I'm going to show you the necessary steps on how to do currency trading. I'll even share a little with you the things you will need to work on with your personality, so you can be the most efficient trader you can be.
- Find A Good Broker: You're going to need broker of some kind. There are a lot on the internet and some can be very poor quality. This means you're going to have to designate a specific period of time for research. Brokers are the ones that hold your money and make the trades (on your behalf), so you're going to want to have a good one to protect your money. The best place to get unbiased reviews are forex forums. You can search for them on Google. You will be able to find out which ones get poor ratings and which ones are excellent. You can also ask questions, if need be.
- Trade On The News: News effects currency. There is just no way around it. Economics isn't as simple as supply and demand because people control the supply and demand. People get emotional and the news has the ability to scare and excite people. Watch the news every morning before you start trading. You want to get the latest news, especially the political and economic news before you put your money on the table. Government policies and unemployment rates affect currency and you need to be able to identify that.
- Use Your Demo Account: Demo accounts come with your trading platform. They're away to make simulated trades in a real market environment. This is the best and safest way to practice. You can trade hundreds of times before you ever invest a penny of your own money. This can give you the added confidence and self-esteem to be a smart trader.