How to start trading forex

You can learn anything you need to learn to become who you want to become; Brian Tracy

This week, I have been thinking so deeply about how to start trading forex in the right way.

Like most novice traders, it is common to wonder if you are heading to the right direction or not.

Do you want to know how to start trading forex in the right way?

Yes!

Sit and relax pal, in this blog post, you will learn all you needed to know about how to start trading forex.

According to statistics, 90% of forex traders lose money.

While this is a fact, it is also true that Brian Tracy was right when he said “Your first discipline in learning a new skill is for you to resolve to get into the top 10% of everything you do”.

As you are preparing to become the top ten percent in this game and knowing that
You can learn anything you need to learn to become who you want to become, I prepared a no nonsense step by step guide to help you kickstart your journey in the right path to the top.

A lot of effort have gone into the creation of this masterpiece, if you find it really helpful, remember, sharing is caring.

1; Find out if forex trading is for you

Forex trading is tough, it needs tough people.

To succeed as a forex trader, you will have no option but to evolve to an expert trader.

As with most fully fledged professions, trading take as long as five to seven years to master.

In addition, you will still have to keep on learning and updating your skills.

The question is, are you willing to take up this challenge?

Are you strong enough?

Can you withstand the rude shock of losing trades, sometimes after a night of intensive analysis?

…and it’s a real account?

If you are a coward, you can as well back up your things and leave.

Bye cawardie!

But if you have the grid, then, you can make billions working from home doing what you love.

As you can see, everything is boiling down to emotional intelligence.

It’s all revolving around trading mindset. It’s your psychology, the mastery of fears and greed.

The bad news is that this is not possessed by everybody, the good news is, it is learnable.

My friend, listen to your heart, know yourself very well.

It is sayed that the Japanese recognize three types of powers. The power, of the sword, mirror and gold.

The power of the mirror is actually the power possessed by those who understand themselves well.

If you know that you don’t like reading a lot then, taking up speed reading courses to be able to do fundamental analysis supper first, may prove to be a no go zone to you.

Forex trading, as you have seen, involves a lot of chart reading, while you can bridge the above shortcomings by using technical analysis if you are poor in this area too, then you are doomed to failure before you start.

When faced by all this shortcomings, then, In this case, you are winning by quitting.

2; Welcome trading into your life

Are you still attentive?

Now, I want you to node your head three times; one, two, three. Good!

Those are enough claps for our departed friends.

You know what?

I respect them because they were strong enough to accept the reality and move on.

Some traders will never accept that this thing is not ment for them until they have lost everything including their trousers.

Haha!

Including their trousers!

That’s funny.

Now, let’s be serious, shall we?

The next step is to welcome trading into your life.

How do you do that?

As we just mentioned, forex trading is time and resourse consuming. At least in it’s formative stages.

For that reason, you may want to consider the following;

1; Why trade forex
2; Time for trading forex
3; The opportunity cost

You want to leave an organized life.

Right?

That’s why you want to fix this new found love into your life without distorting the existing order.

You want to know why you are getting in, is it as a side hustle, hedging, speculation or what? Be clear on that.

Also, when are you going to learn about forex? You need to consider that too.

Needles to say, what are the alternative forgone to trade forex?

Are you going to leave your 9-to-5 job to focus on forex trading or will you do it part time? Are you going to do it along other business or will you focus on it.

In short, welcoming trading into your life entails having the big picture in mind before you start.

By doing so, you avoid unnecessary clashes with your long term goals that may results to pressure and consequently failure.

3; learn the basics of currency trading

Forex trading is full of industry jargon. To make progress in this foreign land as a newbie, you will have to start by learning the local language.

The best way to do this is to buy a notebook and make detailed notes just the way you did in school.

With your well written and highlighted notes, your revision will be so simple.

As I told you earlier, operating in the top 10% is where the money is, and now you are learning a new profession.

Don’t move to the next vocabulary before you master the earlier.

I am a trained teacher and a gifted coach, when I tell you to go this way, expecially in matters education, consider doing so, it may form your tipping point.

4; Find a forex trading mentor.

Over the years, I have learned a very important lesson.

The fastest way to succeed in any business is to learn under a mentor. You have got to have someone holding your hand especially when you are still taking baby steps.

With a mastermind group, you will get your questions answered and your spirit empowered.

5; Formulate a trading strategy

Next, learn a simple strategy and master it in and out. This strategy will help you to enter the market and start earning income as soon as possible.

Once you have master the strategy, you can learn other strategies and adjust yours accordingly. But first, just focus on mastering one properly.

Your learning curve will grow exponentially because the power of compounding is at your disposal.

Therefore, don’t mind, just read atleast for one hour daily and in five years time, you will have mastered this niche.

Remember, the best way to learn is by doing.

Don’t wait to know everything to do anything. With your one strategy, learn on the go.

6; organize the trading capital

The first rule of thumb is to never trade with the money that you cannot afford to lose.

I want you to remember that this rule only holds when you are still learning. Once you know what you are doing, you can as well take up a loan and trade.

The best way to grow though is to start small and grow with time.

let no one deceive you, the amount of starting capital depend on your strategy and aims.

7; Write a business plan

I advice you to approach forex trading as a business.

This means that you should start with a business plan.

With a well detailed business plan. You will be able to overcome analysis paralysis, shiny object syndrome and identify your one metric that matters does growing your FX business without strain.

8; get connected to the internet

The next step is for you to get connected to the internet.

You want a cheap and a reliable way to always be able to access your broker and place orders.

The best way to do this in Kenya is to get connected to the faiba.

9; Find a broker

Brokers differ in trustworthiness and convenience.

If you get a niche wrong in blogging you are doomed to failure no matter what you do. The same is true for trading. If you land on an inappropriate broker, you shoot your foot before you make any step.

10; Open a demo account

The first thing to do in forex is to start with a demo account.

You should stay with a demo account until you have learn to place orders and have put your strategy on a test drive.

11; Open a real account

Once you are comfortable with a demo account, you can proceed to open a real account.

Start with a micro account or use 0.01 slots when placing your orders.

12; Fund the account

Add the minimum amount required by the broker to open an account.

13; Download a forex trading account

Download the metatrader 4 app into your phone for ease execution.

You want to place trades while you are anywhere in the world except your grave.

14; decide which currency to trade

15; Conduct market analysis

Experienced traders will never place a trade before they have done extensive research of the market.

To research the market, you have three tools at your disposal;

1;Fundamental analysis
2; Technical analysis
3; Sentimental analysis

Fundamental analysis is used to analyse the economic factors like interest rates, unemployment, inflation and other factors that influence the currencies concerned.

On the other hand, technical analysis has to do with the method of analysing the chart with the intent of predicting it’s next move.

Lastly, we have sentimental analysis, this is actually all about what’s on the news. If you are keen enough, geopolitical news will direct your decision towards the winning direction.

16; Analyze the chart

Open the chart and observe it’s dynamics

Most novice traders fail because they don’t give this step the seriousness that it deserve.

The monthly chart will give you the pig picture of the general overview performance of the graph.

The lower chart will confirm your findings. While the upper chart is where you are carrying out your technical analysis.

17; Enter your first trade
Decide to either buy or sell the pair.

The most important concept here is to calculate your risk/reward ratio.

Also, you need to know how to set your stop lose and take profits orders.

Important to note is the existence of trades that can be performed without setting the take profit or stop lose orders.

18; focus on one currency pair

When starting out, it is advisable to focus on one currency pair at a time.

Focus on crasping a pair then move on to a pair that has a positive and or negative correlation with it.

This way, you will master many pairs in a short time.

19; monitor your trades

Once you have placed your trades. It is now time to keep a close eye on them.

What specifically should you be watching?

If you are running multiple trades and you are using mostly scalping strategy, you will find that close monitoring of your account is the way to go.

This is called mechanical trading.

20; Don’t interfere with the trades

Just because you are watching your trades does not mean that you interfere with them.

Statistics has it that traders who are overcome by emotions and interfere with their trades will end up losing or making less profits as compared to their don’t touch counterparts.

21; Close the trades
You have manage to see your strategy through, that’s good.

Next, you have to close the trade.

When closing a trade, it is not a must that all your trades are positive.

Sometimes, you have to close with a negative and you are still winning. Well, that depends on your strategy.

As a matter of accuracy, I will suggest that you close your trades using the stop lose or take profit.

22; keep a trading journal

If you have ever run any farming venture like poultry farming or vegetables farming, you will agree with me that success is marginal if you are not keeping records.

This scenario is also true in forex trading. If you are not keeping a journal. You are doomed to failure.

A journal will help you to manage your account like a professional and to maximize the chances of making a kill.

23; Join a community of forex traders

Do you want to never get bored while working on your new venture?

Are you ready to make new like minded friends?

Now, I will show you how to achieve this so that you never feel like you are alone in this fight.

Find Facebook groups and join them. You will find fabulous groups dedicated to succeeding in forex.

Are you on quora?

If not, then you are missing on a tone of advantages.

Open a quora account, you can always ask questions that will be answered on the spot.

Conclusion
In this blog post, you have learned how to start trading forex in the the right way;

1; Find out if forex is for you
2; Welcome trading into your life
3; Learn the basics of currency trading
4; Find a forex trading mentor
5; Formulate a trading strategy
6; write a business plan
7; Organize the trading capital
8; get connected to the Internet
9; find a broker
10; Open a demo account
11; Open a real account
12; Fund the account
13; Download the trading platform
14; decide which currency to trade
15; conduct market analysis
16; Analyse the chart
17; Enter your first trade
18; Focus on one currency pair
19; Monitor your trades
20; Don’t interfere with the trades
21; Close the trades
22; keep a journal
23; Join a community of forex traders

If you have any question regarding our today’s lesson, feel free to drop it down here in the comments section.

Assignment
1; Make notes on today’s lesson
2; start a trading journal

Further reading;
1; what is forex trading and how does it work
2; Why trade forex?

In our next week’s post, we will be discussing; forex trading strategy to get you started.

I hope you enjoyed our today’s lesson as much as I did. Until next week, have a blessed day.

Shalom!

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