How To Trade Forex
|TweetHow To Start Trading Forex
Step 1: Goto: Forex Mentor Beginning Trader
Step 2: Emulate What The Mentors Are Teaching You. This material is enough.
Most entrepreneur who get started in network marketing are smarter than normal. Why? Because most network marketers recognize the potential financial freedom from network marketing. So I guess if you already in business, network marketing or some other business model, you are smarter than majority of the folks out there.
I made the switch from network marketing to forex trading back in 2005. I still promoted my network marketing business once in a while. The residual income from network marketing is great. Since I have not been promoting the business seriously anymore, my residual income has also reduced. Since I don’t promote, I don’t replace those who drop out from the business. I never made $10,000 a month in my network marketing business. But I was getting there because I worked hard.
Anyway, I came across forex back in 2002 and thought it was a great. I lost some money with scrupulous money manager who promised huge percentage returns on a monthly basis. That didn’t work out. So I decided to do some more research and discover I could trade forex myself. So I started reading everything on forex I could find. Today there are thousands of website presenting information on forex. While most are internet marketers taking advantage of the huge forex niche, there are some really good forex mentors out there in the market place.
Just like in network marketing, forex education is the key to forex trading success. Find a great mentor, someone who is already successful in forex trading, emulate them and then surpass their efforts. It is fun with forex. Your income does not depend on other people’s ability to remain in the business. It depends on you totally. If you are ready to start trading forex for a living, here is the
steps to follow.
Once you learn the skills necessary to effectively trade the forex, you will never lack money again. But take your time learn from these mentors. Traders who trade the forex are looking to make as much money as possible with the least amount of their own money. This is called ‘leverage.’ They benefit from very high liquidity, combined with low margin requirements.
Margin is ‘your money.’ It is amount of money you commit to your trading account at a broker as insurance, in case you incur losses from your trading. Of course, you can lose it all, if you’re not careful with your money management – i.e., use of stops, and not risking more than 2% of your trading capital on any one trade(s).
Stop loss refers to the total amount of money you are prepared to risk on any given trade(s).
Leveraging refers to that amount of money that a broker will let you ‘play with’ – usually expressed as a ratio, the most common being 100:1. In this instance, with just US$1,000. in your trading account, you would be able to trade with US$100,000. This ‘borrowed money’ is depicted as lots, and is traded by placing ‘positions.’
If you are given a choice as to which level of leverage to use, be careful not to go too high, so as to protect your capital, and not get wiped out.
Where you are required to deposit one percent of the total transaction value as margin, and you intend to trade one mini lot of USD/CHF, which is equivalent to US$10,000., the margin required would be US$100. Thus, your margin-based leverage would be 100:1 (10,000:100). Of course, you can do the math, if the CFTC gets their way, and reduces leverage to 10:1 (which is a safer way of trading, by the way).
Just remember that you should monitor your trading in terms of pip movements, which are magnified by the concept of leveraging. A small price movement, expressed in pips, can represent a substantial sum of money, the higher the leverage. Accordingly, profits/losses can be sizeable, further reinforcing the notion that 10:1 leverage is not a bad thing.
Are You Ready To Trade Forex Like The Big Dogs, Emulate What The Big Dogs Know and What They Teach.
Goto: How To Trade Forex Like Big Dogs
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I completely agree! A forex trading mentor is such a huge advantage. Trying to learn forex trading on your own, will lead to MANY hours of frustration!!