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Forex Trading on a Budget

Discussion in 'Forex Discussions' started by painofhell, Nov 16, 2015.

  1. painofhell

    painofhell Content Contributor

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    Introduction
    If you have been studying forex trading, or even if you're brand new to it, you might be wondering, how can I do forex trading on a budget?

    Education
    The first thing you need to consider is that you'll need to know a little bit about what you're doing. Whether you once had a decent forex trading account that crashed, or you are just starting out with no experience, you will need to educate yourself on forex basics.

    Get acquainted with risk management and other basic forex concepts before you commit any money to a trading account. When I was starting to trade this market specifically, I withdrew funds from my account in order to spend it on learning resources. One of the best investments I mad was getting certified as a Chartered Market Technician.

    This introduced me to in-depth money management, advanced analysis techniques, and best of all, allowed me to talk trading with professionals who worked with banks or established funds.

    Either way, find a way to get exposed to those who are trading well and who have an established track record.

    Start Small
    Start small means to start really small. I once met a trader that told me that you can't have success at trading for dollars until you've had success at trading for pennies. One broker that will allow you to do that is Oanda. With Oanda you can open a trading account with as little as $1.

    Invest Regularly
    As you refine your craft, start investing on a regular basis. Add $5 or $10 a week to your account. It doesn't sound like much, but over time regular investing, along with your gains compounded can give you quite a sizable account. The best part of this being that it won't hurt to build your account. You won't lose "the last of your savings" on a trading stunt that you thought was a sure thing.

    Be Patient
    Forex is all about patience. Starting small may seem slow, but it will keep you disciplined. Trade small and view everything in terms of percent, rather than dollars and cents. With a $10 account if you have a gain of $1, that's a 10 percent gain. If you lose $1, you've also lost 10 percent, but you've learned a lot and it only cost you $1.

    Profitable investing takes time to learn. There isn't anyone that is good at it on their first day. It just takes time to learn.

    Investing small on a regular schedule will help you combat some of the major hurdles in learning forex trading.
     
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