Forex Trading Basics: Follow These 8 Steps To Become A Successful Forex Trader

Almost everyone wanted to be successful in forex trading, but has anyone mapped out the path to being a successful forex trader? I think not many. If you don’t have or aren’t sure how to plan, here are the steps that can get you on the path to success in forex trading:

Step 1 – Get yourself a forex ebook or forex course to start with so you can understand the basics of forex trading and how it works. If you’ve gotten my free ‘Forex Trading To Riches’ eBook, you should be able to understand what the forex market is all about.

Step 2: Open a FREE forex DEMO (practice) account with online brokers.

Step 3: This is an important step. Be sure to read the psychology part and money management rules of forex trading before you start demo trading. Take note, always start with good clothes. Getting rid of bad habits is much more difficult than developing good habits.

Step 4 – After you have gone through the entire forex trading ebook or course, you probably know how a forex trading system works. Also, my PIPS MOVER(TM) trading system is easy to understand. So let’s be practical and practice on the demo account. Practice makes perfect!

Step 5: Demo trade for a few weeks until you get used to the forex trading system. If you’ve developed some bad habits along the way, stick with demo forex trading until you get rid of them, you don’t want to make those mistakes when you start trading live! I would recommend students to start live trading only when they reach a success rate of 70% or higher.

Step 6 – You should already be pretty consistent in your demo trading by the time you get to this step. Open a LIVE forex trading account, either a mini account or a standard account. I understand that many traders start with a mini account first to build trust. That’s absolutely fine, but don’t get stuck on the mini account for too long, as you might have a psychological barrier to break through. Move to the standard trading account when you feel confident, consistent and making a profit in your forex trading.

Step 7: Increase your lot size slowly as your trading skills improve. You may want to increase it when you have a 30% ROI (return on investment) on your forex trading account. Please refer to the money management rules on how you can continue to increase your trading lot size.

Step 8: At this point, you are a successful forex trader if you have consistent profits every month. You don’t have to be an institutional trader to be successful! And you should seriously start planning and consider becoming a full time forex trader from here on out.

The above may sound easy, but believe me, it’s not easy at all, or else, why do 95% of people fail at forex trading? So you really need to dig into the psychological, discipline and money management parts before you can go far in forex trading.