OK you are a complete newbie and you want to learn to trade currencies. You better be prepared for a journey that is as emotional as a love affair with your high school sweetheart. And It’s a journey that will likely take a minimum for three years to learn. The basics are easy.
How to read a chart?
Basic fundamentals that make currencies move.
What is a broker and what do they do?
Technical trading strategies.
What currencies to trade?
When to trade?
Money management (this is the key to profitably. Number one and two are easy; there are many good books on how to read a forex chart and fundamentals. I have several in my required reading list. There is no reason for me to give a long drown out explanation your just going to have to do the home work and read the books on my list or similar. Our goal here is not to teach you from scratch but to get you and keep you on the right path to profitability. You will need to find a reputable broker to place trades through. I use MB Trading here in the U.S. and have found them to be really good at the most important things you need from a broker and that is your money is safe with them and most important order fills, that is when you place an order it gets filled at the price you would expect. Trading strategies, this is what new traders love to learn and sellers know it so there are plenty of books, videos, courses, bloggers, and many of ways people are trying to part you from your trading cash. Here is the biggest hurtle you will have to cross. People love sexy, and they think that the more sexy a chart looks the better trader they are and their dead broke wrong, simple is better. A clear chart is a clear mind. If scalping fits your personality you have to learn you don’t have time to look to see if this squiggly line lines up with that bar and that line is above this line and which frigging wave are we one already. You cannot trade that way. Well you can till you get a margin call. All you need to know is where the buyers, and where are the sellers. We jump in when we see buying pressure and jump out when we see selling pressure. There is only one other method you as a retail trader can use to pull money from the forex market and that is a long term trading method there you look at the long term trend and buy at a wholesale level and sell at a retail level. Short term intraday methods (swing trading) will send you packing fast. Why? Because forex is a volatile market, you will get your stop losses hit more times that you can count only to see the market turn and shoot back to your profit target without you. What and when to trade? This one is easy and simple you are only going to trade the forex major pairs and usually with one side of the pair being your home currency. Since you will be familiar with it. If you are scalping you will have an FX Board that shows you the current spreads form you broker and you will trade the pairs with the lowest spread. Why? Because the spreads are low because that’s where the volume is at the moment .Money management, here is the key to account longevity and growth. You NEVER risk more than 1% on any trade ever. However, starting out you are not going to risk that. Whether you open an account with $200 or $5000, you will start you learning with only one micro trade at a time. When you are consistent at winning you will go to two micros for a time if you stay consistent than you go to four and then 8 doubling each time you are consistent till you reach 1% of your account risk. There are several reasons for this the first being you need to give your emotions time to get use the up and down feeling you will have. And the second is getting use to your trading method and working through your mistakes without costing you your account. What about DEMO trading? Well it all but useless because it leaves out your emotions.