Everyone who comes to Forex wants to become a consistent and profitable trader. Have you wondered how to do it? Team of JustForex broker is going to tell you about the main steps of becoming a “Forex sensei”. Though it seems hard and complicated at the start, the right attitude and diligent work will be your keys to success.

1. Learn the theory

There can’t be success without deep knowledge. Theory is the foundation for the next steps. A trader has to understand how the Forex market works and how various economical factors influence the quotes of the currencies. Creating a trading system is possible only with operating certain knowledge.

So, before getting to it, any newbie-trader should imagine how the whole process of trading is built.

You can learn both from offline courses and online resources such as Babypips school. More theory about trading can be found on Investopedia.

What concerns news and event on the market and their possible impact on the trading process, use Investing, Barchart and FXStreet to monitor them. You can find more analytical info and trading tips on ForexFactory, there is also one of the biggest ‘Forex forums’.

2. Create a strategy

After you know the theory, you can make sure what trading style suits you. It’s time to create your trading system.

- Make the foundation for your system. Define if you are an intraday scalper or a trend trader who opens medium- and long-term deals.

- Pick up suitable trading instruments and assets. Choose currency pairs you are going to work with.

- Choose timeframes and trading sessions. Note that European and the US sessions are the most active ones. As for the timeframes, you can use multiple ones for making your technical analysis more precise. M5-H1 are good for short-term traders, H4-D1 fit trend traders.

- Create your own rules of entering to and exiting from the Forex market. Use analytical tools and stop loss/take profit orders to insure that your orders will be closed at the desired level.

- Figure out your risk level. Remember the 2% rule and don’t risk too much in order to keep the funds safe.

If you want to watch how strategies of other traders work, go to TradingView. Experiences traders share their ideas and analysis there. It will give you an opportunity to learn the process and get ready for practice simultaneously.

We advise you to read blogs of professional traders. Look at what strategies they use, how they perform the analysis. For example, don’t miss Kathy Lien’s, Mario Singh’s, Soh Tiong Hum’s (TerraSeeds) blogs.

Earnforex e-book library will be helpful as well. Find the section you need (books for beginners, on money management, psychology, etc.) and educate yourself.

3. Find a company

Before starting trading (even on demo account) every novice has to choose a broker. It’s always better to pick up a regulated company that has been working on the market at least for 3-4 years. Check what liquidity providers the company works with. If it doesn't have one, the company is likely a market maker, but not an ECN broker.

Look for what people say about it. Reviews can be checked on specific websites and forums such as Earnforex and FXEmpire. They are trustworthy and impersonal resources. Speak to the support team to find out how fast they work. Check the trading conditions. Then choose the one that is the most comfortable for you.

4. Practice on demo

Yes, you've read that right! Now, after you have set up your trading plan and chosen a broker, start practicing. Use a demo account first. It allows newbies to trade virtual money. You won’t lose anything, but will get an experience that is one of the most essential things on Forex. Demo will show you how everything really works. You are free to experiment, improve your strategy, make changes, analyze and correct mistakes. It’s absolutely free!

5. Start small, grow big

Finally! After you’ve got an experience and improved your trading skills, go live. It’s time to earn money. If you are sure that your strategy is well-tested and will work on a real account, switch to one and try it. Don’t hurry up to invest thousands of dollars until you see that your demo strategy is correct. $100-200 will be quite enough for the start.
If you want to find some intermediate stage between demo and live, open a cent account. Risks are minimum here, but a chance to improve your skills of managing trading psychology is really great. By the way, we have created such an opportunity not so long ago!

6. Treat the Forex business seriously and try to keep your emotions under control at every stage. Probably, you already know it, but it’s never superfluous to remind about the attitude to trading. Many newbies assume it just a game, some sort of gambling where you can win millions in a couple of minutes. It’s not correct. Forex is a serious business where one should learn, plan, analyze and stay organized to achieve success. Invest your time into getting deeper into this business, and you’ll be able to become a profitable full-day trader in the long run. All you need is a wish to educate yourself, your time and the Internet connection!

The bottom line

You should work on Forex trading to make it working for you. If you will be persistent and patient enough to master the art of trading, dive deeply into the market, feel it’s essence, you’ll become a real “Forex sensei”.