How to Start Trading Forex

now for those of you that have been following my YouTube channel for the last couple years or so you have seen lots of topics discuss lots of Education in there but what's been sort of drawn to my attention and by a personal circumstance really more than anything over the last month or so or something that's very close to me that was my sister who's working in her own field of industry for about 20 years and since February when she got made redundant she's basically been looking for something to do not desperately get a job but thinking about should she get into the employment role and so forth and she came up to me a couple of weeks ago and said to me I'm considering getting into trading into folks training knowing that I'm obviously in the business and we do all my life and you said to me you know how do I get going in trading well I said well look first of all Golf and look at some of the videos that I've producer so I sent her the link to the to the catalog of videos that I put together just gave that to me last weekend and said Andrew great I've watched your videos but how do I actually get into trading and it sort of dawned on me that there's many of you out there that have the education they've read some of the topics about Forex and and what it's all about but they don't really know how to get started on a trading career so that's what I want to focus this week's video on so I've basically highlighted five key bullet points that you need to get under to get to grips with in order to embark on a trading Krim so we're going to discuss those today [Music] so first off bullet point number one first of all you do need to have a basic understanding of what trading is all about now there are numerous books and sources of education out there but at this juncture I do want to give you some advice don't get sucked in by the educators and the so called goes to offer you the education by telling you how much money you can make as a folks trader how you can give up your day job and how you never have to work again tell your boss to go and jump in the lake that is not the type of education that you want now this general hype is intended to entice you in to sell you something and I would suggest you get yourself good training by recognized author of a good book now there are plenty of good books out there I suggest you google do some search do some analysis on that we do reviews of these books many aspiring traders look at purchasing online courses which I guess are okay there are some good courses out there but this alone does have some limitations for example do you think it's possible to learn how to drive a car or fly a plane by watching it on an online course or indeed reading in a book I would say no what I would suggest you do is once you've got some source or some area of education that you want to develop you should be looking at joining a community a community of like-minded traders people have done it people that are doing it and people that are there to help you along the way there's nothing more powerful than be able to share your views ask questions to other members of like-minded traders as often you've heard the expression saying surround yourself with people you want to be like so I suggest yourself get yourself some education be it an online course or decent good book or indeed a trading community that may offer the education as well but make sure you're able to interact interact with other members of that community that are doing it so you can ask general questions bullet point number two so let's assume now you've got some basic education behind you now you understand when to buy when to sell what the terms mean what take profit targets are what stop loss levels are and so forth why markets are moving in the first place a basic understanding of the hand well the charts look and so forth might sound a bit double dutch to you at the moment but I assure you once you've done some basic education you'll understand exactly what we're talking about here now let's assume you've done that you now need to get the first thing a strategy a strategy is a series of rules of engagement when you're gonna buy when you're gonna sell how you're gonna risk manage the trade this juncture i want to talk about k SS you've heard it before keep it simple stupid I can't stress this more enough your strategy when you're starting off should be very very simple you don't need all the technical analysis that you've seen out there a very simple strategy when you'll get going in this business for the first time is essential why over complicate the business that really should be quite simple the strategy after all is not the be-all and end-all that makes a successful trader it goes into a lot deeper than that psychology risk management and so forth so the strategy should be simple now of course you'll have more confidence in developing a strategy once you've done some basic education it with it with us at the training academy or indeed an online course or indeed out of a book but you'll get the idea once you've done that analysis you also have to appreciate that a strategy is never going to be flawless every strategy will have a losing streak and you need to know how to deal with the losing stream you need to help knowing how to look at the losing streak and again appreciating that the strategy will have a losing streak knowing what it's done in the past will help you going forward when you're trading this with live money so how do you achieve that well of course you need to back test each strategy so I suggest when you start off in trading you do some education you get yourself a strategy and you go off and do some back testing of a strategy now you can do this on demo accounts a lot of the brokers these days offer free demo account so you can play with play money or you can buy some online back testing software like Forex tester 3 or so we use that here quite a lot as well you need a back test or strategy get the confidence in the strategy but remember you've got stick to the walls of the study especially when you're learning so that leads me nicely on to bullet point number three you need to have a bokor now a broker basically is the middleman that's going to execute the trades for you on your behalf in the market now the multiple brokers out there you'll often get the pitching of their of their services on you email there's a multiple number of brokers all trying and looking out for your business but you need to be aware of this now the number of brokers out there that are simply out for your money they want you to deposit $500 and they want you to lose your money they have no interest in keeping you much more than the initial deposit and those are the type of bookies you want to avoid you want to avoid the brokers that are basically offering you extreme leverage extreme leverage basically means if you put 500 dollars in they might allow you to trade a million dollars worth of a currency for example that is a huge huge leverage why are they offering you that huge leverage because they know it excites you it excites you because of the potential profits but that you've also equally know it's highly unlikely that you're going to make it and you'll lose the $500 or the initial deposit thousand bucks whatever it is and that's theirs to keep so do avoid the advertisements the enticement of using a broker that offers large leverage that is the one of the biggest draw downs now the other things you need to consider when looking at a broker is the actual Commission's that the broker charges Sandberg has charge excessive amounts of Commission as well you need to also look at the spirit and they're the spread is the difference between the buying price and the selling price a good broker will have a tight spread tight spread means trading cost you less the actual cost of business is lower if the spread is closed up you also need to look at if the broker is actually regulated if it's following walls of a certain true jurisdiction in which it is located a regulated broker with tight Commission's tight spreads and not offering you the Rattler all the riches with high leverage or the brokers you want to be looking at one of course we've got a couple of burgers that we reckon in IT markets blueberry markets and so forth but the plenty of brokers out there that are very very honest and reputable so do some research on that once you've got yourself a broker you also may need to make sure that the customer service is good customer service is important you need to be able to get answers to your questions when you need them but equally important need to be able to get your money out when you want to get your money out so this speed of deposits and withdrawals is also very important I suggest maybe you start off with a small amount deposit say five hundred dollars and then withdraw it to see how long it takes to get your money out to give you some confidence in that Boca so once you've got yourself a broker you're going to want to start putting your education your knowledge into practice now I suggest you start off by trading a demo account a demo account basically is not real money you're not putting your hard-earned cash when you were just basically experimenting remember you're still learning this business presumably the idea is to be in this business for years and years to come not just to get rich quick thing so you should give this time screen time is invaluable screen time on a demo account is priceless now a lot of people say you shouldn't trade Deming you should trade real money because the education will be a lot clearer once you start losing money and you'll be taking it more seriously I don't necessarily get that I think you need to spend time at the screens looking at how prices move looking how prices respect certain levels looking at your strategy to see how it plays out now the biggest problem is with demo it's not real money so people lose interest very quickly if your are serious about becoming a trader you need to take it seriously as well if you want to play games then go and do something else goon bet on sports or something like that but trading a demo account is essential to get the screen time up but you've got to take it seriously so let's assume you've got yourself into a trading community done some education let's assume got yourself a strategy strategy that you know has half a chance of making money at least let's assume now you got yourself a broker okay and you've been practicing on the demo account for a period of time I want to throw out a challenge here now for you and some of you will do it some of you won't do it I really encourage you all to do if you're serious about trading well I call it the twenty five trade challenge I talk about it all the time in my room at photo signals dot-com basically it is a challenge where you set yourself 25 trades you write down your rules of engagement when you're gonna buy when you're gonna sell when you're going to take profits when you're gonna get stopped out how you're gonna risk manage very simple strategy this written down and trade that strategy for 25 times without fail you can have a losing trade you can have winning trades most people believe me not will not be able to do the 25 trade challenge they will give up after seven trades or eight trays they'll have five losing trades they know this is flawed this is not working the strategy is going wrong I'm going to do another strategy the purpose of the 25 trade challenge is not necessarily to test the strategy but it's to test your psychic are you able to follow your own rules most traders fail because they can't follow their own rules the 25 trade challenge is nothing it's just 25 trades do set yourself that go off and do the 25 trade challenge you'll find it very very useful not only to test your strategy but also to test your motional side of the business which is really really Pam out of importance so let's assume here that now you've got yourself some education you've joined a trading Academy or you've joined a trading community you have a strategy that you've done some testing on you know you've got some confidence behind that strategy got yourself a broker that your confidence in you've made some deposits you've made some the drawers you're now confident with that book you've done some demo training on that strategy and you've built up a profile of that strategy you know how it should be performing now on to 0.4 so this is where the fun starts now you're going into the markets with your hard-earned cash at this point I'll say whatever your expectations are you should be scaling them back this is where it gets serious this is harder money in the markets this is where the emotions are going to start getting much more pronounced than they have been on the demo account you've often seen the leverage of 100 to 1 turns around 501 you don't need it when you're starting off in trading if you can make money on low leverage on five to one leverage or even zero leverage then and only then should you be scaling up far too often people will come in and use the high leverage from the get-go and the emotions go all out they make lots of money in them they lose lots of money and then they give up on the dream start off with low leverage I would say no more than five maximum ten to one leverage so that you can get to experience the actual feeling of making a winning trade and the feeling of making a losing trade and not be looking at the money that you've made the money will follow once you become proficient at trading no matter which way you go so make sure you can trade before you start taking unnecessary high risk at last eight point number five this is very important everything that you need to do has to be around a plan when you start trading real money you need to have a plan written down and part of that plan is keeping a trade journal of all your trades because the losing trades which happens to all of us is not money wasted a losing trade you should be using that as for education purposes you should be understanding why that trade lost you might be able to see a trait in your losing trades in order for you to be able to tweak that further down the line once you've given it enough room to play out over a distribution of probabilities so make sure you journal all the trades that you do you can do that on an Excel spreadsheet you can do it manually on a piece of paper but make sure everything is journals so that a losing trade is you you spend that money you've lost it in the market don't let it be a waste of money we all have losing trades you're gonna learn to accept them and you're gonna learn to appreciate them for what they are they're just part of the natural trading process so those are the five basic points that I sort of explained to my sister a few weeks ago and she came to me asking about a trading career and she certainly found them useful and given her a bit more of a a direction in which to embark on I hope you do too as well what she had done that she's joined our trading community at for signals calm who is a Trading Academy in there as well we talked about some education and its ongoing education but always add additional content in there as well but also as I said it's a community of like-minded members as well we discussed trading opportunities throughout the trading day we talked about psychology and so forth we stream Bigley lay on the clock five times a day I'm not too sure if my sister's going to appreciate me streaming to her live from my office here she may think that's a little bit odd but we'll see how that goes as always if you liked my video if you found it useful give me a thumbs up if you didn't give me a thumbs down I am big enough and I can take it as always subscribe to the channel if you haven't already done so and don't forget to follow us on Instagram to the next video hope you found it useful good luck

Channel: ForexSignals TV

Views: 575,383

Keywords: forex, forexsignals, tradingroom, how to, start trading, start trading forex, forex beginners, forex beginner strategy, how to start trading forex, forex trading, forex trading tutorial, forex strategy, good forex strategy, best forex strategy, forex signals, trade forex, forex course, trading

Id: ny7cjv3qiIM

Length: 15min 26sec (926 seconds)

Published: Fri Jun 22 2018