- 1 How to easily start Forex trading? Set goals
- 2 How to start trading FX with the right software
- 3 Choosing a good broker
- 4 Go for a beginner’s account
- 5 How to choose the assets you want to trade
- 6 How to easily start Forex trading, NOT!
- 7 How do you start Forex trading with a bonus?
- 8 How to start Forex trading in 2019!
Making money in most cases is not enjoyable. Sure the moment you get the money on your account and cash it out is a big blast of euphoria and dopamine, but the things you needed to go through sometimes don’t really make it worth the time. What are the common ways to make money? Try to think……Jobs? Yeah, jobs is a good answer. But is it the best way to make money? Definitely not. Sure it may be safer than other ways, but you’re very restricted. Your schedule is completely different. You have to wear clothes you hate, doing something you don’t like and get paid something that may not even last you until the end of the month.
When I was a student, life was great, it was amazing because I didn’t have too many costs, so having little to no money was not that nerve-wracking. But everybody grows up and has more responsibilities, maybe it is towards yourself, your spouse or your kids. Nevertheless, you need to start earning something. So if you are this type of person, who is tired of making money the conventional way (like spending your life in a place you hate) this article will definitely help you. We will discuss the topic of how to start Forex trading. This is one of the ways of making money that you can use your free time on as I’m sure you already know. But help a brother out here and take it with a grain of salt, it’s important for me for you to actually get some value out of this article, so if you have some suggestions and better ways to approach this issue, feel free to let me know or criticize me, I can take it.
How to easily start Forex trading? Set goals
When was the last time you set goals for yourself? Do you remember how much they were able to help you out in the process? Quite a lot right? Forex trading is no different as you need to have realistic goals set in order to fully understand whether or not you truly want to get into this industry.
Remember, Forex trading is not always fun, it may be fun when you’re making money, but it can be one of the worst experiences ever when you’re losing. So as I said, take everything with a grain of salt and follow papa Martin into the depths of goal setting.
Identify your goals
What are your primary reasons for wanting to learn how to start Forex trading? Ask yourself that, is it for the money? For the heck of it, or is it just part of your job? Nevertheless make sure to have the reason straight, because making money with this platform requires dedication, hours of research, withstanding stress and most of all, commitment. If it’s just for the money, it’s fine because this is what it’s made for. But set not a goal of becoming a millionaire within a year. But some short-term goals like. “I want to have my trades have a success rate of 60%” this month. Or “I want to read at least 5-10 articles about a topic before I make a trade”, all of these small goals will help you grow your competence more and more. Obviously, it requires that you grow the goals as well. For example, the 60% success rate goal can become a 65% success rate goal the next month, if you achieve it.
Prepare for failure
Want to know how to start trading Forex? Get familiar with failure, because there will be lots of it. Having your trades be 100% successful is achievable, but highly unlikely, a streak of success will teach you less than a couple of failures. So always try to welcome it, analyze it, adapt to it and use it as an example for your next trades. Let’s bring up an example here. Let’s say you made a trade of USD/EUR after looking at some charts and seeing it go green for a bit. Unfortunately, the moment you made the trade, it started going down to a point where you’ve lost half of your investment. Don’t start beating yourself over it as it will contribute to nothing but more impulsive decisions. What you need to do is sit back, relax and trace the fall to an article that could be relevant to it. Understand it, why it happened and try again, you’ll be able to see the progress immediately.
How to start Forex trading with a timeframe
As I’ve already mentioned you need to understand that Forex trading is a time-consuming activity, it isn’t a passive income, it’s active, meaning that you have to work for it. Realizing how much time you can dedicate to it will help you get started. Can you only dedicate like 1 hour to it every day? Then set realistic expectations that your profits may not be so big. Can you dedicate a whole workday? Well, you can set bigger goals in terms of profit and learning. The beauty about Forex trading is that it can happen all day every day. So if you think that you are extra committed, you can easily do it at midnight or well before work or anything else. But this should raise questions as I can trade from home? How to start trading Forex from home? Can I actually do that? Yes, you can, but we’ll get to that part eventually so don’t worry, right now, let’s talk about capital.
Learn! Learn! Learn!
Before you even think about a starting to trade, you need to understand how it works, how the market responds, how the prices change and etc. For this, you need a good training plan. For example, you can start with trading straight away, but have it be on a demo account. What this means is that you can get an account with $10,000 already on it, but it would be completely virtual. The prices would change according to the real world market, but the difference is that it’s only for training and not actually making a profit. So if you’re a complete beginner, not aware of any of the technical sides of Forex trading a demo account can be a great option on how to get started with Forex trading without any real risks. But one difference is that you’ll get used to trading with bigger sums of money that you may not have when you begin, so try to match it to the trading style you’re most likely to adopt once you get a real account and start trading with real money.
Set your budget
Establishing a budget helps you create a clear vision of the profits you can make. This helps you set realistic goals in terms of results and so on. For example, depositing $1,000 and expecting to make a living out of it is delusional. Unless of course, you’re some kind of guru that can see into the future. But how to start trading Forex if you don’t have that much money, to begin with? There’s no answer to that honestly, you just start with whatever you’ve got, and if you’re a beginner then I support small initial investments, it helps to lay the stress off and create a better environment to trade. Sure you won’t make a lot of money once you begin, but where have you seen a person become an athlete within a year?
It’s okay to not have money, there’s no shame in it. Shame is in not doing anything about it if it’s destroying your life. Nobody will laugh at you for starting off with $50 in Forex, and most certainly nobody will laugh at you for losing it on the first trade, it happens to everyone. Even the most veteran traders you’ll meet will often scratch their heads about what to do with a trade, ultimately losing some money on it.
But you get the point right? Set your priorities, understand what you can achieve and what you cannot, and start working on them, growing on the way. Don’t set unrealistic goals as they’ll do nothing but give you the sensation that Forex is not for you. Start small and grow big.
How to start trading FX with the right software
So you’ve set up your goals, you’re feeling really confident and can’t wait to start trading. You set up an account and prepare for your first trade. But what’s this? The broker is asking for you to download some software? What? Yes, Forex trading is mostly done on software created by companies who specialize in them, which are reffered to as providers, but there are many companies that can be classified as providers so don’t get too confused.
The software you can get are for example, MetaTrader 4, MetaTrader 5, cTrader, Web Trader and many many more. Some brokers even create their custom ones. But how you get started with Forex trading, is connected to which software you choose. For example, MetaTrader4 is good for people who like the old blocky look on the computers, you can focus on 4 pairs at a time or even 1 without having to strain your eyes or brain too much. MetaTrader 5 has pretty much the same features, but with more diversity. cTrader is probably the best one to go for right now as it has been ranking #1 for quite some time now. All of it just boils down to your preferences, don’t just go for the one you get in the beginning, try them all out.
Choosing a good broker
Before I start talking about the importance of choosing a good Forex broker. Let me try to create quite a similar situation for you, which will help you better understand the importance of the choice. It is my way of giving you an example of something you might know more about and help you to understand how to start trading Forex, by comparing it to Forex brokers of course.
Ok, let’s begin. This is completely from scratch by the way so please appreciate my creativity, or don’t, it’s up to you.
John and Dave are born on the same day, of the same month, of the same year, same country, state, and economy. Despite these similarities, they are radically different when they grow up. But what made those changes? Parents of course. You see John was born to a sophisticated, healthy and loving family, while Dave was born in a poor, dysfunctional and unattentive family. John saw most of his childhood years, being taught various things by his parents, like how to read, how to study, how to be responsible and all of the things that a caring parent would teach their child. Dave, on the other hand, learned nothing but getting drunk, doing drugs and smoking cigarettes from his family, he didn’t bother with school and made bad choices with nobody to guide him. In the end, John came out to be a successful entrepreneur thanks to the nurturing and upbringing of his parents, while Dave became exactly what his parents were, drunk and jobless.
But how does this help you understand how to start FX trading? It’s simple, the brokers are your parents, but the difference here is that you get a choice. You can either choose John’s parents or get stuck with Dave’s parents. The trick is how to choose them. There are many ways you can do it, reading reviews, rankings, looking through customer complaints and directly getting the feel of the broker. Think of them as your parents, if you had a choice in parents which ones would you choose? Supportive, helpful, safe and full of opportunities, right? Same thing with brokers. In terms of safety, you should always check their regulations, support-wise look at their customer reviews and see how their system works when you have a question or a complaint, in terms of help you can check if they feature any educational material, maybe some webinars or guidebooks, or even a consultation with experts. In terms of opportunities always check how many assets they have, how big are they? How likely is there to be a community with this broker? Are they interested in your profits? How do they make money? So on and so forth. Don’t blame a person like Dave for not knowing how to start trading FX, he had no choice for a guide. But you will have to blame yourself if you end up with a bad broker because it WAS your choice. If you’ve had such an experience with parents I’m sorry for bringing it up, but it was the best example I could come up with.
Go for a beginner’s account
The secret to how to start trading forex for beginners is to choose, you guessed it! A beginner’s account. Usually, when you visit a Forex broker, they will have more than 1 account type. The differences in those account types should be the ones dictating the one you should go for. So you chose your broker, but now you have to make another choice, so you’re like, “What is this? “Detect and Collect?”, I’m so sorry, I’ll stop with the jokes I promise. There are usually 3 types of accounts that you can choose from that I’m now going to illustrate as dogs. The “Chihuahua”, the “Golden Retriever” and the “Great Dane”. If you’re not a dog person, I’m sorry if you don’t understand but I’ll explain don’t worry. The Great Dane is the symbol of the VIP account, It’s the biggest, most expensive, but comes with perks you can’t even imagine with the others, things like personal broker and teacher, interesting webinars and robots to help you trade. The “Golden Retriever” is your standard account, it’s not as expensive, will give you what you pay for and have relatively nice perks like lessons and bonuses. The “Chihuahua” is the beginner’s account, it’s ridiculously cheap, sometimes $50, will give you not that much value, but if you’re able to deal with this account you’ll deal with everything else.
So now you’re able to see the differences, all of them come with their benefits and shortcomings. I recommend going for the beginner’s account, yes it’s hard to maintain and get the value you want, but honestly, for somebody starting out, it’s pretty much a no-brainer.
How to choose the assets you want to trade
When you begin in Forex, you find out that the trading happens in currency pairs. Therefore, in the beginning, it is easy to confuse the question of starting Forex trading to the question “How to start currency trading” because they seem quite different. They’re not, they’re the same thing. But besides the misunderstanding, what do you need to do?
You might expect that every currency and their mother to have a pair right? And you wouldn’t be wrong, but it doesn’t mean you can trade Russian Rubbles for Indian Rupees easily. Most brokers don’t see any real value in pairing up, not so very popular currencies on the market. So what you’ll usually get is a pair of some bigger currencies like the USD and EUR, the JPY and GBP. These are the currencies that are strongest and in most cases the most reliable.
Once you decide to choose a currency for yourself, you may be enticed to choose the one that is local to you, but honestly, it’s not recommended. The best way to get into Forex is to start trading major currency pairs as they’re the most reliable and easy to learn from. Most beginners started with the classic USD/EUR as there are way more resources online to judge the prices and predict them. So if you want an easy beginning go for pairs like USD/EUR, USD/GBP, USD/JPY and etc. Over time you’ll learn more and be able to delve into the more volatile and less known currency pairs.
How to easily start Forex trading, NOT!
So you’ve chosen your broker and they seem legit, they have a nicely designed website, a reputable regulator, a nice platform for the community to interact and are easy to reach. But still, you’re struggling with money and would like to make a big commitment from the beginning. Don’t do it, take it from a random guy on the internet named Martin, don’t do it. Ok, jokes aside, the reason you don’t want to do it is the same for why you don’t buy clothes in the store before trying them on, you need to make sure they fit right? Well, the same goes for Forex trading. But how does this relate to the question of How to easily start Forex trading? It’s simple really, no matter how good the broker is, they have tendencies to entice you to deposit more, winning you over with promises of larger profits, which although not false, aren’t the best things to tell a beginner.
You’ll be met by promotions like “INSANE LEVERAGE”, “NO DEPOSIT BONUS!”, “START FOREX TRADING FOR FREE!”. Try to ignore these as they’re not really suitable for beginners. These are for veteran traders who know what they are doing and don’t lie to yourself if you’re a beginner you probably don’t know 5% about Forex yet, but you will know everything eventually don’t you worry. Yes, it is possible to start Forex trading with no money, by using the No Deposit Bonus, but the thing why you shouldn’t do it is that these bonuses come with high requirements of profit. For example, you can’t withdraw your profits and the bonus until you reach a set volume of trades. For example, a broker could tell you that “You’re only eligible to withdraw your money only after you’ve made $1,000, muhahahaha”, that laugh was an exaggeration, they don’t do that. But you get the point, you’re basically trading with someone else’s money, while not being able to withdraw it whenever you want.
Same goes for leverage, this is the one you see tossed around the most, things like “Want to learn how to easily start Forex trading? Use our INSANE leverage of 1:1000, you definitely won’t regret it!”, even though it is quite cheesy, they still are able to make solid points. Leverage can be quite handy for a seasoned trader, but for a beginner, it isn’t recommended. The same thing will be happening here as in the no deposit bonus, but in this case, you’ll have to deposit. So let’s say that the broker actually features 1:1000 leverage, what does it mean? it means that when you initiate a $100 trade, you’ll have the option to use that leverage and turn it into a $100,000 trade, with money that the broker gives you. You’re probably seeing the problem already. Although the profits can make you happy, losses will make you miserable, in terms of paying the broker back. So if you’re a beginner starting now, don’t go for it.
How do you start Forex trading with a bonus?
Ok, fine, you’re set on getting the bonus and there’s no way I can change your mind, well at least hear me out on this thing, it’s a useful tip. You will be met with a large variety of brokers offering you different types of bonuses, which will eventually confuse you. In order to truly help you out, you can compare all the other bonuses to the one here, which is the best one I’ve encountered so far. Give it a looksie and try to use it as a unit of measurement for all the others you’ll see.
How to start Forex trading in 2019!
After so much typing my fingers are getting tired so let’s just wrap this bad boy up shall we? So let’s go over what we’ve learned.
- Set your goals and make them as realistic as possible
- Have a nice attitude towards both failure and success
- get accustomed to the various software there is
- Choose your parents (brokers) well
- Don’t get fooled with the “make more money” sentence
- Go for what’s popular
- Keep it small for now
Hope I didn’t overwhelm you too much. If you’ve been intrigued by all of this information, feel free to browse around ForexNewsNow and try to apply what you’ve learned. But most importantly, don’t put it off until tomorrow, start acting right now!