Congratulations on your decision to become a forex trader! This self-chosen career path can really open the door to many financial opportunities in your life and could even help you get through retirement or some tough times later on. You might have had some doubts when you first started considering trading as an alternative way to earn extra money, especially if you heard the rumors that most traders fail, but here we are with some good new.
There are ways to get started on the road to success, as long as you complete all the necessary steps BEFORE opening your very first trading account. If you follow our ultimate checklist, we can guarantee that you will start off on the right path with an edge over other newbie traders.
If you want to trade, you have to educate yourself first, otherwise you won't know what's going on. Here is a list of the first things you need to know:
Factors that influence prices in the forex market and the functioning of the market
Information on the different currency pairs and instruments
Foreign exchange trading sessions and times
Leverage and margin
How to manage risk as a beginner
Tips for novice traders
Navigate a trading platform
Of course, there is a lot more to know, but these are some of the first topics you will want to cover as novice traders so that you can understand more complicated topics later. If you don't understand common trading terms like "leverage", "pip" or "spread", you will be lost once you get ahead.
Fortunately, all of this information is freely available on our site. You can just do a quick search to find “beginner trading topics” to get started, or go to YouTube and type the same in the search bar if you prefer to watch educational videos .
Once you understand the beginner-friendly content, you'll be better prepared to learn more complicated topics without becoming frustrated. Here are some examples of the type of content you should be looking for:
Use of technical indicators
Technical and fundamental analysis
Again, there's a lot to learn here, and you'll want to pay particular attention to content that teaches you how to develop and manage a trading strategy. Reading articles or books written by expert traders is a great way to learn, as you may be able to find inspirational trading tips there. Additionally, be sure to research multiple types of trading styles and strategies so that you are better informed when developing your trading plan.
At this point, you need to find a broker. This is not a decision that should be made in haste, as your choice will affect your entire trading experience. You should know that there are hundreds of options, but not every broker was created equal. Here are some things to look for and consider when deciding which broker is right for you :
Deposit minimums and associated account types
Fees and charges (spreads, commissions, withdrawal fees, inactivity fees, etc.)
Assets available (currency pairs, commodities, stocks, cryptocurrencies, etc.)
Trading platforms available