When it comes to working and earning from home, forex trading is one of the best options, as there’s the potential to earn a lot of profit without the need to invest too much capital. Moreover, operating around the clock, the forex market provides the unique opportunity to work at the hours that suit you, enabling 24 hour trading throughout the week.
With that in mind, today the trading experts over at Learn to Trade are sharing how you can start your forex trading empire from home – all you need is patience, a personal computer and some spare cash ready to invest.
Brush up on the basics of currency trading
Undoubtedly, the best method to learn forex trading is working with an expert who fully understands the nuances of trading. However, attending seminars/webinars and reading independently should also be undertaken to help you sharpen your skills. Reading books on economics and business will help to broaden your insight, especially regarding fundamental analysis, so extra reading should always be encouraged to gain the fundamental forex trading knowledge.
Master technical analysis to help you not only determine when and where to enter a market, but much more importantly, when and where to get out. Technical analysis is based on the theory that the markets are chaotic, however price action is not completely random. In other words, within a state of chaos, there are identifiable patterns that tend to repeat – fundamental knowledge to forex trading that you must be aware of before you place your first trade.
Organise your trading capital
Contrary to your initial thoughts, you are not required to have a large amount of money to start currency trending. This is because of the margin trading feature offered by brokers – here, you only need a small amount of cash to set up an account on broker platforms. Alternatively, you can use no-deposit bonus to start trading.
However, we recommend starting with at least £1,000, as this is enough to create a buffer if you happen to incur any losses. After all, part of learning is making mistakes – but you don’t need to lose capital by doing so. Another important thing to consider when you start trading is how to implement risk management into your trading. Doing so will enable you to manage the risks effectively, arming you with the knowledge of how to reduce the level of risks you take and potentially preventing you from losing money later on.
Opt for a reliable forex broker
Forex brokers offer an array of online platforms to help you access the forex market and trade. Always ensure you’ve gone through the terms of trading before choosing any of the brokers, however – it’s important that you work with the right broker in order to achieve your financial goals, so it’s worth considering this in thorough detail.
To do this, compare the features offered by a few brokers prior to deciding to work with one. Some of the factors to consider are trading options, terms and conditions and user reviews. This will help to establish the broker who will best suit your needs, but if you’re not sure, or are feeling a little apprehensive for any reason, you may also consult with an expert trader for this purpose.
After choosing a forex broker, open a demo account on the broker’s platform. This virtual account may be offered only for a certain specified amount of time. However, it’s worth your time, as it will give you an idea as to how you can use the trading platform offered by the broker. It will also be helpful in getting prepared for using the real platform. This means you’ll have a trial run, and won’t be using real money without testing the broker’s platform through the demo account.
Practise, practise, practise
It’s important to train yourself so that you’re in a position to buy and sell at the right time, and trading on the demo platform is a great way to do this – we recommend practising for a few weeks so that the chances of you incurring losses are considerably reduced.
A demo account helps you learn to implement various trading strategies that will put your knowledge to the test and help you to understand what you need to brush up on. Not only that, a demo account will help you develop a trading style of your own, which you can put into practise when you start trading with actual capital.
Start trading with real money
When you’re feeling confident, open a live trading account with a forex broker after you have practised enough to get the grips of things. Alternatively, you could convert the demo account into a live account – although bare in mind that you may have to deposit the minimum amount specified by the broker.
Some trading strategies will bring you huge profits and others will not work for you – which you should be prepared for. People who succeed at trading work hard at it, so the more effort you put in, the more likely you are to succeed. The secret to increasing profits is repeating what works for you, and avoiding what doesn’t – so you make great returns as a result of your knowledge and experience.
There’s a place at the table for everyone when it comes to forex trading. Professional trading has never been more accessible than right now, and it’s never too early to brush up on your knowledge – so, what are you waiting for?
John James is a content writer for Learn To Trade, the foreign exchange education and learning specialists – offering a range of training courses to help people understand the currency trading market, as well as its opportunities and risks.