Become a Currency Trader

How to Become a Currency Trader

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Contrary to what most might think, being a currency trader doesn't mean you have to work in a bank or a financial center; you can actually work from your own home. With the ready availability of the Internet, many people are now venturing into trading currency from their own homes, making money during their spare time or even using it to generate full time income.

Steps

1. Find a reliable broker. As with any kind of trading, you will need to find a dependable and reliable broker who matches your needs and whom you are happy with. Before opening a live account with a broker, review their working history, and take note of important details such as the length of time they have been in operation. Also, observe their speed and accuracy in answering your questions in emails or phone calls, as this would indicate their level of dedication in ensuring that your needs are taken care of.
2. Get educated on forex (foreign exchange). Even if you have traded in other markets before, consider getting some education on the forex market as well, while brushing up on your knowledge on the other forms of trading. There is a wide variety of currency pairs available with each one having its own personality and behavior, so it would be best to know the different styles and methods of trading that work best with a certain currency pair.
3. Find a forex mentor who can assist you. While you want to get help and assistance from someone who has been greatly successful in trading, it is highly unlikely that you will find anyone who has never lost in a trade. Instead of seeking for perfection in a forex mentor, try to look for someone who closely matches the kind of style that you wish to trade with, and still has a good track record. This mentor can help in honing you to become a profitable forex trader yourself.

Tips

• Always begin with a positive attitude and mindset.
• Make sure that fear and greed don't get to you during trading.
• It is important to always put stop losses in order to minimize your loss.
• Keep in mind that forex trade should be learned properly and treated like a business even at the onset.
• Plan your trading in advance. The most common reason why people lose their money in trading isn't because their luck is turning against them, but because of their lack of planning and knowledge to begin with.

Warnings

• Understand that because forex is a very volatile market where the prices can rise and fall steeply and quickly, the risk level is high, and it is possible for you to lose money. In fact, some losses are inevitable, so you should manage your account so that you never risk too much on one trade. You can use stop losses so that your broker will automatically sell if the price goes a certain way against you. The aim is not to have no losses, but to make sure that your profits are higher than your losses so that you still end up with a net gain.

Things You'll Need

• Computer equipped with a high speed Internet connection
• Start up capital to trade with (can range from a few hundred to thousands of dollars)

Related wikiHows

• How to Understand the Forex Options
• How to Get Started Trading Options
• How to Trade Forex Online
• How to Avoid Broker Scams in Forex Trading
• How to Choose a Trading System That Actually Works

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