You don’t become a Forex trader overnight. It takes a lot of dedication and discipline to become a successful trader, but many traders have achieved that goal. Trading is just like any other business. In the beginning, you haven’t the slightest clue what pips, Fibonacci levels, or Elliott Waves are, but with time you’ll get to know these concepts and move on to other trading topics. That’s why education is the single most important part of becoming a Forex trader.
As we’ve already mentioned, education is the most important point on our list. Start with the basic terminology of Forex trading and move on to more difficult concepts. There should never be a pause in your learning process, but it takes some time to put the theory into practice. Once you grasp one concept, learn another one to get a feeling for the differences among various trading concepts. Once you have an understanding of the various ways the market can be traded, you can choose the one that best suits your needs.
Demo accounts are a great way to get your feet wet on the market and to familiarise yourself with your trading platform. However, many beginners make the mistake of spending too much time demo trading. Demo accounts can’t replicate the real emotions involved in trading, such as greed and fear. A losing trade on a demo account will not have the same emotional impact as a losing trade on a real account. That’s why you shouldn’t spend too much time on a demo account. As soon as you grasp the basics, invest a small amount in a real account and trade with small position sizes until you gain more experience.
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