Forex Trading in Eight Steps You have probably heard about forex trading; it is a good way to make money if you know what you are doing. This article is filled with useful tips that will help you become a successful trader. Get started with a demo account. You can easily create a free demo account or a cheap one with different brokers. Using a demo account means you are not trading with real money or investing very small amounts of money at once. This is a good way to get some practice and familiarize yourself to a broker and to the forex market without risking a lot of money. Spend a few months practicing with your demo account, and switch to a real one once you have a better understanding of the market. Do not invest a lot of money at first. You should never invest more than you can afford to lose. Go over your budget and ask yourself how much money can you afford to spend on forex every month. Do not invest money you need for your bills; if you do not choose the right investments and do not get your money back, you would find yourself in a tough situation. Find out about leverage rates; brokers offer different leverage rates, which means you can borrow money from your broker for every dollar that you deposit in your account. However, you will have to pay this money back if you lose it. You can learn everything you need to know about forex trading on the Internet. Read reviews about different online seminars if you think you would learn better by watching videos, but you can also find quality articles or e-books. Make sure you learn about different analysis methods such as fundamental or technical analysis, the Elliott Wave and other mathematical formulas that will help you predict trends. Give yourself enough time to learn the basics of forex trading, and apply what you learn when you practice with your demo account. You can read about current trends on many different sites, blogs, RSS feeds or even on social networks. Find a few successful traders who share their analysis of the market on a regular basis and subscribe to their updates. You can also get a good idea of the current trends by simply looking at the prices on your broker; high prices means an investment is getting increasingly popular. It is usually a good thing to follow the trend, unless analysis shows that the situation is about to change. You need to establish goals for every investment that you make. If you are trading to finance a specific project, look for long term investments that are stable enough to finance this project. For each investment, you should have a certain range of profit in mind as well as a stopping point where you can sell without losing any money. Write down your plan and stick to it, no matter what happens. Losses are part of trading. You can minimize your losses by selling bad investments as quickly as possible and by diversifying your portfolio of investments. Never invest more money than you can afford to lose. Keep track of your losses and profits so you have a good idea of how much you are making with forex in the long term. If you are losing money, try a different strategy. Being consistent is important, but you also need to adapt your strategies to different kinds of investments. If you are more comfortable with a specific kind of investment, stick to it. If you cannot make money with forex, accept that trading is not for you. You should also give up if you cannot manage your stress. Going back to studying and practicing with a demo account is also an option if you think you need to develop better strategies. Apply what you learned in this article, and take the time to learn as much as possible about trading. You will be successful if you take forex seriously and plan your investments carefully.