This is another question that is asked by one of our readers here. He is a beginner in forex trading and below is his question
I have a million questions to ask and don’t even know where to start. I’ve been reading about forex and want to set up my own trading plan. From what I’ve read, swing trading is the ideal one for beginners like me. However, I find at times the information is overwhelming, like there are so many good indicators and which to choose. Apart from that, I don’t really know how to watch the chart and spot the entry point, let alone the exit point for a trade. I’m hesitating a lot and don’t have good confidence. I’m even scared to start the demo because I feel like I don’t know anything. It feels like going to war without any weapon.
So, I guess my question is, please help me kick start myself. Please point me in the right direction and tell me what I should do, and yes, step by step.
I was once a beginner and I totally understand the lost of direction at time. This is due to the information overload that causes me to have lost idea what to do next. Every strategy seem to work and I do not know which one to start with and what to do with it.
Therefore in this article, I will like to share with you the whole blueprint of how I start trading and eventually become a full time currency trader today.
Step 1: As a beginner, it is very important for you to have a fundamental understanding of what forex trading is all about and the terms that are commonly used here. You can start by reading up some forex books or blog like MINE (HEHE).
This usually takes about one month
Step 2: After understanding the terminology and how the forex market works, you should now pick up one or two forex courses to learn how the pros trade and their trading strategies.
This will also takes up about one month to digest the information
Step 3: After learning the strategies that other traders are using, you should now start a demo account to try the strategies out and see which one suits your best. After eliminating some of them and keeping one or two of your favourite, you should now fine tune the strategies until it is able to produce consistent profit for you.
The ideal percentage of trading accuracy should be about 60 to 70%. This step usually takes up about 3 to 6 months.
Step 4: Once you are able to produce consistent income every month from your demo account, you can now skip to starting a mini account. The reason why you should not go directly to the standard account is because your mind is still not used to trading with real money and this can affect your trading performance.
Therefore you should start with mini account and slowly work your way up to the standard account. For me, this stage takes about 3 months.
Step 5: Once you are able to trade consistently with a mini account, you can now move on to the standard account whereby one pips to equivalent to $10 for EURUSD. With your carefully crafted strategies and your experience in trading, you are now able to make a living from trading.
Although the steps above sound easy, it is going to take you up to nearly a year of consistent work to become a successful trader. Therefore you have to persevere if you want to make a living from trading one day and eventually quit your day job.
The above are my personal experience and if you have anything to share, do give your comment below as they are valuable to everyone who are reading this blog.