In this guide “Learn Forex trading” I will show you what you need to know in order to trade on the Forex market.
- How to learn Forex trading
- Learn Forex trading
- How to become Forex trader
- How to successfully trade
Read the text with understanding and not only read just to read it. When you understand meaning of the text you will increase your knowledge about trading.
Whatever you learn it will help you now or later in your trading life.
How to Learn Forex Trading
You are ready for Forex trading? Yes you are. Lets get on the horse and ride through Forex wasteland.
To start Forex trading as beginner you need proper tool in order to achieve first steps towards success.
Under the tool I mean trading with right broker, knowledge and trading platform where you open account and use technical tools, open a trade and earn some money.
Which trading platform to use? I suggest MT4 MetaTrader4 which is well known and popular among Forex traders. Some of the brokers have their own trading platform but at the end they allow same thing, trading. Specific trading platform can offer you better tools but for novice MT4 is enough.
Find a broker with which you will open account and who will help you with trading through their support. When looking for good broker you need to pay attention to several things so later on you do not regret choosing that broker.
Broker must fulfill your needs like proper trading platform, account platform where you can deposit and withdraw money, where you can track your Forex trading progress . If Forex broker have news channel or newsletter, and most of them have, that is good because it will help you shape your decision when opening a trade.
After you have found broker and trading platform then next step is to get familiar with trading platform so you can make first trade as a demo trader or live trader.
At start it is best to open demo account and start learning trading so you do not loose any money. While trading on demo account you will learn technical analysis but also psychological aspect of trading which is very important.
Demo account will not give all experience you will have with live account but it will be enough for you to master trading platform and basic trading rules.
Learn Forex Trading
Questions I will cover:
- Where to start learning about Forex
- How to start learning. What is the best way
- What I need to learn about Forex to become individual trader
With good mentor you will learn basics very fast because he will point you what is important and he will show you what to watch out. He will speed up the learning process and you will be able to open a trade the same day.
Where to find mentor and that he is free it is not an easy task. On the internet exist lots of material which you can read and learn from it. But if you have someone who can show you step by step, live or over video, that is even better.
I will cover Forex trading tutorial to be good as a live mentor so stay on the blog and read all posts. If you find something that is no covered please contact me.
Learn Forex Trading – Where to Start
Get material that shows you Forex trading basics. Material can be blog, pdf trading tutorial, video trading tutorial.
Here, on this blog, you have trading tutorial so you can start from here. First step is downloading trading platform to open a trade account. Without trading platform everything you read will evaporate in hours. You should practice what you learn.
There are a lot other websites where you can find more material about trading. Learn Forex trading from books on the internet, read articles, forums where traders gives their opinion on the trade they took or news that are released. When you read more material you will get overview from different perspective and you will make better conclusion on the topic you are reading.
Important thing to remember is you need to understand basic how system works. From there you will be able to learn more complicated material, better understand trading and make a strategy that is sustainable.
Proof of Concept by Practicing
Imagine situation in class when you watch professor talking to you about math problem. If you just listen to him you will remember something. But if you take a pen and start writing and practicing what he tells you, you will learn your hand and brain how to solve that math problem.
Brain and your hand will remember how you solved that math problem and in the future when necessary you will able to solve same math problem.
If you just listen to professor you will not recall everything he said during class and in the future you will not be able to solve same math problem. There will be some information missing or you will not recall all the steps necessary to solve the problem.
Above situation is called life experience and it is something you need to have in trading.
How to Start – Learn Forex Trading
When you have downloaded trading platform you should open account. When you have account and trading platform you can start with reading details about trading platform.
You need to get familiar with MetaTrader platform. What are the tools that platform offers you, which tools will be useful and which ones are necessary to open a trade.
Learn Forex trading through indicators and oscillators which are good for determining direction of the market. Which indicators are lagging or leading and how do they fit into trading.
Watch out on different types of orders you can open because there is crucial ones you need to master. There are ones that are helpful but not mandatory in trading. Some of them gives you more options to trade and improve your trading strategy. When you test them you will know which one is good for you and which is not.
How your chart will look like and is the chart clearly visible for your eye. You should avoid putting a lot of indicators on the chart and using a lot of different colors. If you use to much different colors you will have rainbow on your chart instead clear information. How the chart looks like it depends on your trading style and you should find what suits you.
I use one or two indicators and resistance/support lines which is mostly enough for me to determine my trade.
What I Need to Learn to Become Individual Trader
In order to become individual trader you should know:
- What is Forex market
- How does Forex market behaves
- How to open a trade on trading platform
- What type of orders you can make
- Have a wining trading strategy
- Be consistent in your trading strategy
- Have a good money management strategy
Learn Forex Trading – How To Become Forex Trader
Becoming Forex trader is not hard because you need platform and account with broker and then just open a trade. With an open trade you are already Forex trader. As a freshman in Forex trading you should not call yourself already a professional while there is long road to become one.
To start being good Forex trader first you need to take basic steps and have a good background before going into a trade.
Good background starts by deciding do you really want to invest your time into Forex trading. If yes then learn Forex trading as much as you can so you are successful in trading.
Learn about Forex market as much is possible and never stop learning. With learning about Forex you should test and practice on trading platform until you master that platform.
By mastering I do not mean learn all what is on the platform. There is to much information and tools on the trading platform. I mean you should learn things that are important for you to open a trade and be profitable.
To be profitable you need to test and test. Through testing you will find what is correct and based on that experience you should make trading strategy. After you have good strategy you should stick to it and do not let your emotions interfere. You should only improve that trading strategy.
Emotions in Trading
Emotions will have huge impact on your trading and you should pay attention to them. Whenever you win a trade you will experience satisfaction which will increase your confidence.
After successful trade you will want to open a new trade just to continue having good trades. If the second opportunity is not based on the trading strategy do not open that trade. Probably trade will end as a bad trade.
Whenever you lose a trade you will experience fear of losing money on your account.
Fear will manifest in different ways:
- By opening new trade without looking does it comply with your trading strategy and then trade going into another bad trade
- By reviewing your trading strategy and modifying it even though your strategy is good one. Having bad trade is normal and you should accept it as all problems you experience in daily life. They are part of trading
Master these emotions through your trading life and do not let them run your trading. Try to automate your trading as much is possible because machine does not have emotions.
Every trading strategy should involve good money management. Every business in this world have CEO who pay attention on money management in the firms.
You should give some time to develop a good money management in order to succeed in trading. At home you balance you monthly/weekly budget to survive until next salary or to have more money for things you like to do. In trading it is the same.
I have struggled through time to find what is good money management. How to survive in Forex market, to get some profit and not only staying in the game. What worked for me was ratio I used for every trade. Ratio 1:3 where every win trade should give me 3 times more then bad trade.
All above said is one part of trading on the Forex market but reading all post on this blog you will learn more about Forex trading.
Learn Forex Trading – How to Successfully Trade
To succeed in Forex market you need to be successful trader.
Successful trader follow good rules set by them or rules they accept from their mentor or find them on the internet. Which rules you will follow you should decide by practicing and after that compare the results. Rules that gives you best ROI(return on your investment) would be the rule you should follow.
To succeed in trading you should not be greedy. Greed can ruin your success. To avoid destroying your account by greed follow trading rules you have set in trading strategy.
Great traders follow their rules and obey money management which is very crucial in trading. Money management sometimes looks like a weight that restrains you reaching higher success in trading. Do not thing like that because mostly that way of thinking is wrong one.
Surround yourself with positive thinking. Hang around positive people, trader on the forum and share your knowledge with them. Some of them will give their opinion which could help you in trading.
Read more: Forex Trading Tutorial for Beginners
To learn Forex trading is not an easy journey. I have to say that it is easy to say “Yes I will invest my time and I will learn whatever is needed” but to give yourself into it is not easy and many of traders fail in these first steps.
Always think positive and you will succeed. I believe you are capable succeeding in Forex market.
If you think this is useful share it with your friends and tell them that here is a great tutorial which will show them steps by step how to start trading on the Forex market.