Quick Start Guide For New Forex Traders: The Fastest And No Risk Way To Become A Consistently Profitable Forex Trader
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So you have decided to become a Forex trader. That is a good idea, because it makes money, and it has a lot of advantages that the other businesses don’t. Below, I am listing some of these advantages. But, please make sure not to start trading before reading this article completely.
1. In Forex trading you don’t have to compete with anybody. There is no competition in this business. The currencies prices go up or down and if you learn how to enter the markets at right place right time, you will make money, no matter what the other traders are doing and whether the other retail traders are trading or not. No matter how many new traders start trading every day. That doesn’t make any difference for you. Retail traders who can be known as your competitors, have almost no role in this market, because the price moves by the markets major participants, not retail traders. So you have no competitor in this business.
In the other businesses, you have to be worried about a lot of things. Competition is one of the most important one. You always have to work as much as you can and do your best to be ahead of your competitors, otherwise you will lose your income. Sometimes, although you are fully prepared and you are doing your best, just a big new competitor comes and kicks you out of the game. That is how so many businesses get bankrupt every day.
2. The learning process in Forex trading is very short compared to the other businesses. If you start from the right place and follow the right track, you can become a consistently profitable Forex trader within a short time.
In USA, one has to study over 20 years to become a dentist and have an average of $123,000 per year. But you can become a consistently profitable Forex trader within one or two years maximum. Then you can grow your small trading account, increase your income and have an unlimited amount of monthly income.
3. You can become a consistently profitable Forex trader for free. You don’t have to spend a dime to learn Forex. You only need to spend some time and energy. After learning, you can start with a small live account. You can grow your small account slowly, and then withdraw the principal after doubling your account. Then you can keep on trading with your profit without risking your hard earned money and your savings. It costs you nothing to setup a Forex trading business, whereas in other businesses, setup can cost you an arm and a leg.
In the other businesses, first you have to spend a lot of time and money to learn, and then a lot more money to setup the business. For example, it costs you a lot to run a car dealership. You need to have a lot of money to setup the business. If you can do that, still there is no guarantee that it works and makes the money you expect. Sometimes you will have to spend several years to promote the business and get it off of the ground and chances are you cannot survive and you give up at the middle of the way.
Of course, by following the right business plans you will have a much higher success rate: Following a Proven Business Plan Is the Success Key
4. After learning and then running the business that can be hard and challenging, growing and even maintaining it at the same level, can be a non-stop Marathon.
If you succeed to learn and setup a business, and even if it works and makes money the way you expect, the income is limited to a special level and cannot be increased easily and without spending any more time and money. A restaurant with 20 tables cannot make more than a special amount of money every month even if it becomes a too busy restaurant. To make more money, you have to move to a bigger place. This means spending and risking a lot more money and having no income for a while, until the business settles at the new place and with the new setup.
In Forex trading, you can easily grow a too small account and take bigger positions and have more income month after month without having to spend any more time and risking any more money from your pocket. You just grow your account with the profit you make. You don’t have to move to a new place 🙂
5. In Forex trading, you can easily control the risk you take. You don’t lose more than the money you put in your account, and so, you can start with a small amount of money. You can control the amount of the risk you take in each trade. You can cut your risks and get out of the market whenever you want. Even if you cannot, you will not lose more than the money you have in your account. Everything is under your control.
What about the other businesses? You cannot run a coffee shop with $5000 or even $10,000. It needs a lot more money. You have to rent a place under a 5 years contract in most cases. You have to pay the rent from the first day no matter when the business starts making profit. If it doesn’t work, still you have to pay the rent, unless you find another tenant, otherwise you are the one who has to pay the rent for 5 years. You will have to spend a lot of money for decorations, equipment, furniture, electrical and plumbing requirements, and…
What if it doesn’t work after risking so much money?
6. After you learn how to trade currencies, you can make a living through Forex trading by spending 30 minutes to one hour of your time every day or even every week. I don’t care if some traders spend several hours at the computer every day. I believe they are wrong and I have never seen any of those so called day traders and scalpers to make profit consistently.
In Forex trading, you don’t have to spend more time at the computer if you want to make more money. Trading 10,000 or 10,000,000 unit of a currency is the same and is the matter of one click. You can grow your $5000 account to $100,000 spending 30 minutes per day. And then your $100,000 account can turn into $1,000,000 the same way. No extra time is needed. Besides, the more professional and experienced you become, the less time you will spend and the more money you will make: How Does It Feel to Be a Professional Full Time Forex Trader?
Is it the same in the other businesses? Definitely not.
A freelance writer and editor who makes $200,000 per year by spending 8 hours at the computer every day, will have to spend 12 hours if he wants to make $300,000 per year.
7. As a Forex trader, you are your own boss. You can stop working for a few weeks or months if you want. I know some traders who trade only 6 months per year, and enjoy the rest of the year. You can never do this in the other businesses, even if you are self-employed and you have your own business, because the business expenses don’t allow you to do that. You will have a lot of monthly expenses that you have to cover. But, your Forex trading business has no expenses at all. You can leave your account and stop trading as long as you want without having to pay any fees. You can withdraw your money, close your account, and stop trading for a while, and then open a new account when you want to resume.
8. Forex trading is the easiest online business. You can trade Forex from anywhere. You just need a computer and an Internet connection which can be found almost anywhere nowadays. As a professional Forex trader, your million dollar business is portable and can be taken anywhere you want.
Are the other businesses like that also? Even doctors are not allowed to practice anywhere they want. To practice in a different country, first they have to take the legal permissions and certificates which can take several years sometimes.
These are only some of the advantages of Forex trading that came to my mind. Forex trading is an exceptional home based business that gives you a lot of freedom that financial freedom is only one of them.
The question is…
- How is that possible to make money through Forex trading?
- Is it as easy or hard as some people say?
- Is there a way to start making money through Forex trading within the shortest possible time?
- Is there any quick start guide to become a consistently profitable Forex trader without spending any money?
- Is it possible to be a good Forex trader for free?
- Is there an easy to follow road map toward becoming a professional Forex trader?
Before You Start Learning Forex
There are some important facts you have to know about Forex trading, before you start learning and trying it.
1. Forex is not a get-rich-quick scheme.
You can become rich through Forex trading, but it is not a get-rich-quick program. To make money through Forex trading, you have to learn and master it and this needs spending some time and energy. It cannot be done overnight.
2. Forex trading can be risky.
Forex trading can be risky if you don’t know how to limit and control your risk.
It is like driving. Driving is not risky by itself. The way that some people drive, is risky. Similarly, Forex trading is not risky by itself. The way some people trade Forex, is risky.
Some people start trading with real money while they don’t even know the basics. Most traders open a live account and start trading with real money, when they have not been able to have any success in demo trading. Unfortunately, many of them trade with the money they cannot afford to lose. The money that you cannot afford to lose is the money that you will be in trouble if you lose it. While a trader can risk and lose $10,000 without any problems, another trader will be in trouble if he loses $200.
Forex trading can be the best event of your life. But be careful not to change it to a disaster because of your own mistakes.
3. Your income stops if you stop trading.
Even if you can achieve to become a consistently profitable trader, which is a really big achievement, your income stops if you stop trading. It means forex trading cannot create any backup or residual income for you.
4. There are a lot of things that are not under your control.
As a forex trader, your account size, the risk you take in each position and sometimes your entry and exit prices are all you can control. The rest is not under your control.
For example, the price can start moving like crazy and you cannot get out of the market because of the broker’s sever overload and too fast price movements. Then, you can be left with an account negative balance which is your responsibility to be paid to the broker, otherwise they can prosecute you. There is no guarantee that you can always enter and exit the market at the price you want and you see on the trading platform you install on your computer: The Swiss Franc Tsunami
5. It is not clear when you will become a consistently profitable trader.
Although it looks easy to make money through forex or currency trading when you look at the price charts, it is difficult in reality and most traders cannot become consistently profitable even after several years of learning and practicing.
Making money through trading has a very low success rate and only a very low percentage of traders will become profitable and will consistently make money through trading as their full time job.
Read the below articles and see the starts:
- Following a Proven Business Plan Is the Success Key
- What If You Cannot Make Money with Trading?
- Some Forex Trading Facts and Myths You Must Know
6. Don’t open a big live account.
It is a big mistake to open a big live account.
As I explained above, some traders open a live account even before they learn the basics. Some others do it after a while of learning and practicing with a demo account. They get excited after having some good trades with their demo accounts. Once they see the profits, they start daydreaming about the money they can make and the life that is waiting for them. So, they rush to open a big live account to become a millionaire as soon as possible. But in most or all cases, it is disappointment and regret which is waiting for them. They lose all the money. I have seen this so many times.
Even if you learn everything you need to know about Forex trading, and even if you succeed to repeat your success with a demo account for several consecutive months, still it is a big mistake to start live trading with a big live account, because trading with real money for the first time, triggers some emotions that a novice trader has never experienced before. You will experience a lot more fear and greed when you start trading with real money. This prevents you from thinking and deciding properly. You will make big mistakes and you get your family and yourself into big troubles.
If you already have a live account, please don’t trade with it before reading the rest of this article.
And, if you have for example $100,000 in your bank account and you want to open a live account, don’t put the whole money in your trading account just because you think a $100,000 account makes more money compared to a $5000 account. That is true theoretically, but is a big mistake practically and actually.
7. Know the brokers.
Before you open a trading account with a broker, make sure you know how brokers work and how they can cheat their clients: Some Forex Trading Facts and Myths You Must Know
Where To Start And What To Learn
Some people say it is impossible to make money through Forex trading, but this is not true. They’d better to say it is impossible to make money through any business, including Forex trading, if you don’t know where to start, how to learn and how to master the job. 95% of traders lose, but this is not something strange, because it is proven that 95% of all businesses are doomed also. This is normal and Forex trading is not an exception when it comes to learning and practicing and gaining the experience one needs to have to become a “consistently profitable” trader. The biggest enemy of a Forex trader is himself.
There are also some others who say it is dead easy to become a good Forex trader. I don’t say it is hard. It is easy if you know how to start, what to learn and how to master the job. But it is impossible if you don’t start properly and don’t follow the right track, even if you practice for 20 years.
You can waste a lot of time in this business and don’t get anywhere finally. There are a lot of things that can keep you busy for a long time while you think you are learning and advancing toward becoming a professional Forex trader. But the reality is that most of things you find over the Internet are nothing but wasting of time. I don’t say they don’t work and make no money. Many of them do, but the problem is that novice traders try something new every other day. They learn too many things and establish a good knowledge base, but that is not all they need to make money through trading. In addition to knowledge, trading needs patience, discipline, experience, peace of mind and…
Is It Possible To Have A Quick Start?
Yes, it is. Forex trading is not rocket science. The theoretical things you have to know can be learned within a few to few days. Then you learn a trading system or strategy. That can be learned within a few hours. After that, you have to spend some time to master your trading system and build the patience and discipline a professional and full time Forex trader needs. That is all.
So, here is a quick start:
1. Learn The Basics
If you know what Forex trading is all about in general, what a trading platform is, and what the price chart means, you can skip this stage. However, if you are too new to online Forex trading, you can follow the below posts and videos:
- Forex Trading Explained in Simple Words
- Understanding the Currency Pairs in Forex Trading
- What Is MetaTrader and How It Works?
That is all you need to know about the basics. Spending more time on learning the basics can be good, but doesn’t support your Forex trading business.
2. Learn A Trading System
A trading system is a set of rules or dos and don’ts that tell you when and where to enter and exit the markets.
On any markets, including the Forex or currency market, the price goes up or down based on the market participants actions. When they buy, the price goes up. When they sell, the price goes down. A good trading system is the one that helps you to have a close connection with the markets participants. When the markets participants decide to buy, and so the price starts going up, your trading system should show you a signal to inform you about the markets participants’ decision. It is the same when the market participants decide to sell.
Although all trading systems are designed and developed to do this, many of them are not strong and effective enough to send a clear message to traders and inform them about the markets participants’ decision. But the trading systems that are based on the price action can easily help you to enter and exit the markets on time. Candlestick charts are great tools for this purpose. So, if you like to learn a trading system, candlesticks are the best and most reliable. Above all, they are very easy to learn and understand. Just the below 20 minutes video teaches you all need to know about candlesticks: Candlestick Signals and Patterns
When you are done with learning the general candlestick signals and patterns, you can learn what candlestick patterns and signals we are used to follow and take. We have chosen a few of the strongest candlestick patterns to follow. We ignore the rest because they have a lower success rate and a higher risk: Candlestick Patterns and Signals that Make Money
Now you are done with learning a good trading system. I don’t think you have spent more than one or a few days so far. So, you really had a quick start. Besides, you have not spent and risked a single cent so far.
Mechanical Trading Systems:
Candlestick patterns are known as analytical trading systems. It means they need analysis and interpretation. Learning an analytical trading system is what I recommend. And among all analytical systems, candlesticks are the best and most reliable. However, there are some other trading systems that are mechanical. It means they don’t need any analysis. They are easier for novice traders to follow, but are not as strong and professional as analytical systems.
“Double Bollinger Bands” or DBB is one of the mechanical trading systems we have introduced on this site, just to make the work easier for novice traders who don’t like to do chart analysis. You can use that system too:
- Double Bollinger Bands Strategy To Trade Forex
- More About Double Bollinger Bands Trading Strategy
- How to Increase Double Bollinger Bands Trading System Success Rate
Additionally, we have introduced a semi-mechanical trading system too. It is such a strong and effective system, especially when it is used on the weekly and monthly time frames: Stochastic Oscillator: A Mechanical Indicator for Forex Trading
You can use the candlestick system on a daily basis to trade the daily and longer time frames. At the same time, you can use the DBB and Stochastic Oscillator system, because the first one doesn’t take more than a few minutes to see the trade setups on the daily charts every day. With the second one, if used on the weekly and monthly time frames which is what I strongly recommend, you don’t have to spend more than 30 minutes per week to locate the trading signals on the weekly and monthly time frames.
Professional traders only follow one trading system, because after a long time of learning and experiencing, they come to this conclusion that a good and strong trading system is enough to make enough profit, and following several trading systems is nothing but more headache and confusion. So, try to learn one good and strong trading system.
I personally trade using the candlestick charts. I also use a little bit of technical analysis sometimes under some special conditions and on the long time frames like weekly and monthly charts.
3. Master Your Trading System
a) Demo Trading
After learning the trading system basics, you have to demo trade for a while to master your trading system. This is the most important part of your learning journey. Learning a trading system and having a few winning trades doesn’t mean that you are ready to open a live account and trade with real money.
You have to demo trade for six months at least. If you can repeat your success for 6 consecutive months, then you can think about trading with real money (I will explain it below).
What do I mean by repeating your success for 6 consecutive months? What does success mean?
By “success” I don’t mean that you double or triple your demo account every month. Success doesn’t even mean a high success rate.
Success is consistency and consonance in your positions, profits and losses. It means your losses have to be small and your gains have to be big, at least x2 or x3 bigger than your losses. Your discipline and confidence have to be obvious in your account statement. It should be clear from your trades list that you have a precise and strict risk and money management strategy which is applied in all the positions you take.
If you can complete this stage in the way I explained, you will be known as a consistently profitable demo trader.
These articles can be helpful:
b) Live Trading
After completing the 6 months demo trading stage successfully, you can start trading with real money, but not with a full size professional live account. You should open a too small live account with the money that you can afford to lose. Then, you should be able to repeat the same “success” with this live account for 6 consecutive months at least. Indeed, this live trading is the second part of your demo trading.
If you complete this stage successfully, you will be known as a junior profitable Forex trader.
If you ask me, I say don’t add any more money to your live account. Keep on growing the same amount of money. It not only helps you to master your trading system better, but also helps you to build your confidence and discipline more. It helps you to become a consistently profitable Forex trader with the minimum possible risk.
If you think this is a long way to become a professional Forex trader, then you are free to try the other ways. But I am 100% sure that you will be back to this page after wasting a lot of time and money, of course if you wake up before you give up on Forex trading. I have seen so many traders who are still trying, learning and losing after 25 years, whereas if they had followed what I explained above, they would be making profit since 24 years ago at least.
The below articles show you how you can turn a small account to a big wealth without any risks:
- Grow Your Small Forex Account Slowly But Surely
- What If You Don’t Have Money to Open a Reasonable Forex Live Account?
- Forex Trading and the Power of Compound Interest
Some Important Tips
No matter what trading system you follow, you have to complete the above stages to master it, before you start trading with real money. Once again, I have to emphasize on this important point that you should not trade with a professional live account as long as you have not passed the above stages, otherwise you will get nothing but loss and regret. It doesn’t matter if it takes you more months to pass the above stages. You are always free to start from the scratch. For example, if you finished the 6 months demo trading and you are not happy with the result, you can repeat it at least for 3 more months. You have to do this until you see the real meaning of “success” in your demo trading statement and track record the way I explained above. This is how it works.
If you couldn’t get a good result in demo trading, you will never act better in live trading. Therefore, don’t start trading with real money before having an acceptable level of success in demo trading. How a trader who has not been able to make profit with demo money, can make profit with real money?
Only your harmful emotions can push you to go to the next step when a step is not completed yet. Your biggest enemies in this business are in your own mind. Everybody loves to start making money as soon as possible. But that is impossible to do before passing the above critical and important stages. They are much easier than what you think. I have seen so many who has been able to do it very easily. Don’t think about the money you are going to make. Think about completing the above stages first. The money will come by itself.
Once you complete the above stages, you will become a consistently profitable Forex trader who is professionally disciplined. Then, making thousands of dollars per month will be just the matter of spending 30 minutes per day or even per week. It can look too good to be true, but this is how professional traders make money and live. As a “professional Forex trader”, you will have a completely unique and special life style.
Why Was This Article Written?
The “Become A Profitable Forex Trader In 5 Easy Steps” article was written long time ago. I have always added the newly written articles to it, but I thought I was making it too crowded and complicated. Now it has become a long list of articles which is what I hate. Of course, all the articles that are listed in that article are good for novice traders and some of them are necessary. But, it is still possible to have a quicker start. We should always keep everything as simple as possible.
Therefore, I decided to write another article to show the novice traders a shorter way to become a consistently profitable Forex trader, within the shortest possible time, without spending any money, and with the minimum possible risk. So, the above article was written.
In this article, I have listed few articles and videos that are enough for a zero kilometer trader to start trading and to become a consistently profitable and professional trader. Although this site is mainly focused on Forex or currency trading, the above program can be used by those who want to become professional stock traders too, because the trading systems I have introduced above can be used in trading any kinds of markets, including currency and stock.
Good luck 🙂