Forex Trading For The Personal Achiever

I want to help all those personal achievers that want to learn forex trading for the purposes of having their own business from home. This isn't a tough market to compete since you really aren't competing against other traders. You're just trying to buy at the right time and sell at the right time.

What are demo accounts?

Demo accounts are a great tool for learning. These are basically just a real simulator. You use your regular trading platform, except when you make a trade it doesn't actually get processed. This means it's a free way to learn to trade. You get a first rate education in learning how to use your trading platform. You can push all the buttons and make all the mistakes you want because you're not risking any money. You also can test out strategies and see how good you are this point. Do as many trades as you want, until you feel confident enough to trade with your own money.

How Small is too small for trading?

This is a problem that happens to most people. It is only natural when you first start out making real trades to do small ones that result in small profits. Why risk all your money, when you can learn with less risk? The problem you run into is your broker taking a cut. If you hope to gain a few percentage points and the broker takes 1%, than that's a significant amount of your profit lost. Conversely, if you had a bad trade, you'll end up losing an extra 1%. What happens now when you add up the numbers is that you are led to believe you're losing, when you very well could be profiting, if your margins were better.

Just be aware that you're getting a distorted picture whenever you have small margins. You need to be able to evaluate if you're doing good, regardless of what the numbers say. If you're doing good, as you increase the size of your trades and the margins, you'll notice that you're making a lot more.

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07 Oct 2008 06:39:17

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