5 Easy Steps to Becoming a Forex Trader

Becoming a forex trader involves a lot of processes that may intimidate newcomers.  This is why we’ve created this simple-to-follow article that explains how anyone can become a forex trader in 5 simple steps.

1) Knowledge: Research About The Trade

Before anything else, a prospective trader must first do his or her research. You cannot go into a business which you don’t know anything about. First, you must learn the basics of the trade, the forex market, the different factors involved in it such as leverage, margin, spreads, exchange rates, etc. There are a lot of free online tutorials for this. Once you've got the basics down, then you can move on to actual trading to make profits.

2) Resources: Gather Trading Capital

Just like in any business venture, becoming a forex broker will need a capital. Of course, you will be undertaking risks in order to succeed in the market. You will need the money to get you a decent trading platform, an account with the broker, and the capital itself to start trading. The average cost for a trader to be able to open account is 300$ and $1000-$2000 as the initial capital. This might sound a bit expensive, it’s actually cheaper than other markets. The surplus of money acts as buffer in case of initial losses.

3) Tools: Find a Broker

Now that your have the knowledge and the resources, it’s time to use them to find the broker suited to you. There is no immediate commitment when it comes to brokers. You can go ahead and visit broker review sites and you can actually try and test them out by using demo accounts. What you must remember is to find one that has good ratings, has a comfortable trading platform, and has reasonable prices.

4) Practice: Get Used to the Trading Platform

Now that you’ve chosen your broker, it’s time to hone your trading skills. Trade as often as you can without risking too much. It helps if you go to trading forums, preferable the trading forum of your broker or your trading platform. Here, you’ll get to learn more by experience. Also, you can do a lot more research and include the more complex lessons such as trading strategies and other theories that involve forex tradings. Learn from experience and from schooling yourself and listening to other traders.

5) Earn: Trade and Profit

You are now ready to make trading a professional living. Keep your trading decisions level-headed and always trade with caution. Once you get the hang of it, you’ll be earning constantly. After that, it’s just a matter of expanding your portfolio and growing your money. If all else fails, you can always get professional help through financial advisors.