Not everyone should trade Forex… but anyone can learn to trade Forex.
First off trading Forex or any other commodity isn’t easy, just as being a Surgeon, Lawyer or a Plumber isn’t easy but with study and practice and dedication it is very achievable. Profitable Forex trading is possibly even easier for the person with little or no experience just because they don’t have the habits of an experienced trader. Forex trading for beginners is easily learned by utilizing a quality Forex trading course.
The question is DO YOU have the desire and drive to become excellent at something you really desire to do in life. If the answer is yes then Forex trading can be very rewarding, financially and psychologically. The market is so open and fluid that it can be traded on a part-time or full time basis. Study, practice and patience are the key, there are some excellent home study courses that allow you to learn by watching videos that you can watch and re-watch until you firmly grasp the concepts and strategies.
Many Forex Brokers will provide you with a free live real time practice account (also called Forex demo account) that allows you to risk no money while you learn the system, learn the concepts, practice trading and gain the confidence you need to be successful. Again it’s imperative that you take the time and effort to learn before you fund a live trading account and begin to trade. Many people have tried to jump right in and try to make a killing in the Forex market without taking the time to set a good foundation with knowledge and practice and have lost all of the money in their account.
With that being said it is very possible to make a fantastic income trading the currency markets and YOU can do it if you have the discipline and patience required. Just like the Surgeon that takes a lot of time looking at the x-rays and other diagnosis before making the incision a trader has to carefully study the charts with indicators and plan his trade, he or she must have the patience to allow the trade to develop, make sure the confirmation signal happens before you initiate the trade.
With time and practice your skill levels will increase to the point where the signals become very clear and concise you can act without hesitation for a great gain whether the gain is made in minutes, hours or days that depends on your style, abilities and patience and those will all be learned, nurtured and perfected over time.
Forex Market Hours and Session Times
Forex markets are open 24 hours a day 5 days a week and you are able to trade on any device that can connect to the internet, phone, tablet, laptop, they will connect right to your trading platform. So you have the ability to trade and earn an income wherever you are like the beach, airport, hotel… life could really be a vacation. The most active trading times are when 2 time zones overlap, the Forex Market Hours Monitor pictured above, is a great little app that shows you the times countries are actively trading. The little pointer at the top shows you the current local time (you can set this to your time zone, click on the box in the upper right) when 2 time zones overlap that is the most active times.
Best Currency Pairs To Trade
The best currency pair to trade depends on which countries overlap. The EUR/USD and the GBP/USD would be the best choice when London and New York overlap. During the overlapping times the market can move very fast and for the beginner that can be a very hard to trade as news, economic and political, will also be a factor. The Meta Trader platform, which is the standard with Forex Brokers, has a news feed incorporated so you can keep up with economic and news reports.
There are two main types of Forex Trading Accounts. The “standard lot” account is traded in 100,000 units increments and when the currency price moves 1 pip it equals a $10 change to your account. There is also “mini lot” account and it is traded in 10,000 lot increments, when the currency price moves 1 pip in the mini account it equals a $1 change to your account.
A few things we need to talk about are funding a live trading account, leverage and profit potential. Some brokers will let you open an account less than $100 but the important part is leverage. Leverage is a double edged sword, the profit potential is greater but so is the loss potential. You have the ability to set you leverage level from 1:1 to 1:200 so what that means is if your leverage is set at 1:500 you can trade $500 of currency with $1 in your account, $1×500=$500. Similarly if the leverage was 1:200 you could trade $200, $1×200=$200, so if you had $1000 in your account you could trade $200,000 worth of currency. So if you had $1000 in your account you could possibly trade several “mini lots” of 10,000 depending on the value of the currency you are trading. I will discuss this further in other posts.
The point I really want to get across here is that it is REALLY IMPORTANT that you have a good understanding of the Forex works and moves. With that understanding, practice and patience you can make money Forex trading… without it it can be a real struggle. Go slow, take your time and learn to trade Forex the right way.