The Off Exchange Retail Foreign Currency Market (FOREX) is the largest financial market in the world with a volume of more than $1.9 trillion daily, dealing in currencies that are traded against one another. Learning to become a forex trader is a difficult goal to achieve. Like any other profession, it will take time to learn the basics of currency trading and even longer to apply the different trading strategies and methods to the live market.

Education! Education! Education!

There are countless numbers of books, courses, videos, programs, websites and articles that will teach you about the Foreign Exchange Market and Forex Trading. Although not all sources are created equal and some are just downright bogus, the internet, Amazon, and Barnes and Noble can provide you with all the information necessary to start your trading career.

Create your own Trading System

Although there are many good systems out there, they all come with limitations. When developing your system, you must determine your trading time frame, technical and fundamental analysis strategies, entry/exit points and risk vs. reward ratio.

Create a Trading Plan

A trading plan explains how you plan to trade in the FOREX market. It should detail the time of day in which you will execute trades, your forex trading strategy, which currencies will be traded and a sound money management strategy to minimize risk.

Practice! Practice! Practice!

Practice Does Not Make Perfect, especially when it comes to trading currencies. Open a "DEMO" forex account so you can put all your knowledge, analysis and planning to practice. The demo forex account allows you to learn about the Forex markets and test your trading skills with ZERO risk. Trade your demo forex account for at least two months.

Cashing In!!!!!!!!

You are ready to start trading your own forex account with real money. Start slow and low. Low spreads, low lots, low quota. Remember that losses will occur no matter the education, training and discipline. Be patient and follow your plan.

RISK WARNING: Trading foreign currencies is a challenging and potentially profitable opportunity for educated and experienced investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Forex trading involves substantial risk of loss and is not suitable for all investors.