What you need to know about forex trading

If you’re thinking about trading forex as a career you have probably come across this article while researching how to get started. This guide will teach you all the basics you need to start trading forex as a career.

Learning

Some people think learning to trade is as simple as downloading MetaTrader 4 and placing a position, but in order to be successful, there are a few things you will need to do before you begin live trades.

The first thing you need to do is educate yourself. You may have heard the statistic that 90% of forex traders fail. This is largely because they start trading too soon instead of learning the craft first.

Jumping in with live trading straight away is gambling rather than trading and almost certainly leads to a blown account.

Make sure you spend a good amount of time, learning the basics of forex, and then begin practicing what you have learned. Rushing this phase is never a good idea, and if you spend 6-12 months on it then it will stand you in good stead for success.

Tech

You are going to need something to trade from. While you can use a phone or an iPad, charting on these smaller screens can be troublesome. Most people opt for a computer which is at minimum a laptop, but ideally a desktop as it has a larger screen.

If you have the budget and space, getting a desktop that will allow for two screen inputs could be extremely useful to you in the future. This allows you to watch more than one chart at once.

Charting Software

Charting software is important as this is going to be where you do your technical analysis.

MT4 and MT5 offer charting free, using the broker’s feed, so this is a good place to start. However, it can be quite difficult to use in terms of drawing tools in comparison to some other charting software like Trading View.

Trading View offers a free subscription (with ads) or paid subscriptions that are ad-free and offer additional features such as alerts. They also have a great phone app to view your chart markups on the go.

Many people opt to use Trading View for their chart markups and MT4/MT5 for execution with their broker and this seems to be a very good combination (aside from the slight differences in price action and spreads due to the broker being different to the feed you are viewing.)

A Broker

Your broker account details connect to your MT4/MT5 platform for trade execution. There are lots of great brokers around.

The main considerations of brokers include spread, leverage, customer service, ease of deposits and withdrawals, and regulation. You should decide what your requirements are, find a broker that fits your needs and read reviews on them before signing up.

Once you have all these things in place, you can register a demo account with your broker and begin practicing your strategy, with a view to going live once you have long-term consistency.

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