A big question that many new traders ask is it easy to trade Forex? If you are struggling with your Forex trading then my Forex trading made easy will be perfect for you!
Forex trading made easy with my 10 step case study, which will increase you Forex trading education extremely!
- Do Your Homework – Learn Before You Start
- Take the Time to Find a Reputable Broker that you can trust
- Make Use of a Practice Account
- Keeping Your Charts Clean And Tidy
- Protecting Your Trading Account
- Always Start Small When Going Live
- Use of Reasonable Leverage
- Keeping Good Records
- Understanding Tax Laws
- Treat Trading As a Business
The Forex markets has more than $5 trillion in average daily trading volume each day, making it the largest financial market in the world.
Forex’s popularity has increased over the years and now entices more Forex traders of all levels. From beginners just learning about the financial markets to well-seasoned professionals.
But there’s a catch.
Because it is so easy to trade Forex , with round-the-clock sessions, and access to significant leverage and relatively low trading costs. It is also just as easy to lose money trading Forex.
So with more on this subject I thought I would share some pointers on Forex trading made easy and how to avoid losing money from the get go. Of course the other practical thing to do is to take my Free Course For Beginners.
Here are 10 different ways for traders to try and avoid losing money within the financial markets when starting out.”
1. Do Your Homework – Learn Before You Start
Why does this matter?
Just because Forex trading is easy to get into, it doesn’t mean that due diligence can be avoided. Learning about Forex trading is just as important as one would need to learn at a university before attaining a career.
Bottom line?
It is important to a trader’s success in the Forex markets. While the majority of learning comes from live trading and experience, a trader should learn everything possible subject about the Forex markets.
This would include fundamental and economic factors that affect a trader’s preferred currencies and their movements. Homework is an ongoing importance as traders need to be prepared to adapt to changing market conditions.
Part of this research process will be creating a trading plan. Including a method for evaluating any investments and determining the amount of risk that is required before taking any trades. Of course this is also something you would learn as you navigate through my site.
The best place for you to start is with my basics of Forex trading.
2. Take the Time to Find a Reputable Broker that you can trust
The Forex industry has much less oversight than other markets, so it is possible to end up doing business with a less than reputable Forex broker. Due to concerns about the safety of deposits and the overall integrity of a broker.
Forex traders should only open an account with a firm that is a member of its country of origin regulatory body and which a legitimate Forex broker should be registered to.
Traders should also research each broker’s account offerings, including leverage amounts, commissions and spreads, initial deposits, and account funding and withdrawal policies.
3. Make Use of a Practice Account
Nearly all trading platforms today come with a practice account. Sometimes these are called a simulated account or a demo account. These accounts will allow you to place hypothetical trades without a funded account.
How can you actually use this with Forex trading made easy?
Perhaps the most important benefit of a practice account is that it allows a trader to become adept at order-entry techniques.
Whilst using a demo trading account to practice, I do suggest once you have traded for a good 3-6 months of profitable trading on a demo account to then merge to a live Forex trading account.
4. Keeping Your Charts Clean And Tidy
Once a Forex trader has opened an account, it may be tempting to take advantage of all the technical analysis tools offered by the trading platform.
While many of these indicators are well suited to the Forex markets, it is important to remember to keep analysis techniques to a minimum in order for them to be effective.
In fact you can read more on Forex technical indicators in my latest Forex lesson, with “why I removed all indicators and why you should too”.
5. Protecting Your Trading Account
Why does this matter?
While there is much focus on making money in Forex trading, it is important to learn how to avoid losing money. Proper money management techniques are just as important to successful trading.
Once again within my site and with my Forex trading made easy tips I teach you how to protect your account with every trade you take.
You can check out my step-by-step process I took when starting out in trading with my Free Forex trading course for beginners.
Another part of protecting your account is knowing when to accept your losses and to move onto the next trade. Always using a protective stop loss is the most effective way to make sure that losses remain reasonable.
6. Always Start Small When Going Live
Once you have done your homework, spent time with a practice account and have a trading plan in place. It may be time to go live, with trading with real money at stake.
No amount of practice trading can exactly simulate real trading. So it is still important to start with a small trading capital when going live.
Bottom line?
Factors like emotions and slippage (the difference between the expected price of a trade and the price at which the trade is actually executed) cannot be fully understood and accounted for until trading live.
By starting small, you can then evaluate your trading plan and emotions, and gain more practice in executing precise order entries.
7. Use of Reasonable Leverage
Forex trading is unique in the amount of leverage that is offered to its traders.
One of the reasons Forex is so attractive is that traders have the opportunity to make potentially large profits with a very small investment.
When the leverage is properly used, it can provide potential growth. However, leverage can just as easily amplify losses.
8. Keeping Good Records
A trading journal is an effective way to learn from both losses and successes in Forex trading.
Keeping a record of trading activity containing dates, currency pairs traded. With using screenshots and in some cases video diary can help you grow into a successful trader.
Why does this matter?
When periodically reviewed, a trading journal provides important feedback that makes learning possible.
Without a trading journal and good record keeping, you are likely to continue making the same mistakes time after time.
9.Understanding Tax Laws
It is important to understand the tax implications and laws of your Forex trading activity in order to be prepared at end of year tax. Consulting with a qualified accountant or tax specialist can help avoid any surprises and can help individuals take advantage of various tax laws.
Since tax laws change regularly, it is prudent to develop a relationship with a trusted and reliable professional who can guide and manage all tax-related matters. For UK tax laws be visit here.
10. Treat Trading As a Business
What’s the real story with my Forex trading made easy step with treat trading as a business?
It is essential to treat Forex trading as a business and to remember that individual wins and losses don’t matter in the short run.
It is how the trading business performs over a longer term that is important.
You should try to avoid becoming overly emotional about either wins or losses, and treat each trade as just another day at the office. As with any business, Forex trading incurs expenses, losses, taxes, risk and uncertainty.
With now going through my Forex trading made easy steps, I suggest you take the next step of learning a solid trading strategy.
So with further ado check out my ultimate blueprint guide on a Forex swing trading strategy.
To find more of my Forex trading tips click here
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