How to become a Forex trader?

While Forex is an exciting and lucrative financial market, many traders face difficulties when trying to

make steady profits and grow their trading account.

In fact, most beginners on the market blow their first trading account in a few weeks because they lack the understanding of basic trading concepts and don’t pay too much attention to risk management.

That’s why we’ve compiled a list of steps to guide you through your trading journey.

Follow these steps and you’ll be well ahead of other novice traders who fail to understand the importance of education,

risk management, trading strategies, and journals, to name a few points from the list.

What does it take to become a Forex trader?

You don’t become a Forex trader overnight. It takes a lot of dedication and discipline to become a

successful trader, but many traders have achieved that goal. Trading is just like any other business.

In the beginning, you haven’t the slightest clue what pips, Fibonacci levels,

or Elliott Waves are, but with time you’ll get to know these concepts and move on to other trading topics. That’s why education is the single most important part of becoming a Forex trader.

Steps to becoming a successful trader

The following steps could act as a map of what you need to focus on to trade Forex from home. These are, in my opinion, the most important points that beginners on the market need to understand to get a solid foundation in Forex trading.

Educate yourself
As we’ve already mentioned, education is the most important point on our list. Start with the basic terminology of Forex trading and move on to more difficult concepts.

There should never be a pause in your learning process, but it takes some time to put the theory into practice.

Once you grasp one concept, learn another one to get a feeling for the differences among

various trading concepts. Once you have an understanding of the various ways the market can be traded,

you can choose the one that best suits your needs.

Don’t overtrade on a demo account
Demo accounts are a great way to get your feet wet on the market and to familiarise yourself

with your trading platform. However, many beginners make the mistake of spending too much time demo trading.

Demo accounts can’t replicate the real emotions involved in trading, such as greed and fear.

A losing trade on a demo account will not have the same emotional impact as a losing trade on a real account.

That’s why you shouldn’t spend too much time on a demo account.

As soon as you grasp the basics, invest a small amount in a real account and trade with small position sizes until you gain more experience.

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