There are several steps that one needs to go through for them to be real forex traders of which most of the steps are taken when trading forex with some knowledge already. You can take these steps to prepare yourself to start trading forex:
Learning the basics
All traders, even the most experienced ones learn something new in the market every day. Learning requires time and commitment every day in order to be updated on the news in the market and new strategies on how to trade your values. This can be done either by learning through online guides, learning while trading and making mistakes or copying successful stories. All these have their advantages and disadvantages and that is why you should not apply them on their face value. Instead, you are encouraged to try each one of them out independently before settling on any one of them. If possible, you can also combine several strategies if that works for you.
Learn how to calculate the profits of forex exchange trades and also how to check the transaction costs of each trade. You need a platform that offers you good customer support, transparency, and easy transactions. Whereas you might not find a single platforms that offers all these values at their best, always endeavor to settle for one that offers the best combination.
Find a suitable online forex broker
Open an account with an online broker with better pricing and offers better quality customer services. Always look for one that meets your requirement as a trader because this will affect your trading a lot in the future. Forex trading has several brokers that offer platforms where traders can access market news and materials on strategies that they can apply. Get access to an online forex trading platform where you can be supported by your broker or other experienced traders in the market as mentors. This is the best way to get support and mentorship program that can help you become a better trader. Like they say, no man is an island and the sooner you realize that in forex trading, the better you become at your trading.
Once you have a funded forex account, you are now ready to start trading. Some people tend to start with a demo account which is actually good since you will be using virtual money to trade and test strategies without the risk of losing your money. Demo accounts give you experience to trading so that forex trading becomes a bit easier for you by the time you start trading with real money. By then you will have experience with the currency pairs and can trade better.
When you start trading, it is best if you start by placing smaller trades that don’t lose you a lot of money in case things don’t go your way. You should also set your stop-loss orders are values less than 1% of your capital on every trade. This way, you can maintain full control over your losses. Try to go with forex brokers with zar accounts if you are a fan of the South African rand.