You can start trading even with a minimal amount in your pocket. The most important thing is to have a correct understanding of the market from the very beginning and to take it seriously.
Instructions
Step 1
Open a Forex micro account with a broker you are interested in. Many accounts are only available with a lot size of only 1000, which offers additional risk reduction.
Step 2
Fund your account after opening. Most Forex brokers accept automated transfers, which can be processed through the broker's website.
Step 3
To start trading Forex, download and install the Forex trading platform on your computer. Most brokers offer free software to all account holders. You usually cannot trade in a mini Forex account without installing this program. Open the software to start trading.
Step 4
Select the currency pair you want to trade. It is a combination of a "base" currency and a second currency that sets the value of the base. Currency has no intrinsic value without being compared to another. The US dollar, for example, can rise in value against the Canadian dollar, while falling in value against the euro.
Step 5
Chart the currency pair so you can see how prices fluctuate when you start trading Forex. To do this, you can use the applications built into the broker software.
Step 6
Buy one (or more) currency pairs if you think the base currency is likely to rise. Forex is fast, so you have to be nimble. Most Forex platforms offer an obvious Buy and Sell button for the currency pair you are trading.
Step 7
Sell a currency pair after you have achieved your desired profit or reduced your losses. Being constantly aware of potential losses is the most important question that should be on the mind of any trader. Avoid the temptation to work too long at a loss. Many novice traders hope that a bounce will happen with a losing position, but this action usually only builds up losses.
