How to Start Forex Trading

Forex beginners interested in learning forex trading should follow the three steps below:

Learn Forex Basics

Traders need to learn the basics of forex trading. These forex trading basics include things like currency pairs that are traded in the forex market, why the forex of these currency pairs keeps moving up or down and what causes these market movements.

Traders should then move on to learn about the various methods used to trade forex; these include technical analysis and fundamental analysis. In fundamental analysis traders will learn how to predict market moves by analyzing economic reports such as GDP and Inflation reports. In technical analysis traders will learn how to use forex chart to determine forex market trends and the momentum of these trends so that they can know which direction of the market that they can open their trades in.

Traders should also learn forex key concepts these are advanced topics that explain to traders more about the exchange market. For example traders can learn about leverage and why they should learn about risk management principle in forex form the topic popularly known as money management rules. These concepts will help a trader get an in depth understanding of the forex market before they start trading the currency exchange market. In forex traders should also know that they should only trade with risk capital - that is money that they can afford to lose.

All these learn forex topics are covered on this website in the learn forex lessons section of this website. Traders wanting to learn about these topics can navigate to this section of our website and learn more about how they can start forex trading.

Open a Demo Account

The next step is for a trader to open a demo trading account. This is a forex practice account provided by forex brokers and with this account traders can practice their trading skill on the forex using virtual money. The traders can practice risk free without investing their money.

With a practice account the trader can have more time to learn about the trading platform that is used to trade the forex market, the trader can also learn how to place trading orders in the forex market as well as test their strategies an see how these strategies perform when trading in the online forex market.

A trader should practice their skills on the demo account for a period of one or two months until such a time that they learn all about forex and they have the knowledge required to help them to start trading forex. Once a trader starts to make profits on their demo account they can then open a real account and start trading the real forex market.

Open a Live Account

To open Forex live account traders will need to fill some paperwork with their forex broker and after filling this paperwork a trader can then start investing in the forex market. At this point a trader will have their trading strategy and trading plan that they will use to guide them when trading.

The only advice that traders should follow before opening their trading account is to know that they should only open an account with a regulated forex broker. Regulated forex brokers are the most reliable and most transparent forex companies to do business with because they are regulated by financial regulatory authorities which mean that these forex brokers must follow strict guidelines when carrying out their operations.