The Beginning: How to Become a Trader in 6 Steps?

There probably isn't a person who hasn't, in one way or another, heard of the foreign exchange market . Someone has seen advertisements about fabulous profits that can be obtained by doing almost nothing, someone tells horror stories that - a scam and a scam, and someone is sure that trading is available only to very rich people, and the common man has nothing to go there and get in. And only traders know that

• trading on is hard work,
• trader is a specialty and sometimes a profession,
• money earned in the foreign exchange market is by no means easy.

And if you are attracted by the possibilities of earning money on the financial markets, then it's time to become a trader! So, where to start trading on ?

Step 1: Decide to trade on

The first thing to think hard about is.....

- It is not a casino, where you can get money by guessing the exchange rate, and not a bank, where interest accumulates over time without our participation. Trading on the currency market, like any other profession, requires certain knowledge, skills and moral qualities. Trading on Forex, you need to constantly learn, improve your knowledge and, the most difficult thing - to be able to make decisions after analyzing your successes and mistakes.

Read the previous paragraph again, imagine yourself in the role of a trader and think whether you really want to devote your time to trading on ? If some point causes difficulties or denial in your mind, then trading may become for you an unpleasant profession that will bring neither joy nor money. But if you agree that you will have to study for some time, analyze the market situation on a daily basis, strictly approach your actions, and are ready to receive not only profits but also losses, then welcome to the currency market!

To be ready for difficulties and volatility in trading on , the right working attitude and desire is the first step of your becoming a trader.

What do you need to know?

• What is (Forex)?
• Who is a Forex trader?

Step 2: Start learning

Having firmly decided to start trading on , first of all you need to acquire certain knowledge. Unfortunately, in our everyday life there are almost no skills that could be useful for us to start trading without preparation - there are many obscure names in the terminal, market analysis is so diverse that it is unclear where to start, bulls and bears alone can puzzle a beginner for a long time, so it is better to be prepared. Usually there are two options for training.

1. Training from the company - Almost every broker or dealing center offers a small initial training course where you will learn the very basics. These courses can be both paid and free, can be in-person or remote, and can last from a couple of weeks to several months.

Pros:

• With the right amount of diligence, you are guaranteed to get the basic knowledge you need to start trading on the .

Cons:

• You have to pay for training. The amount depends on the company's policy.
• The subjective opinion of the teacher for the beginner becomes something like the immutable truth, sometimes forming a distorted view of things, from which then it is very difficult to get rid of.
• The quality of training depends directly on the competence of the instructor. There are some chances of getting into a course that will not be useful at all.
• Some brokers may begin to induce a trainee to open a large real trading account with their company after completing the course. As a rule, it is not difficult to convince a novice trader of the necessity of such a step. It should be said that a trader usually loses his first deposit....

2. Self-study - Nowadays, the Internet is simply overflowing with information. This includes specialized training sites, forums and traders' blogs, where a beginner can understand the basics of the currency market quite quickly.

Pros:

• Self-study, of course, does not cost you a penny.
• You can devote all of your available free time or the time that is convenient for you to study.
• You can draw your own conclusions by comparing material from different sources.

Cons:

• When starting out on his own, a beginning trader will have to go through a lot of different information on how to start trading on . A smart person will quickly figure out what's what, but the process can take a long time.
• No one to ask questions. Sometimes during training you may encounter moments that are not clear at all. They slow down further progress and complicate the process. In such situations, a hint from a teacher with experience would be very helpful, but there is no such person. There is a way out - use profile forums and threads with questions from beginners. Your question will not be difficult for the practitioner and he will be happy to help you.

Training on is a stage in becoming a trader that should not be skipped. It can be compared to driving courses for complete dummies, when getting behind the wheel on a country road doesn't seem difficult, but on the highway or in the city during rush hour can be a serious problem for your wallet and confidence.

It would be helpful to know

• Forex training: paid or free?
• Free lectures and trading training courses
• Basic concepts

Step 3. Choose a broker

Armed with the necessary minimum knowledge, you can start trading on the foreign exchange market. Trading services are provided mainly by brokers, dealing centers and banks. Therefore, you need to choose a company that you trust.

This stage is very responsible, because you are alone, and there are many brokers. A lot of useful articles have been written about how to choose a broker. Broker ratings, reviews of practicing traders, as well as claims to companies, which, as a rule, are placed in specially allocated sections on forums, are of great help to a novice trader.

Feel free to ask! Everyone was once a beginner and faced the same questions and problems. The beauty is that traders do not compete with each other, no one is taking away anyone's bread, everyone earns according to their skills and abilities. Such a concept disposes to friendliness and support, and, as a rule, on good resources the questions of beginners are never left without competent answers.

Sometimes you may hear this opinion "It doesn't matter where to open the first demo account". This is true, you can trade profitably everywhere with virtual money, but it is very difficult for a novice trader to adequately evaluate a company after stable trading on demo, he will definitely open a real account there as well.

Therefore, it is better to think about choosing a broker right away or to keep it in mind while going through step 4. A broker is your companion and should be trusted completely!

About brokers

• How to choose a broker?
• About the work of brokers
• Broker rating

Step 4: Trading on a demo account

Probably, no one can even think that a person who has just graduated from civil aviation pilot courses will sit at the wheel of a passenger Boeing. In the same way, it is strongly not recommended for a beginner trader who has, in fact, only theoretical knowledge and only minimal knowledge, to open a real trading account immediately.

How then can a beginner trader gain practical experience? For this purpose, all brokers and brokerage centers provide the service of demo-account. A demo account is opened free of charge, replenished with virtual dollars in the amount depending on your desire, and allows you to trade on conditions similar to real ones.

To open a demo account on the broker's website, as a rule, you need to register by specifying your phone number, to which you will receive an SMS with a confirmation code. Rest assured that very soon the company manager will call you and, having learned that you are a beginner, will offer to send you some training materials to the e-mail specified during registration. It's a bonus of any kind, especially if it's absolutely free.

Don't want any intrusive calls? Download the company's terminal and open a demo account in it. This option is most often available from brokers.

Why do you need a demo account on ?

Trading on it is conducted with virtual money and, as all brokers declare (although it is not really true), it is no different from trading on a real account.

When trading on a demo account, a novice trader gets used to the trading terminal, learns its functions, tries himself in one or another type of trading (scalping, pips, intraday, short-term, medium-term or long-term trading), tests trading strategies, selects technical indicators, etc. Figuratively speaking, a demo account is a simulator, a simulation of trading on the currency market.

The advantage of a demo account is that a lost deposit will in no way hit your pocket. You simply open a new demo account and continue to gain experience trading on .

Working with the terminal is not complicated, you just need to understand what all these concepts mean. We will try to help you a little.

• What is a demo account?
• MetaTrader 4 trading terminal
• Trade order
• Trading lot
• Spread (spread, spread)
• etc.

The case with trading strategy is much more complicated. But there are quite effective methods that are suitable for beginners. They will also help you take the first steps in analyzing the market.

• Strategies for beginners

Step 5. Transition from demo account to real deposit

So, the trading terminal has been mastered, the knowledge necessary for trading seems to be available, the deposit balance on the demo account is steadily increasing. Isn't it time to move to a real account? A beginning trader rubs his hands in anticipation of dollars dripping on the deposit. Here again, it is worth thinking carefully.

The fact is that trading on the market carries very high risks and there are no losses. The flip side of high profits is losses. And, unlike a demo account, the money is no longer virtual, but the very blood money.

Therefore, remember the iron rule - invest in trading exactly as much money as you are ready to lose.     

Only invest your own money in trading. In no case should you sell anything, borrow money from anyone or take money on credit. There is a very high chance that you will be left without money and with debts.

Be prepared for the fact that trading on a demo account and a real deposit are technically similar, but completely different in terms of psychological burden. If on a demo account you lose virtual funds, then the loss of every "blood" cent at first will cause you an irresistible desire to immediately return losses, to "repay" losses, to take revenge on the market. In one hundred cases out of one hundred such actions lead to even greater losses. Therefore, before opening a real account, learn more about the next stage of becoming a trader.

About real trading accounts

• Демо и микро счета на — старт карьеры трейдера
• Difficulties of transitioning to real trading
• Trading on a demo account is dangerous
• 3 ways to trade for free

Step 6: Psychological preparation of a trader

Once again, there is no such thing as trading without a loss. This does not mean that by draining account after account you are doing fine. A systemic loss of funds means that you need to change something: your trading strategy, type of trading, or maybe just take a rest.

Losses when trading on - an integral part of a trader's profession. The ability to cope with your emotions is no less important than the ability to correctly analyze the market situation and develop skills in working with indicators. Rash risk and spontaneous decisions have no place in trading. This is the way to losing your deposit.

Many books and training materials have been written on trading psychology. Despite its seeming "humanity", trading psychology is written with losses, sometimes very big ones, so to ignore them is to harm yourself.

Learn to restrain your emotions, make a trading plan and do not deviate from it one step. Do not hesitate to ask more experienced colleagues. Of course, everything will not go smoothly. There will be ups and downs, joy from profits and grief from losses. Do not be discouraged, even the most successful traders once started trading and were green beginners. Remember that the longest path begins with a small step, and the road will be made by the one who walks it.

About trading psychology for starters

• 7 psychological ways to be a successful trader
• Психология трейдинга — важные нюансы
• Control your impulses
• Визуализация на бирже — залог успеха

So, we hope that in general terms it is clear where to start to become a trader on and what steps you need to take. We will definitely deepen this topic in our future articles. Therefore, we recommend you to register on our site to learn about all the latest news on our site. Good luck!