How To Start Forex Trading ... The Smart Way

(​Forex Trading For Beginners)

First, a confession: ​It took me ​many years to figure out ​how to start Forex trading the ​RIGHT way,​ ​​partly because ​most of the early "mentors" I ​​learned from ​were not actually ​profitable traders.

You see, ​​back then - as is still the case today - ​​most ​Forex "​teachers" are ​really just ​marketers who know all the theory​ of trading, but can't make money ​under real market conditions.​

So ​if you're ​thinking about how to start Forex trading, ​the first thing you should​ do is ​check your learning sources.

In particular, ​look for someone with ​a​ 3rd-party verified track record​.​ ​​This is the ONLY way to know if you're learning from a real trader​, ​or ​​a charlatan.

This ​is the most important point that ​new traders ignore, ​and they ​end up learning ​about beautiful​ theories ​that don't​ work in practice.

So ​before we get started,​ ​here's ​the performance ​record on one of my accounts​ ​with 500+ trades:

how to start Forex trading

​​Now with that out of the way, let's get ​to the topic at hand.

How to start Forex trading (the smart way)

1) Take the free Babypips Forex trading course

First, go through the Babypips school and get acquainted with the basics of the Forex ​trading.

​Important concepts to learn:

  • Forex trading basics
    • Currency pairs​
    • ​Trading leverage and ​Trading Margin
    • Bid-Ask spread
    • Trading session ​hours
    • Market, stop and limit orders
    • How ​brokers work
    • How to avoid scam brokers
    • Keeping a trading journal
  • ​Basic technical analysis
    • Support/Resistance
    • Price ​trend​s
    • Price ​momentum
    • ​Price ​volatility
  • Basic fundamental analysis
    • Economic indicators
    • Basic ​monetary ​policy
    • Interest rates
  • ​Risk management
    • Position sizing
    • Currency pair ​correlations

This information alone won't be enough for you to trade profitably, but it's a decent place to start.

The next step is to ​pick a broker to trade with.​

2) ​Choose a ​​regulated Forex trading broker

​​​​The retail Forex trading industry ​has cleaned up over the years, and the number of scam brokers ​has dropped significantly.

This being said, there are still ​Forex brokers out there ​that are ​quite dubious​.

​So ​as much as possible, follow these guidelines when choosing a broker:

  • Regulation: make sure your broker is ​regulated by the ​relevant ​authority in your country
    • ​Australia: Australian Securities and Investment Commission
    • Canada: British Columbia Securities Commission ; Ontario Securities Commission
    • Denmark: Danish FSA
    • Hong Kong: Securities and Futures Commission
    • Japan: Financial Services Agency
    • Sweden: Swedish Financial Supervisory Authority
    • United Kingdom: Financial ​Conduct Authority
    • United States: National Futures Association ; Commodities and Futures Trading Commission

  • Broker capitalization and length of time in business
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