for those looking to get involved in this lucrative business. Therefore if you are interested in trading currencies then the following steps are strongly recommended.
1. Learn the Basics
How does a forex trade work? Why do currencies fluctuate? You should always learn the nuts and bolts of trading on the forex market. By reading this article you are already on the right path. It's also imperative that you understand that there is considerable risk with trading currencies.
No trader ever profits from "every" trade. Successful traders are said be profitable from a 50% hit rate. That's from every 10 trades, 5 are profitable. Or, your loss on your losses is less than your profit on your wins.
Never trade what you can't afford to lose. The 10% rule is a good rule of thumb. Never trade more than 10% of your account.
2. Test your skills with a Demo Account
One of the best and easiest ways to see if this trade is for you is to trade on a Demo account; all reputable forex system companies will have them.
You can try techniques like "play money" where no risk is involved with a virtual balance of $50'000. Each lot is a $1000 with a leverage of $100'000, more than enough to test the water.
Advantages:
1) You will get free information from support 24/7 which will help ease you into to currency trading.
2) You can evaluates a number of trading strategies with no risk.
3) You can get free access to a team of seasoned professionals 24/7.
4) A free practice account usually lasts for 30 days.
5) Demo accounts are free.
6) Some companies provide power courses, i.e actual forex trading courses, normally for a price less than $20.
3) Take a Forex Power Course
As experienced traders will tell you, the best way to learn is to ask a tonne of questions. If you're unsure of who to ask or where to go, take a power course - this often suite most novice traders.
Courses can be taken online and you will be guided by professionals were you will get interactive instructions 24/7 for normally the first week of a course and competitions are normally thrown in where you get a chance to profit from your input.
Courses more importantly however will teach you how to identify clues about future market activity through studying forex charts. You will learn to find trends and guage what potential profit they offer.
Fundamental analysis is also taught we you will learn how important political and economical factors affect currency values.
These types of courses normally also offer you access to an experienced instructor for the first year of your trading profession.
4) Open a Live Account
If your keen to get started but don't have the time to learn steps 1 to 3, but your interested in diversifying your portfolio you can open up a managed forex account.
How to Start Trading on the Forex Exchange - A Beginners Guide
