10 Important Steps Learning to Become a Forex Trader

With high volatility, the forex market will be the battlefield dangerous and risky if you are desperate plunge into it without knowing very well about the ins and outs of forex trading in detail. Instead of seeking to reap a windfall from forex trading, you may fall prey to the market so severely because of your ignorance about how the heck do forex trading?  

Here are 10 important step in learning forex so that you become a real forex trader:

1. Know forex trading / forex.
The forex market or forex is a type of trade that buy and sell the currency of a country with another country's currency. Forex trading involves transactions in the forex market throughout the world during the next 24 hours non-stop and 5 days a week.Forex trading every day is always spinning, ranging from Australian and New Zealand markets are open from 05.00 am until 14.00 pm. Continued into the Asia region covering markets of Japan, Singapore and Hong Kong, which is open from 07.00 am to 16.00 pm. Continues European markets, namely Germany and the UK are open from 13.00 until 22.00 hours. Then topped the American market that started at 20:30 pm until 10:30 pm the next day.Know the trading hours is quite important to know as how you will deal if you do not know the schedule is not it? There is interest from foreign exchange trading hours schedule, some traders suggest forex transaction at certain hours, for example, only to trade after the European trading hours are open due to the higher volatility.

2. Learn forex trading using a demo account. 
In the forex demo account, you can learn a lot about how forex transactions. You can learn how to do the open position buy / sell, learning to use forex indicators to analyze trading. Thus, by using a demo account, you will not only learn about the forex market directly, but also learn how to be a real forex trader before you will go directly into the market.

Then the question that arises is how long you have to learn to use the forex demo account? Of course, until you know exactly how forex trading. Some say, at least it took time for 3 to 6 months to be ready to jump directly to the forex market using real money. The most important thing is to be expected demo account you train yourself to be better in arranging the transaction, from the start how to use trading indicators to learn technical and fundamental analyzes, applying good money management, to organize your trading psychology. Setela you believe you have the hang of it, it means you are ready for the next step.

3. Choose brokerage firms / brokers. 
Choosing a broker or brokers can not be arbitrary. You should choose a good broker and a bona fide, you also need to find out the facilities on offer. Example; how to deposit, withdrawal, applicable spreads, margin leverage offered and that is important is whether they provide a demo account as trading simulation. In addition, the trading platform they also need to suit your needs, such as the availability chart / graph as you do an analysis facilities and the platform should be easy to understand.

4. Identify the movement of currency to be traded. 
You need to know the characteristics of a currency pair or pairs. Because each of the pairs have different characteristics, for example, the pair EUR / USD and GBP / USD, both have different characteristic. Both in terms of volatility and terms of the transaction. Recognizing this currency pair can make it easier to determine where the pair is comfortable for you to trade so that you are more focused to gain profit.

5. Seek information and read market conditions.

In forex trading, you should not only focus on the chart on the screen only. But you also have to know all the information relating to the money market. Because there are some economic news that could affect currency movements. For that, prior to the open position, should seek information in advance if there are any fundamental news that will be released and allegedly capable of moving the market. So that you are not one transaction. You should also be able to read the market situation, whether the trend is bearish, bullish or even currently is undergoing sideways. Do not let you go against the trend as is often emphasized professional forex traders with the term "follow the trend" and make the trend as your friend. That is here, do not try short positions when it is uptrend and long positions while the downtrend. Unless you have a large capital so that it can influence market movements in significance.

6. Measuring the strength of capital you have.

You have to know how much power your capital. Do not just reckless guys !! You have to calculate the amount of profit and loss. You have to learn how to determine the stop loss and profit target. Your success do money management is one key to success has become a reliable forex trader. As a trader, of course, you want as much as possible profits and avoid losses is not it? Be careful with leverage given broker. Not because they want big profits by using leverage, you immediately jor-rod. There have been many articles in this blog that discusses the advantages and disadvantages of the use of leverage. Leverage is like a double-edged sword, leverage could bring benefits many times, but could also bring losses doubled as well.

7. Looking for a trading system that matches your character. 
Determine how or trading system that works with your character. Such as the selection of the appropriate time frame for trading. Do you use a time frame of 5-15 minutes, hourly, daily or weekly to determine the open position. Because each TF has a different level of risk. If you are a scalper who usually use TF 5-15 minutes to do scalping, will face higher price volatility and the risk is certainly higher than a day trader who take advantage of the daily TF.You are looking for a trading system that fits your personality. Do not force yourself to always trade at any time when you are unable to overcome the pressure due to volatile price movements. The important thing is not the quantity of trading, but the quality of your trading. What meaning often do the open position but the result is often a loss? Is not it better to trade in quality even though the quantity of trading a bit, of course, the amount of profit to be more right?

8. Master the psychology of trading.
Mastering the psychology of trading is something that is absolutely necessary for a forex trader. Many traders fail because not mastered their own psychology. With high volatility, the forex market will certainly provide emotional distress kapada traders. It's not surprising when open positions were wrong and loss, many are affected and the next open position do not by analysis but because the emotion you want to close earlier losses. To that end, it is essential rhythms regulate your emotions by learning forex trading psychology.

9. Build a trading plan. 
Like a person traded surely you must have a trading plan or trading plan. Surely every trader wants to make a profit. But if you are not able to set your own trading plan, how can you get the benefit? One should you adopt is to determine the stop loss and profit targets in each transaction. Do not be greedy and too arrogant. By determining the stop loss means you will limit the losses that you may encounter. By determining the target profit, you'll also avoid the possibility of lost profits already in hand. Suppose you specify a target profit of 20 pips, after TP reached safely and surely you can focus on the next trading, imagine if you do not install the TP and sudden market movement reversed course, when you've had a few pips profit are actually pretty good. Definitely remorse will come instead?Not only limited to the stop loss and profit targets alone, the trading plan should include self-management when you trade and when you should not be trading. More clearly you can read articles 5 Guidelines In Building Learning Forex Trading Plan.

10. Discipline trading.

Once you determine the trading system, perform management psychology and create a trading plan, then you only need to do it repeatedly. Record any that you think are good and support to bring profit and fix less. In this way, eventually you will get used and will automatically know when to trade and when to exit the market. Discipline is a key to successful forex trading. And with a disciplined trader will perform a quality forex trading in accordance with his character.

The ten steps above are important steps that you should do in the process of learning forex. With 10 stages, it is expected you will be a forex trader can take advantage of the situation volatile currency markets to make a profit. Each of these steps can certainly do as long as you have the desire to learn. Being a forex trader is easy, anyone can. But being a successful trader and make a lot of profit that is a bit difficult. For that you need a lot more to learn forex. Hopefully this article helpful