How do I start trading forex ?
Even the common understanding says that forex trading (the exchange of foreign currencies) is complicated, the truth is that most people can get started with a new account in as little as a few minutes.
Before you can start forex trading, you must choose a brokerage company. Your Broker will assist you to make the trades and some offer other financial services as well.
To work with a highly reputable broker can make the difference in making or losing money.
If you do want to start with small money or want to fund your account monthly with smaller amount and use your forex account as saving account for vacation, there are cent brokers in the market.
Read my blog: https://ams-trading.net/broker-with-cent-account/
Cent brokers are starting with a minimum deposit of 10.- USD. If you decide for the Cent Broker, please chose in account type the MT5 cent account.
Here a few highly reputable brokers:
Cent account broker: Roboforex.com
Australian Broker with a European branch office in Cyprus: ICMarkets.com
European Broker: Eurotrader.com
As soon you opened your account with a Broker, you to fund the account according to the broker’s minimum requirements to activate your account.
The next step is your verification. Depending on the broker it might be handled via a video verification chat or the upload of your verification documents.
Most of the brokers are offering Demo accounts as well to allow you testing your strategies before investing real money.
Step 3: Configure your PC or server easily
The most common trading platforms (software programs) are the MT4 and MT5.
Your broker will provide the software free of charge when opening the account.
MT4 is the older, but very solid software version and MT5 the newer modern version.
Before you download the software, you must decide if you want to trade manual or you prefer trading automated with an EA (Expert Advisor = trading robot).
If you decide to trade with an EA you definitely need a solution to keep the EA running 5 days a week 24hours. (Monday 00:01 till Friday 23:59)
There a solid VPS (Virtual Privat Server) available starting from 10.- EUR / month.
Here 2 examples:
Strato starting with 10.- EUR / month with a server in Germany https://www.strato.de/server/windows-vserver/
1und 1 starting with 18.- EUR/ month with a cloud server either in Germany or US https://1und1-partner.de/shop/mein-shop.html?ps_id=P628115404
Step 4: manual or automated trading?
When you start trading it is essential that you set up some rules and follow them strictly without any excuse. If this is nothing for you for whatever reason or you have no time to scan the market for your setup, then I strongly recommend using an EA.
You can use an existing EA and purchase same in the market e.g. here: mql5.com or you have an idea and can give it to a programmer.
Step 5: Find your best strategy and learn
Now it is up to you to keep on learning and to find / define the best working strategy for yourself.
There are many good ideas in the market.
Very important if not the most important aspect, define your rules.
Write them down. Especially in the beginning of your career.
Place them somewhere close to your monitor.
Be as precise as possible.
The following points MUST be covered:
- Money Management
While you search for your preferred system, remember: If it sounds too good to be true, it probably is. There are a lot of scams going around. Some systems promise high profits all for a low price. So how do you tell whether a system is legitimate or fake? Here are a few basic tips:
- Do your research and make sure you know everything about the system in question. And be sure to read the terms and conditions before you commit.
- Does the system come with a trial period? A lot of scam sites won’t offer you a trial.
Step 6: Setup your strategy
If you purchase an automated system (EA = trading robot), be aware that the one you purchase suits your needs and is working with your system.
An EA programmed in MT4 will not run on MT5 and vice versa.
Perform a few tests in the strategy tester to find the best setup.
Test it in different currency pairs.
After the setup is done and the parameters are tested it is time to get the bot running.
Switch your MT4 / MT5 to Auto Trading.
Step 7: Enjoy your passive income
To see the results of your trading robot I highly recommend to setup an account with either Myfxbook.com or to install the app of MT4 / MT5 to view the trading results.
Keep in mind that you enter only the Investor passwords (read only).
This can protect your account from unwanted actions.
Lay back and let the robot do the job.
Let him work for your passive income.
Check my other blog feeds for more detailed information