Learn Forex Trading the Right Way

Posted by Nick Niesen on October 29th, 2010

Once I starting enjoying making profit on the forex market, the word got out, everyone I know started asking me if I would teach them about the world of forex trading. This is what I tell them:

The first thing is get ready for a life-changing adventure! Once you get a taste of making money by sitting in front of your computer monitor, there is no turning back.

Then after getting them all fired up (I am one of these people who get passionate about things I believe in ? can? help it), I get them into a free demo account as quickly as possible, usually within minutes.

Then, I show them how to use an online trading station (free computer software that allows you to use your demo account to interact with the largest money market in the world ? with over $1.5 trillion exchanging hands per day ? HUGE market!). The wonderful thing about these free demo accounts is that they are exactly the same as real trading ? unlike learning how to invest in the stock market, for example, where you have to pretend that someone will sell to you and that someone will buy from you ? and that is not real at all! The forex market is so liquid (instant buyers and sellers) that both the demo and real accounts behave exactly the same! What a great way to learn ? when you switch to a real account, you can?t even tell.

Then, I get them to practice, using various proven techniques, with their demo account until they feel comfortable that they are consistently making profits. At first, like anything, you need to learn from experts. You need a mentor to teach you. You can?t just do what you ?think? will work ? you must learn techniques that really work. Trading is both a science and an art, so practice is very valuable before you start to trade for real. I tell them to be patient, the thrills are coming soon!

Then the day arrives, they open a real account and start trading in a mini account (designed for beginners or those who want to do smaller, yet real, trades). Once they see real money being made, they can hardly wait to trade in a regular account ? but again I tell them to practice because now the trades are real. Because they did their homework and practiced proven techniques with the demo accounts, the transition to a real account is easy ? the hardest part is learning not to shake in your shoes as they enter into this exciting arena along side the wealthiest people in the world. Keeping calm takes awhile and then they come to the realization that they too are on their way to making more money than they ever imagined.

What amazed me when I first looked into forex trading was the amount of available websites offering endless promises about riches to be made forex trading. Yet, at the same time, I quickly learned from real experts that most people who follow this advice lose all of their investment in the first few months! Wow! So, not wanting to make that huge mistake, I followed the advice I now give to my friends. Start with a demo, then a mini-account and finally move to a regular account all the while being mentored by someone who really knows how to make profits in the forex market.

By following this advice myself, I survived the first few months and now make wonderful profits! I love it!

Doug Gray