How to Trade Forex Online

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By rashme
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This article goes through what you need to do to trade on the Forex markets online.

Difficulty: Moderate

Instructions

Step 1

Research the best ways to invest. Forex is supposedly the biggest market in the world. It's bigger than the US stock market, because the daily turnover is in the trillions. First understand that you, the retail investor is not going to move the market, the banks trade in multimillions, you won't be doing so.
Step 2

Consult a trusted broker. You need to trade through a margin broker who will give you 100:1 leverage on your trades. That means if you have a $1000 margin deposit with the broker, you can control 100,000 units of base currency
Step 3

Understand world currency and its fluctuations. Currencies are traded in pairs. Choose a single pair to learn how to trade and stick to it until you get to know the personality of the pair.
Step 4

Get a charting package which allows you to see the current price as it happens and make technical analysis
Step 5

Learn a system which gives you an indication of when to enter and when to exit trades
Step 6

Start using a demo account and not real money. When you are confident and consistently making good trades, and only then, go live. Start with a micro (1k lot size) or mini account (10k lot size).
Step 7

Enroll in a financial education course. Get a course which gives you an education, a strategy and a way to carry out all the above steps successfully and affordably, from a reputable dealer. Good luck!
Step 8

Lean money management.

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