10 Clear-Cut Steps To Placing Your First Profitable Forex Trade
Written by Sheila Chiang on 20th March 2017
[Source: pixabay.com]
Opening your first forex position can be a scary task, especially when it is a whole new ball game for you.
As a beginner, you must do your homework and prepare yourself for your first cautious steps into the world of trading.
That's why we're going to cover the 10 preliminary steps you need to take to find your footing in the FX market...
Step 1: Understand The Mechanisms Of Forex
Learn the basics of Forex through online, paid, free, in-class sources, such as:
Books
Thematic Resources
Blogs of successful traders
Forums
Video tutorials
Webinars
[Source: pixabay.com]
Do understand that it is important to grasp the fundamentals of trading.
Many people make the MISTAKE of skipping this step and diving straight into it...
...Relying on their intuition and hunch, which may NOT succeed all the time.
What is a long position versus a short position?
Know the forex terminology before you start.
Step 2: Define Your Goals & Choose A Compatible Trading Style
Before you start to trade...
It is important to have clear GOALS in mind as to what you would like to achieve,
And the type of trading style you want to undertake.
Each trading style requires a different approach and has a different risk profile.
For Example...
If you cannot stomach going to sleep with an open position in the market,
then you might consider day trading.
On the other hand, if you have funds that you think will benefit from the appreciation of a trade over a period of some months...
Then a position trader is what you want to consider becoming.
Step 3: Select Trading Platform
Once your education is well underway, the next step is to choose a BROKER.
Trading in the forex market is done through a broker or dealer...
...Who provides a trading platform and services that facilitate forex trading though the Internet.
[Source: pixabay.com]
Some Questions You Should Ask...
Which trading platform to open your first forex account on?
Do they have mobile and browser versions?
Are they easy-to-understand for beginners?
What’s worth special attention when choosing a trading platform?
Good terminal should combine multifunctionality, security, availability and mobility.
Step 4: Take Note Of Successful Trader Traits
Emotions can force your hand to open a trade TOO EARLY and/or close it TOO LATE.
Traders must have the perseverance to stick to trading until they break through to success.
Focus on your trades and learn to love small losses.
Step 5: Subscribe To Forex News
Subscribe to forex market news and analysis websites, such as DailyFX, that provides real-time news, daily briefings, forecasts, market alerts and more.
[Source: dailyfx.com]
The main idea here is to gain access to cutting-edge news and analysis,
To keep yourself informed of all the latest global foreign exchange developments...
So one can act PROMPTLY and ACCURATELY on the market changes.
Step 6: Open A Demo Forex Account
Before you start, you should consider opening a practice account.
Most online forex brokers offer practice accounts that SIMULATE the real trading experience using virtual money.
However, many new traders find it difficult to replicate the success they have on a practice account once switching to a live trading account.
When real money is at stake...emotions as greed, fear and excitement take place.
[Source: oanda.com]
Step 7: Practice Strategies Provided By Analyst Picks
Now that you have opened a demonstration account, which most, if not, all brokers offer as part of their services...
You can start practicing strategies recommended by forex trading instructors and currency strategists.
You can subscribe to their content via email. They would pick out and provide trade ideas.
[Source: dailyfx.com]
Step 8: Open Your Forex Account
Once you have practiced enough and feel ready, it is time to open a real account.
Keep in mind there is the risk of losing your money. It is advisable to START SMALL and slowly increase your investment.
Step 9: Record Everything Down
An amateur forex trader must develop the mindset of a business owner.
Take control of your own business through constant monitoring and regular auditing.
Jumping ahead without plans and processes is a sure-fire way to FAIL.
Every day, be sure to record the following:
1. Points for further research
2. Reasons to open or close a trade
3. Your achievements and mistakes
These points of reference are important when analysing your activity.
Analysis of good trades will boost your trading confidence and motivate you to push harder and go further.
On the other hand, analysis of bad trades will help you extract value and IMPROVE.
Step 10: Perform Weekend Analysis
On the weekend, when the markets are closed, study weekly charts to look for patterns or news that could affect your trade.
You should spend some necessary time spotting and analysing any emerging patterns...
Meaning that you are ready and raring to go when the markets reopen on Monday.
[Source: pixabay.com]
The Bottom Line...
The steps above will lead you to a structured approach to trading and in return should help you become a more refined trader.
The way to become increasingly proficient is through consistent and disciplined practice.
As the saying goes, the harder you practice the luckier you will get.
Now that you know the first 10 steps you need to get started with trading forex...
Why not ACCELERATE your forex trading journey by learning directly from TOP PROFESSIONAL forex traders?
Discover and practice the powerful trading system that even COMPLETE BEGINNERS use to profit...with just 30 minutes of their time each day!
So go ahead, click here now to attend this FREE workshop!
Discover how you can earn a full-time passive income when you apply the 3 top Forex Trading strategies, even if you have no experience at all!
A go-getter, Sheila believes in working hard and staying focused in what she does. She currently works in digital marketing, its dynamic nature allowing her to express her thoughts and ideas freely.
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