A Beginner's Guide to Foreign Currency Trading
Author:Juvelyn Clark
Foreign Currency trading offers many rewards and advantages that many people are looking for. Everyone has heard of trading on the Forex and time after time it is all success stories. What no one ever hears about though are the failures; roughly 90of all people who start foreign currency trading end up losing their initial investments.
Of course, before you can even think of trading, you need to educate yourself. You will need to take the time to learn more about the Forex market and how trading is done. Learn how to read the charts and how to find trends in the currencies. Once you have learned a fair bit, it is time to open up an account with a broker.
We are not talking about opening up a live account at first, because everyone needs to start off with a demo account. Be very leery about any broker who promises you profits and make sure that the broker you choose is also regulated. While not being entirely illegal, there are a fair number of unregulated brokers and many of them have unscrupulous practices designed to separate you from your money.
The Forex market is a very risky venture and any broker who tells you otherwise is not to be trusted.
Once you have selected a broker and have opened up your demo account, start practicing all that you have learned about the Forex market. Take this time to learn even more about trading successfully and while you are at it, find out what type of trader you are as this will affect how you trade and what brokers are right for you.
Knowing what type of trader you are will help you narrow down your choices of brokers to open a live account with. Using all that you have learned and practiced thanks to the demo account, you are ready to move into trading real money.
Remember though, you are competing against professionals and if you want to become a great Forex trader yourself someday, then you need to start thinking and trading like one. This means not using all of those signaling programs and techniques you find plastered all over the internet. It means that you need to learn how to analyze the market and make well-informed decisions regarding your trades.
Try to stay away from margin accounts no matter how lucrative they appear and remember that more leverage is not always better. Your goal should be to reduce your exposure to the many risks associated with trading on the Forex market and to do so, this means limited leverage and no margin trading.
Above all, education is the key and just because you are already trading does not mean that education should stop. The pros are constantly studying new angles of the Forex market and you should too.
Article Source: http://www.articlesbase.com/currency-trading-articles/a-beginners-guide-to-foreign-currency-trading-2861021.html
About the Author
For more in-depth information that will help you become a professional trader, stop by Forex Brokers Direct.
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