The first step to becoming a good Forex trader is to first learn the trade. You should read eBooks, watch videos, take courses and listen to the Forex trading tips offered by experienced Forex traders. You should read as much as you can for many reasons. Firstly, you need to make sure that Forex is right for you. You need to be good with numbers, understand statistics, already have good chart reading skills and have a non-impulsive personality. A good Forex trading course can be found at trademy.com.
Once you have learnt as much as you need to feel confident to begin trading, you should start to find a Forex broker. The broker should be well established and you should be able to find reviews about it on the Internet. There are some brokers that allow you to top up your account using Paypal or alert pay, whilst others require you to submit your credit card details, so take note of this when you are looking around. If you can find a Forex broker that has a free practice account, then you should take advantage of this feature to make sure that you will be able to use the system.
When you are using the Forex broker, you need to ensure that you trade safely. This means using good money management. You need to work out how much you can afford to lose when the market starts to dip. A good Forex trading tip to follow for money management is to only invest about 5% of your whole investment for each trade. If you are investing $1000, then you should only use $50 at the most for each individual trade.
This way you do not risk losing too much of your investment if you do make any losses and it will be easier to regain the losses that you do incur. Of course by risking such a small amount you will not make huge profits at a time but it is important to protect your investment.