New to Forex? Here The 5 Steps to Start Trading Forex The Right Way

If you're new to Forex trading but recognize the immense potential which this financial arena offers, you should know that with the potential for profits, come the potential for losses as well.

In fact, Forex is a zero-sum game: one trader wins, another loses. It's sad, but that's the way it is. The money has to come from somewhere.

What this should tell you is that you need to do more than just want to make money on Forex in order to succeed. Trading can be done in the wrong way (which will make you lose money) or in the right way.

Here are some basic steps:

1. Get a broker - A broker is simply a certified middleman which carries out your trades. For that, the broker earns a small commission called the Spread. You need to find a broker who's reliable, has a good support staff, provides a user friendly trading software, and is available 24 hours a day.

2. Open a demo account - Most brokers provide the option of opening a demo account. This is an account in which you trade virtual money without risk. This is done just to practice the fundamentals of trading. Don't confuse demo trading with real-life trading. There's a whole psychological element to real trading which a demo account can never replicate.

3. Get a trading system to work with - This is done to help you achieve a high probability of winning. Don't trade without a system. It's gambling to try to trade without one.

4. Open a mini-forex account - This account requires you to make just a small deposit (a few hundred dollars). Then, you can begin trading for real. This is done to get a taste for real Forex trading. You should also test your trading system to make sure it works for you.

5. Continue learning and increase trading amounts - Step 5 essentially takes forever. Learning how to trade Forex is something that never ends. It's something which a true trader strives to do all of his/her life. You should do the same.

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