To prepare yourself for forex trading, you do not need to have seven eggheads. Trading mechanisms are not so complicated that you can not understand without special courses. There is enough discipline and the ability to keep your own emotions under control. However, if you refuse to learn forex, mastering trading will take much longer, and the lumps will have to fill (however, for the lumps there is a cent account). The simpler, the more true it is.
There are many systems and forex trading strategies that work and bring profit to the trader. At the very beginning of the journey, it is worth sticking to the rule "the simpler the system, the better", because any trader must understand why he is doing this or that action. If you immediately dive into complex strategies and approaches, there is a high probability that the player will act blindly, meekly obeying the instructions from textbooks. And turn off the head the first thing you can not do speculators. What else is ruining new traders? The inability to leave emotions at the door, when it comes to making decisions in trading. It is emotions, not mistakes in the analysis of charts, that lead to the withdrawal of deposits. Trading only currency pairs with a strong price trend, with which you can use only one indicator for forecasts.
Whatever the stop-loss, the goal should always be to double the number of points of this indicator. That is Take Profit should be twice as high as the stop loss.
Trade popular currency pairs, not exotic ones.
Whatever the initial deposit is, the risk should not exceed 1%.
Complying with these four conditions, you can move towards the formation of a trading strategy. Specify for yourself the signals when and how to enter the trade and where to set the stop loss. This will give you a sketch of your trading system. It should be remembered that if a professional and successful forex trader-millionaire shares with a dozen of his chosen trading system, then only one of his ten followers will repeat this experience with success. This happens because the author of the system knows the cause and effect of each of his actions, and can be flexible, adapting to changing conditions. If he repeats it thoughtlessly, it is possible not to catch the moment where it is worth changing tactics. Or, on the contrary, by giving in to emotions, to move away from the plan when it is impossible to do so. Having marked the conditions, proceed to the formation and subsequent testing of your own trading strategy and system. To do this, open a Micro account and replenish it. This is a cent account with a minimum deposit of $10, which will allow you to gain experience and test all your knowledge before you actually play. To get started, download MetaTrader 4 or MetaTrader 5 trading platforms or trade directly in your browser via WebTrader. Indicator trap
Both the applications and the web platform are equipped with many built-in indicators. Beginners are often trapped by indicators, as their indicators may look contradictory to predict. So it's better to ignore them first and only focus on one of them in pairs with a strong price trend. In the process of practice, you will be able to rely on the others, gradually learning under what conditions they can be used. Until this level is reached, it is worth exploring the Price Action approach, about which there is a lot of free information online. This is a special candlestick model or a combination of them, which is used in clearly defined market conditions. It can be a single candle (pin bar), or a combination of them (bearish absorption, internal bar). Price Action traders also use indicators, most often moving averages and oscillators, but they are not the basis for their trading. Once you master Price Action, it's time to take a closer look at the indicators as well. But not all of them at once. The most important are indicators of support and resistance levels, moving average, commodity channel index (CCI) and true range average. Each of these indicators has a specific task and is used with specific targets. Thus, the support and resistance levels indicate the entry and exit points for most players. The Moving Average allows to see better the underlying trend of price changes. Commodity Channel Index is also designed to identify a strong trend, and in addition, to determine the level of overbought or oversold. And finally, the Average True Range will help to determine if it is worth spending time on trading a pair. Having got acquainted with Price Action and key indicators in practice, you can develop your own strategy further, and then the system. The strategy answers the questions "why" and "what". The trading system specifies "how", "when" and "where". Answering all these questions on the basis of your own experience and based on the indicators, you make your trading strategy and system. All this, of course, should be fixed somewhere. As soon as you sign everything, you can switch to a Standard or MT 5 account, where the minimum deposit is $100.
How to learn to trade forex for free