Forex Trading for Newbies
There are hundreds of Forex brokers out there, there are also so called Forex reviewer and trading system developers who persuades newbies to go into Forex trading that promises double digit return in no time by using Metatrader 4 trading robots, or which we call Metatrader Expert advisor.
In reality, 95% of the new traders, lose their money because of false promises. Only 5% are successful in Forex trading. You want to know why? Because they don't fall into trap and false promises.
Do you want to be part of that 5%?
Here's my advise:
1. Get familiar with Forex Market. Do not enter into something that you do not know if you don't want to get in troubled.Don't listen to all hypes that newbies buy an automatic system and become successful immediately. Forex market is highly volatile. You cannot be successful in just a flick of your hand.
2. Choose a reputable broker who offers Metatrader 4 platform for free. There are hundreds of brokers out there some are more reputable than the others. Only choose a regulated broker. And make sure they have 24/7 support better if they have online chat assistance (you don't want to pay for long distance call right?). Registering on forums would also a great help. There are lots of discussions about broker performance.
3. Once you have chosen a broker, Open a demo account first for you to know the ins and outs of trading. Demo accounts will help you enhance your decision making capability. Although is no real money involve.
4. Learn how to use the Metatrader 4. Make an effort to fully familiarize yourself with the trading platform so that you can set up your expert advisor correctly and to avoid parameter error. When in doubt, read the manual.
5. I have mentioned expert advisor on number 4. Yes, you can also set up an expert advisor on a demo account. Actually it is best way for you to test your expert advisor without risk.
6. Purchase a commercially available Metatrader Expert Advisor
(automatic trading system also called Forex robot) that offers support and has a user forum. Expert advisors completely automates your forex trading that allows you to lose or make money without doing anything, so be sure to choose the good ones because there are lots of EA's being offered although a lot of them make a good money but there are some that is just a marketing hype. Be sure to do research first before you purchase an EA.
7. If you think you are confident enough then you can now go onto
live trading. You can experiment with micro lots to warm you up. There are actually different types of account depends on what account your broker offers.
8. Start trading with a small risk. Ensure you understand the value of each pip for the currency pairs that your are trading in.
9. Keep yourself informed. Read and watch news. Good news or bad news has a great impact on the economy specially on Forex trading. (Remember when Japan was hit by an earthquake and tsunami? Japanese Yen went down the next trading day right after that incident.)
10. Spend what you cannot afford to lose.
Choosing the right broker and the right type of account is just as important as choosing the right system.If you need more help in choosing the right system, check out the live results and detailed reviews for top selling systems on http://www.best4xrobots.com