How To Trade Forex For Beginners
How to trade Forex?
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1.
Your first account
FotoGraf - It is through practice that we learn. So if you want to
succeed in making gains, you will have to get wet. Of course, you can keep your
account. As we have seen above, with micro lots, you can start with a small
capital.
On the forex, it is possible to earn much money. Intelligent
and talented traders can make much money quickly by starting with a modest capital.
But it's not by putting in more than you can afford that you
will imitate them. It is better to go little by little and grow your capital
little by little rather than trying to gamble and end up with nothing.
The capital you will need will depend on your objective. If
you want to try your hand at trading a little, a small capital of 200 euros
will be enough. This will allow you, with the micro-lots, to last a long time
and learn from your mistakes. If your goal is to earn a living on forex, a
starting capital of 200 euros will also be sufficient to see if you can be
profitable regularly. On the other hand, only expect to become rich and quit
your job after three months with this starting capital.
Many beginners lose their starting capital. This is because
it takes time to find a trading strategy that works for you. Just as it takes
time to learn how to manage risk, you will also have to avoid many
psychological pitfalls, such as managing frustration when a position you
thought was winning turns out to be losing.
You will need to acquire the discipline to close a position
at the right time when emotionally, you would like to gain even more to
compensate for losses. You have to remain calm and rational, especially in the
heat of the moment. These are the essential qualities of being a good trader.
Before you start, you should realize that learning to trade
profitably takes time, money and much patience. Only start with the capital
that you want to retain.
It is impossible to earn a living with 200 euros. But you
will be able to get an idea of how profitable or unprofitable you are, giving
you plenty of time to learn.
To choose a broker, you will have to look at the quality of
the platform they offer for trading. It must be user-friendly because you will
spend some time monitoring your positions. It is also essential to consider the
quality of service of the broker. Is it easily reachable? Is customer service
friendly and available?
It is also necessary to consider the financial regulatory
authority that has approved a trading platform. A broker whom a significant
organization regulates inspires more confidence.
2.
Should you start on a real or demo
account?
You will need to learn how to make money using a demo
account. The psychological aspect needs to come into play more. You will be
confronted with situations that will not be easy to manage psychologically. In
the same way, you don't learn to surf on sand; you don't learn to make money in
Forex with a dummy account.
However, a fictional account can be fascinating to
familiarize yourself with a platform or test new strategies.
All you have to do is find a broker you like and open a demo
account. Or, if you want to get down to business straight away, open a real
money account and put some small capital into it.
3.
Manage your money
Lack of fund management is one of the main reasons why new
traders quickly lose their starting capital. Attempting everything by putting a
capital of 2000 euros and opening positions of 200 dollars per trade will lead
you nowhere.
·
Survive
Your primary mission is to stay in the race (in fact, it's
the 2nd, the first being to earn money, winking smile ). You will inevitably
have losing trades. You must have more money to be able to
compensate for these losses.
It is, therefore, essential that you know what your average
risk/reward ratio per trade is. That is how much you risk to make X% profit.
This will let you know how much money you can invest in a position and your
expectation of gain. A rule frequently used by traders is only to stake 2.5% of
your capital in each trade.
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