I had read a blog post a while back (don’t remember the blog) part of which explained how the author was earning a part time income with forex trading. Although I did not take any action according to the newly triggered enthusiasm then, I was fortunate enough to have myself reminded about forex once again by a friend of mine recently. Coincidence? May be…
Since then I have been glued to several forex related sites and gained some invaluable knowledge about forex trading. A statement that I heard time and time again was that, ‘without discipline you are doomed to fail in forex’. It couldn’t be more precise in what it means. You may have the best system in the world and still fail if you don’t have the discipline to follow the rules.
Few things I did before I started trading live…
- Learn the trade inside out (Theoretically to start with). There is no other site better than babypips.com for this purpose.
- Determine my trading style using a demo account with etoro. I tried several time frames with several methods before I found the time frame I’m comfortable with. I found out a 5 min chart was too fast for me and 1hr chart was too slow. So I stuck with the 15 min chart.
- Play around with the demo account for few weeks with one or two indicator combinations.
- Learn the importance of being disciplined practically(on demo accounts).
- Keep up to date with the developments and capabilities of different methods and platforms in the market. e.g. Learning about Meta Trader 4 platform (MT4) and how to use it.
- Finding the best broker to suit my needs and selecting few specific instruments to trade.
- Learn about forex expert advisors (although I don’t use EA’s at the moment) and forex automated trading.
- Join some forex forums and collaborate with the forex community.
These are some of the basic stuff I did before I started a live account with FXopen. Currently I’m trading live with a micro account and managed few profitable trades along with the odd trade losing.
But I stay in profit solely because of the steps I’d taken before I started trading live. Big thanks goes to babypips.com
Hi,
Thank you for a great post. I have just started a new Swedish blog and am going to write about similar subjects as well as Forex basics.
hxxp://www.forex-trading-strategies.net/forex-abc/
It is also sometimes a great option to use a forex indicator or a forex robot. They can help a beginner a lot.
There are many people doing well in forex trading, but thay spend most of the day to study well the systems. Forex is not a matter of luck. You need a lot of analysis to make money with this trading.
Hey all,
Have you heard of automated trading by real expert signals? If not go to hxxp://bit.ly/cKRNuS
It’s a free service, a brilliant idea.