How to Become a Forex Trader
So you want to learn how to become a Forex trader, great!
But wait – before you go any further, I want to make sure you are prepared for what lies ahead. Because I want you to approach Forex with realistic expectations.
Many new traders I talk to want to get rich quick with minimal effort.
If anybody promises you that they are lying because Forex is not a get rich quick scheme.
Trading requires a time commitment and realistic expectations. It is not easy and you should expect to see a year or two of trading before becoming profitable. Forget what you have read on sites trying to sell you trading as an easy money-maker.
So please, ask yourself right now…
Can you dedicate the time and patience needed to become a successful trader?
Are you ready to commit the next one or two years to mastering Forex?
If your answer is no, you can never become a trader.
If your answer is yes, then let’s get started…
What do I need to Become a Forex Trader?
You don’t need any fancy equipment to start trading Forex. You most likely have everything you need already!
- A computer or smartphone (preferably both).
- A stable internet connection.
- A comfortable chair.
A supercomputer with a multiple monitor setup is not a requirement to trade. Price Action is a simple and low maintenance strategy that is flexible around you. So long as you have a computer made in the last 5 years, you are all set!
As for a smartphones, you can check out my Forex mobile trading guide for a more detailed rundown.
What does Forex cost?
To start with, Forex trading won’t cost you a thing. You should spend your first year trading a demo account. That way if you lose, you don’t lose any of your real money.
When you start making consistent profits with your demo trading, you can think about opening a live account! This is where your first costs will come in.
Fortunately, the costs will be relatively low – you can open a live account for as little as $1. Realistically, you will open a larger account. When you open your first live account, you should be looking to start with around $100-$300.
Remember, it takes time and patience to master Forex. You need to start small with your first live account and slowly add to it as you become more comfortable with live trading.
After your first year or two of live trading, you should be making consistent profits. If that is the case, you may want to consider opening a serious account.
This can be flexible – trade with what you can afford to lose. I have seen traders start accounts with as little as $1,000 and succeed. However, a more realistic amount would be $5,000.
Overall, Forex costs you very little – particularly when you start. This is great as it means there are no barriers in your way to giving Forex a shot! You only need to invest a significant amount of money when you feel ready.