How You Can Master The Forex Market (Part I)

Here are the 10 easy steps that you can follow in order to learn and start trading the Forex market.Step 1 – Learn the BasicsIf you’re a new trader on Forex, the first thing you must do is to learn the basics. You need to know what the Forex market is and how it works. You also need to learn the key economical terms. You can visit Wikipedia for a good definition on Forex Market. In this step, you also need to learn the difference between fundamental analysis and technical analysis. You also need to open a demo account with a forex broker and get familiar with the process of placing a trade. You can also use this account to watch the Forex market behavior and to get familiar with the most common currency pairs.You should also get familiar with some currency websites. Scroll Forextopten so that you can read some articles about Forex and start learning right away.The last thing you need to do in order to complete step 1 is to adopt the right mindset. You need to enter the Forex market with the right expectations and knowledge. You should have realistic expectations about the Forex market and define a plan to learn it. When you learn all these basics, it’s time to move to step 2.Step 2 – Learn Technical Analysis Technical analysis is probably the most important tool for a forex trader. When you learn how to properly read a chart, you can start calling yourself a trader. The time you need to complete this step 2 depends on your current technical analysis knowledge.There are 2 good resources to learn or improve your technical analysis knowledge and both of them are completely free.• Incredible Charts is the best place to learn technical analysis. Here you can learn all about any technical indicator. You can find out what your favorite technical indicators are and how you can take advantage of them.• StockCharts is another great resource to learn and to improve your technical analysis skills. You should visit these resources and get a good knowledge about technical analysis before you begin step 3. Step 3 – Plan How You’ll TradeNow that you already have some knowledge about the Forex market and about Technical Analysis, it’s time to decide how you would like to trade. Would you like to day trade? Would you like to swing trade? It all depends on your personality and on the time you have to trade. There’s not such thing as the best trading style. The best trading style is simply the one that best suits your personality. If your personality is more suitable for day trading, you probably won’t be a bright swing trader. If you prefer less stress and/or you don’t have the time to stay in front of your screen all day, you will probably be better in swing trading. You’re the only one who can decide the kind of trader you want to be. When you discover that, you should define your goals as well as the period of the day that you’ll commit to Forex trading. Step 4 – Develop Your StrategyThis is the most important step to master the Forex market. So, you should dedicate a good amount of time to this step.Now that you know what kind of trader you want to be and that you’re aware about your goals, you’re ready to define your trading strategy.You can use your technical analysis skills to define a trading strategy from scratch. Define it and test it deeply before you commit real money to it.You can also visit some websites in order to learn their own strategies and techniques.