Are you interested in forex trading as an income-generating activity? If yes, then you have probably heard a lot of stories about trading in currency pairs and making a killing in the market. There are adverts about trading accounts, brokerages, copy-trading accounts, and training programs everywhere you look. Most of the stuff you’ve seen is true, but with a bit of a disclaimer.
Yes, you can make forex trading a lucrative venture and earn from it, become successful, probably quit your day job, and If you are among the disciplines, become rich and retire early. Sounds good right? However, forex trading -like any technical income-generating activity- has an unforgiving and steep learning curve.
In fact, it’s not a question of whether you should take time to learn how to trade but how long it would take to become a pro and not lose all your savings in the markets. If that’s what you are here to find out, then you need to follow closely and know exactly what is required of you before you can start making money as a forex trader:
The First Steps- Work on Your Emotions
That’s kind of weird if you think about it but it might be the biggest thing you need to work on and one that will ultimately affect your fortune as a trader. As a beginner in forex trading, you are probably excited about making a few bucks and multiplying your capital trading currencies online. This kind of excitement without caution often makes new traders lose a lot of money at the beginning without realizing it and seeing their mistakes.
Forex trading, and any other trading activity for that matter, does not bode well with emotions and irrational decisions. To be a successful trader, you must appreciate the importance of keeping your emotions in check before you make any trades. This is especially important if you are on a losing or winning streak as it often leads to you making more risky decisions either out of greed or when you are trying to revenge on a negative market movement.
Choose A Beginner-Friendly and Established Trading Platform
You probably learned about forex trading after seeing one of those flashy adverts on social media promising big returns. Don’t fall for that kind of marketing where forex trading is depicted as some kind of get-rich-quick scheme that requires little effort from you. It’s best if you go for a traditional and well-established free trading platform like forex metatrader 4 for the following reasons:
- It has been around for a while meaning there is tons of free learning content out there to use
- It’s used by traditional brokerages because of its stability and reliable interface
- It attracts both new and established forex traders because of its simplicity. Don’t be attracted to those new trading platforms with lots of fancy but confusing menus and buttons. It would take you ages to learn how to do something as simple as putting a stop loss.
- It has a free demo account- You need that demo account to start trading without using real money as a beginner.
Learn the Forex Indicators
It will take you a few weeks to several months to learn all the essential forex indicators needed to analyze the currency market and devise a strategy. Without the indicators, you will never know how to make money trading forex even if you had a lot of money in your trading account. At the very least, you should take a few weeks to master the following tools that are all available for free in the MT4 platform:
- The Oscillator
- The Relative Strength Index tools
- Parabolic SAR
- Moving Average Convergence Divergence indicators
- Support and Resistance indicators
If you learn how to read the above indicators and use them to devise your trading strategy, then you can start calling yourself a forex trader. So, to answer the question, you will probably, need a few weeks or months depending on your abilities to learn forex trading.