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You can actually make a regular source of income by entering the fascinating world of forex trading. But there is a checklist you need to follow to have a profitable trading experience. That would make your forex trading worthwhile and that much more orderly.

Step 1:
The first step obviously would be to secure an online broker. It is the forex broker that you select who helps you to open your online forex trading account. Apart from having a flawless reputation, the broker you select should preferably be affiliated to a large banking institution. For example Saxo Bank is reportedly a good forex broker. But there are several others too. The choice is entirely yours. Before you make the final selection, read online reviews of the brokers and select the broker who is the least controversial and who has the maximum positive reviews in broker review sites. Remember to read the trading rules of the broker, particularly with reference to the leverages they offer, the carry forward charges to roll over your position to the next day and so on. In other words pay attention to the fine print of the terms and conditions of the broker’s agreement. Get someone who is well versed in forex trading to help you out on this.

Step 2:
The next step is probably the most important one. You would have to figure out how much money you would like to put in your foreign exchange trading account. Although most brokers cater to varying needs by offering a mini account alongside a standard forex account, the choice is again entirely yours. You have to select an account that suits you the best. While a mini account can be opened for as little as $300, for opening a standard account you may need a minimum of $2500 or more. Remember that trading on a mini account is not exactly the same as working on a standard account. As a forex beginner the dictum to follow would be to invest only that amount of money you could well afford to loose. This is because as a beginner you are likely to make mistakes and you have to make sure that the mistakes you make don’t wipe out your entire capital. As a beginner you are more prone to make mistakes and that is why you have got to be more careful.

Step 3:
Since you have set up your trading account, do you start trading on it right away? The answer is certainly no. Assuming that you have understood the basics of foreign exchange trade, you still have a lot to learn before you actually start trading. Firstly you have to update yourself to the currency price variations for the previous couple of months and analyze the general trends. You would have to figure out if the currency you wish to trade is in an upswing or downswing or whether it was stagnant in range bound activity. You can even buy charting software and put the methods used in technical analysis to test or otherwise even search the internet for data concerning the currency pair that interests you the most. As a beginner it would be difficult to formulate a trading strategy straightaway. You can do that certainly after a few trades. However you got to get the fundamentals right before you make your first trade.

Step 4:
Once you have completed your market analysis, you are of course ready to start. You have selected a broker, funded your account and carried out a market analysis. Is that enough? Remember that nothing is ever enough in forex trading. Only practice takes you close to perfection. How do you do that in forex trading? Use the forex demo accounts to hone your skills. Most brokers have forex demo accounts and you got to make maximum use of it. It’s like taking practice lessons in real time situation. In a practice account you always have the opportunity to learn from your mistakes. That’s simply not possible when you are trading with your own money in a real account. Ideally set up a demo account parallel to your real account. Try out your moves in the demo account, verify if you were really going the right direction and then try to enter a real trade in your real account. Chances are you will be successful.

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