Becoming a successful trader at the fx market requires skill. And as with other types of skills, it is not something that you perfect overnight. Rather, it takes a lot of time and effort for you to hone it. Sometimes you even need to put in a little trial and error to find out if your new strategy works. 

Different traders, however, have different trading styles. Thus, what may work for a successful trader may not necessarily work for you. But here are a number of things that can help you get started:

  1. Understanding your trading style. This involves you knowing what you wish to achieve and finding out how you will be able to achieve it. Remember that your trading goals and your style must go hand in hand, since this will help ensure your success in the market. Create a poor mix of style and goal, and you might limit your chances of earning more.
  2. Work with the right broker. To be able to trade, you need to work with a broker who will provide you with a trading platform. This platform is necessary for you to make analysis on your trades, thus you want the best possible one you can use. Otherwise, you would end up making poor trading decisions, which would then lead to unnecessary losses, losses you could have avoided with a better platform. But it is not enough to choose a broker based on the platform alone; the broker itself should be able to provide you the support you need as well. Ideally, you need both a good broker and a good platform to succeed. Just choosing one of the two and your trading would be severely crippled in the process.
  3. Choose your method of analysis. Methods of analysis fall into two major categories: fundamental and technical. Fundamental analysts choose to look at major events that could have an effect on currencies in the fx market. This what they base their trading decisions on. Meanwhile, technical traders opt to analyse charts to help them with their trading decisions. Choose which one works best for you and stick with it.
  4. Trade smartly. Skills are often not enough to help you succeed in any field. You also need to be smart with whatever you’re doing. In the fx market, it involves you trading only your extra money, not money that you will need for your essential expenses. At the same time, realise that it is real money that you are trading. As such, you need to take every trading decision seriously because your money is on the line. Plus, never trade to lose more than 2% of the value of your account. This is a basic but important trading rule you need to remember.

Of course the things we listed here are only basic things you need to help you get started with trading. But remember that these fundamental skills are what will help you succeed whether you are just starting out or you are already a seasoned trader.

By FX Strategy Team, Published on 24th of April 2013
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