Even with a small capital, you can start your own forex trading business. But you cannot start trading unless you have enough knowledge. If you do not have enough skills, you will easily lose your capital.
Let’s start with trading capital. You need to have a minimum of $300 because this is what most brokers require to start an account. If you want to be comfortable in trading with enough buffer for losses, start off with $1000 to $2000.With enough capital, next step is to look for a broker. Check out several brokers online and closely review the options that they give you. Try to choose the broker where you feel most comfortable to deal with. Your relationship with a broker has its ups and downs so try to accept the fact that trading has a lot of down sides.
To get familiarized with forex trading, brokers will ask you to open a demo account. Demo accounts usually come for free for 30 days. This includes trading tools such as meta trader applications and charting tools. You will use play money in this environment. Your demo account will help you get familiarized with forex trading.
While familiarizing yourself with the environment and practicing with trading tools, it’s advisable to seek some trading advice and to read books about forex trade.As a forex trader you need to learn trading on margin. This means learning about leverage in the forex market. Much of your trading will depend on your leverage values.
Going back to the trading platform, once you have learned about leverage and are already familiar with the tools, focus on reading charts and analyzing them. You need to learn how to predict movement based on charts. With all the training and dummy trading that you have done, you have to make sure that you already know how to be profitable. Once you are ready for forex trading, it’s time to go live and make your first real trade.
Forex trading is a very lucrative business and with enough skills, you make it big time. However, before going to open sea, you need to test the waters first and learn from a demo account. You can check out our site on forex trade.