How to Become a Forex Trader

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How to Become a Forex Trader
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Index

• How to Become a Forex Trader
• Steps to becoming a Forex trader
• 1 Trading Capital
• 2. Using A Demo Account
• 3. How to Practice FX Trading Before Trading Live
• 4. How Trend Traders Find Profit Targets on Their
  Trade
• 5. Are You on the Right Track With Your Trading?

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How to Become a Forex Trader

• Anyone with a small amount of money and patience
  can become forex traders.
• The skill and patience required to become a
  successful or profitable trader require limiting
  losses while identifying good trade setups with a
  positive risk reward set up.

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• Despite the ease of getting into the business,
  there are some steps you should follow.
• A quick entrance into the forex trading can lead
  to the poor house very quickly.

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1 Trading Capital

• Forex traders do not need to have a set of
  capital to trade due to being able to trade on
  margin.
• The average Forex broker requires at least 300
  to open the account and start trading.
• A good rule of thumb is to have at least 1000 to
  open a mini account, preferably 2000.

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• The number might sound a little high for the
  beginners, but this allows you to trade with a
  bit of a buffer in case of losses.
• You are not looking to risk the entire amount but
  rather just have a higher cushion so that you are
  not forced out of the trade, which can happen
  with smaller balances.

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2. Using A Demo Account

• A forex trading demo account is a trading account
  with the monopoly money in it that is connected
  to the live market.
• Trades could be placed in a real time and
  represent what would be true losses and gains if
  the money were real.

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• Before you put the single penny on the line with
  trading, you will need some practice.
• A demo account gives you the ability to practice
  trading without the pressure.?

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3 How to Practice FX Trading Before Trading Live

• Aside from practising, you may want to seek some
  trading advice from a forex books or forex
  trainer.
• As a trader, you need to develop your trading
  style and trading ideas, but in the beginning, it
  can be important to have some professional
  direction and guidance.
• Forex is very daunting in the early days, and
  some guidance can help.

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4. How Trend Traders Find Profit Targets on Their
Trade

• Before you commit to live trading and money on
  the line, you should be able to trade on your
  demo account or with the paper trading
  profitably.
• Your track record should be more than a few
  weeks, at least three months, preferably six
  months.

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• It will be tough to refrain from trading after
  you make those first few profitable trades, but
  the experience counts in forex trading.
• It's something that you cannot work around, and
  you have to get it the old-fashioned way, hard
  work.

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5. Are You on the Right Track With Your Trading?

• After practising for the several months, doing a
  little training and getting some forex education
  and becoming consistently profitable, its time to
  start making live trades.
• You may find that it's a slightly different to
  have actual money on the line, but if you stick
  to same practices you used to be profitable while
  trading demo account, you will be successful.