How to Trade Forex

Hello and Welcome!

I've set up this website as a resource for anyone who wants to learn how to trade forex, especially if they are new to this fascinating field.

You may be here because you've heard so many exciting things about the forex market and you'd like to check it out some more.

You may already be a forex trader and you're looking for more tools, systems, guides and more to help you do better.

You may even be here because you've tried forex trading but haven't yet been successful, and you'd like some forex trading tips to improve your chances of success.

You're all welcome, and you'll all find something to help you here.

First, here's a brief summary of what forex trading is all about.

The word forex is a short form for the foreign exchange market, and sometimes you'll see it referred to as currency exchange or FX. They all refer to the same thing, so don't be confused if you see all the terms used in the same context.

Click Here for Your Comprehensive Guide on How to Trade Forex

Simply stated, forex trading takes place when one party buys a certain amount of one currency in exchange for a certain amount of another currency. These traders can include banks, other financial institutions, governments and individuals.

The FX market exists to facilitate these trades which, as you can imagine, can be very complex and involve huge amounts of money. Although the total size of the forex is a little fuzzy, based as it is on difference sources of information, according to the annual pool by the prestigious European financial analyst Euromoney, it presently stands at around U.S.$4.5 trillion. Yes, that's trillion with a T!

The most commonly traded currencies are U.S. Dollars, Japanese Yen, Pounds Sterling, Swiss Francs, Australian Dollars, Canadian Dollars, Swedish Krone, Hong Kong Dollars, Norwegian Krone, New Zealand Dollars, Mexican Pesos, Singapore Dollars and South Korean Won.

Here's how to start learning how to trade forex.

Study the contents of this site and other online resources to learn as much as you can about forex trading. It's a complicated world, with lots of unfamiliar terms and processes, and the more you know about it the better you'll be able to conduct your forex trading activities successfully.

Set up a forex mini account with a broker. You can start with just a few dollars, which is the best strategy if you are new to forex trading. Also important is that you find a broker who will let you trade on what's called a "demo account" before you start investing real money. (You will do this using the software recommended by your broker, so you'll be learning how to use the software as well as the trading system.) this is a great way to learn, and in fact I'd say it's an essential step in the learning process. and don't start using your real money the first time your demo account shows a profit! The FX market is volatile, and one good trade doesn't mean you'll always be in the money.

As you trade on your demo account, continue your studies. Learning how to trade forex is an ongoing process, even after you are successful. As you watch your demo trades, both winners and losers, try to understand why they were winners or losers. What factors affected the trade? What can you learn from these?

As you learn the basics, start looking into all the software, systems and tools that are available to you. I must warn you that there are so many that this is confusing, and it's easy to spend your money in the wrong places. To begin, I recommend this excellent guide on how to trade forex, which not only provides a successful trading system, but also tells you about the pitfalls to avoid as you learn how to trade forex.

When you feel ready to trade with real money, consider very carefully how much of your money you want to work with. To put it bluntly, that means how much you are prepared to lose! It's a certainty that you will lose money at some point --- everyone does, whether they tell you that or not --- and it may happen to you right at the beginning. Don't let that put you off forex trading; it's part of the process, but it makes it even more important that you don't risk more than you can afford to lose.

The other side of this picture is your profit goals. The key to success in the long run in forex trading is not to shoot for home runs, but for lots of base hits. Realistically, how much do you expect to make in profit in the short, medium and long terms? Monitor your results, make course corrections and stay on track.

OK, back to the process of learning how to trade forex. The next step is to actually place an order with your broker to buy. Then watch your trade carefully to see how it does. At the same time you can be looking out for the next attractive trade.

I can't stress enough that you need to keep up with your forex trading education, even after you start trading. Study the market, understand signals, know what technical and fundamental indicators mean, create your strategy and work it.

Be patient. Learning how to trade forex is not a "get rich quick" scheme, but a long-term business model.

Before reading the other pages in this forex educational website, make sure that you sign up to my free 7-part forex mini-course.