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Forex Resources

Learning Forex Basics

If you are interested in Forex Trading (foreign currency trading), then there is a lot you must learn before you can begin your profitable journey to riches.

1. Educate yourself on as much information as you can get your hands on about Forex Trading. You canít play the game without knowing the rules so to speak. Get your hands on free information widely available online to learn all of strategies used in currency trading. Remember, no single strategy is perfect. Even though we can play the same game over and over, the rules stay the same most of the time but game plays always change. Just because something works for one person doesnít mean the same style will work for you. A great place to start your education is FXStreet. You can get your hands on valuable information and great tips to help you get started.

2. Practice, practice, practice. There are many places you can get fre demonstration accounts where you can play around with fake money in real world trading environments with realistic indicators and conditions. Just like the stock market games, you can practice for as long as you like testing out different strategies until you feel confident to play with the big toys. Metaquotes is an excellent place to start with $100,000 worth of free play money. FXCM and are some other good websites to play on.

3. Remember the old saying: its not what you know, its who you know? Well this applies half-way to Forex trading as well! Get connected. Join networks of other people who are out there just like you trying to learn about currency exchange. Forums are also very important when it comes to connecting to people. Youíll be surprised to see how much you can learn from other people, and perhaps even make a few friends on the way. Some places to consider: Globalview, EliteTrader and MoneyTec.

4. Set your goals. You donít make big financial decisions without first thinking about the consequences and the end goals that you are trying to achieve. The same goes for forex trading, set your goals - both longterm and short. Where do you want to be in a year? ďI want to be a millionaireĒ might be the right attitude but not the right goal. Where do you see yourself in a week? Do you anticipate gains or losses, if so how much? Think about these questions before you go throwing your money around. Once youíve got some sort of a goal you must determine an approach. How will you get to your goal? Will you do it aggressively, on the cautious side, or will you plan to adopt a moderate plan? This is a key step where you cannot get ahead of yourself. It is said that 95% of those who try, fail. This is due to unplanned and uneducated decision making. Remember, no strategy is perfect and you must figure out your own that works for you!

5. NEVER let your emotions take over. This goes along the lines of planning. Some people make some money and all of a sudden they are riding an emotional rollercoaster that leads to complete disaster and loss of all funds. Donít be one of those people, make decision based on good indicators and never ride the emotional rollercoaster when it comes to playing the real game. Do your research and always keep in mind your short term goals. Its best to take small footsteps to prevent stumbling as you start running so to speak.