How to trade currency pairs

Many novice traders are always asking about how trade currency pairs. In fact, they want to know the forex trading secrets.

Today I will speak loudly, there are no secrets to success in forex market exchange. If there was, I think it comes from hard work and execution.

2 basic tips you should know about currency trading

First, I will learn how to trade forex with Babypips. It offers free online forex trading courses. 

Second, I will read the best forex trading books to make big profits. For example, Bird Watching In Lion Country or Jesse Livermore's methods of trading in stocks.

These first two pieces of advice help me to become a self taught successful forex trader. Keep in mind that the first step is to build a lifelong habit of learning.


Yes, every forex trader wants to make a lot of money in currency trading. I am no exception. So let's learn more forex trading knowledge and strategies.

5 steps to trade in forex

First, I have to develop a currency trading business plan.

• It can define the real profit targets for a successful trader
• It can define the forex trading strategy before enters into a trade. For instance, grid trading strategy, 4 hour forex trading system.
• It can define the entry and exit points
• It can define the money management rules.

Second, I am going to write a forex trading checklist. It is the fastest way to identify the trading opportunities.

Third, now you might think about how choose the luckiest currency pairs to trade. I think it should suit your personality and forex trading strategies.

• If you are trying to trade long-term trends, EURUSD would suit the moving average strategies
• The most popular cross currency pairs would suit the grid trading strategy. For example, EURGBP and EURJPY

Fourth, I have to open a demo account and test the currency trading strategies.

Fifth, I must write a currency trading journal spreadsheet. It can track, measure and improve my trading performance, especially help me build the disciplines.

In a word, if you follow the step-by-step guide, you will know how to trade currency pairs and make money. Now it's time to start your forex trading career.

More reading: Steve Burns's blog

How to trade currency pairs

How to become a successful day trader

How to become a successful day trader? I believe that it will not be easy. In 2007, I began to trade stocks and Forex full-time. You maybe guessed the results. 

I analysed the reason of failure and found I didn't have enough money and never followed my day trading plans. 

After reading a lot of day trading books for beginners, I start to make a day trading plan and stick to it. Now I have been able to trade for a living. Today I will show how to be a successful day trader.

First, I suggest learning day trading with the free online education courses. For example, Investopedia, stocktwits, Babypips, Forex factory, Dailyfx.

Second, many beginners just want to make a lot of money. But veteran traders think trading is a business and run it on business principles.

Third, you have to develop a day trading plan and keep a day trading journal.

• What are your day trading goals? I want to set a daily goal about 0.1%.
• Which stock is going to pick? I should pick a good liquidity and volatility of the stock.
• What about your day trading strategies? For instance, the grid trading strategy.
• How much money to start day trading for a living? About $10000
• Which time frame will you choose? I will use the multiple time frame analysis, So I will choose the four hour and one hour chart.
• If prices are bound between support and resistance levels on the four hour chart, I will use the bidirectional grid trading strategy.
• If I had identified the direction of the trend on the four hour chart, I will trade with the one direction grid trading strategy.

Fourth, practice, practice, practice, I can’t say it enough! You have to open a demo account and practice the new day trading strategy. 


Fifth, don't forget to review your day trading journals. It can improve your trading performance.

At last, if you want to make more money in day trading, you have to share trading experience on the twitter, and write down the day trading tips and rules on a piece of paper.

If you’re serious about learning how to become a successful day trader. I guarantee it will be one of the best things and it will change life and the rewards will be forever!

More reading What is it like being a self employed day trader?

How much money do I need to start day trading for a living?

How to become a day trader with little money

I think you can go to the forex trading market or options trading market. But here I want to remind you that they carries a high level of risk and may not be suitable for everyone. You may lose more than you invest.

First, many best forex brokers offer Mini & Micro accounts. Therefore, you can start day trading with little money. Below is my list.

1. Oanda
2. Alpari
3. FXCM
4. Forex
5. Fxpro
6. XM
7. IC markets
8. eToro
9. Pepperstone
10. Exness

Second, you should demo trade until you develop a solid, profitable system. I believe only in this way can become a day trader with zero risk. 

Third, if you just have less money to day trade business, you must avoid common forex trading mistakes and big losses. 

In addition, you must learn day trading with babypips, forex factory or Dailyfx. They offer free online trading courses. I think you will have a good feeling for how to be a professional day trader.