There’s no doubt that the foreign exchange is one of the biggest financial markets in the world, and one that sees an estimated $6.6 trillion traded globally every single day.
This growing number has been empowered by technological innovation in the marketplace, which has enabled novice and part-time traders to enter the space and invest their capital freely from the comfort of their own home.
In this post, we’ll look at how you can launch a career as an aspiring forex trader, while asking how this can be scaled successfully over time.
Learn the Market Fundamentals
Knowledge is arguably the single biggest weapon in any forex trader’s armoury, which is why you’ll need to draw basic information from trusted sources when learning your trade. Sites such as Investopedia are particularly helpful (and free to access), while you can also undertake paid courses and seminars to drive further learning.
While learning and understanding the market fundamentals is crucial, however, this means little unless you’re able to translate this into practical market experience.
This where demo accounts come into play, as they provide access to a simulated, real-time market in which you can hone your trading strategy without having to risk your hard-earned capital.
This should be a key consideration when choosing a broker for forex trading, as you’ll need to identify one that offers a secure demo account feature for a viable period of time.
Choose the Right Broker for the Job
In fact, this is one of many things to keep in mind when choosing the right forex broker to access the market, while this challenge is complicated further by the fact that different platforms offer a variable range of features.
The margin and value of leverage available also varies from one individual broker to another, with this having a direct influence on the size of the positions that you’re able to open and trade over time.
Ultimately, the goal should be to choose a secure and trusted broker that offers access to a demo account and the requisite volume of leverage, as this will provide a solid foundation for your overall trading experience.
Start Small and Scale Your Efforts Over Time
When starting out in a volatile marketplace of this type, it’s also important to start small and focus on scaling your efforts over time.
In practical terms, this means launching your trading account with just one or two currency pairings, while utilising minimal amounts of capital and minimising your initial number of trades.
You should then only look to scale your efforts in line with experience and profitability, as you initially identify additional currency pairings that you’d like to trade with going forward.
Scaling can also involve targeting new asset classes and markets, as this will enable you to diversify your portfolio and hedge against subsequent risks as your earnings grow.