Online forex trading singlehandedly made forex trading popular among small and medium investors. For last few decades the volume of the market grew by many times as more and more new players entered the market. With a computer and internet connection you can trade forex during the timeslot that is suitable for you because the virtual market is perpetually open 24x7.
Forex trading is quite daunting and without proper knowledge you may lose more money than earning. So, here we discuss the steps to start online forex trading successfully.
Step 1: Choose the right broker
Find out a well-reputed and trustworthy online forex brokerage firm that would do the initial handholding and would introduce you to the basics of the market. Find out if the broker is registered with agencies like CFTC and if it has option of offering demo accounts in which you carry on Online forex trading for sometime before opening an actual account.
Also, check if they offer essential tools and signals and technical analyses indicators that would help you in the time of decision making.
Step 2: Open a demo account
If you are new to forex trading you should always start with demo accounts for online forex trading. Here, you trade forex with virtual currency without investing your money and therefore lose nothing. Demo accounts are also good for playing with forex trading strategies where simulations would show you if your strategy worked for the particular situation. With demo account you can also learn the way the online forex trading platform works, its technical aspects, etc.
Step 3: Open a mini account
While starting online forex trading always start with a mini account and then graduate to a regular account. It has many advantages. They are
i. Your exposure to the market will be limited and if you take a wrong decision you would be able to restrict your losses
ii. Mini accounts are actual account with real-time and real-life market situations that demo accounts can never present. So, this would be your first exposure to the forex market.
iii. Mini account can also teach you to take proper risk measures and restrict your emotions while trading.
But, remember; don't play with leverages at this stage.
Step 4: Keep updating
Once you are comfortable with online forex trading it is wise now to learn about technical and fundamental factors, signals, and forex trading strategies developed over the ages. In online forex trading it is very important to keep on updating your knowledge and skills. These would lead you in developing a strategy of your own.
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