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.
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.