3 things you should do before diving into forex
If you have been munching away Forex books/courses and learning the rope, perhaps you are almost ready to venture into this lucrative business.
But before diving in, make sure you have finish reading babypips course and are familiar with the Forex terms. If you are not able to explain to yourself what a Pip is, or how to read candles, margins, then it may be wise to go through them again.
Forex is not a child’s play, today you can be lucky to triple your account balance, but tomorrow the account may be burnt.
It is money we are talking about and always safe than to be sorry.
Here are some things that you should know or do, before starting real trading in Forex.
1. Choose the right broker
Having a legit and well-established broker can save you a whole lot of trouble. You will be thanking yourself when you hear others describe their horrifying stories. Be it not able to access their trading platform for hours when their trade is still live, without putting stoploss/takeprofit or simply, platform just froze and nothing could be done.
In general, do a due-diligence and compare between brokers. Try google the brokers, you may discover some unexpected findings.
Things that you should look for:
-check where the broker is registered(offshore country or recognized countries)
-check if they are regulated
-how long have they been in business
-what method of contact do they provide(do they have office address, phone support?)
-what payment options they provide(having only online payment processors as options is a big no-no)
-how fast do they reply your enquries(you don’t want to find that there is hardly any support, when you need them)
2. Why Demo?
You may think oh what the heck, why should i waste time to demo instead of earning some real cash. The truth is, YES, demo does not give the real experience of how the live server perform. However, demo platform could give you a telltale sign of what the real server could be like. Imagine a broker with trading platform that freeze so frequently in the demo server and did nothing, what would
it be like on a real server? Chances are, it could be about the same or much worst.
However, demoing isn’t just to test their server performance, but to get a feel of what they offer. Remember to take note which pairs that they are providing and the spread as well, some brokers does not provide all popular pairs.
3. Look for rebate
Yes, that’s right, there are Forex rebate sites out there that can gives you rebate. It can save you quite some money while you trade. Imagine having a rebate of 0.5pips per standard lot size, it is equal to $5 rebate each time you open a new trade. Each business day for a month, opening just 1 trade per working day will get you $100 back. This definitely will help you a lot in the long run.
Above is general things you should look for before starting Forex, it should give you a pleasant(Trading results not included) Forex experience.
I just stopped by your blog and thought I would say hello. I like your site design. Looking forward to reading more down the road.
Dont depend only on broker ,try to research on the company profile before investing .
Henry Blodget has written that the number one thing to be careful of in investing is trying to get rich doing it. The second thing he warns against is paying a lot to one’s broker.
Henry laid out a charge that simply took a dollar and put that dollar to work without broker fees in an index no load vs having an experienced broker do the work of choosing stocks. What he found was that over time, for every dollar earned by the index without management, the broker managed fund yielded ten cents for the investor. In other words, Blodget, who was himself suspended from being a broker for life, clearly warns people to stay away from the market if what you want to do is get rich. And, if you do get into the market, steer clear of any service that charges a fee.
Worse, over time, Henry believes that most brokers will steal from their clients as well through churning. Blodget’s advice, stay aware from human beings who say they can choose stocks consistently well. Some may be lucky most of the time. But, bottom line, if you are making more than a few percentage points per year, you are betting against an almost sure loser in the long run.
Excellent article! I like your blog and writing style very much.I was planning to start real trading in Forex but now after reading your post it makes me to think 10 time more .Thanks and you are so true that your point of view explained here need to appreciate by all.
I like your articles and views. I will reflect on this issue. This is for my book publishing will be very help.
Great article! Definitely enjoy your point of view. Your advice was very helpful
You can always get a free demo account from the many brokers online to learn to trade forex. Most of these demo accounts allow you to use it to learn to trade forex for between one and three months without spending a dime!
If a trend in Forex is hard to spot, then choose a bigger time frame.
For new players forex trading is no need to rush. Like other businesses need to take the survey first, the business is and how to run the business (forex trading). Try demo transaction is one step that must be done first.
Testing your strategy with a demo is the best way to get ahead. When i first started there were no games to test my strategy and I started out my first 2 months down $5,000.That is only because that was what I started with or else i would of lost more. So demos are definitely the best way to go.