The first order of business for any individual interested in trading in international currencies is to get the right kind of forex training. Whether the individual gets this training from books, friends, mentors or a formal training course is irrelevant. What is relevant is that, by the time it is over, he has the knowledge that he needs to build a career in forex trading.
Most individuals know that they should get forex training. However, when they complete their training they either start thinking that they are ready to dive into the market or are lost because they are too cautious about what they should do next. Both these attitudes are extreme and the answer to what should come after forex training is somewhere in the middle. Consider the following.
An Informed Assessment of the Field
Once you complete your forex training, you should take a step back and assess the market with wise eyes. You will immediately find yourself correcting certain misconceptions that you had before you knew about the market. Doing this is important simply because it will allow you to get a basic feel of the market and what it is capable of.
Defining Your Expectations from the Market
Once you have a rough understanding of the forex market and have used your forex training to weed out the last vestiges of misconceptions from your mind, you should use this understanding to define your expectations from the market.
As you have already dealt with misconceptions, your expectations will be realistic. This is extremely important because your financial targets are going to play a role in your emotional wellbeing during trading.
Picking the Right Strategies and Techniques
Your expectations and understanding of the market should help you choose the right techniques and strategies that you learnt about in your forex training. You do not have to use all the techniques and concepts you learned in your training and can simplify the entire process for yourself.
In fact, you should start with one strategy and choose it on the basis of your personality type. However, you should not disregard any trade management and money management techniques.
Creating a Forex Trading Plan
Next, you must couch these strategies and techniques in a coherent forex trading plan. Ideally, you should have learnt how to make a trading plan in your forex training but if you did not then there are many resources on the internet that you can use to learn this. Whatever you do you should never start trading without a trading plan because that would leave you susceptible to impulsive actions.
Testing Your Strategies and Trading Plan
Before you can move onto opening live accounts and using your forex training to start making money, you must test your chosen trading strategies and devised trading.
If you do not test it then you would not be confident about your capabilities or know your methods well enough to truly use them to their full potential. Testing is done through demo accounts where you trade like normal but with virtual money.
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