First of all I must warn you: To only read the articles about trading will not make you a professional trader. You actually need to use the knowledge that is given and understand that, if you want to make money in the markets, there are no shortcuts.
How to become a Forex Trader
Professional trading requires a lot of time and work, but do not be discouraged, because the sooner you accept the situation, the sooner you will go on the right path that leads to professional trading on the Forex market.
Step 1: be honest with yourself
To be a professional trader can only be achieved through consistent success in the trade, because your account balance gradually increases over time and your skills are developed. So your goal in the beginning of the trip will be money, but even if you succeed and gradually increase your capital, it does not mean that you become a full-time trader. As I mentioned in the beginning, it takes a lot of time, especially if you start with a small trading account.
In the beginning your goal should be to build up your account rather than to think of to become a professional trader as soon as possible.
If you want to run on the professionalism you need to start with smaller goals, try to finish each month in a positive way by applying the appropriate methods. It’s called to be honest with yourself about what is really possible to achieve, given your current financial situation.
You need to think in terms of ”risking money against the money”. Imagine for a moment that you have 1 million dollars in your account, but it may as well be much smaller, for example, $1000. If you can consistently maintain your 3R each month (which means that the profit is three times higher than the amount at risk), you have 3 x 12 = 36R per year. Let us assume that for a transaction of $1000 you risk 25 dollars and it is your average risk over the whole period. Annually, would your points be $25 x 36 = $900, or in other words 90%. This is a really good result in the professional trade. And now how the 36R will be transferred to your account with an initial $100,000: it will be $25 x 36 = $900 per year with a risk of $2500 per transaction. An account at 1 000 000 USD gives 900 000 dollars per year in profits and a 25 000 dollar risk of the transaction.
You already know what I mean? $900 per year is not a staggering amount, but you have to understand that every year you get the result 36R, also in your account with a starting capital of $ 1000, you use the exact same process and way of thinking, which makes it possible to achieve the result $900 and 90%, you will earn $100.000. The focus is on the process itself and the trade mechanism is much more important than to get a large sum on a small account. If you get the 36R or even 15 or 20R a year, you will have no difficulty to find the right capital to manage or get a job at a major trading company.
Before you begin to learn trading before you open your first demo account you have to put you down, take a pen and write down your monthly budget. Write down all your monthly expenses and subtract them from the revenue, with regard to tax deductions and if it is, then now will be a certain amount of play money that can be taken anytime and spent on anything, it is just the amount you can trade with. But if you realize that you do not have anything surplus that you can spend each month, you focus better to save or find a job where you earn enough to trade on the markets.
If you think you have everything you need to become a trader and you are honest with yourself about the goals you can achieve with a certain amount of money then you’re ready to do it. Take the next step and begin to learn the basics.
Step 2: Learn the basics of trading
When you understand that you need to focus on the trading process and not the money and that you do not earn a fortune with a small initial sum of money, you should start learning the trade itself.
To start with the basic message seems obvious, but some beginners do not even think on what they are doing when they begin to learn. Many ignore the foundation. This is a great mistake, for if you really want to become a professional in this or any other area, you must first build a solid foundation for your knowledge. When it comes to Forex, you should start by carefully reading the basic information provided in the Forex course. Then, once you know what the Forex market is, you should start learning real trading on the market and Price Action strategy.