How To Make Money Trading Forex
Trading Forex is not easy, but can be very profitable when done right. However, more than 9 in 10 investors never become profitable with it. If you are looking to make money with Forex, you obviously have to do some things differently than everyone else.
Reading Is Not Enough
Many people attempt to learn Forex trading by purchasing an online course, or reading articles on the internet. However, just the same as merely reading about driving a standard transmission would be insufficient, it is not enough to teach you Forex investing either. The only real strategy is to get out there and do it.
Forex investing is mostly about mindset. You must get a feel for the changes in the market and how to handle real time investing news. The only real way to do this is to start investing.
That is not to say you should not take a course. It is definitely important to know something about Forex investing before starting. However, do not just assume that you are ready to start investing thousands of dollars because you have finished a quality Forex course. You will still have to take it slow and learn from your mistakes.
While practicing is important, you do not want to merely start investing without knowing anything either. This is why you should setup a demo account with a good broker. This will help you learn more about investing, and also how to use the complex trading platforms many broker companies use.
But Take It With A Grain Of Salt.
These practice accounts are not the same as live trading platforms. The pricing is usually not the exact amount, and in some instances can be significantly off. In addition, since you are only practice money, you are really not learning to handle the human emotions that will come with actual investing.
In reality, some educators claim you might learn bad habits from using a practice platform. This is because you are not learning the mindset behind successful trading. However, it can be a good way to at least get your feet wet. There is nothing wrong with setting up a practice account, but do not get too excited if you start making a lot of money.
Taking a good online course and opening a practice account are both great ways to learn about trading Forex. Just remember that they do not compare with actually doing it live. No matter how confident you feel, start small, and you will begin making money with foreign exchange shortly.
by: Cedric Welsch