02. How to Start Forex Trading?

Forex Trading ain’t just some get-rich-quick scheme. Think of it like leveling up in a game: gotta learn the ropes, choose your strategy, and practice before going all-in. Buckle up, ’cause we’re about to spill the tea on how to start forex trading.

Let’s list down some of the basic things you will need to do-

  1. Learn Forex (Quite Obvious)
  2. Choosing a Good Broker ( Your BFF)
  3. Find a Good Trading Strategy
  4. Paper Trade in Demo 
  5. Fix Your Capital and Risk
  6. Avoid Beginner Mistakes

Sounds easy?– Now let’s dive deeper!

From Where to Start Forex Trading?

Learn Forex Trading

If you want to learn forex trading, you gotta go in with an open mind and commit to always learning if you want to secure the bag. There are a lot of terms and graphs to unpack if you wanna trade currencies without getting rekt. Therefore, before investing real money, it is strongly encouraged to take the time to properly prepare through research, demo trading, and working with a reputable broker and a mentor. Don’t get discouraged by losses (we all take them).

Choosing a Forex Broker

You will need a forex trading account at a brokerage to start forex currency market trading. Choosing a good forex broker is very important. While choosing a forex broker, compare them in terms of platform availability, regulatory compliance, fees, margin rates, and customer support. SureShotFX has researched for you, you can check out the Top 5 Forex Brokers for you to choose from. Once you have chosen the best forex trading broker that fits your needs, it’s pretty easy to register a forex account with them.

How to Open a Trading Account?

  • Provide your proper information on the broker registration site (name, address, tax ID, etc)
  • Fill out other information requested by the broker
  • Select your account leverage settings (For $100-200, your leverage should be 1:100, If it’s more than 200, choose 1:500)
    If you wish to know more about Leverage– check out Article 8 on this course.
  • Verify your identity by submitting proper documents for your passport/license or national ID, a copy of your utility bill or bank statement will also assist you in verifying your address. Additionally, you will need to submit financial and tax documents to comply according to your country’s laws & regulations.

“We would suggest you start with a demo account with your broker and after you have a good grab over everything, go live in a real account.”

Find a Good Trading Strategy

If you are one to research forex, be prepared to invest a lot of your time to learn about multiple trading strategies. Testing them out you could analyze the charts according to these trading strategies and get profitable trades out of them. It’s not like one trading strategy will be it. NO MATE!

You will need to try out several strategies and finally build your trading plan. Through your practice phase, you will learn to control your emotions, how to navigate through these strategies, which pairs to trade, and how to best manage your risk.

Paper Trade on Demo Account

As a beginner trader, you should always practice on a demo account. A demo Forex account lets you put your training into practice in a close-to real-life environment without putting real money at risk. This allows you to make common beginner’s errors while learning without having to pay for the consequences out of your pocket.

  • Treat It Like It’s Real. Stick to your trading strategy, and control your emotions like a pre–demo trading is an excellent way to develop your skills as a trader.
  • Experiment Like a Mad Scientist: Want to try out a scalping strategy? Or maybe day trading is your thing? Demo is how you determine what works best for you in various market conditions. Think of it as your trading playground!
  • Do not trade blindly; instead, use the demo account’s statistics to track your wins, losses, and overall performance.

Fix Your Capital & Risk

Fix the amount you would like to start forex trading. This amount should be the amount you are ready to invest and okay to risk. One of the most asked questions from all new forex traders is Can I start Forex trading 2024 with just $100?- Yes, you definitely can. Because, unlike any other investment opportunities, forex is a market for everyone.

Forex is a leveraged market where your initial investment can grow by 20/30 times and sometimes even a whooping 500 times when you take them. However, even if you have access to leverage of 1:500, trading with $100 in the forex market has its own set of challenges and restrictions. Most importantly, learn proper money management starting with $100. Real trading is different from a demo account. So, go slow and win consistently.

mistakes to avoid in forex

Mistakes to Avoid

In a nutshell, avoid trading with your emotions, avoid over-trading your account, avoid over-staying at your positions, avoid bad money management, and avoid risking what you cannot afford in Forex trading. Forex trading involves a lot of risks and traders are always advised to trade and learn at the same time. Become aware of common mistakes made by most Forex traders and set your own rules during trading in the FX market. Trade with discipline and always prepare to learn new concepts from others. Learn More.

To start online forex trading it’s essential to have the right training in risk management, technical and fundamental research, and disciplined trading. Rookie traders run a serious risk of suffering large losses if they don’t have a solid understanding of currency pairs, chart patterns, economic indicators, and other concepts. It is best to take your time and learn because there is a lifetime of opportunities.

This is what you learned today-

  • Basic steps to start forex trading
  • Choosing a good forex broker
  • How to open a trading account
  • How to start forex trading
  • Mistakes to avoid in forex trading

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Forex Free Course Quiz