Forex, otherwise known as Foreign Exchange is another form of investing. You may have earn of it before and the potential it brings. The difference between stock investing and forex investing is that with Forex, it’s a 24 market while stock investing only goes for 8:30am – 5pm. The Forex market is a trillion dollar market while stock market is a billion.
I first came across Forex when I was studying penny stocks. I was investing in a few small penny stocks and made some profit early on. However over time, I kept losing money and then one day, I lost $800 in a matter of seconds. This really shocked my system and I had to work again to build up my money.
I became frustrated with penny stocks because I could only trade during the day and when I get home from work, the markets would close making it incredibly frustrating to practice.
I’ve always believed that you can master anything if you practice long enough. So I gave up penny stocks and moved onto Forex investing. The first year of learning how to trade forex was incredibly frustrating. I made so many mistakes and I was pulling out my hair at the same time. I remember banging my head against the table leaving an imprint on a forex book I was trying to understand. There was so many technical jargon I had no idea about and it just seemed way over my head.
However I just kept trying over and over again. I opened up my first demo account and tried to make a trade. No one around me knew how to trade Forex so the only mentors I had were books and video courses.
I remember making my first random trade and I made $5. After that I lost $20 and then $50. I didn’t know what I was doing to be honest and I was just clicking the buttons. After a year of getting used to trading on a demo account and making consistent profits, the second year, I made a decision to trade with real money.
Trading with real money is a completely different story vs play money. The money you invest in Forex is from your hard earned money and it’s easy to be fearful when you see your trade positions in the red.
On my third year of trading, I started being more profitable and being more consistent. Instead of losing money, I can easily make $50 to $300 per month in Forex.
Getting started in Forex can be quite difficult to be honest. There’s so much technical jargon and it’s very easy for people to give up. The first step in getting started is to open up a demo account first.
I highly recommend for people to open up a demo account so they can get used to the platform and how to place trades. There are two main platforms on the market, you can use MT4 or cTrader. My favourite one is cTrader, simply because it looks cooler than MT4.
Before you start playing with a forex trading platform, you need to find a quality broker. There are many brokers on the market so you must do your own research and make sure they are legitimate.
Once you’ve found your broker and picked your trading platform, it’s time to start practicing.
The first step you should take when it comes to trading is learning how to place a trade. Learn how to enter and exit the market. As soon as you learn how to do that, learn how to put demo money in and take demo money out. Then learn how to switch time frames and also change colours etc.
Once you’ve reached a comfortable level of navigating and using the platform, you can now learn how to actually make money from Forex.
I bought a ton of books on Forex and I’m sure you’ll find them too. However if I were to pick only a few things to focus on if I had to start over again it would be to master support and resistance, candlesticks and a basic profitable system.
I would recommend for you to do the same.
Also, as you’re starting out, don’t give up. It can be very frustrating learning this skill but what kept me going was that on the other side of all this pain and frustration is a life of freedom.
If you were to wave a magic wand and you were granted mastery over Forex, what would that do to your life? You can travel anywhere and make money anywhere. How grand is that?
Hence Forex is one of the best money making skills you can every master because Forex will never go away. Forex is the world currency and there’s a high chance that the entire world won’t decide to let go of money and use bartering as a means to conduct business.
There’s a lot more for you to learn when it comes to Forex trading but when you’re starting out, I highly recommend for you to go slow and start with the basics as outlined in this article.
Good luck and happy trading.
Stay Strong and Be Relentless.