How to start Forex trading

career process
How to start Forex trader career?

Probably everyone who is interested in Forex, ask questions, how to start trading Forex? what you need to learn?

Answer all of these questions is not easy. Start definitely need a theory (general concepts, the price movement, indicators, trading system, money management, psychology), gradually adding practice. As they say, a theory without practice is dead, but the practice without theory is stupid.

Brett Steenbarger recommends the following sequence  to start Forex trading

1) Learn to understand the market – understand the supply, demand, trends, levels of consolidation, how the market determines the price, time periods, price, volume of transactions formating prices. There are the basics you need to know about the financial markets. Very often, many novice traders in the early stages of learning in detail study specific technical moments instead to first figure out how markets function.

2) Start with the observation – I say this so often that everyone is tired. But it is really very important to protect your capital and psyche during the learning process.
Plunge headlong without proper training to the market, which is full of experienced traders (sharks of trading) – a sure way to lose capital and get unsuccessful impression of the financial markets. When I started my study, I print all the daily charts, which I carefully monitored and studied. Today there are kept piles of these graphs in my office. Daily analysis of these charts helped me to see the movements of the market all the important points, breakouts, confirmed and unconfirmed forecasts. Train your eyes, before you risk your capital. Learn on one or two models and use them. Quality sites dedicated to trading and books are good source of information, start with them. Do not hurry to make trading your main occupation and the only source of income. It’s not as easy as people think. This is a serious job, a huge burden on the psyche, and the majority people simply do not survive.

3) Start with a demo forex account – certainly trade on paper or demo account is not the same as a real trade.
But it’s a good start. After all, chess players practice before championship. Demo account allows you to make mistakes and analyze them before risking real money.

It is also very important that the first training session took place without any commitment to make money anyway. If you cannot make money on demo account, the chance to earn at a real account even less. Trading in the demo is a kind of intermediary between the dry theory and the real practice, so you need to give it enough time. Many trading platforms such as MT4, offer a free demo account. These programs help to acquire the necessary experience and track changes in your trading.

4) Start thinking like a trader – that means to understand what traders focus in the analysis of markets, economic indicators and stock news. Sign up for financial news, read blogs devoted to trading, visit forums where traders communicate. Observe and, if possible, communicate with successful traders, listen to their advice.

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