New to Trading 5 Important Steps Before you get Started!

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Contents

5 Tips to Get Started Working NOW

Ericson is a writer who shares about work and productivity tips on Lifehack. Read full profile

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Does this seem familiar?

“You get to your desk and prepare to work. You look around to make sure all your gear is there; pen, paper, desktop… All good. You check the clock, and it’s just about time to start. And then just as you get to it, your mind kicks into over drive.”

  • This is going to suck.
  • I know this’ll be boring.
  • I don’t feel like doing this.
  • Do I REALLY have to go through with this?

Recognize these thoughts? Of course you do, we all do. It’s what we think when we don’t feel like doing something.

You see, whenever we sit down to work, there’s always a chance that we’ll ruin our productivity before we’ve done a single thing, and it’s because it only takes a single thought of doing work to set off a chain reaction of procrastination inducing thoughts.

Is there no way to prevent this? Are we always at the whim of a single thought ruining our productivity?

No, there is something you can do about it, and all it takes is a couple of smart tips.

You just don’t “feel” like working

It’s true, and you’re not alone. Even if you love your work, sometimes you’re going to sit down and realize that you just don’t feel like doing it. It’s a common problem, which makes it all the more important that you figure out how to fix it.

You rely on willpower to do all your work

Willpower certainly has it’s place when it comes to being productive, but not as the sole force behind getting to work. Relying on it guarantees you’ll burnout long before the day has ended.

5 tips for getting to work

If you want to know how to get to work without draining every ounce of willpower you have, you’re going to need to know how to leverage the willpower you have.

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And you can do that by using your willpower on these tips instead.

1. Make a work-time ritual

The most important part of being able to work when you need to, is making it a habit.

When work is habitual, the transition into it is more seamless. There’s much less chance of thoughts like “I don’t feel like it” to make you procrastinate, and it’s because habits are something we compulsively do.

(Even when it comes to working).

The ritual is all about what comes before the actual work, and is very personal. Here’s some things you can do to ritualize your work process:

  • Light a candle
  • Turn on some music (or whatever you use as background noise).
  • Have a piece of candy
  • Organize your work space
  • Prepare a cup of tea/coffee

These actions can serve as cues that prepare the brain for the work that follows. Once you do it enough times, you won’t even realize that you’ve sat down and started working.

2. Create a to-do list beforehand

The reason a to-do list is helpful is because you prevent ambiguity from ruining your work session. If you don’t know what work you have to do, then eventually you’ll drift into semi important tasks because you have no direction.

A to-do list take the guesswork out of doing your work, meaning you expend less mental energy deciding what to do and more on actually working.

Here’s a basic template to get you started:

1x3x5 method – Pick one important task, three medium important tasks, and 5 random tasks to accomplish each day. Do them in order of importance, and that’s all there is to it.

3. Work on the tiniest/easiest task

Often times we feel overwhelmed by the amount of work we need to do. When this happens, we back away from the work because we feel a lot of pressure to complete it.

To combat this, don’t look at your work as a whole. Instead, focus on the smallest, easiest thing you can do, and imagine it’s all you have to do. If you do that, you’ll have a significantly easier time engaging with it and prevent yourself from feeling overwhelmed.

4. Work for 2 minutes only

Another simple hack is to say to yourself “I only need to work for two minutes, then I can stop if I want.” This lowers the expectation of long, tedious work to follow and makes work engagement easier.

You’ll find that by simply starting to work, you’re able to push past two minutes and – more often than not – work to your designated break time.

If two minutes still seems too long, feel free to lower it. The key is to start working, once that occurs you’ll naturally want to continue.

5. Use gamification apps

Sometimes using an app or tool can bring some freshness to the work process, and motivate you to work just so you can use the app.

With gamification, tasks feel more like game and can even be fun. Here are some good ones to try out:

If you’re a video game lover, then this is perfect for you to try out.

Do you have any tips that get you in the mood to work? Leave your answer below because I’d love to hear it :)

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More by this author

Ericson Ay Mires

Ericson is a writer who shares about work and productivity tips on Lifehack.

More by this author

Ericson Ay Mires

Ericson is a writer who shares about work and productivity tips on Lifehack.

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Last Updated on March 31, 2020

How To Break the Procrastination Cycle

Certified Life and Productivity Coach, Founder and CEO of TopResultsCoaching Read full profile

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How often do you find yourself procrastinating? Do you wish you could procrastinate less? We all know how debilitating procrastination can make us feel, and it seems to be a challenge we all share. Procrastination is one of the biggest hindrances to moving forward and doing the things that we want to in life.

There are many reasons why you might be procrastinating, and sometimes, it is really difficult to pinpoint why. You might be procrastinating because of something related to the past, present, or future (they are all intertwined), or it could be as simple as biological factors. Whatever the reason, most of us follow a cycle when we procrastinate, from the moment we decide to do something to actually getting it done, or in this case, not getting it done.

The Vicious Procrastination Cycle

For some reason, it helps to understand that we all go through the same thing, even though we often feel like the only person in the world who struggles with this. Do you resonate with the cycle below?

1. Feeling Eager and Energized

This is when you commit to taking a new action or getting something done. You are feeling confident and optimistic that, this time round, you will do it!

2. Apprehension Starts to Come Up

The beginning stages of optimism are starting to fade. There is still time, but you haven’t done anything yet, and you start to feel uneasy. You realize that you actually have to do something to get it done, and that good intentions are not enough.

3. Still No Action

More time has passed. You still haven’t taken any action and probably have a lot of excuses why. You start to panic a little and wish you had started sooner. Your panic starts to turn into frustration and perhaps even irritability.

4. Flicker of Hope Left

You can still make it; there is a little time left and you ponder how you are going to get it done. The rush you get from leaving your task until the last minute gives you a flicker of hope. There is still time; you can do this!

5. Fading Quickly

Your hope starts to quickly fade as you try desperately to understand why you just can’t do this. You may feel desperate and have thoughts like, “What is wrong with me?” and “Why do I ALWAYS do this?” You feel discouraged, or perhaps angry and resentful at yourself.

6. Vow to Yourself

Once the feeling of anger or disappointment disappears, you most likely swear to yourself that this will never happen again; that this was the last time and next time will be different.

Does this sound like you? Is the next time different? I understand the devastating effect that procrastination has on many lives, and for some, it is a really serious problem. You also have, on the other hand, those who procrastinate but it doesn’t affect them in any way. You know whether it is affecting you or not and whether it undermines your results.

How to Break the Procrastination Cycle

Unless you break the cycle, you will keep reinforcing it!

To break the cycle, you need to change the sequence of events. Here is my suggestion on how you can effectively break the vicious cycle you are in!

1. Feeling Eager and Energized

This is when you commit to taking a new action or getting something done. You are feeling confident and optimistic that, this time round, you will do it! The first stage is always the same.

2. Plan

Thinking alone will not help; you need to plan your actions. I always put my deadlines one or two days in advance because you know Murphy’s Law! Take into consideration everything that you need to do, how long it will take you, and what you will need to get it done, then plan the individual steps.

3. Resistance

Just because you planned doesn’t mean that this time is guaranteed to be different. You will most likely still feel the resistance so expect this. This stage is key to identifying why you are procrastinating, so when you feel the resistance, try to identify it immediately.

What is causing you to hesitate in this moment? What do you feel? Write them down if it helps.

4. Confront Those Feelings

Once you have identified what could possibly be holding you back, for example, fear of failure, lack of motivation, etc. You need to work on lessening the resistance.

Ask yourself, “What do I need to do to move forward? What would make it easier?” If you find that you fear something, overcoming that fear is not something that will happen overnight — keep this in mind.

5. Put Results Before Comfort

You need to keep moving forward and put results before comfort. Take action, even if it is only for 10 minutes. The key is to break the cycle and not reinforce it. You have more control that you think.

6. Repeat

Repeat steps 3-5 until you achieve what you first set out to do.

Final Thoughts

Change doesn’t happen overnight, and if you have some deeper underlying reasons why you procrastinate, it may take longer to finally break the cycle.

If procrastination is holding you back in life, it is better to deal with it now than to deal with the negative consequences later on. It is not a question of comfort anymore; it is a question of results. What is more important to you?

Learn more about how to stop procrastinating here: What Is Procrastination and How to Stop It (The Complete Guide)

I Will Teach You How To Become A Day Trader in 5 Steps!

The world of the day trader sounds pretty exciting, but is it really possible to dip into the market for a fast profit and be done for the day? I’m sure you know what my answer is.

Can you be a day trader? Absolutely. But you can’t just dive right in and expect to thrive. That’s a sure-fire way to lose all your capital in the blink of an eye. Don’t do it.

If you want to day trade for a living, then you need to start with the right mindset and dedicate massive time and effort to your trading education. I want you to get started the right way, so read this first.

This guide will give you the information you need to get started. Let’s do this.

Table of Contents

What Is Day Trading?

Day trading is buying and selling a security within the same trading day. The pure day trader ends the trading day in a cash position; nothing is held overnight. Most day trading is done in the stock and foreign exchange (forex) markets, but it could be any market.

For example, let’s say you buy shares in Company X because you expect the price to go up that day. Then, you sell your shares on the same day. If you did your research and opened and closed your position at the right times, you ended up with a profit.

Day trading is different from buy-and-hold investing and swing trading.

Buy-and-hold is just what it sounds like: you buy shares of a stock and hold them because you believe in the fundamentals of the business. You believe owning the stock will give you long-term returns.

Swing trading is similar to day trading. The difference is, you hold the position open overnight or even for several days or weeks. Some day traders make some swing trade plays. I don’t recommend it for beginners, but once you get to know the game, it’s another strategy to use.

Benefits of Day Trading

Day trading is the ultimate laptop lifestyle. You can trade from anywhere with a laptop, trading software, and a high-speed internet connection. Want to trade sitting by the pool in Bali? It’s awesome. But to get there, you have to do your homework. You can’t cheat success in the stock market.

There are other benefits, of course. You don’t have to go into some office for a J-O-B. You’re your own boss and you can start small and work your way up. Unless, of course, you trade for some big bank, which I don’t recommend unless you’re obsessed with that sort of thing. Not for me.

Life of a Day Trader

Is it true a day trader only works a couple of hours a day? That’s misleading. There are some dishonest trading coaches out there who push this idea. While it’s true you might only trade for a short time each day, you have to include time for research.

When I was learning, I put in hours and hours every day. I skipped classes in high school and college to research and trade. I call it the hustle and the grind. I hope you’re getting the idea that this is a marathon and not a sprint. Yes, I have several millionaire students, but they put in the time.** They studied their asses off and they keep learning.

How to Become a Day Trader in 5 Steps

You might see the term ‘active trading’ as you continue to learn. Active trading is more of a general term. According to Investopedia, it means “the act of buying and selling securities based on short-term movements to profit from movements on a short-term stock chart.” So, day trading is a type of active trading.

Do you want to know how to become a day trader? There are some concepts you need to understand. Let’s take a look.

1. Risk Management

I encourage you to trade small when you’re first starting out and lack experience. You can always get more aggressive later on. The other thing I recommend is to cut losses fast … or as my student Tim Grittani says, “cut losses intelligently.”

Every big loss I had back in 2003 and 2004 happened when my ego got the best of me. I threw my day trading risk management out the window trying to force trades that weren’t there. I was so focused on trying to prove myself to attract investors into my hedge fund, that I broke all my own rules. They were near disastrous mistakes.

2. Technical Analysis

I don’t just pick any random stock, I want the stocks to prove themselves. This means I’ve done my homework, I know what the company is about, I’ve searched for news and watched the charts. Technical analysis starts with being able to read a chart. Here’s a quick infographic for you on how to read a stock chart.

3. Stock Market Patterns

One of the most important things I teach is to recognize stock market patterns. These patterns pop up again and again. You can learn to take advantage of these patterns even trading conservatively. I’m not saying that I’m gonna win every time. Don’t misunderstand me. It’s a question of preparation. If you know the patterns inside and out, then you can act.

4. Day Trading Software

Day traders use software, or electronic trading platforms, to chart and trade. There are a lot of choices when it comes to trading software. Not all are created the same. For example, some software allows you to trade only stocks or funds. Other software is geared toward forex or futures.

To help you choose your software consider the answers to these questions. Does the platform support the type of trading you do? If you want to trade penny stocks then your trading software has to include those kinds of stocks. Does the trading software connect with your online broker? And does the software have the features you need for research on the go?

StocksToTrade.com

I’ve used a lot of different trading software over the last 20 years. One of the things I found annoying was that some of the software wasn’t set up to deal with penny stocks. Another thing I found was I had to visit a bunch of sites to get the information I needed to make a trade.

Finally, I was inspired to build a better platform. One designed by traders for traders.

We worked our asses off to create what, in my opinion, is the best trading platform out there:

5. Choose the Best Online Broker for Day Trading

What are the best online stock brokers? What are the worst brokers? What are the safest brokers? What are the most dangerous brokers? These are all valid questions. I’ve tried dozens of brokers in my life — maybe even hundreds.

One thing to consider is different brokers are good for different strategies. Lately, I’ve been dip buying. I use E*Trade and Interactive Brokers but you could use Schwab, Fidelity, or TD Ameritrade for dip buying penny stocks.

You want a big, well-known, broker that has decent execution and does the job you need it to do. While you don’t want to overpay on commissions, don’t be afraid to pay them. I look at it like this: If you cheap-out on your broker it’s like cheaping-out on your education. Don’t do it. Instead, educate yourself. Invest in your education.

Be wary of offshore brokers. Offshore brokers are not FDIC (Federal Deposit Insurance Corporation) insured. E*Trade, for example, is FDIC insured. This means if something goes terribly wrong with the financial markets you are insured up to $250,000. But if you’re trading with an offshore broker you aren’t insured.

Order Execution Time is Key

You need to understand this: There are brokers who charge little or no commissions but you get screwed by bad order execution.

So you might save $5 or $10 per trade but you lose $50 or $100 because they don’t execute the order fast enough. This is one of the reasons I stick with big, safe companies like E*Trade.

Remember, it’s all about the bottom line. Profit or loss. So don’t try to get away without paying commissions. In many ways, commissions are a good thing. When you consider the commissions it keeps you from overtrading. I see people throwing money out by making these tiny trades because they don’t have to pay a commission. They throw $50 on this or $20 on that … with no strategy.

E*Trade or Ameritrade

I get this question often: “Which should I use, E*Trade or TD Ameritrade?” I can’t make that decision for you because it depends on your requirements. I use E*Trade but that doesn’t mean it’s better, it only means it suits me better. As you learn to become a day trader you’ll have to make some decisions. Do your homework.

To reiterate: Look for a company with good order execution time and one that does everything you need it to do. If it takes having accounts with two companies, so be it.

Day Trading Account Requirements

There are some requirements you need to consider if you’re going to be a day trader. Thankfully, there are a couple of regulatory bodies with everyone’s best interest in mind. There’s the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC). FINRA is a not-for-profit self-regulatory body for the financial industry. The SEC is a government body created to protect individual investors.

SEC Regulation and the Pattern Day Trader Rule

The pattern day trader (PDT) rule defines a day trader as someone who makes more than four trades within a five-day trading period. The rule requires the trader to maintain an account balance of at least $25,000. Keep in mind some brokers have their own requirements that exceed this industry standard.

The SEC supports the PDT rule on your behalf and FINRA supports the rule on the behalf of the industry. There was a time I didn’t like this rule. But since I’ve been teaching for the last decade I’ve come to appreciate it. It keeps inexperienced traders from getting into the addictive trading behavior. It’s there for your protection as you start your trading journey.

You can still trade with a smaller account, you just can’t trade as often. But that’s good because it makes you do more research and be more careful about each trade you make. It will help you develop better habits and self-discipline.

Key Tips on How to Become a Successful Day Trader

How can you become a good day trader? Let’s put it all together into a nice, workable plan. Keep in mind that before you make a single trade you have some studying to do. But this will help you along the way. I recommend my Trader Checklist as a good place to start.

#1 Cut Losses Fast

When I first started trading I didn’t have enough money in my account to let losses run. Little did I know how important that was for my success. I had no choice but to cut my losses fast. It became a habit to cut losses. There were only a couple of times when I broke my own rule and I paid dearly, so it was ingrained. Until I got cocky, that is …

Remember me telling you about my losses in 2003 and 2004? Those losses happened because I tried to force trades and ignored my own rules about when to get into a trade. At that time I was shorting stocks and my rule was to wait for sideways price movement before I got in on the short. I also wanted to see important price level breakthroughs before I started shorting.

Instead, I let my ego get in the way. I got impatient. I had one three-month run where I lost over $100,000 each month. Not because I followed my plan — because I went against my own rule to cut losses fast.

So learn this now, before you even start: Cut losses quickly.

#2 Fine Tune With Small Accounts

Since I started teaching, every year I take one of my accounts and bring the balance down to $12,000. To help my students, I go back to the beginning and trade my way up in that account. I do this for two reasons: First, it forces me to think like a beginning trader in regards to the PDT rule. Second, it forces me to make smaller trades and be more careful.

I force myself to play small to be a better teacher and a better trader. I’m more conservative and I don’t let my ego get in the way. I recommend you have several small accounts once you’re ready — spread it out and fine-tune your strategy and discipline.

#3 Avoid Leverage

Don’t use leverage. Ever. I hope you heed this advice.

There are times when you’ll use a margin account. Specifically for short-selling. Using a margin account for short selling doesn’t have to involve leverage. You can learn how to do this with my Pennystocking Silver lessons.

At first, keep your margin account separate from your regular account. This goes back to having more than one small account as you develop your strategy.

#4 Never Stop Learning

You’re going to hear (or read) this from me again and again. I can’t repeat this enough: Never stop learning.

Keep studying. Learn from your winning trades and learn from your losing trades. Apply what you learn and don’t let your ego get in the way!

Day trading penny stocks is not a get-rich-quick scheme. There are other so-called gurus out there who want you to believe you can get rich quick. Or that once you know a play you’ve got it for life. That’s bullshit.

You have to keep learning. Did you know that the word guru means to bring from darkness into light? Even though I don’t like to call myself a guru I want to bring you from lack of knowledge into the light of knowledge. Never. Stop. Learning.

Join My Trading Challenge

There’s a ton of crap out there on the internet. There are over five million hits for ‘how to become a day trader with $100.’

You can spend hours lost on a ‘how to become a day trader’ Reddit thread. You’ll find so much information that it’s almost impossible to decipher real from fake.

I want students in my Trading Challenge to avoid the boneheaded mistakes I made along the way.

Want to join a community of humble badasses on their way to freedom and the laptop lifestyle?** Apply to join the Trading Challenge today. I look forward to seeing you there.

The Bottom Line

What does it take to be a day trader? Now you’re more informed. Go back and read this post again and then bookmark it. Also, check out the links I shared in this post to get more information on those specific terms, concepts, and related topics. Believe it or not, this blog actually isn’t about me — it’s about you and your future.

The life of a day trader can be pretty damn good, but you have to get an education. Learn to manage your risk, master the patterns, and set yourself up with some rules.

Have you started day trading? Are you ready to start? What’s holding you back? Leave a comment below.

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About

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

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      “I’m a 29 year old single mother of two. I do not have a regular 9 to 5. I am currently day trading as a living. Prior to discovering Timothy Sykes I played around with a couple other mentors and penny pick sites. Sadly not being taught the basic fundamentals I lost $5500-Terrible! I found Tim’s website in May and now I’m up 50k learning from Tim Sykes. I am extremely grateful for Tim, he is the truth hands down!”

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      Comments ( 6 )
      Hey Everyone,

      As many of you already know I grew up in a middle class family and didn’t have many luxuries. But through trading I was able to change my circumstances –not just for me — but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

      Which is why I’ve launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

      So when you get a chance make sure you check it out.

      PS: Don’t forget to check out my free Penny Stock Guide, it will teach you everything you need to know about trading. :)

      Tim, I need you to personally call me before I subscribe and take you on as my mentor. If you want the individual who is going to go above the rest then I need the mentor who is going to do the same. I look forward to hearing from you and I will join your team. I’m as good as they get and my trades have a 75% success rate, but I want more.

      LOL no it doesn’t work like that, if you want to learn, go apply at http://tim.ly/sykesmc and prove yourself, if you have any doubts don’t do it, that’s the beauty of my being real

      Thanks for sharing the post The way you narrated the Intraday trading post is good and understanding. After reading this post. I learned some new things. Please let me know for the upcoming posts.

      Knowledge facilitates growth & development.

      Leave a Reply Cancel reply

      About Timothy Sykes

      I became a self-made millionaire by the age of 21, trading thousands of Penny Stocks – yep you read that right, penny stocks. You may have heard . Read more

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      ** Results may not be typical and may vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here..

      Millionaire Media 80 S.W. 8th Street Suite 2000 Miami, Florida 33130 United States (203) 980-1361 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

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      How to Trade on Forex – 5 Steps for Beginners

      Despite all the concerns the number of those who want to be a trader increases. The possibility of making easy money attracts many people. But it is not so simple as it may seem. How to trade on Forex? Where to become a trader? How much money would it take? Let’s consider how to start Forex trading – five basic steps that will turn newbie into a trader.

      Trader’s first step

      Step 1. Start Forex trading with Forex education

      It may sound boring, but Forex begins with education. Trading requires minimal understanding of the market functioning mechanisms. Novices often omit this step, relying only on their success and intuition. But Forex is not gambling, it has own laws. Success is possible when trading blindly, however it is short-time.

      You can learn how to trade on Forex in different ways: paid and free, in-class and online.

      How to learn Forex trading individually and free

      You can learn Forex basics individually – assiduity, patience and time are required. Books, thematic resources, blogs of the successful traders, forums, video tutorials and webinars are the main educational materials. It is important to find easy-to-understand source that will not confuse even more.

      The following books are considered classical:

      • Alexander Elder “Trading for a Living: Psychology, Trading Tactics, Money Management”;
      • George Soros “The Alchemy of Finance”;
      • Warren Buffett “The Essays of Warren Buffett: Lessons for Corporate America”;
      • Erik Nayman “The Small Encyclopedia for Trader”;
      • Jack D. Schwager “Market Wizards”.

      Books form a certain knowledge base, but do not teach successful deals. Reading of specialized literature is useful along with video tutorials, webinars and demo accounts. Look for applyed information from insiders at forex resources: thematic sites, forums, blogs, communities.

      Authoritative Forex resources are listed below:

      Most traders hold active discussion and share their experience on the following forums:

      If you like to learn new information and get to the truth, an individual Forex education is for you.

      Online courses from brokers

      Distance learning gains popularity. Forex brokers use online courses, webinars and mentors` services to teach their clients. The most available form of learning are webinars, i.e. online seminars. Any trader with Internet can take part in such online events.
      Webinars are popular due to:

      • simplicity and availability;
      • opportunity to put questions to the webinar presenter via chat;
      • visual materials – video, screenshots, presentations, screen sharing;
      • participating is usually free.

      Forex courses – in-class learning

      Forex brokers often hold learning courses locally. Classes are led by professional traders. The course usually consists of lectures and practical trainings. Forex-coach shares his experience, gives advice, analyzes trades. Forex courses are considered to be very effective teaching method, assuming a real professional teaches you. High cost and location dependence are its main disadvantages.

      Step 2. Choosing a broker

      Brokers are intermediaries between a trader and market. Unfortunately, you cannot start forex trading without them. Therefore, try to choose a reliable and honest company. How to do it? Look for independent ratings of forex companies, read reviews on forums. Be careful – reviews and ratings are often made-to-order. Moreover, both positive (bought by broker) and negative (paid by competitor). Do not trust only one source.
      The following parameters tell about the broker more objectively:

      • Reputation. The experience of the forex broker demonstrates its stability and reliability. But do not write off young companies – their trading terms are often more loyal.
      • License. Any company, providing financial services, should be certificated. If the broker is not subjected to one of the regulators, think carefully before signing up.
      • Trading terms. Look what trading accounts and terms are offered: leverage, spread, commission and initial deposit.
      • Software. Which trading platforms can be used in the company. Do they have mobile and browser versions? Are they easy-to-understand for beginner?
      • Support. Contact support team via chat or email to make sure of their courtesy, competence and awareness. Multilingual and around-the-clock support is always a priority.
      • Security and reliability. How to check it by yourself? Look at the URL address in your browser: HTTPS protocol is a good sign. If you use Chrome or Mozilla, the green lock to the left of the address bar is a proof of secure connection with the site (the site has a valid TLS/SSL certificate). This requirement is obligatory both for password entry and payment pages etc. Of course, it doesn`t guarantee broker`s integrity, but at least no one will intercept your data. It would be great, if the financial operations and password reset are supported by two-step authentication. Ask the support team to provide you with information about another client, as if he is your friend or relative – what will they answer?

      Step 3. Trading on a demo account – virtual Forex

      Educated trader is good, but isn`t enough. You need practical experience. Where to get it for free? Open a demo account – forex trading simulator. You choose a broker, open a demo/practice account, install trading platform and start forex trading with virtual money. Demo trading is similar to the real. You trade under broker`s trading terms, make deals for the same quotations, learn the platform without investing your own funds.

      There are 2 ways to open a practice account:

      1. With registration – you open a demo account on the main page of the broker`s official website only after registration.
      2. Without registration – you open a demo account directly from the trading platform, or on the official website without registration.

      Open several demo accounts and compare trading terms of different brokers to be sure you find the right one.

      The reverse side of a demo account

      Many traders don`t recommend demo trading. What are their arguments? The trader does not accept virtual money seriously and does not feel the emotions appropriate for the real trading. Imagine: you trade on a demo account, trade with profit, a large sum of money is already on your account. Go to a real account and all is lost – instead of profit you have a loss, instead of the deposit – big fat nothing.

      The fact is that the price of virtual money is low, so we bear losses easily. The trader keeps calm and continues to trade even at unprofitable transactions. When real money is at stake, such emotions as greed, fear and excitement take place. In most cases, it is the reason why trader fails. How to reduce the risks?

      • trade on a demo with a sum, which you will trade on a real account;
      • use the same trading terms;
      • make deals reasonably;
      • keep trading journal, correct mistakes;
      • do not stay on a demo account for a long time;
      • do not make trades of high volume on real accounts, even if you trade on the demo successfuly;
      • follow money management rules.

      Remember, successful demo trading does not guarantee success in the real trading. If you want to transfer successfully from a demo-account to a real one, read following the link.

      Step 4. Opening a trading account

      When beginner`s training is behind, it’s time to start forex trading in real mode. To do this, you need to open a trading account on the broker’s website. The buttons and links for account opening are usually located in the most conspicuous places.

      The account opening procedure is often combined with the registration. At this stage, the future customer should provide personal information. At least – name, email, phone number, address. Some serious companies may require even income level information. On one site you should provide minimum data, so you can start trading immediately. On the other site account should not be opened until you do not send a copy of the identity card and deposit your account with a certain amount.

      If you are ready for serious trading – indicate correct personal information. The confirmation code/link may come to the email address or phone. Brokers do not process the withdrawal without the documents confirming person`s identity and place of residence.

      You will understand the procedure in the course of registration. Everything should be intuitive. If not – write to the support desk. Trading account should be deposited, otherwise you can`t trade. The only exception is a non deposit bonus, which is regularly given by brokers in order to attract new customers.

      Step 5. Installing the platform

      You need a trading platform to start forex trading – software that connects trader with exchange market. If you have been trading on a demo, you have already installed it. Forex offers a variety of terminals. There are most popular:

      What`s worth special attention when choosing a trading platform? Good terminal should combine:

      • multifunctionality – analytical tools, indicators; the possibility of algorithmic trading;
      • security – protection from unauthorized access;
      • availability – compatibility with operating systems and browsers;
      • mobility – mobile applications and browser-based versions of the platform;
      • speed;
      • user-friendly interface.

      These settings can be tested only empirically.

      All trading terminals can be divided into 3 groups:

      Traditional desktop platform – the most convenient and functional. A trader downloads terminal and installs it on the computer. But you may have difficulties with some operating systems.
      Mobile applications – a stripped-down functionality on the screen of the smartphone or tablet. The main advantage is mobility.
      Browser version of the platform (Web platform) – the most unpretentious variant. You can trade directly in the browser without installing any software. Nevertheless functionality is limited.

      Use all three versions to keep abreast of your trades.

      You need to overcome 5 steps to become a trader (some of them can be ignored):

      1. Learn forex theory: read books and articles on the forex resources, communicate on forums, watch video tutorials and webinars, visit forex courses;
      2. Choose a reliable broker: make personal ranking of brokers and compare their trading terms;
      3. Practice on a demo account: virtual trading will help to learn platform`s functionality, test trading terms of each account type;
      4. Open and deposit a trading account;
      5. Install the platform and start Forex trading.

      The beginning of Forex trading is a painstaking process. BUT – long way to Fuji starts with the first step. Some will start Forex trading easily, while others should pull their socks up. Many will give up and stop trading, someone will get a new hobby, and someone will quit work and dive into Forex. At last, the main idea is to enjoy the process.

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