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The years where forex trading is a luxury that can only be enjoyed by a handful of traders with thousands of dollars in their pocket and years of real trading experience are long gone. Today, by utilizing the internet, leverage system, and automated trading software, literally anyone, from high school kid to retired employee, can learn to trade forex and gain significant income from the forex market. Of course, if you really want to understand how the forex market works and how you can squeeze profits from it, it is a good idea to keep the automated trading software for later and start learn to trade forex slowly. These are a few things that you need to know as a novice trader: 1. Mastering the basic of forex trading is your first priority Do not throw your money on your first attempt to learn forex trading, instead, take your time and learn the rules that applied there and how other traders manage to get their share of profits. Over the years, anyone who charges into the forex market blindly after reading a couple of fantastic claims about it always end up miserably. A suggestion that comes to mind is starting your learning with a dummy account where you’ll get a trading platform, thus you can test various things here. First, familiarize yourself with your platform’s interface, then try to implement some basic technical analysis strategies by using common indicators. Also learn about news and events and how they can affect the market movement. 2. Currency pairs You'll find that there are numerous currency pairs that you can trade, but you must realize that each of them has different characteristics and difficulties. My top recommendation currency pair for novices is EUR/USD as this one is known as a stable currency and has proper daily range. Another popular currency pairs are GBP/USD and USD/JPY. Just avoid currency pairs with high spread like EUR/CAD or EUR/AUD. 3. Protect your money Risk management and money management are necessity skills when you trade forex as it is very important to protect your investment. Make yourself familiar with take profit, trailing stop, and stop loss order; learn how to use them in your every trade to cut your losses and claim your profits. Also make sure that you don’t put all your money on the line when you are placing orders. 4. Selecting a good online forex broker Learning to trade forex doesn’t limited to strategies and trading systems. You need to realize that the forex trading world is fierce and many people/companies will eat you alive if you trust them easily, especially if you’re looking a forex broker to place your money. Take your time in selecting one, do your research on the company, make sure it is registered within an official financial authority, and ask anything that you want to know on the live support before opening an account. This is your right and if they can’t give you satisfying answers, don’t even bother to try their services. Learn more about my top recommended forex broker at AvaFX review. Many people that learn to trade forex give up halfway because they tried to conquer the market by themselves and end up miserably, that why it is a good idea to have education or lessons from an experienced mentor who have been earned steady profits from forex trading. I recommend that you read further about a forex course by Dean Saunders at Forex Wealth Builder review.
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