| The following is the exact road map of how to | | | | Reading through the forums and trying different |
| become a Forex trader, a successful one. Let's see | | | | trading strategies, indirectly you will start learning |
| how. | | | | technical analysis which is the study of price action |
| To start with, forget the junk you may have read so | | | | for the currency pair that you are trading. |
| far. For sure you have heard that you can make a | | | | There is quite a lot to learn on technical analysis and |
| very good supplementary or even full time income | | | | learning is the main key to become a successful |
| trading the Forex Market. | | | | trader. The study of pivot points, trend lines, reversal |
| However, unlike what is promised in each and every | | | | chart patterns for candlesticks and bars and the use |
| product that is released nearly every day, the | | | | of traditional indicators are just a taste of what you |
| expectations are most of the time super | | | | have to learn. |
| exaggerated. You can make money consistently but | | | | In the mean time keep demo trading the trading |
| it is not as easy as one two three. If this is the case | | | | systems that you are comfortable with and keep |
| then there will be no Forex market at all! | | | | learning! When you are consistently profitable and |
| It is imperative that you learn the basics of Forex | | | | you have full confidence in the trading systems that |
| Trading. Yes, education is the key. Before you start | | | | you are trading then move on to the next phase. |
| trading you need to learn the basics of Forex trading. | | | | This step may take you months to go through. |
| You have to learn the overall mechanics of the | | | | Just to make this clear, if you are profitable in a |
| market, the terminology used and lots of other | | | | demo account you should have an efficient money |
| important things that you need to know and | | | | management strategy in place, you are disciplined and |
| understand. | | | | you strictly obey the trading system rules. Money |
| Your next step then is to open a demo account with | | | | management and discipline are extremely important |
| any broker that you like. At this stage the reliability | | | | to become a successful trader together with some |
| of the broker is not important since we will only be | | | | simple but profitable trading systems. |
| practicing with demo accounts with no real money. | | | | Now it is time to search for an honest reliable broker |
| You have to learn how to use the trading platform | | | | and open a live account. Start small and only deposit |
| (Metatrader 4 being the simplest to master). | | | | money that you can afford to lose. |
| Doing so you will also consolidate most of what you | | | | Is it time to start making real money now? |
| have learnt in the basic training, like for example | | | | Unfortunately you have the last enemy to beat - |
| different order types, pip values, stop losses, market | | | | your mind! Hopefully now you realize why I said - |
| behavior during different times of the day and lots of | | | | "When you are consistently profitable...". Now you will |
| other things. This is in fact a very crucial part to learn | | | | be trading live with your own money, and here your |
| and understand how things from theory are seen in | | | | mind can play dirty tricks. |
| practice. | | | | You may be afraid to enter a trade, or you will not |
| At this stage, refrain from opening a live account for | | | | have the courage to close a trade with a loss, or you |
| the time being. It will be very tempting to open a live | | | | get greedy and many other things. The worst thing |
| account and start trading with real money especially | | | | that can happen is that when you start trading live, |
| if while playing around with your demo account you | | | | the system goes through a losing run. |
| managed to pull out some profits. Please do not | | | | If you do not have confidence in the trading system, |
| waste your money since there is still a lot to learn. | | | | you quit trading or search for another trading system. |
| Entering a trade where the decision is based solely on | | | | This is exactly what many traders do. They keep |
| gut feeling and where your trades are not planned | | | | looking for the perfect system and no perfect |
| ahead it is simply the best way to ruin your account. | | | | system exists. This is why we have money |
| What we mean by a trading plan? It simply means | | | | management and discipline in place. These safeguard |
| that we have clear exit points for our trade | | | | us traders when things go wrong. |
| irrespective if the market went in favor or against us. | | | | On the other hand, if you have confidence in the |
| Now it is the right time to search for some basic | | | | trading system, you know that this is a rough patch |
| trading systems. For example in popular Forex forums | | | | and profits are just round the corner. You know this |
| you will find a lot of profitable trading systems. A lot | | | | because you were patient and demoed the system |
| of people post trading systems with results and clear | | | | for months! You should appreciate now why demo |
| entry and exit rules. Then just apply and trade them | | | | trading is important and it is the main reason why |
| in your demo trading account. | | | | many traders lose money and others make money! |
| Practicing at this stage these trading systems makes | | | | Learn, build confidence in the trading systems and |
| you experience the behavior of the market. It is also | | | | take all the time you need since the Forex Market is |
| recommended to stick to one or two currency pairs | | | | here to stay. Once you go through this route map |
| since every currency pair has its own personality | | | | just provided, you have just built an online ATM |
| hence different behavior. EUR/USD is the best | | | | machine with infinite money in it. Trust me, this is |
| currency to start with. | | | | how you can become a successful trader. |