Trading Forex Online

Forex trading is taking the investing world by storm. It's been around for a long time, but was previously pretty well restricted to banks and wealthy individuals. These days anyone with as little as 25 dollars and some identification can open a forex trading account.

So, how do you get started with trading forex online? It's actually pretty simple.

The first thing you'll need to think about is what forex broker you want to use. You can look at this forex broker list to help you get started.

Choosing a forex broker is an important decision. You'll be trusting them with your money and you'll be relying on them to execute your trades and meet your expectations. Take your time while checking outforex brokers, don't rush through it.

Next you'll need to open a forex trading demo account with your chosen forex broker. A demo account will allow you to learn a bit about what you're doing before you put your money on the line. If you've never done any forex trading before, ask anyone that has, it's harder than it seems like it would be.

Once you get the hang of trading on a demo account, you can consider moving to a live account with your broker. If you are a beginner, you should start with a micro forex trading account if your broker offers it, or a mini account.

Hopefully by this point, you've read up on forex risk management and using stop losses. Forex trading is one of those industries where it's easy to get hurt when you don't have experience. There is a lot of opportunity, but you need to learn some forex basics before jumping in and trying to trade. If you spent some real time trading on a demo account, this shouldn't be a problem for you.

As you start doing live trading you may notice that you feel a little nervous or excited about your trades. This is pretty normal. It's part of forex psychology. You tend to get trained that making money is easy, and it can be, but when your hard earned money is on the line, it brings in your real life emotions and that can cloud your judgment. Experience is the best thing to help you beat the emotional problem.

As you start your trading adventure, there are a few things to keep in mind.

There are no easy answers
You'll easily find a lot of sites on the internet promsing you easy wealth with forex. Most of them are trying to sell you on a book or some scam system that will give you "super accurate signals" or even do the trading for you. The vast majority of these systems are either useless or mediocre in performance.

Trading Small Wins the Game
Rather than making big trades and try to squeeze profit out of the market, try making really small trades and allowing them to develop. You can't win at trading for dollars until you learn to win trading for pennies.

Don't Trade News
My first experience in forex trading was to do news trading, which is trading right after news announcements. This is a terrible way to trade! Market reactions to news can vary depending on what the market was expecting and sometimes it's very hard to predict. Don't get into the business of predicting. Follow what happens over time.

Trade the Trends
Going along with the advice above, follow the long term trends. Don't try to guess when the turn around is going to be and start picking tops and bottoms. That is a recipe for losses. Assess the trend and jump on. Set a stop loss for a reasonable point that prices will only reach if the trend is over.

I hope you've found this article helpful for getting started with forex trading. Forex trading really is a good way to make money, if you approach it correctly. You can send comments toforextrading@aboutguide.com or you can follow me on facebook.