Forex or foreign exchange is the practice of exchanging currencies based on how well or poor economies are doing against each other. How forex traders make money is from exchanging currencies is the difference in interest rates. In the currency markets one can open a buy or sell position better known as a long or short position. Many may tell you anyone can trade this market profitably. Well to be honest forex isn’t for everyone. If you’re afraid of crypto, this isn’t for you. Forex and crypto have similar volatility you can lose a lot fast. If you’re looking for a get rich quick scheme, this isn’t for you. This skill of trading is like any other skill, It takes time to learn. For some a lot of time, others may get it a bit quicker. Cant rush the process all you can do is learning everything you can about the market and yourself. No-one can tell you your tolerance to drawback back or loss. But at the same time if forex isn’t for you, it just isn’t for you it is what it is. If you can rep your mind around the concepts of foreign exchange stick with it and don’t give up.

I’m here to tell you how you maybe able to get yourself started in the forex market. I can’t guarantee anything anything, no-one on YouTube can either. So before we really get into this I’m a real trader. I actually look to be a professional, so don’t expect any crazy Jeremy Cash $100 a day strategies or anything like that. It takes a large investment to maintain these crazy percentage gains you typically hear about. Realistically if you maintain a 1% daily gain on your account you’re doing amazing. That’s a realistic growth rate you could possibly aim for daily. Another thing if you think you can put $500 in your account and flip it everyday. You’re going to have a rude awakening when you actually enter the market without proper education. In this market you can lose everything in the matter of seconds, without the right education. As a trader your goal is longevity and greed usually kills that.

Now that I’m done explaining and ranting, lets get to the first step I think would help you on your forex journey. First and foremost you should understand how to open a position. A lot of the basics as far as this goes can be found on YouTube by simply searching up how to use your personal brokerage. If not instructed on the actual brokerage site. Other then that the main thing you need to know about opening a position is position sizing in the forex market. In foreign exchange position size is determined by what’s called a lot size. For example a lot size of 0.01 or penny/micro lot would mean your position will move around $0.10 a pip. The best way to learn about lot sizes would be and My advice is to get an understanding of lot sizes and open up a demo account. To see how your lot size effects the size of your trade. Now when you open this account it may be a $100,000 account, that’s kool for now  just for this purpose but when it’s time to use your demo for practice that amount of capital is to much. Once you have an understanding of simple concepts like lot size it’s time to open up another demo account or adjust your current one. Best to set your capital amouont to something atleast close to what you’re planning on starting with. If you’re starting your live account with $100 then you should be starting your demo account with $100 so it’s more realistic. Of course you may make some money on a $100,000 account, but your not starting with a $100,000 live account so practicing on one isn’t going to help. As you’re trading pay close attention to your emotions this will be a big part of your trading plan. I recommend trading first then making a trading plan. Here’s why, the only way to understand how you will handle the market personally is by trading. This process could take along time or it could be fairly short. It all depends on the person and how they handle the market. Either way it goes this personal information can be directly correlated to your trading plan. Your trading plan is the next step I suggest. A trading plan is your personal way you plan to approach the market. All of the previous aspects we spokes of an more will be in your trading plan. A trading plan is like a business plan because trading is a business. It’s not a get rich quick scheme, so the importance of your trading plan is significant.

One of the most important parts of your trading plan is risk management. “What is risk management”, you may ask. I’ll happily tell you. Risk management is the practice that’ll make it so your account can survive the harsh conditions of the market. Your business plan or trading plan as us traders call it can consist of many aspects. I will explain some of the most important ones. You can also get a deeper more detailed explanation of a trading plan and what one may consist of on or through a simple google search. Here’s a bit of a list of a couple aspects you could add to your trading plan.

Risk management plan: How much money are you planning risking per trade/day.

-Trading schedule: What times and days will you be on the charts. The foreign exchange market is open 24 hours a day 5 days a week. The market opens Sunday 6 p.m. eastern pacific time and closes Friday 5 p.m. eastern time. This gives a wide variety of time periods to be active in the market. You can convert these mentioned times to the corresponding time in your location using forex time converter.

Trading psychology: If your on a losing streak how will you handle it? If you’re on how will you handle it? If you dont see your set up how will you handle it and so fourth. Emotion or trading psychology is the biggest reason why you may lose or make money. Trade psychology can make or brake you, bad trading psychology can make a good trade bad and make a bad trade worse. You’ll need to practice until you’re robotic.

Your trading tools: What tools will you use while on the charts? Rather it’s price action, indicators or both make sure to have a clear understanding of how your tools work.

-Fundamental outlook: How are you going to keep track of the news. A lot of brokerages offer on the spot news stories on their platforms. You could also listen and watch things like bloomberge or cnbc economic news. It’s also a lot of websites like which also has an phone app.

Pairing you’re trading: As a beginner you shouldn’t be focusing on a whole bunch of different pairings. I would recommend studying 1-3 pairings, makes it to track economic news about your pairing/s.

-Confluences for your pairing/s: This may seem like something that could have be added to the trading tools section but this is quite different. What a confluence is, is a different asset that moves with or against your pairing/s. For example if you’re trading usd/cad maybe having the us dollar index chart up and a gold chart may help you make your decision. The us dollar index can tell you the growth of the us economy. Gold usually move opposite of the dollar, when money is pushed into equities heavily the dollar index goes up as well as commodities like gold usually go down. In turn likely pushing the us dollar pairings where ever dollar us dollar index goes. Along with that most confluences can be trading along with your pairing/s.

-Brokerage: You don’t want to deal with a shady brokerage. Brokerages that are unregulated could get you for your hard earn capital and no one can do anything about it because you chose to deal with an unregulated brokerage. Along with having illegal leverage for American customers any thing over 1:100 leverage is illegal on us soil, meaning that American citizens could get in trouble for using these brokerages. You should only use regulated brokerages especially if you’re in the US. Some great brokerages you could us are and TDameritrade. It’s others you could also use just always make sure to diligently research these brokerages before you give them your personal information and your capital.

Next I want to go deeper into risk management. Risk management is the practice of applying sensible parameters to lower risk or the amount of money you may lose while trading. One of the most important aspects of trading is risk management, risk management is also one of the most important parts in your trading plan. Early in your journey you’ll see the importance of risk management. Risk management can include a lot of simple aspects we’ve discussed here on this site and more. Here is a couple of things that can be in your risk management plan, where are you going to place your stop loss (SL) and take profit (tp). Your margin requirements, how many losses you’re willing to take, when should you stop trading did you make your goals for the day. Just a couple of examples for you to get a little bit of an understanding of what risk management may look like for you. Before we go to our next and last subject we’ll be speaking about in this article I want to say a bit more about take profits and stop losses. A stop loss is a great way to get you out the market when or if it turns against you. You should always trade with a stop loss because you never know what the market may do believe me I’ve seen a couple wild reversals that seem like they shouldn’t have happen, but that’s the purpose of a stop loss and risk management plan. You don’t have to necessarily set a take profit but I would recommend you to. A take profit can be the reason why you got out the market with profits versus seeing profits for a couple minutes and losses all that profit just to result in a losing trade. We as can’t control the market and sometimes it moves faster then we can catch it that’s where your tp and sl come in handy. I also want to go deeper into margin. Mainly because this is something you should a have at least a decent understanding of if you’re going to be actively trading the forex market. Margin is determined by your lot size, for example is your using a 0.01 lot size you’ll be using around $20 in margin what that means is you have to be able to maintain that amount of money in your account to keep the position open and have more then that to open another trade. The amount of margin along with your lot size may be different for different pairings because when you open a position it’s likely in a different currency that then has to be converted to the currency your using in your account. Conversion rates will likely be different for different countries compared to yours. Don’t worry this is automatically done by the brokerage so you don’t have to worry about conversion rates aside from trying to collect dividends off of your position. I’ll go into how you could collect dividends off holding a position in the foreign exchange market in a future article. Main point is you don’t want to be on the bad end of margin if your positions runs over margin requirements they’ll be automatically liquidated. This is known as a margin call, pay attention to your margin and don’t let margin have to call you.

The last aspect I want to mention in this article is trading psychology. Trading psychology can push you to blow your account or cause you to put yourself in a loop of loses. Stick to your trading plan and learn about yourself and the market. Only you know how you will react to lose or draw back when it happens, because it will and you need to be mentally ready to take it and keep going. The market will beat you down if you’re not prepared and humble a smart ass. Don’t come in the game expecting to get rich quick and that’s not what this is, and coming into the game with that mind set may result in bad trading psychology before you even learn how to trade. Take your time and learn the market. Things may start off shaky but as you learn more you’ll grow in confidence and you’ll begin to see your studying come in to play and start getting gain.

I’ll leave you guys with a couple words to take with you and be sure to come back for more details on everyone one of these aspects in their own articles. Learn as much as you can about the market and yourself. Don’t listen to crazy YouTube strategies, your more likely to blow your account to blow your account using these strategies along with putting yourself of a string of blowing accounts. Don’t deal with I.M. Academy traders they’re only trying to get a new recruit new people. They’re known to lye about their mentor and make things seem like flowers and daisy when in all reality none one in the group that’s supposed to teach you how to trade actually know how to trade. With this being said always be diligent with your research in the financial world. It’s a lot of people out here that want to get over on you so make sure to always always always due diligent on any and everything before you put your capital into it. That’s for any brokerage, YouTube channel, MLM or anything else that has to do with forex or finance period. Laziness will get you got, DON’T GET GOT do proper research. I hope this article shines a bit of light on some of the beginning steps to start your trading journey. Feel free to add and message me on my Facebook page Talkativereader facebook page. I would love to hear feed back from my readers on my articles so I could give you guys the best readings possible.






















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