How To Improve Your Forex Trading Success – There are three things that would help you better understand the fundamentals of the industry, the practice, and therefor the potential pitfalls, risk and potential gains.
Follow this 3 steps plan to to create forex trading success…
First – get reading
There are numerous free forums, articles and blogs out there with active traders posting daily as well as educational threads. One that I found particularly useful is the school of pipsology at babypips (google this).
Lots of great posts with visuals explaining the trades and the graphs. Once you have an understanding of how trading works, the why and the when you will have a better self educated feel for the potential and the risk,
Second – Demo and practice
Try out some platforms risk free using demo accounts. There are some great ones out there provided by a large variety of brokers. The most common platform is MT4 which is provided through a variety of guises with a selection of various tools.
By experiencing trading without the risk of losing money, you will learn how to follow charts/trends and to generate strategy and systems. What you won’t learn however, are the psychological effects of trading when it is real hard earned money with real risk. That leads us onto the next stage
Third – Trade live but very small at first
Set up a live account but with a very small amount of capital. Something you would not suffer for losing, (as that is ultimately the most likely outcome at first) but enough that you care about it.
There are a large amount of brokers that do not require a minimum deposit. I would chose one of those for practice live trading.
By trading live you will learn what you can not through demo accounts. The psychology and mental effects that you will experience through trading real money. Everyone deals with this in a different way, and you will most likely learn alot about yoruself through this. Learn to control your emotions, not to chase a big win as a result of a series of losses.
In forex you are constantly learning, constantly testing and it is a very long journey.
It is certainly not easy money and it is a very risky business.