HOW TO GET STARTED TRADING FOREX

BROKER: Very important and somewhat complicated decision. Check out http://www.forexpeacearmy.com for reviews of brokers. Keep in mind that some of the negative reviews are just 'sour grapes' by people who lost money due to their own mistakes. The brokers I have heard the best things about are: FX Solutions, GFT, FX Pro, MB Trading and TradeStation. I currently use FX Solutions and like their trading platform a lot. I do not recommend FXCM, they have a bad reputation especially with traders with small account sizes and my own experience with them confirms this.

When you open your account, specify a MICRO account (1 pip = 10 cents). Yes, you will not make money quickly but the idea in the beginning is not to LOSE money while you are learning.

SOFTWARE: You will need MetaTrader4 which is used by most online traders. You can sign up for a FREE demo account with numerous online brokers and get access to this software with real time data. I use ForexMeta, FX Pro and Alpari (I have 3 copies of MT4 running on my computer). I use my brokers trading platform for my real account & MT4 feed from another broker for my demo account.

TRAINING: Click for FREE trading course: How to safely swing-trade the Forex market, only 1-2 hours per day required to spot & set your trades.

EDUCATION & CHARTING: If you are a beginner, you need to get started with some basics. Out of dozens of 'intro' courses I have seen THIS ONE will help you get started quickly and affordably, it also has the clearest explanation of how to get started with MetaTrader4 which is the most widely used forex charting software. To learn candlestick basics (which is essential to successful trading) THIS ONE is my top recommendation.
You can also go to LitWick.com for free candlestick information.l

CHAT: Please stay away from live chat rooms, you can so easily be led astray. The many forums can often make you dizzy and confused, there is such an overload of information, theories, strategies, ideas. The only one I recommend is Forex Factory .. but at first you may find it more confusing than useful. If you visit Forex Factory, check out the Cable (GBP-USD) thread under Interactive Trading. You will find me (4xStar) there along with a group of highly successful traders willing to share their expertise with newbies.

BUT .. CONSISTENCY is the key to success! If you hop from one trading system to the next, always searching for the Holy Grail (hint: there is none) you will just delay your success. I know this from personal experience!

Actually there is a Holy Grail .. but it is not a trading system, it is SELF-DISCIPLINE and RIGOROUS MONEY-RISK MANAGEMENT.

Please do not trade in a live account until you are making consistent profits in your demo account.
And when you start trading, just trade MICRO LOTS (10 cents per pip) until your confidence AND your account balance builds.

Have Patience! The potential to make a lot of money starting with very little is very real in Forex, and this does not happen automatically or quickly, nor does it happen with everyone. Be prepared to lose a up to 1/2 of your real money account (which should be no more than $1000 to start) before you start making it back again. You will LEARN by LOSING, so keep losses small and you will remain in the game!

Here are my suggestions for account size:

$500 to start for a micro account
$2000 for a mini account.
Please do not start forex trading with a mini account. Start with a $500.00 micro account and be prepared to top it up if you start losing. Once you are CONSISTENTLY in profit, that is more than 3 months of steady profit, you can add more funds and when you reach $5k, upgrade to a mini account ($1 per pip), then when you have $20k or more to a standard account ($10 per pip).

A skilled trader with a $10k account, trading 1/2 full lot can make on average $3k or more per month.
Really.
It is worth the effort to learn!

The Forex millionaires make their fortunes by:
1) finding a trading plan that works for them
2) trading that plan with discipline and CONSISTENCY and
3) gradually increasing trade position size.
For example: if you find a trading plan that allows you to make an average of 100 pips per week and you are trading 1 micro lot, you will make $10 per week. Big deal, right?
But .. if a year later you are trading the exact same plan, except now you trade 3 standard lots, you are now making $3000 per week.
Same plan .. just increase lot size aka 'Compounding'. That is the secret to Forex success.

VERY IMPORTANT: As you succeed in trading (and with Practice, Patience & Perserverance you WILL!) please remember to give back. Each month try to contribute 10% off the top of your profits to a favorite charity. Some of the ones I like are Children International , Make-A-Wish, Food for the Poor, your local ASPCA, or any faith-based organization doing good work. Every successful forex trader I know adheres to this philosopy.

Email me with any questions, or find me on the ForexFactory forum, my handle is 4xStar.

TRUE FOREX FACTS: You can turn a $500 micro account into over $10,000,000.00 in 100 (one hundred) days of trading, making ONE trade per day that gains just 30 pips.
One trader recently turned $500 into $17,000.00 in one month! This is documented with his broker.
These things are possible with Forex .. BUT .. you must first study, learn charting & above all master RISK MANAGEMENT.
It is the key to everything.

FOREX EXPLAINED

BASIC FOREX EDUCATION

There is RISK in forex trading!
Do not trade with money you cannot afford to lose.