Forex Trading – For Beginners with Low Budget
The biggest dilemma aspiring forex traders face is where and how to start. One should always know the basics and the typical jargon used in the forex market before trading.
Various trading systems, tools and software are used in daily trading but the biggest mistake is getting into the trading software and robots so much so that they suffer major losses. Following is a step by step plan divided according to days for beginners who are starting with a low budget:
Phase I – First 15 Days:
There is a lot of information you can get easily over the internet but you will not understand all of it. Therefore without haste, get a grip on the basics. 10-15 days are best for any newbie. Along with learning the basics, get registered with a reliable forex brokerage firm. Forex Yard Brokerage and Easy Forex Brokerage are good options and offer free registration. You can use their demo accounts after registration so you get an idea of real trade. Practice as much as you can until you are comfortable and ready to live trade.
Phase II – Next 10 Days:
You are required to learn when to start trade in the next 10 days. You need to learn finding of entry points and when to step out of trade by the exit points. You need to have a strong knowledge of fundamental and technical analysis. Get help from a professional as it is difficult to do on your own. This phase happens to be very critical therefore you need to concentrate as this is where you learn what real trading is and this leads you to become a winning trader. Time duration of 10 days is good enough.
Phase III – Next 15 Days:
Now for the next 15 days, you apply all that you have learnt so far and practice them on demo accounts. Watch TV channels like Forex News and CNN money etc. to stay abreast of latest forex news. Note down the points in the forex news and then co-relate that information with what you have learnt so far. Then find the entry and exit points for trade.
Try to find minimum 8-10 profitable entry and exit points and then trade on your demo account. Note down all of the entry and exit points and those factors due to which you got that profitable entry point. Keep this practice for at least 15 days and then at the 15th day you shall be able to find 5 of the best profit earning entry and exit points in a day. It all comes down to building a forex strategy.
All of this combined together is total 40 days and at the 40th day you will be in the position to trade on a real account. Act rationally and exit the trades according to the exit points you have calculated. After all of this you can allow yourself to get bit advanced and try some of the automated tools like the forex signal software which is capable of generating exit and entry points for you.