The foreign exchange market or the forex market is considered to be the largest and most liquid financial market in the world in terms of regular turn over. The extremely volatility of this market makes it the most popular global financial market. Because of its high liquidity, everyone wants to trade in this market in order to make some more money. But trading in the forex market is not an easy task. They have to follow some steps in order to execute the trade. A novice trader should have a clear idea about the forex trading and he should open an account with a forex broker, who will help them trade forex in a profitable way. A forex calendar is an essential tool for trading forex. The trader should practice trade in a demo account before executing trade on a live platform. The forex market is not for the inexperienced person. So before trading in the forex you should follow the below discussed steps that are shared by https://www.easymarkets.com/eu/.
Know yourself and recognise the market: In order to make profit in the forex, you should recognise the market properly. And to do so, you first have to know and recognise yourself. Once you have gained self-awareness, you can be sure that the capital allocations to forex trading and the risk tolerance are neither excessive nor lacking. You should be confident enough to study carefully and analyse your own financial goal.
Make a plan and stick to it: If you have already made your mind to trade in the forex, a time frame must be included in your working plan for your trading. Know what success is and how can it be achieved. You need to have clear idea about the timeframe for the trial and error process that is an important part of your learning. Be sure about what you want to trade. Do you want to trade for financial independence, or you want to generate extra income? Before executing the trade, you need to be sure about all this. Before trading, make sure how much time you can devote to your trading.
Select your broker carefully: This is a major step for the novice traders to choose their brokers very carefully, as your profit or loss mainly depends on them. A fake or unreliable broker can ruin your money; on the other hand, a reliable honest broker can offer you a great profit. Before choosing the broker, you need to be sure if the broker is offering you a good platform or not. A good broker with a poor platform or a poor broker with a good platform can ruin your trading.
Start with a small amount: Once you have chosen your broker and practiced enough on the demo account, start trading on the real one with a small amount of money. This is mainly because if you lose the trade, you will lose less amount of money, and you will gather more experience.
I can also give some advice on how to become an expert in any professional field. Well, first you need to make a website where you will promise to people incredible results or you will tell them a professional secret and there you go – you got your audience. Further you call yourself an expert, rent an office and hire staff that will make you the recognizable expert. Bingo!
30 000 hours of making consistent profits, not blowing the account and not trading in your underwear...
Good brokers will introduce you to investors or the broker will directly invest with you in the form of a credit, good investors don't make direct investments with traders (there are some, but very few) and good traders don't beg for investors.
Your 'expert' level will be determined by your investors.
Yes, I think, probably I got too excited and gave instructions on how to become an expert in any field other than trading. 😁 I'm not really aware of how communication between traders, brokers, investors occurs, so I would like to know more about that. Is that a real actual practice?
Hero76 posted: Yes, I think, probably I got too excited and gave instructions on how to become an expert in any field other than trading. 😁 I'm not really aware of how communication between traders, brokers, investors occurs, so I would like to know more about that. Is that a real actual practice?
Some brokers (many actually), have partner programs. The programs aren't clearly defined on their websites and every broker differs, but anyone is welcome to inquire (I won't give broker names, as that would be biased). These range from the lowest 'partnership' in which the broker will provide credit (you are either fully liable for the credit or not) and earn a percentage or fixed price per x-pips profit (similar rules to 'introducing brokers' which is also a partner program), to providing the trader with a basket of managed accounts, to a full out brokerage (similar to a franchise, however you need the upfront capital - what they call the 'net capital rule' for regulation, you pay a fee to brokerage for dedicated server access, technical and business support, etc. you have to find your own clients, your clients are yours and your client issues and support for them rest on your shoulders.)
I did an inquiry on a few about 3 years ago, and I choked on my coffee when I heard the 'minimum requirements'... so don't get your hopes up (eg. most 'basket' managed traders also have multi-million US$ hedge funds they created themselves and also manage, and in many cases 'experience' in managing a hedge fund and providing audited [as in Pricewaterhouse type] results is the absolute minimum requirement.)
Forex market is the largest financial market and due to its high liquidity, everyone gets fascinated to make money in this market. But making money n this market is not so easy. To be an expert in forex market one has to follow some steps such as:-
Gain sufficient knowledge- try to understand every single aspect of forex market.
Clear your goal - Make up your mind whether you want to trade for a hobby or you want to be a professional trader.
Accept reality- Always have Realistic expectations regarding profit earning and accept reality that making profit will require patience and time.
Understand market psychology - Try to understand market psychology and reasons behind why it is reacting that way. Restrain your emotions- One can only succeed in forex market who have a control on his/her emotions and can act as a disciplined trader.
Practice in a demo account - Trading in a demo account will refine your trading skills and also you can test your trading strategy before applying it in a live account.
Develop a sound trading strategy- Develop a trading strategy depending upon your trading style and test it for sometimes in a demo account.
1. Be critical. Nobody really knows what's going on - still everybody wants you to listen them. Before taking trading advice from someone, check if he even has any success on his trading. (Yeah, shouldn't listen to me)
2. DONT stick to a certain strategy. You have to improve yourself - and your strategy. Although changing your stratedy surely leads to many failures and loss of money, its the only way to real success.
3. Don't lose more money than you have to. This doesn't only mean stop-losses, but also find a way to test your strategy without betting everything on it. Which brings me to my most valuable tip:
4. If you think you got the killer strategy, automate it. Find a coder, learn to code yourself or do it via visual builder (some are pretty sophisticated if you really learn them.) Example: 'Yeah ill take these x moving averages, then check those oscillators, trade some grid and boom I make millions' -> once you backtest it, you see the strategy is not worth wasting the money. I have tested many indicator-based strategies this way and they rarely work.
If you are going to test your strategy with automated ea, mt5 offers far better testing environment than mt4.
Well, acc to me becoming an expert and minting money in forex is not so difficult if you have the desired skills, ability and determination to do so. One should not waste time fooling around & trying diff types of systems, platforms, indicators or so. Rather, first learn basics, second understand how trading system works, third when you think you have got enough knowledge then open demo accounts and practice for atleast 1-2 months after that you should go for live trading.
If you set your goals properly & precisely, start trading step by step and follow the right track as explained above you can surely achieve your goals and become an expert in trading. I feel this is the closest way to learn and for becoming an expert in forex trading.
Hero76 posted: I can also give some advice on how to become an expert in any professional field. Well, first you need to make a website where you will promise to people incredible results or you will tell them a professional secret and there you go – you got your audience. Further you call yourself an expert, rent an office and hire staff that will make you the recognizable expert. Bingo!
unfortunately we see a lot of cases like that out there...
I've been learning all I can and practiced on demo for a year & half. I wanted to develop a strategy that works for me using as few indicators as possible. I ran 3 demo accounts into the ground before I was able to become profitable in demo for several months. I went live last week, and I feel optimistic. I met my goal for my first week. I'm hoping it will continue.
Steps: ===== 1.Study the forex market and mt4 usage 2.Find a system suitable for you 3.Backtest the system by strategy tester for at least 2 years of past data 4.Forward test the same system in demo account for 3 months 5.Forward test in cent real account for 3 months 6.Go for live trading in a standard account risking not more than 1% to 2 % per trade
Very good point about the webinars, indeed! I've attended several so far and it was very helpful. Also YouTube is full of videos and webinars 😄 I've heard about live trading rooms as well, but these are paid and I am not sure what would be the return on investment with them.
leo23 posted: Steps: ===== 1.Study the forex market and mt4 usage 2.Find a system suitable for you 3.Backtest the system by strategy tester for at least 2 years of past data 4.Forward test the same system in demo account for 3 months 5.Forward test in cent real account for 3 months 6.Go for live trading in a standard account risking not more than 1% to 2 % per trade
I would not limit it just to MT4. You advice is good and platform agnostic.
Nice observation! Really, new Forex traders should start with a small trading capital as, most of the new Forex traders crash their 1st deposit! In addition, in your learning session, you may get so many information’s but it’s not easy to absorb all of information’s, it takes time to absorb all of info! This is way, experience Forex traders can apply their trading knowledge perfectly here!