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Currency Trading Tutorial

Let's Start Trading:  I've called this page let's start trading, as an introduction to your currency trading  tutorial, as I thought currency trading online forex anna it might be helpful to try to summarize all the content into a plan of how I feel currency traders should start in forex trading currency online. All the content on the site has been based on personal experience, and learning the hard way, by making mistakes and overcoming the problems. It is not an easy way to make a living, despite what you may hear or read about - making money is hard work and this is one of the hardest ways of all. So, if you have read so far - thank you and whilst I can't guarantee you success, if you follow even some of my suggestions, at least you will have a better chance than most of surviving and earning your living full time from trading currency.

Learn Currency Trading : Let's Start Trading

OK - in order to try to provide an outline plan, I have laid the main points out in a table as a sort of checklist for you to follow. These points are not in chronological order but let's start with the currency trading account as you can't trade without one!!

Item Action Points
The Broker Please, please, please, make sure you do your homework in choosing your broker ( or brokers ) . I read recently of one client who was defrauded of 100,000 USD from his account as the broker was self regulated. Check that they are fully regulated, fully capitalised, and are reputable. In my view you should look for an ECN broker, but proving they are what they say they are is easier said than done - some say they do not have dealing desks, when actually they do. Make sure you check all the following points:

Next on the list is our proposed trading style and strategy :

Item Action Points
Currency Trading strategies Please, please, do not mix trading strategies in the same account - it does not work. Decide on your strategy and then choose the broker accordingly for two reasons. Firstly as I say strategies do not mix, they are like oil and water and you will turn a short term trade into a long term one because you don't want to take a loss. Secondly, the account may not allow that type of trading style anyway - as I have said before, if you are going to scalp you need a broker who allows scalping, and not find this out after the event!  I suggest that when you start, and certainly if you only have limited funds, that you start with one strategy and get some experience first and start with the spot fx market. Do not be tempted to trade currency options unless you have some experience of trading options first!!

The next issue is funding, and you will probably ignore my advice and say ( what does she know anyway ) but I will tell you all the same. Some of you reading this will take my advice, others won't.

Item Action Points
Funding Your Account Most currency traders fail, not because they have the wrong strategy, lack of a plan, or the wrong sort of account. It is because they are under funded. The maximum leverage you should even think about in the first few months is 1:20, and 1:50 tops. You should start with at least $1000 trading capital for 1:1 and 1:10, and above this level $5000 for 1:20 up to $10,000 for 1:50.

Oh dear - everyone's favourite topic - a trading plan!!!

Item Action Points
A Trading Plan Please don't start trading before you have your plan clearly defined and written down. If you're not sure how to write one, click on the link above and it will guide you through the process. For each strategy have a plan and stick to it - do not change halfway through a trade because you have changed your mind. A trading plan can be modified and amended as your trading improves and changes, so it is not cast in tablets of stone. If you are a novice, start with the spot FX market, not options.

Finally, the technical/fundamental issues.

Item Action Points
Technical and Fundamental Analysis I firmly believe that in order to succeed you need to have a firm grasp of both. It is virtually impossible in my view to trade fx purely using charting techniques, the only exception being that of scalping. Even here a view of the fundamentals is going to help balance your decision making. For longer term trading a balanced approach is essential if you are to succeed, which is one of the reasons that I only use very simple indicators, and have little time for Fibonacci et al. This is a personal choice and no doubt many of you will disagree which is fine. I'm sure there are many successful traders who just use these indicators and little else. However, given that the currency market is one that generally trends longer than most, I would suggest that the fundamentals exert a considerable influence on both the direction and length of the trend.

 

That's it - you're ready to start currency trading!! - thank you for taking time to get this far. I hope you have enjoyed the site and found it useful. I always like to hear from currency traders from around the world, so please keep in touch, either via the blog or via the email. Good luck with your forex currency trading, and if I can help in any way with any further information please just drop me a line. With several sites to manage and my trading, it is getting rather busy, but I will always do my best to reply. All best wishes and kind regards and may I wish you every success and I hope you have found this currency trading tutorial useful - kind regards - Anna