Below is a step by step guide to take a trader from a beginner, learning the skill of trading with testing, demo trading and micro trading, to then opening a real account. Each step includes the recommended sequence that reduces risk while learning the skill of professional trading and allowing a trader to go live when fully ready.
Learn the skill of trading, trading is a skill like any other and a business, so it needs to be treated in this way. To learn the skill I recommend subscribing to the website to get updates such as the Weekly Forex Review ( email updates ) and that you also check out the Forex Training available at the the website. In the training I cover what I refer to as core market dynamic processes, these are important to learn for reading price action and how to identify a high probability positive risk to reward trade setup.
To check out the Forex Training Click Here.
Open a free demo trading account and start back testing, this can be done for free in MT4 or Ctrader or can be done using a professional tester such as Forex Tester 2.
Keep testing until you have doubled an account multiple times with a methodology you are testing.
If looking for a broker, I would recommend checking out ICMarkets – www.icmarkets.com
Start trading in a demo account or micro account and get a feel for trading with the live market. Make sure to keep risk and those sort of aspects in check, I recommend risking less than 2% of account size, for more on adjusting risk visit here.
When trading for the first time on a live chart it is important to be patient. Wait for the market to meet all the requirements that are needed following the methodology that you are trading in order to execute a potential trade.
Once you have been profitable in demo or a micro account for more than 6 months in a row then now you are ready to you make a trading plan. A plan that suits you as a trader and how you will continue trading the methodology, adjust to suit your personality, when you can trade, what time frames you trade the method and so on.
– When referring to profitable I am referring to a monthly gain amount every month for 6 months. This includes losses and winning traders, however overall a profit gain from the market that month.
Now is the time to be profitable again for more than 3 months following the trading plan and methodology.
– When referring to profitable, I am referring to a monthly gain amount. This includes losses and winning traders, however overall a profit gain from the market that month.
Once achieved, then you can move to next step.
You are now ready to trade for real money in the markets.
I recommend still starting small and building from here. A good starting amount when going fully live is starting with a $10,000 dollar account.
An amount that is still small as you transition to real trading.
After doubling your real live account, take the initial investment amount out of the account so what is left is the profits.
Then start building the account again following the trading plan and process and scaling the account size to match the risk and income that suits you as a trader.
Learn what your monthly gain average is, this refers to learning what average gain amount in percentage that you are earning each month.
Once account size matches your desired monthly income amount target from the gain you are making in trading ( monthly gain average ), then you can start taking some or all of your monthly profits out each month or you can leave profits in your account to build account more and future profit potential.