How to win at forex trading

Foreign currency exchange (Forex) is the greatest game on earth with a average daily trading volume of over 3.9 trillion dollars. Compare to New York Stock Exchange, which has average daily trading volume of 65 billion dollars. Which make foreign currency exchange (forex trading) market is the biggest market in the world.

Do you want to learn how to be in the winners circle?

Like any game it’s important to know the rules in order to win. You don’t have to be a professional to enter the sport, but you should have a basic understanding of the game and how it’s played. Most of this can be learned for free from the online forex trading brokers who also provide free forex trading demo account with virtual money so you can actually practice playing the game and gain your confidence and skills before plunking down your real cash in the big leagues.

As in any sport, the most important thing to do is practice before you actually play in the real game. Practice, practice, practice makes perfect. The only thing it will cost you is your time. When you think you are ready to step on the playing field, start small. Most forex trading brokers will allow you to start trading in mini accounts with as little as 200 dollars.

The secret to winning at Forex is you need to have a forex trading strategy. In other words you need to know what to look for and how to trade to make money. Work out a basic game plan you expect to follow and never let your emotions influence your trades. Rule number one is never to risk more than 2% of your account balance on any one trade. That way if you have a streak of bad luck you will not wipe out your account or capital. Rule number two is that if you have a string of five loses in a row, stop trading real money and go back to demo trading until you have demonstrated success for at least a week. Only then you go back to trading with real money. Rule number three is to employ strict forex trading rules that you stick to no matter what and do not trade wildly. If you preserve your capital from big risks you will allow it to grow steadily and consistently. Don’t try to make a killing in a short time and you can reasonably expect to grow your account by 10% a month or more.

Remember to have fun with it and learn a little more each day. This could turn into a lifelong forex trading professional career.