How to Learn Forex Trading
There is not short cut when you immerse yourself in the Global World of financial trading.
It needs determination, skill and resilience. But all these are acquirable traits.
Here is our take.
- Demo Practice Account. Learn the technical of using the software and the markets your are in. This includes margin calculation, different markets, Forex vs CFDs. This should not be confused to learning how to trade, its not. Its simply the basics 101 and also knowing the definitions of terms so that you can start learning how to trade.
- Still On Demo, start with market observation. Observe repetitive patterns and a rhythm you can adapt. Listen and learn from fundamental and technicals analysis. Try and have and informed decision for asset direction ie. A buy a Sell or No trade. Then come back and qualify these decisions after the market has proven you right or wrong. Repeat Repeat Repeat.
- Create a Trading Plan. Follow it to the letter. It must have a quantifiable unambiguous trading schedule that specifies the Pairs to trade, conditions for entry, the time frame. But most importantly, a plan of action if your right or if your are wrong. Back test and Improve. Try it out and stretch it to its limits, the target here is perfection, even though you wont achieve it. You cant control the Market but you should have your reaction documented before hand.
- Go live. Start humble at first until you feel you are in control. Start with the minimum available lot size of 0.01… Once your strategy survives the Live Stress Test, you can adjust your lot sizes to your liking.
- Be in the know. Always have a news feed feed or a way to access Fundamental news. You only need one reliable Financial Market Media feed.
- Most Importantly, Measure your Risk.
For every trade you make, ask yourself how much you are risking. From this logic, No Stop Loss means you are risking your whole account. Period.