Tips for Forex Trading –  A Word to the Wise

Tips for Forex Trading – A Word to the Wise

Let me give you a few more ideas for trading Forex. These are just some lessons I learned over the years that can be helpful when starting out. Oftentimes we get so involved in trading that we forget to go back to the basics.

So here are a few reminders:

  1. Start small—as a beginner, open an account with the minimum required deposit.
  2. Don’t use leverage at first—brokers love to offer you the opportunity to use margin for your account. This allows you to trade with more money than you actually have. It’s a loan which you have to pay back at some point. If you lose it, you owe more than you started with.
  3. Always trade in a demo account for as long as you can before opening a real account. A demo account gives you the opportunity to trade with virtual money so you gain experience without worrying about losing real money. This is a great way to practice trading.
  4. Don’t hesitate to ask questions. Use either the broker’s chat line or speak to an experienced trader.
  5. Have patience.  You will have many losses before coming up with a profitable trade. But it will happen.
  6. Forex trading can be a lot of fun. Enjoy the ride.