When you are first starting out in the Forex market, there are some things to remember that will make your trading experiences much more enjoyable as well as profitable. Not every transaction is going to profit of course, but when you take the time to learn some key factors of trading, it makes a big difference in whether you are successful at it, or just end up losing your investments.

Startup capital is something to consider right away. While traders don’t have to start with huge amounts of capital, starting with less than $5000 is typically not a good idea because you risk too much on each trade. If you start out with at least $5000 and keep your trading to mini lots, you can learn while you build your capital.

How do you want to trade?

Do you want to include moving averages in your trade plan? Bollinger bands? MACD? Fibonacci? Shoot, let's start off even more basic than that.

Do you know how to read a chart?

If not, get familiar with the charts and how they work. Learning the basics of how to draw a trend line, add moving averages, and understand candlesticks is basic and critical to the start of any trade plan. Next, you need to spend some time researching indicators and how they work together. Remember, trading is a profession, not a part time hobby. You need to take it seriously, research different trade plans, and then BACK TEST! Back testing is where you take your trade plan and you test how this plan would have done in the past. While not definitive back testing can help to build a solid base in determining the effectiveness of your trade plan. You also need to consider what kind of trader you are? Do you want to and have time to be a day trader? Would you rather check the charts only once a day or once a month? This is all time frames. Short time frames in the charts can show you what the trends are on the short term trades and is more minute to minute in the market. Longer time frames show how a trend does over the long term and is good for larger trends.

Trade with a plan!

The main thing to remember when getting involved in Forex trading is to come up with a solid plan of trading and then test it to make sure it works. Back testing is crucial because a plan that doesn’t work is useless to you. Once you test, if your plan is solid and works commit to it and don’t change it. Trade according to your plan and be diligent in educating yourself further. The value in sticking to a solid plan that works is that you can build your profit, and not jump around from plan to plan. Too much switching around or plan fluctuations will only result in loss of your capital and you being confused. Take your time and remember that not every trade will be a successful one, it’s okay to lose a trade. There are many successful plans that lose more trades than they win. It all comes down to your plan. If it is successful, it is successful, trust it and trade it.