The forex market is open to anyone at any time. The market is open 24 hours a day 365, days a year. Anyone who has at least a few hundred dollars can open an account with a forex broker and start trading. Opening an account will only take a few minutes. Money deposited into your account is available almost immediately if you use VISA, MasterCard or other instant transfer methods. If you use a bank transfer or other slower transfer method, then it can take up to a week before the money is in your account.
It is possible to open an account, deposit money and start trading in as little as 15 minutes or less.
The fact that you can open an account and start trading does not mean that you should. It does not mean that it is a good idea. The truth is that most people who try Forex trading end up losing money. About 80% of all traders end up losing money. This does not mean that forex is a scam, nor does it mean that forex trading isn’t profitable. All that it means is that forex trading isn’t for everyone and you should ask yourself if you have what it takes to become one of the 20% who makes money.
You can never be 100% certain that you will be able to make money, but you should consider if you have the qualities needed to make money or if you are likely to lose money.
Knowledge is king
You need to be knowledgeable to be able to make a profit trading currencies on the forex market. All the knowledge you need is freely available on the internet, and in books, you can order from Amazon. It is not hard to learn what you need to know to be successful, but you do need to have the time to learn what you need to learn. Anyone can do it if they have enough time. You do not need to be good at maths to become a successful trader.
It is important not to start trading too early. Use a demo account to make virtual trades until you have learned enough to be successful. Starting to make real trades too early is one of the most common beginner mistakes.
You do not only need knowledge about forex trading. You also need a lot of knowledge about the market and what is happening in the market. You will need to spend a lot of time monitoring and predicting the market,
You will need a lot of time to learn forex trading and a lot of time to stay up to date with recent market events. Forex trading is not a good choice if you are unable to devote a lot of time to it. It is hard to make money on forex trading as a hobby. You will have a lot better chance of success if you treat it as a profession. Most people do not have the time to do this, and forex trading is therefore usually not a good idea. Most people are better off avoiding forex trading.
Capital requirements
You do not need a lot om money to become a forex trader. You can get started with as little as a few hundred dollars.
There are many benefits to being able to deposit more money to your forex account. Trading with a small amount of money is a lot higher risk than trading with more capital. A larger bankroll allows you better risk management and a better chance of success. I do not recommend trying forex trading with less than USD2000. The risk will be too high.
Exactly how much money you need to have in your account depends on your goals. If you only want to start trading and earn a small profit, then you can start with a small amount of money. If you want to turn forex trading into a profession and need to earn an income every month, then you might need to have more money to trade with. How much depends on how much you need to earn.
Discipline is key
Knowledge and a suitably sized bankroll is not enough to be able to become a successful forex trader. You also need discipline. Discipline is key if you want to make a profit. You need the discipline needed only to make the right trades, the trades that meet the criteria you have set for yourself. It is very easy to start chasing profits and make more trades than you should. This almost always leads to mounting loses and failed ambitions to become a forex trader. You need to be disciplined enough not to make any trades when there are no good trades to make. This can sometimes mean that you will be watching the markets for days without making any trades. It is the discipline to only trade when there are good trades to make that separates good traders from the rest of them.
You should only try forex trading if you think you have the time, money and discipline needed to become successful. If this does not sound like you, then you should not try forex trading. Remember that most traders end up losing money.
