Quote from newbeeinvestor:
I have recently come across some information that has sparked my interest in forex trading. . . I wanted to know the best yet most cost effective way to get started, even if it is with a mini account.
Your interest and your request are reasonable. Here are some helpful steps:
1. Find one or more trading systems that you feel confident in after reading posts from other traders who profit from systems trading. The best systems utilize close-in stops that limit your risk. A mini-account will last longer as a result. The longer you last, the greater the chance youâll enjoy of learning a trading system that is right for you. Remember, Rome wasnât built in a day, so be prepared to spend several weeks at becoming successful.
2. ET is not the best board for finding posts on successful trading systems. No knock on ET, but I suggest Moneytec. Alternatively, if as a newbie you find it difficult to understand the trading systems you read about -- special words and terms are often used -- find a trading mentor whose advice you are willing to follow. A mentor is a huge advantage because, among other things, he can help you find and understand the right system. Moneytec has several regular posters who can help you find a mentor, or who are mentors themselves.
3. Youâll need to find the right broker and the right karma. As said many times on board like Moneytec, negative vibes do in more new traders than anything else. The broker is important because you want to trade with one that does not operate a dealing desk. In the past, new traders were told â incorrectly, I add â that a dealing desk was an advantage to the customer because the customer could ask the desk for help in selecting profitable trades. Thatâs not true: while news about international deal flows and other data of that kind can be important, dealing desk personnel usually won't cut a new customer into that kind of inside information until it is too late for the customer to profit from it. Instead, you want a broker who sends quotes to your PC that come directly from the brokerâs interbank liquidity providers. The critical question is whether as a customer you are able to, directly on your PC, click on what are called âdealableâ or âtradeableâ quotes.
4. Quit your job.
5. Use the extra time you have to purse each element of items #1, #2, and #3.
