How to Start Trading Forex – Some Key Things You Should Know Before Jumping Right in Forex Market

I’m 19 and I want to start trading stocks & forex. What are some key things I should know before jumping right in?… Best advice, don’t do active trading. LEARN HOW TO TRADE FIRST.

Study. It is a misconception that you can ‘jump right in’…

Newbie forex traderLike any profession you might consider, dedicate 3 -5 years to studying. As there are no ‘market’ courses at university, I would suggest you study anything that might prove useful such as maths, statistics, finances, accounting or even business studies.

When you graduate, join a financial firm and gain some tangible experience…

If you have the aptitude for it, you will find the right area which fits your personality and you may want start trading your own funds…

Don’t under estimate the amount of study required…

Here is something you should know.

19 is a good age to learn. Start with play money. Then try using some of your hard earned savings. Hopefully you won’t lose it all in the first month. And here is something you should know.

  1. You will probably loose a lot of money and quit trading. Most people do.
  2. Trading is quite difficult for several reasons. I can´t imagine anybody jumping right in and being successful. You will not get rich fast.
  3. Learn the basics about both areas, then focus on one and forget the other.
  4. Risk management (RM). Learn about it, how to use it and DO NOT think about risking money without it.
  5. If you only have a few hundred bucks account, chances are even worst, because you will not be able to perform good RM.
  6. Get one idea for a trading strategy. Test it first on past data, then in demo accounts. Do not trade before you have a tested and fine tuned idea, with a RM plan attached.
  7. It’s all about repeating your strategy and RM plan endlessly. Nothing romantic here.
  8. Learn some Statistic. You can´t possible know if you have a good strategy if you made ten trades, even if you profited in all of them.
  9. Trading is very addictive. The adrenaline, etc. Be very aware. This will make you make stupid decisions and loose money. A lot. Maybe money you can’t afford to loose. You can get in serious troubles.

There is a long learning curve, and it takes incredible discipline, but why not?

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