In every activity we perform daily we need to develop certain abilities to be the best in whatever we do. In Forex is extremely important to get to know the basics before any investment.
Luckily, Forex has lots of platforms where you can practice, learn diverse topics related with trading, practice with demo accounts, start testing with demo accounts and practice with small and realistic lots, using a friendly platforms offered by brokers will help you learn, practice and understand all the rules to trade, it’s a great advantage for you to trade risk free before investing any currency.
Choose which broker you wish to select, remember to double check if the broker you decide to work is registered to regulating bodies, if you want to determine if your potential broker is playing by the law, visit the US government website to find out all the information you need.
When you decide the currency you wish to trade, learn all the fundamentals of that currency, and understand every pattern of it, as every currency behaves differently on a given economic scenario.
Choose a methodology and then be consistent in its application, before you became a trader, you need to learn how to make decisions to execute your trades, you need to know all the information you will require in order to decide properly about whether to enter or exit a trade.
Ensure, your methodology is adaptive; the system you choose should keep up with the changing dynamics of the market.
Traders might get confused when conflicting information occurs while looking at charts in different frames. Therefore, choose a longer time frame for direction analysis and a shorter time frame to time entry or exit. Be sure of synchronize your weekly and daily charts if you using both, keep you timing in sync will help you keep track of your trades.
Keep a printed record, this is one of the best learning tools for traders, print out a chart and list all the reasons for the trade, including the fundamentals that influence your decisions, mark the chart with your entry and your exit points, write any relevant comments on the chart, therefore you can refer to it as many times as you need. This will help you to develop your mental control and discipline to execute according to the systems.