How to Start Trading Forex

Trading forex is similar to equity trading. Here are some steps to get yourself started on the forex trading journey.

  1. Learn about forex: While it is not complicated, forex trading is an undertaking that requires specialized knowledge and a commitment to learning.
  2. Set up a brokerage account: You will need a forex trading account at a brokerage to get started with forex trading.
  3. Develop a trading strategy: While it is not always possible to predict and time market movement, having a trading strategy will help you set broad guidelines and a road map for trading.
  4. Always be on top of your numbers: Once you begin trading, check your positions at the end of the day. Most trading software already provides a daily accounting of trades. Make sure that you do not have any pending positions to be filled and that you have sufficient cash in your account to make future trades.
  5. Cultivate emotional equilibrium: Beginner forex trading is fraught with emotional roller coasters and unanswered questions. Discipline yourself to close out your positions when necessary. 

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