The First Steps in Forex

Trading foreign exchange, or Forex as it is otherwise known, online can be an excellent opportunity to make money from home. Many traders use the Forex vehicle to make a lot by leveraging all of the valuable resources on the internet to help them get into the best trades possible. There are some things to keep in mind when thinking about trading Forex.Most successful traders spend years perfecting their craft to be as successful as they are today. These are the types of people that you want to learn from. Do not be the fool that thinks he can just jump into the market from day one and start making money. Below are some key points to know before getting into Forex:

1. The Market Never Sleeps  Between the New York, Sydney, Tokyo and London markets there is no down time in the Forex markets. This is actually a great upside for trader that wants to use Forex as a source of supplemental income to their day jobs.  You can either wake up before your day job or set up some trade after you get home from work. But, there is also a downside.  You must always be aware of your open trades. Leaving a trade open can without a stop-loss on can lead to disaster.
 2. Leverage Your But Off  This is one reason that some traders love Forex so much. Most Forex brokers offer largely leveraged accounts so up to around 1000:1. This increase your wins win you do win and magnifies your loses when lose. If done right, though, these leveraged accounts can lead to big pay days.
3. Small to Big Accounts  Along with the leveraged accounts most brokers offer micro-lots which allow to trade without much risk of losing but still offer you the chance to win real money. With only a couple hundred dollars you can open an account and begin trading these lots and make decent money doing so.
4. Demo Account If you are not ready to jump into to the real money world of trading try a free demo account. You have access to all the same trading platforms and tools as the ‘live accounts’ but you are playing with fake money. These practice accounts are a great was to perfect you craft before you take your talents to the main stage.
Remember, Forex is not easy and it takes a lot of time to understand. Read and learn as much as possible before risking any of your hard earned money in the market. The markets are very volatile and can be affected by a number of different factors. Understand these factors and understand the game and you will have taken the first step to becoming a successful foreign exchange trader.
Witten By Jim Thomas
Jim Thomas is a contributing writer for website TradeForex.com. Along with writing he is also and active trader with many successful years under his belt.
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