How to Make Money by Trading Forex

Trading Forex can be scary, exciting, profitable and potentially costly if done incorrectly. Here are some tips and tricks that will help anyone trade Forex like a pro.

Instructions

Step1

Select a firm you want to trade with. When you are selecting a Forex trading firm, check the commissions they charge, the spreads they give, the amount of money that is needed to open a account and their requirements for depositing and withdrawing money.

Step2

Set up a Demo Trading account. Demo trading is basically paper trading or fake trading. Most firms allow you to set this up with only a email. Install the software platform and your ready to go.

Step3

Practice makes perfect. Trade and trade. Experiment, with new things and new ideas. Random guess, big risks, small risks and find out what works and what doesn't. REMEMBER this is fake and its better to make mistakes here than when trading with real money.

Step4

Learn to love stop and limits. Stops are predetermined cancellation orders. At the beginning of a trade tell yourself how much are you willing to lose and then set you cancel order. Also, Limits are cancel orders when you take profits. Don't get greedy. Tell yourself ahead of time where you want to take your profits at and stick with it.

Step5

Open micro or mini account. Once you've perfected your trading style. open a micro or mini account. Most good firms offer this and you can trade real money for as little as $10. This is key, because making the transition for fake trading to real, can be emotional disturbing for some. Plus, this gives you a chance to see the firm in action for real.

Step6

When your ready, progress to a full account. This step can take months for some or days or weeks for others. If at any time you feel your firm isn't performing at acceptable levels, go back to step 1 and start again.