How do I become a currency trader?
Step 1: Start reading trading books. Please see our advice in our article Can Forex Trading be Self Taught? Please try to read the most important trading book “Technical Analysis” by John Murphy.
Step 2: Try to understand risk. Anybody with a small amount of money and patience may turn into a Forex trader. You need time and skill to turn into a profitable or successful trader. As a new forex trader, you should focus on restricting losses and spotting trade setups that have positive risks. In the face of the ease to get into the Forex trade, there are some measures you should take. Hurried entry into Forex business may lead to losses very quickly. Let’s find out how to become a Forex trader. Read everything about an absolute and maximum drawdown in portfolio
Then try to read our article Can You Make a Living Trading Forex and see the risk table.
Step 3: Choose a broker and than open account with reputable broker.
How much trading capital you need?
Forex traders would not require to have a big capital for trading because they can do trading on margin. An ordinary Forex broker needs a minimum of $100 to activate an account to start trading. The golden rule to become a Forex trader is to start with at least $500 to activate the mini account. However, this number may sound a bit higher for the beginners, but that will let you work like a safeguard in the cases of loss. If you are not looking for risk, the big amount will ensure that you are not forced to exit the trade.
Why $500 is the minimum amount. If you trade micro-lots and risk $5 per position (50 pips on 1 micro lot position size) it is a 1% risk for your portfolio. 1%-2% risk is the maximum risk for new traders (and good traders as well).
What qualifications do you need to be a forex trader?
You do not need qualifications to manage your own money. Incorporate finance, you need to have a license (learn about FINRA certificate). So, do you need a license to trade forex – No if you trade your own money or PAMM or MAMM accounts. If you work in the company as a trader – some companies will ask you to have a licence.
Using the Demo Account
The Forex trade demo account works on fictitious money. It is connected to the live market. Trades may be located in actual time and can represent what could be a true loss. Before you spend on his line, you will require some basics practices. A demo account can give you this practice of trading without any pressure of being right all the time.
How to practice forex trading with fictitious money?
Before you start practicing, you will need to learn a few Forex trading strategies and advice from trading books. As a Forex trader, you may require to develop trading ideas. However, in the beginning, it may help you to get some directions from professionals and it is important to read as much as you can. Forex trading may be very discouraging in the initial days. That’s why you may need some guidance and advice from an expert Forex trader.
Starting the actual trade
Before you really start Forex trading and earn money in Forex trade, you should be capable of profitable trade in your demo trading. The track record of profitable earning should be of a couple of weeks, a minimum of three months, though a period of six months is the best.
Look, if you are on the right track
After the practice of a few months, a little bit of training, some education about Forex trade, and becoming a consistently profitable trader, it is the time to enter the world of live Forex trading. You will find that it is a little bit different than the demo trading. However, if you continue to like the practice you did to become a profitable trader in your demo account trading you will find success in Forex trading.
How to be a professional forex trader?
If you have funds above $100 000 you can start living as a professional trader. Then you can quit your job and live from the profit of your trades. This is my personal opinion.
Final thoughts
The Forex market offers you the scope to trade round the clock. Additionally, the capital to start trading is significantly low. You can decide how much money you want to trade.
Now, you can learn how to begin trading in the Forex market with these easy tips and you’re well on the way to having a successful Forex trading business.
Fxigor