Forex Trading for Beginners (Questions & Steps – 2021)
Forex Trading For Beginners
Over the years, there have been a lot of people with questions on how to go about forex trading especially beginners. Most times, whenever people come across the word “forex trading for beginners”, they get confused as to what it really is? And others who have little knowledge about it tend to ask “what is forex trading and how does it work?” Or “how do I start forex trading when I am new?” Or “what do I need to start forex trading?”
There are diverse categories of people in the world today—those that have grand success in the field, those who are not doing bad but not having grand success, those who are on the verge of being successful, those who have tried several times but are unable to scale through the hurdle of disappointments and failures, and those who have not even made any attempt at all. These are the classes of people that you will find interspersed over in the world in relation to forex trading as a concept. So, you should be interested in what makes the difference between the grand achievers and the group that had to surrender to failure. To know about the major reason why some succeed where others fail, please read on.
Therefore, as a person who will like to be among the achievers, some questions need to be answered. They include (but not limited to ) the following:
Why Do You Want To Venture Into Forex Trade As A Beginner?
Most of the time, you might just answer and say that the major reason why you want to be a forex trader is because of the money. Yes, of course, you will get to earn the money you seek, that is if you become quite successful, but most times often than not, money alone is not a good reason to be a forex trader. This is because there are about a million and one other ways you can make money out there, many other platforms that can make you a very rich successful person apart from forex trading. Hence, the reason you need to ascertain as early as possible why you are opting for forex trading. You need to have a clear reason why you want to be a player in the field of forex trading. For you, it might just be that someone introduced you to the field or because as far as you are concerned, it is one of the fastest ways of earning the most income.
There is a need to ask yourself the reason why you will have to stay put with forex trading even if the money is not forthcoming. This most of the time is concerned with the honest decisions of your heart as to why you will like to be one of the forex trading players. Also, you will need to highlight what you will like to achieve with your earnings, how this earning of yours will influence your life and that of your family members. These questions must be properly given the right answers before you can be sure you are ready.
Do You Like Chart Reading At All?
You should note here that, this is not even about if you love forex trading or have a passion for it at all, it is more about if you like to read charts. Most people venture into forex trading without an inclination of what it entails. Some of these people do not even know that it means reading charts. Fields such as forex trading, stock markets, and commodities demand that you have a likeness for reading charts or a readiness of mind to understand charts reading particularly if you will like to be very successful.
At first, you might not have a clue about what the different patterns on the charts depict, but faring well in the business requires that you have an interest in knowing these patterns. It will be good for you to acknowledge it as early as possible how important it is for you to be able to read charts as an intending forex trader. Especially if you want to have continuing success and hoping to be a professional in it.
How Committed Are You To Forex Trading?
This is about understanding how long you are envisaging to be a forex trader. Are you seeing it as a one-time affair? or you are ready to take it into years of being committed? In most cases, people tend to hear that forex trading is very easy, and the quickest way of getting rich. This is often not the case especially when you meet up with successful traders and enquire how they became who they are now.
A deep thought at it will reveal the fault in such an argument to you that if it is as easy as been told, a lot of traders will already be successful. Getting it done requires a lot of hard work, discipline, patience, endurance, and commitment. Most people do not have a long picture for forex trading, they think it is something they can just do for a month or two, make their money, and make their exit. These people often fall into the class of the non-achievers because they are not committed to the task but looking for an easy way out which oftentimes is not the case.
If you want to be very successful in the trade, you will need a lot of commitment, deny other distractions, and remain focused. You should not just take your leave into another thing that seems to be making rounds at the moment just because you are finding it a little bit difficult getting the headway. To be very successful in forex trading for beginners, a lot of time is needed. You need to dedicate a good percentage of your time to it for better understanding and a high level of success. This will equip you with life-long forex trading skills which will eventually yield a greater benefit.
How Much Are You Willing To Invest?
The last question for you is what is the maximum amount you are willing to invest in forex trading? Most times when you want to invest, you expect the sum invested to grow and multiply. But, have you considered the likely obstacles and failures that may not make this a reality? Have you taken your time to think about the possible factors that may come against the growth of your funds along the way in the trading? If you have not considered these, then it will be wise to start with a smaller amount and spread it across the sectors. This is because forex trading does not work with an instant multiplier effect, it takes some time for your funds to grow and it may not even grow.
You shouldn’t expect a quick win at your fingertips every time in forex trading though this might be the case in the rarest of circumstance. It will be unwise for you to believe that your investment will continue to multiply as you continue to invest. It will likely not happen that way unless you are very lucky and even at that it happens probably as much as 1 in a 100. As a beginner, you should not hope to make a lot of money in your first year. But rather, you should develop a mentality of putting in money in relation to your level of growth and maturity in the business. For example, when you start, you shouldn’t just put $6,000 on a single sector, but you can spread it across six sections in the value of $1,000. Hence, you should acknowledge not to put in all your money at once, but rather allocate them into different channels.
When you have successfully given appropriate answers to these questions, then you are ready for the next level in line. After you have ascertained the reasons why you will like to be a forest trader, willing to learn how to read charts, ready to be committed to the task, and have learned how you should wisely place your investments, next is the introductions to the necessary steps to take as one with zero knowledge about forex trading.
Learn Forex Trading Step By Step
Once you are ready after giving answers to the above questions and you are willing to be serious with forex trading. It is recommended you follow the highlighted steps:
Learn The Basic Forex Trading Tutorial At Baby Pips
There are different forums and available materials through which you can learn a lot about forex trading. You can get forex beginners pdfs and/ or join forums such as Baby Pips. Baby Pips is one of the oldest forums out there for forex trading for beginners. It is a basic educational platform where you can learn the basics of forex trading. If you will like to know about the fundamentals of forex like what a pip is, how much a pip makes, and different basic techniques, it is advised you pay a visit to Baby Pips. At the same time, it is also advised that you should not relax after learning about the basics. It is just an avenue to intimate you with the very basics of what forex trading is. It is a platform where gets to know fundamentally what is forex trading and how it does work.
After you have learned about the basics of what is needed to be known about the technicalities of forex trading, you can now proceed to the next step.
Get a Forex Broker with the right charts
There are various broker firms out there. Each opens and closes their chart at different times of the day depending on the country. It is recommended if you want to have the right chart for your chart reading, you can open a demo trading account through our recommended broker here. Afterwards, it is time to move to the next step
Go Demo First
It is advised that you should not start trading with real-world currencies yet because you are yet to be exposed to the practicalities of forex trading. Here, you learn how to trade like in the real world. You will learn how to start your trade, plan your trade, and exit your trade. At the demo trade, by default, the initial capital that you will be given, the starting money for trading will be $100,000. But, in real life trade, you will normally not start your trade with such an amount. So, it is better to put in your demo account the amount you would like to start with your real-life account to be able to simulate your trading as it would be in real life.
Through this way, you will be able to learn about how trading works. And after you have traded for roughly a week or two depending on how fast you can catch up, you will have to learn how to execute trades, not necessarily that you are making enough profits, but you would have understood how the whole platform works as a whole. After you might have mastered the art of executing a trade, then it is time for you to take the next step. Link to open: demo account
Join The Mini Forex University
This is a platform created by Ezekiel Chew, a free educational platform where he shares stories of how he started, the bumps and obstacles and how he was able to cushion the effects, how as a real trader commences his trade, the different types of the trade he has ventured in the past, how he felt when he was doing these trades and many more. It is a platform where traders can share their trading experiences for others to learn especially the upcoming ones. It is a platform where beginners can learn from the experiences of others in the field. Click here: Forex Trading Strategies
When you have learned the necessary lessons from real-life traders, after you have seen how they were able to trade successfully, and knowing what they did right and wrong as well, it is time to evaluate yourself. This is the stage where you thoroughly ascertain if forex trading is for you, whether you like it as a career if it is the right choice for you, whether you see yourself being successful as a forex trader, and if you can spare some of your time for the trading experience, at least for about two hours in a day or if you want to be a mid-term trader if you can allocate about five to ten hours a week spread out for trading. Before, you step out into real-life trading, it is beneficial for you to evaluate yourself. This will save you the stress of preventable wasted efforts in the future. When you have evaluated yourself and you are now sure that you will like to be a player in the field, then the next step is advised.
Choose A Mentor For Yourself
Before you venture into real-life trading, it is safe for you to get a mentor. Get someone who is successful in forex trading, it might be a friend of yours who knows this particular person or a member of your family. It saves you a lot of time and provides you with the opportunity to avoid a lot of mistakes when you get informed. This mentor will guide you and give you informed knowledge which is based on proven years of experience. Basically, he is going to reduce your time of learning, telling what really works and what does not. If you are not able to get one, you can substitute for this by getting free information online and forex trading for beginners – youtube to learn the basics.
Remember to validate if they are truly successful in trading and their student’s reviews. It’s like finding a gem in a minefield. So, it is better to spend time making your research on finding the best forex mentor for you.
Continue To Practice
At the end of the preceding steps, you must continue to practice whenever you can. If you want to be very successful, you need to be committed to practice. You have to get your hands down to work this out. It is a common understanding that practice makes perfect.
The idea of forex trading for beginners is to open your eyes to know that making the right choice depends on how long you are used to doing it right and that you need to allocate a good percentage of time in learning how to read the charts and understand them. The power to be successful depends on how committed you are to succeed. Get the right forex mentor for yourself, it will save your time and effort, start now, and continue to persevere, therein lies your path to success.