Skip links

Five step trading guide

Home > Library > Traders guide > Five step guide

Introduction to forex Five step trading guide Choosing a forex broker

Step 1 – Self assessment

Be realistic

Trades must be realistic and set achievable goals! The main objective should be on making consistent profit over time.

Remember, online trading may look easy but its actually tricky, making it easy to fall in the trap of spending money that you actually should.

Control your spending

Put a limit to your spending, for example set aside a trading budget for the month and be prepared not to break the budget allocated.

Failing to do that may lead to spending all your budget too fast. Control yout spending!

No place for emotions

Emotions do not have a place when trading. It is a cruel but challenging market which involves intense emotions. Eventually you will learn to control those.

 

Our purpose is not to scare new traders but to make you aware of the risks associated with Forex trading. 

 

However, when you feel ready to open a live account you should be honest to yourself about what is realistic given your starting amount. 

Step 2 – Study the basics

A fundamental step when studying about the Forex market is to learn how the industry operates and what are the basic elements of trading. New traders tend to be impatient and make the mistake of rushing into the ‘game’ before understanding the basics leading to losing money. Be patient, the learning process is worth after you understand the way the market operates.

 

Do not ignore the basic education; it is the foundation of your future success. So, first get you basic education by visiting ‘Forex Basics’. We advice new traders to first read this basic education section and then open a Demo account which will help you practice without the risk of losing real money. 

Learn the forex basics

Get Started Trading with Forex Basics. With daily turnover in excess of $5 trillion, foreign exchange, or forex (also known as FX), is the biggest trading market in the world.

Go to library

Step 3 – Trade with an effective strategy

The next important step new traders need to develop and test their trading strategies. The best way to do that is by practicing on a demo account. With this way you can track your progress and slowly start building a trading strategy.

 

Demo trading provides you the opportunity to first discover which way is best for you to trade and second, start developing an organized and structured trading routine that will assist you when trading live. Learn to control your emotions when trading. For more information on how to build your personal trading strategy click here.

Step 4 – Develop a trading plan

The next important step new traders need to develop and test their trading strategies. The best way to do that is by practicing on a demo account. With this way you can track your progress and slowly start building a trading strategy.

 

Demo trading provides you the opportunity to first discover which way is best for you to trade and second, start developing an organized and structured trading routine that will assist you when trading live. In addition, it will help you learn to avoid including emotions when trading.

Step 5 – Demo trading

This step is just to highlight the importance of trading on demo accounts. Take advantage and use this tool as no risk is associated when trading on virtual money and it is free.

 

Start developing strategies that suit more to your skills. This will help you avoid any frustration, save you time and money.