In the forex faq today, we have a question from a new trader asking me the below question:
I love to trade Forex. But I don’t know how and where to start because I don’t want to lose my money. Please can you help?
I am glad that you find forex trading interesting and want to use it to make money. Therefore I must first let you know that forex trading is not as easy as what most advertisement made it to be. I bet you must have read some posters or advertisement claiming that their students make thousands of dollars one week after their course.
I must tell you that what they left out is the student lost all their money in the next week. It is impossible for anyone to start making money with forex within weeks of lesson except being lucky.
This is because you have to learn a strategy and then practice it so that you can execute it with precision. All these take about 3 to 6 months and not weeks that those advertisement claims to be.
So the first thing that you must do in order to be able to make money in forex trading is to learn a strategy. Learning a strategy can be done either online or offline. I personally opt for the online courses as they are more affordable as compared to those offline seminars that can cost up to $3,500.
I have friends who went through such $3,500 course but still did not made a single cent with forex. The reason why those course is so expensive because you are paying the mentor for the time he is there talking to you.
The problem with online courses is there are a lot of courses online that are lousy and useless. These are courses that are created by marketers and not real traders to make money out of you.
Therefore you have to be careful when selecting the online courses to talk online. So try to go for courses that are recommended by other traders who has taken it before and find useful.
I personally only take online courses that have a blog or have great video tutorials online. Through their blog or videos, I will be able to see if these people are real traders or not.
Most of the time when you see the websites created by marketers, their information is very basic and not useful.
Once you manage to find a good forex course to learn, you have to stick to it and not try to take up another course as this will lead to information overload.
In fact, you just need one good strategy to make money. All you need is to practice the strategy taught in a demo account. You will only trade with your real money when you are able to make money for 3 consecutive months on your demo account.
Remember this; you will have to stick to this strategy closely. Never enter a trade that is not according to your strategy as this is the number one reason why new traders never made it in trading.
New trader tends to have itchy fingers which like to push the buy or sell button even when there is no setup that is according to their trading plan.
Therefore to answer your question, I will advice you to first get a working forex strategy from a reliable course and then second stick to the strategy entirely once you have made consecutive profitable months in your demo account.
If you have any question or anything to share, do feel free to give your comment below.