Must you be a guru to make money trading Forex?
Should you have tons of experience in order to begin making money out of the Forex markets?
Must you have been trading for some time now to make it in Forex?
I know those are the questions you have been asking yourself as a newbie trader.
And because you probably believe that the answer to all of the above questions is yes, you have cowed away from the markets.
You are afraid of giving Forex trading a try in fear of making nothing out of it, but blowing your account instead.
Well, well. In today’s post, I’ll show you how to make money trading Forex with No previous experience.
Note that you mustn’t necessarily have any experience to begin making money in Forex.
Here is how to make money trading Forex with no previous experience:
Is there a part in the introduction of this post that says, “you don’t need any experience to make money trading?”
Yes, and the truth is, you actually may not need it.
And the only way to compensate for the inexperience is to educate yourself adequately.
Useful resources like books on trading, blog posts, tutorials, and webinars play a great role in this.
In utilizing these resources, you will understand what Forex is and how things work in Forex trading.
You will understand the basic principles of the field like – how markets move and why they move; when to trade, how to trade; how to make money trading, and more.
In the process, you will also get acquainted with jargon and terms used in Forex trading. But make no mistake, mastering all those jargon doesn’t make you a better trader; practicing what you learn, on the other hand, will make you one hell of a trader.
Other things that you’ll most probably learn if you take the education route include: –
Knowing how to select genuine brokers and how to use broker platforms.
Not to forget the various class assets that you can trade.
What you are getting here is not an experience.
It is just a standard education. Remember, education is not equal to experience but with in-depth trading knowledge, you’ll definitely start earning as a Forex trader.
Choose a Reliable Broker.
Have you already learned the basics of Forex trading?
When you were educating yourself, you came across the term ‘broker’. This means you also learned that brokers give you access to the markets and without them, you cannot trade Forex.
If you did your due diligence, then most definitely, you also found out that there are scammers and reliable brokers. Scam brokers will steal from you.
Reliable and regulated brokers on the other hand will safeguard your interests and ensure fair dealings with you.
Olymp Trade is one such revered broker.
Register on Olymp Trade here. Once you register, you will proceed to Log in using the email address that you used during registration and the password which you set.
With Olymp Trade inbuilt tools, you can almost immediately start making money without previous experience.
Practice Forex Trading on Demo Account.
Most brokers including Olymp Trade give free demo accounts.
Olymp Trade’s demo account is loaded with $10,000 which is useful for Forex training under real market conditions without risking real money.
With the Demo account, you can try out everything you learned in the education section.
Did some posts suggest a certain strategy? It’s only in the demo account that you get free money to test if it works or not.
This is where you get acquainted with your broker platform or the MetaTrader 4 platform.
If you choose Olymp Trade, here’s one great post to help you navigate the platform.
Devise a Strategy.
No matter how much you learned in the education section, you cannot just punch in the air.
Here is a Trading strategy you can use without even the slightest previous experience – Support and Resistance Strategy.
Support and Resistance are levels of the price of an asset at which the price reverses.
- Support is a low level on the price chart where prices don’t tend to go past downwards but reverse upwards.
- Resistance is a high level on the price chart where prices don’t tend to go past upwards reverse downwards.
You will enter a Buy position if:
- The Price is at the support level, having tested the level severally without breaking it downwards.
You will conversely enter a Sell position if:
- The Price is at the resistance level, having tested the level severally without breaking it upwards.
Here is a Money management strategy you can use without any previous experience – Using a Reasonable Risk to Reward Ratio.
While placing a trade, you must use Stop Loss and Take Profit Orders.
These are positioned in such a way that the Take Profit order is at a distance at least twice as the Stop Loss order from the point of entry.
That is a risk to reward ratio of at least 1:2, but you can use a higher ratio depending on the trade set up. That is everything that there is about the proper risk to reward ratios.
Deposit Real Money and Trade Live.
Once you have mastered the trading and money management strategies, deposit real in your real account. You can then begin trading to make real profits.
While trading, there are things you need to do like checking your trading psychology.
Remove emotions from trading because trading is about a working system, not how emotionally we react.
Let the trading strategy and the money management strategy do their work by being emotionally detached from your trades.
Excitement, Fear, Greed, and Anger will cost you your money if you entertain them.
Stick to the trading strategy you adopted and obey the money management strategy you opted for.
Do not hop from strategy to another because doing so breeds confusion and is not a healthy trading habit.
Of the above five points, show me any that required you to have previous experience.
Any that you can see?
I guess not, and so this invalidates the notion that you need prior experience to make money trading Forex.
Actually, if you stick to your trading and money management strategy well, you will not have to blow an account.
You will begin making money from the word go, and there, you have become a profitable Forex Trader from scratch.