There are many ways on how to start a forex trading career in the USA. This article is about the preparations that you need to make before you jump into the Forex market. At least it will give you an idea of what are your possibilities if you want to devote yourself to this kind of endeavor. Here are some steps of preparation that might help beginners who are interested in learning more about currency trading without any previous knowledge or experience.
1 – Choose Your Broker Wisely
There are many brokers in the forex market, so you might become confused when choosing the best one for you. Picking a forex trading company can be difficult because there are many factors that influence your final decision. Some things that you should consider when choosing your broker are:
- Type of account (standard or mini).
- Minimum deposit. The bigger it is, the better for you.
- Commissions charged to enter and exit markets .
Commission fees include spreads (the difference between bid price and ask price) which generally range from 2 to 6 pips; this will be applied on all transactions made by clients regardless of their size. Also another commission fee is called ’round turn’ that will be charged on each position that is opened and closed. This commission fee is usually 0.1 of a pip for mini accounts and it can decrease if your account balance increases; of course we recommend you to go with the best quality broker (with low commissions, good spreads and low rollover rates).
2 – Learn About Forex Trading:
What is Forex? Forex or foreign exchange markets have been around for more than 200 years. They are the biggest financial market in the world where currencies from around the globe are traded 24 hours a day during 5 days of a week except for holiday periods such as Christmas. In simple words, they deal with trading currencies between different countries. Note! You do have to know all this information or at least try to know them, because it is an important element when you start a forex trading career in the USA.
3 – Get Some Education:
There are many ways of getting education which will help you understand this market and most importantly help you decide if Forex is the right one for you. Otherwise most likely all your money that you put into it will be lost and then you would ask yourself “how can I start a forex trading career in the USA without any experience?” Well, here we go…
4 – Trading Plan:
This is a very complex subject so we will try to simplify it as much as possible. The ‘trading plan’ means having a set of rules or guidelines that allow you to make decisions when problems occur. It includes having predefined goals and the ways of reaching them. It is an essential part for every trader, because it allows him to manage his account in the easiest way possible.
5 – The Tight Timing:
Timing is everything when you are trading currencies, you should be aware that there are many news releases that influence each market daily. Some examples are interest rate announcements or inflation data releases, these kinds of news could cause sudden movement in currency prices so you have to know about all the factors influencing currencies movements if you want to start forex trading in the USA successfully. This is something that everyone should do before starting any other step on how to start a forex trading career in the USA . You can also check here our latest article about how to make money on forex .
6 – Develop Your Trading Plan:
This is the part where you will take all the information that you have gathered in the past steps and put them into practice. You can come up with some rules or guidelines that might help you achieve success when trading currencies. It is even better if you test it first on paper (or excel) before applying it to real life situations. Basically, every step in this process should be taken cautiously because even though this strategy works great for many people, it might not be as good for others; so we recommend you to not copy someone’s trading plan but try to develop your own.
7 – Open an Account:
After following these steps carefully and collecting as much information as possible, you are now ready to open your first trading account. We recommend you to start with a mini account even though the minimum deposit is only 250$, because if things don’t work out as expected, then at least your lost money will be limited. You should also consider the fact that testing different trading strategies does not come for free and it might cost some money; so be sure that you are ready to take this risk before making any decisions about how to start a forex trading career in the USA .
8 – Follow all the Rules:
This is one of the most important steps, especially when you are just starting your Forex career. If there was ever an opportunity where discipline should be applied, then this definitely is it. There are many traders who lost everything they had because of lack of discipline. Make sure you never make the same mistake, follow the rules and take this market seriously.
9 – Be Aware of Trading Psychology:
Your mind will play a huge role during your trading career. You need to learn how to manage your emotions and thoughts if you want to be successful in this business. For example many traders lose money because they don’t stick with their plan no matter what happens, every time that a loss occurs they try to recover it by placing risky trades thinking that it is going to be easy for them since they already have experience doing it; so following steps number 5 & 8 should not be optional but very important for those who want to start forex trading career in USA .
10 – Learning is Never Ending Process:
You will learn by losing money, that’s just how it works. There are always new things to learn and every market movement has the potential to provide us with valuable information that could help us improve our trading strategies. This is one of the most important steps when you are trying to find out about how to start forex trading career in USA . You can start this step by reading books or blogs related with Forex or even watching videos on YouTube. The most important thing here is not giving up when learning gets hard, so be patient and persistent if you want successfully complete this step.