Forex trading is one of the most effective ways of becoming a millionaire fast. However, it is not for the weak minded and faint of heart. It requires determination, discipline, patience, and resilience. Without these qualities, it is impossible to survive let alone thrive in the industry. In the event, you think you have what it takes and have concluded to go for it, here is the foundation you need to get started.
- Everything Has Its Beginning
Well, you need to start somewhere, and unfortunately, forex trading is one of the fields where that somewhere is not just anywhere.
For you to succeed in this industry, you must have your facts in check. Hard work is an indispensable quality here, for you will only be as successful as what you know and understand.
You must start with an understanding of what Forex trading is. Furthermore, you need to be familiar with some basic terms like:
- Base currency
- Quote currency
- Exchange rate
- Short position
- Long position
- Ask price
- Spread
- Bid price
- And more
To be successful, you must study and practice extensively.
You don’t have to but if you can, it is best you find an established forex-trading professional to guide you. This is the most effective way of finding your radar in the industry. If you can’t find someone, then you’ll have to rely on tutorials and books. Either way, with determination and discipline, you will achieve your goals.
- Money Matters
To start, you’ll need capital, preferably between $500 and $1000. You don’t want to throw away this kind of money because there are a lot of other things you can do with it. Nevertheless, you stand to lose it all just like that; gone with the wind!
The reason you need to have a solid foundation when starting a forex trading business revolves around money. In this business, you are at constant risk of losing money. Your primary objective is to make as much money as possible.
- Choose Your Destiny
Once you have done your studies and you have the required capital ready, your next major step is to choose a forex broker. You’ll need to open an account in one of Metatrader 4 forex brokers because here you’ll find the best forex brokers in the industry.
Choosing a forex broker takes time because it will affect how you trade. If you end up with a broker whose trading style and policies clash with your preferred trading style, you stand to lose money. One of the things you want to avoid is losing money.
Take your time to evaluate different forex brokers to determine their advantages and disadvantages. Consider online reviews on the various brokers you find interesting and do some other research on your own. The idea here is to be sure and contented with the forex broker you finally choose to work with.
- Virtual Reality
Not necessarily in the sense of VR but a simulation of what it is like to trade currencies. Most forex exchange platforms offer a simulated environment of what it is like trading on those particular platforms. They give you dummy currencies and a simulated situation that helps you have a feel of what it would be like doing the real thing.
These simulated environments are ideal for practicing the things you’ll have learned so far about the business. They are an excellent opportunity to try out your ideas, see what works and what does not.
Take at least two to three months on these virtual environments to understand what is going on. This is a beneficial thing because it prevents you from losing money unnecessarily and gives you a chance to start making money successfully from the beginning the moment you start doing things seriously.
- It’s On! We are Now Live!
Once you have studied under your chosen master – be it an actual professional or tutorials and books – and you feel competent enough, your next logical step is to do the real thing.
However, remember that the simulation was a safe environment since you could make mistakes without losing anything significant. In the real world, your mistakes will be significantly expensive, financially. Just keep that in mind but don’t let it paralyze you.
You should have learned and come up with methods that work for you from the simulated environment. Your objective now is to trade, make money, lose money, learn from your mistakes, keep doing what works until it doesn’t, then come up with a new strategy, and rinse and repeat.
With determination, discipline, patience, and resilience, you will become the forex trader you intend to be.
