A Forex trader is anyone who’s trading in foreign exchange. There you go a definition straight up. Impressive eh? Its simple then, get a trading account, put in some money, play around market charts, get the gut feeling running and invest. You’ll lose.
It’s not that simple. A trader Forex trading and someone else doing the same thing with profitably are different. You’re obviously here to learn about being the latter kind of homo sapiens. Well then, keep reading!
10 Ways to become a Rich professional Forex trader:
1. What is Foreign Exchange?
Know this first. It’s much more than just the Wall Street guys in black suits shouting 10 hours a day. This is a financial market, the biggest one around. You’re just a tiny speck looking for profits which too are just as tiny speck in this $5 trillion per day financial market. You read that right, ‘trillion’. That’s 5,000,000,000,000 American Dollars.
2. Study Up
Learn about this market, know what you’re getting into and then dive right in. A proper tip – Take at least 2 weeks and devote 2 hours a day at least. Start up with the jargons, terms you just don’t get. Move into market charts. Learn market sessions. Know the currency pairs. Learn about price action, market trends and patterns, technical and graphical analysis, Fibonacci retracements, MACD, OBV, RSI, SSI, Elliott waves – you get the picture. Study up!
3. Get a grip of Trading Orders
Now that you know what a trader of Forex deals with every single second, try to be one. Open a market chart; run it through some tools, read up expert opinions and try understanding what they’re all blabbering about. Once that’s done, picture your orders. Strategize. Forex is a game of chess where you’re playing in whites. It’s your turn.
4. Demo Demo Demo!
Don’t just go live though. Go demo. Open a demo account. These accounts are where you get a real-time simulation of the live market and a handful of virtual cash. Practice makes a man (Forex trader women also apply) perfect. In demo markets, best part is, you can afford to make mistakes. Not real cash on the line.
5. Be Social
Social trading platforms are where you can just copy a transaction from a Forex trader and use it live on the market with your investments. Nice right? Well you’ll need to pay up a percentage of the profits if they do happen to the trader you’re copying from. Thing is, this is one of the best ways to learn trading from the experts while earning too. Learn and Earn
6. Aim Small Think Big
Don’t just start thinking about making it big in the market, think small aim big. Start after small profits. Even if you do make a mistake, which can happen first time out, you won’t be losing much.
7. Leverage can Kill!
Greed is the end of it all. So, avoid going with huge leverages for getting big returns. It’s always better to start with reasonable leverages first.
8. Get a Couple of Trading Accounts
More than one trading account will allow the Forex trader in you to multi-task. Multiple long transactions with one account for scalping, here’s your getting rich in Forex formula.
Enough. Start from 1. You can feed back how it’s turning out. Veterans and experts out there, do add up a few more suggestions below!
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.