The first thing you need to do as a new and fresh aspiring forex trader is to open a forex demo account, this is easy done, nearly all forex brokers offer a free demo account and if they don’t, find one that does. At this point you will probably find it tempting to open a real live trading account so you can start making really money, DON’T. I cannot emphasise how important this is, not only will you lose the money, but it will also set you on a bad psychological path to start with.
Trading Forex Can Be The Fastest Way to Lose Money.
If you open a forex trading account with a couple of thousand pounds in it when you don’t know what to do, you will lose that money quicker than anything you will have seen before, the leverage available in forex is so much that you can lose all your stake in one go quite easily. The experience you will have will leave you with a long term problem with your attitude to trading, the money lost will be in the back of your mind for so long that it will have a serious impact on your mental ability to make money in the forex markets.
Keep Forex Trading Simple.
Now you have your free demo account, you then need to find a basic strategy that you can trade, simple easy to understand systems are best, a complex system will give you conflicting evidence one way or another, and it’s better to be wrong sometimes than completely confused all the time. More than anything focus on your psychology, study lots of materials, consider meditating regularly to calm the mind and have the best perspective. Have a plan, as well as a trading plan have a psychological plan, identity what kind of person you are and identify the psychological areas you need to deal with to become a proficient trader. Learn to stay out of the market, forex is a complete paradox of what is normal to us, the idea of the more you do the more you make is ingrained in our minds and you need to come full circle, forex is more profitable when you do less, there is always a high risk that you will lose money, but if you’re not in the market you wont. Teach yourself to accept that it is no problem to stay out of the market for 2 weeks and then you could make either 2% or 20%, always keep your eye on the light at the end of the tunnel, and the road to forex profitability has a very long tunnel, but a very bright light, remember the long term goal.