The thought of becoming a Forex Trader may sound like a daunting career to pursue to some of you to in the beginning, but if you take it up with the right mindset and attitude, it can do wonders for you financially. Also, Forex fits the focus of this website perfectly, as we are discussing various ways to earn extra income by working online on our computers; and there is nothing like Forex! Trading can happen online, from the comfort of your home, and makes for a great career for people with trading temperaments. You can take it up with a job or even as a sole profession.
You don’t need any previous special qualification or skill to trade Forex. Everything that is required to become successful can be learnt online on the job. All you need is a computer, internet with speed and the one that will not conk off in the middle of a trade. Plus some money to open a live (real) account when you are skilled enough to trade with real money.
Forex requires thorough understanding of market; understanding of the product you are focusing on, analytical skills, ability to read and understand charts and connect them on your trade. All these are the qualities required in a trader, and all these can be learnt online. You can practice trading via what is called a demo account that the broker with whom you have opened your trading account provides you. Then besides technical skills a trader needs to be patient, he needs to have a stable mind, temperament suitable for trading etc. An impulsive or a trader giving in to momentary greed will end up losing more bets than winning.
No doubt that Forex is a bit of an erratic and unpredictable profession to pursue but that does not stop thousands of people giving it a try everyday around the world. However hasty decision to become a trader (rich overnight, so to say!) can prove to be a bad bet. If you can win a million you can even lose a few in the matter of hours.
However, this streak about Forex does not put it in the same category as gambling as some people like to believe. Forex is a proper structured market which works on certain principals and market behaviour. If you study the market and have the skill to analyse it vis-à-vis your holdings and various factors affecting it, you can be a winner all through. However nobody wins all the time is a different story and this can be attributed to the way market moves, it is beyond everybody’s control, even the experts and gurus trading for years are left in lurch when market decides to play a havoc.
The good thing about Forex trading is though you can make millions trading Forex, you need very little money to get into it. $300 is all that you need to open a mini account but ideally it is advices that traders get into trading with at least $2000 so that they have decent money to place trades. You open a Forex Trading account via a broker. Type of account (mini, standard etc) depends on you.
When you open an account, you are given a demo account to practice trading by your broker where you can practice for as long as you want. The demo account offers you the same software, same real market environment but your trades are fake, whether you lose or win trades, it does not affect the money in your real account. Once you feel comfortable in the knowledge that you gain for trading, and in control to handle real trading environment you can shift from demo to real account.
As a trader you have to remember that Forex is a very unpredictable market; where there are neither formulas for winning trades nor excuses for losing them. Your knowledge about Forex, market, your analysing skills based on which you read the market and place your trades, everything has to be accurate. Since money is at stake at every step you can’t b casual about placing or entering trades.
Knowledge and analytical skills are most important elements of succeeding as a trader. Your study and understanding of the market; your ability to read underlying movements, anticipation and impact of breaking news etc are some of the things that will stand you in good stead as a trader.
Trading is not easy but it is not impossible either if approached with a certain discipline and patience. With time and experience the trader’s learns and get attuned to keeping track of various markets; upgrades his trading skills, and knowledge of the market. With time and right approach you can only become better at the craft. To begin with you should practice on demo account, play safe by trade with smallest possible lots, because in the beginning you better concentrate on upgrading and becoming better in your craft rather than think of earning money. Once your knowledge reaches a certain level you will automatically feel confident and in control.
How to Do It: Learn everything about Forex trading online, choose the pair you want to trade, understand various factors that can affect your trade, trade via demo account, and then shift to real trading
Qualification: None. Everything required can be learnt online, like understanding of the market, your currencies and currency pairs, analytical skills, patience, develop trading temperament
Skills: Analytical skills,
Equipments: Internet, computer, note pad, pencil,
Who can’t pursue it: Anyone who is patient, has the time to keep a watch on market, and a willing learner, you can even trade with a regular job
Traditional Education: None.