How to Trade Forex Successfully for Beginners
This is a common question – “How to Trade Forex Successfully for Beginners.” Well quite honestly, if you are just starting out in trading Forex, our answer might not be something you want to hear. You have to start losing some money first before you turn profitable. In our years of trading, it’s very (with capital VERY) rare for us to see a brand new beginner trader having a profitable 1st year. Sure there might be some who makes some profitable trades in the first few months but over the course of 1 year, we just don’t see many newbies who can report a profitable 1st year. In fact, breaking even or not losing money for the 1st year of trading is excellent result.
How to Trade Forex Successfully for Beginners – It’s Easy When You Have Been Trained
We say this not to demotivate you but instead throw caution so that you won’t make the same mistake as we did. Many times too many products or even seminars make it look too easy to make money in Forex Trading. Well, it’s is easy when you know what you are doing.
Just the other day, one of my room doors got stuck and I could not open the door and could not find the keys. I tried to open the door for 2 hours using all sorts of tools and along the way, I even make a few bad scratches on the door and all sorts of loud banging noise. I finally gave up and decided to call the locksmith to help out. The locksmith arrived and within 3 minutes, he unlocked the door cleanly without making scratch. While I was not trained as a locksmith, it’s tough for me and I made a mess of the door. For the trained locksmith, it was a piece of cake. I am sure you can provide many examples as well…
Forex Trading is the same way. It’s easy when you know what to do when you are trained and with experience. Training you can get but it’s the experience that you need to make sure that you stay successful for the long run. There’s literally 101 ways for you to lose money in Forex Trading. The key to your learning is to make plenty of mistakes but learn from your mistakes. That’s the best way to learn. It takes dedication and determination to succeed in this Forex (and in Business). Making plenty of mistake is good way to accelerate the learning curve but do it smart by taking advantage of demo accounts. You probably will blow up a few demo accounts but that’s alright because you don’t lose anything since it’s all virtual money. How to trade Forex successfully for beginners – make plenty of mistakes and learn from it and while making mistakes make sure it does not cost you anything.
96% of All Trader Lose Money – What can you do about it?
As a beginner, you have the odds stacked against you. 96% of all traders lose money…and that includes traders who might have already been trading for years. So what’s the chance you will make it as a newbie Forex Trader? Yep… chances are slim and low. Forex is a huge marketplace where so many people and companies are trading but very few actually succeed in the long run. Just like anything else in life, if you want to be successful in Forex Trading, you just have to learn more about Forex, the market, and your trading tools. Choose a strategy and be a master at it. Even if you are just a master of one strategy, you are going to crush it in Forex.
So here’s the process you will need to go through in order to be successful in Forex even if you are a beginner.
How to Trade Forex Successfully for Beginners – Simple Steps…
1) Get the right trading education and be determined to finish the course. You have to put in the effort and be willing to learn like you take on your first job. We recommend this trading course as it covers Forex and Options and it’s extremely detail. Click here to learn more
2) Only trade with a demo account no matter how tempting it might be to start trading with real money. To open a demo account, use the best broker out there and set your account size to exactly what you will start. If you plan to start trading with a $10,000 trading capital, then start a demo with a $10,000 trading balance. If you plan to start with $5000, then the demo should start with $5000. You want to be as realistic as possible. Click here to check out our broker review.
3) Using the strategies from your course in Step 1, find a strategy that you like and be a master of the strategy and start making at least one trade per day in your demo account. Write and note somewhere why you decide on a trade. When you win a trade, you must understand why you won. When you lose a trade, you also need to know why you lost and make necessary adjustments to your strategy. The key is to have a set of rules that you use and follow each time you trade so that you have a learning structure that you can use and refine.
4) Calculate your Profit and Loss every month and Continue trading on the demo for at least 6 months, preferably 1 year. If you have been consistently profitable every month then it’s time to consider going on live account. If not, continue working on your demo account. Remember, this is a life long skill and career path that requires practice – much like a surgeon requiring 10 years of training before going live. So take your time. If you rush, you might end your own trading career before you even get started.
5) No matter how experienced you are in trading, you should not take leverage of more than 400:1. Preferably stick to 200:1 leverage. The goal is not to get rick overnight but to build on something sustainable. If you can do that, you will be financially well for years to come.
6) Do not risk more than 2% of your portfolio on any trade no matter how good it looks. To do that you really should know your entry price, Take Profit price and also your stop loss price even before entering into any trade. Our course explains this in clear details. And if you like you can also join our Signals Club, Profit by Friday, where we provide daily signals with clear entry price, exit price, and stop loss price even before we enter into any position so that you know how to calculate your risk.
How to trade Forex Successfully for Beginners
– It’s really a Choice and a Decision!
There are probably many more things that we can write to provide further guidance. However, in a nutshell, if you can just do the above and stick to it, we are sure you will be sharing your success story with us in 1 year. The BIG BIG question is… Are you able and willing to invest time, effort, and dedication to be a Forex practitioner?
We hope you can. You just have to decide that this is the road to take and stick to it… not jumping from one opportunity to another. There is SIMPLY NO shortcut.
If you have other suggestions on how we can make this “How to Trade Forex Successfully for Beginners” guide better, please leave a message or comment below.
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