Start Trading!
The first thing you want to do is to practice with your virtual forex account. Remember, there is no such thing as a right trade or a wrong trade. Any trade which works for you is a right trade. So log into your forex account. Forex is traded in currency pairs eg. Euro/USDollar, USDollar/JapaneseYen and so on. Try to find a trend in any currency pair. A word here about forex trends - these trends in forex tend to last for days together at a time. This is what makes trading forex so easy, even for the beginner. Look at the 5 minute chart, then the 15 minute chart, then the 30 minute chart, then the hourly chart etc. right down to the daily, weekly and monthly chart. Do you find a trend? Does the chart go up, up and up or down, down and down? If not, find another currency pair and repeat the process. Once you do find a currency pair which is trending, apply some indicators - good ones to use would be the 20 and 40 period moving average and the bollinger bands. Do you see a chance to make a buck? Try to buy the currency pair which is trending up at a dip. You can even sell a currency pair which is moving down, but more on that later. When you open the order form to make your buy you have the chance to enter a limit at which the order will execute and a stop loss (exit stop) and a exit limit, which is all similar to trading in stocks. You want to ensure that your profit with a successful trade is atleast twice your loss in case you get stopped out. So if you buy Eur/USD at 1.333 and you put a stop loss at 1.233, then your exit limit should be atleast 1.533 - that's all there is to it!
You are more likely to be successful if the Eur/USD has in the recent past gone up to 1.533 at the minimum or if you enter when the Eur/USD has just reversed a losing streak. Also try to get a hang of fundamentals, so if there is a news item that the Euro is strong against the USD, that is a positive to buy the Eur/USD.
Now practice, practice, practice. Until you have atleast 10 trades with different currencies. You will have the statistics to go on to the next step, once you have 8 - 10 trades.
You are more likely to be successful if the Eur/USD has in the recent past gone up to 1.533 at the minimum or if you enter when the Eur/USD has just reversed a losing streak. Also try to get a hang of fundamentals, so if there is a news item that the Euro is strong against the USD, that is a positive to buy the Eur/USD.
Now practice, practice, practice. Until you have atleast 10 trades with different currencies. You will have the statistics to go on to the next step, once you have 8 - 10 trades.
