Step 3: Diving into Forex Trading for real
When choosing a broker, leverage rate, software and account type it is best to always choose carefully and in the most conservative way possible, especially if you are a complete beginner.
If you are going to do this for real then first of all you need a broker, one which is legitimate, honest, reliable, and suits your style of trading. Check these reviews and advice from the Forex website. While there are many good, honest ones there are some sharks too. Avoid these. The Forex website exposes some of them.
Assess the level of customer service, the software they provide you with in order to trade and make sure their aims match yours.
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As part of the deal, the broker will give you a leverage ratio, which can be 20:1, 50:1, 100:1 or 200:1 depending on the size of the broker and your trading experience. The most common rule is the lower the ratio the better, especially for beginners.
In order to trade properly you will need to download the software in order to participate. Reviews, advice and links can be found on the Forex website here.
So you have a broker, software and account. It’s time to make some serious cash! Well, remember you are still a beginner, nothing but a minnow in the big wide ocean of Forex trading and there are some hungry sharks around. Stick to the edges, stay safe and only when you feel ready, venture into the deeper depths.
Making your first trades
Start with a small account, with low leverage and place a tiny amount of cash on your first currency pairing. Like in practice it is best to stick with the most common currencies, such as the Dollar,
Pound, Euro or Yen. These are stable and less prone to volatility, meaning a nice, safe, low-stress start to your trading career.
It is also important initially to stick with market trends. Trying to fight them early in your career will lead to a lot of anxiety and potential disaster. Secondly, always stick to things you understand and never make a trade based solely on speculation. Nobody can predict the future and know what value for example the English pound will be against the US dollar in five, ten or half an hour’s time.
Stick to your trading plan, made before you even started and remember the methods you used in order to be successful in the practice account.
What to do if things go well
If your opening trades are successful and the money starts flowing in, congratulations, but, never ever think that you have somehow acquired the Midas touch overnight. Call it beginners luck. You need to accumulate your profits slowly, like growing tomatoes, nurture them, tend to them and enjoy the fruits of your labours only when they are ready to be picked. Do not suddenly gamble all these profits on one emotionally high trade, or you are likely to be stung badly by an adjacent nettle.
What to do if things do not go so well
If your opening trades have accumulated a loss then there is no need to worry as long as it is within the limits that you outlined in your original plan. Do not panic-trade, making daft speculative transactions based on emotion rather than fact, or you will dig a deeper hole. Learn from the mistakes you have made and use this experience and knowledge gained to trade your way out of the situation sensibly, by making smaller less-risk transactions. This way you will accumulate money over a longer period of time to get you back in the black.
If losing money, always stick to conventional methods along with your own knowledge and instinct. Never buy any expensive untested so-called failsafe remedies of conducting trade, such as forex
robots, astrology or any other methods that claim to be able to predict the financial markets. They can’t and are a waste of time and money.If personal emotions are an issue then it may be wise to start automising your transactions, which means to pre-programme your trades in line with a clear plan, based on tried and tested trading patterns. This helps to ensure feelings of impulsiveness, greed or desperation are taken out of the equation.
Learn to recognise your failings and your mistakes. Do not panic or give up. You may have just been unlucky and only a cool head can get you out of trading trouble.
Share Your Experience
Share your experiences with other traders and pool knowledge, but never let your trading be influenced by others. The decisions you make must be sensible, calculated and in line with a consistent personal plan, within rigid financial constraints in order to be a successful trader.