Before you take the big step to trade the currency markets, a very wise man told me to build a Forex Toolbox before you even make one trade. At first, I had no idea what this very astute friend and hugely profitable forex trader meant. Simply, he told me to do whatever possible to put the odds in your favor, because you will every edge you can find. I immediately started creating a detailed trading plan of my own.
First, I found a Fx broker that had low spreads on the trading pairs I would be trading. Remember, the bigger the spread, the more the Fx broker makes and the less you make.
Second, I heard you can receive free forex trading rebates from Introducing Brokers (IB) for all your trading activity. When I started evaluating these IB’s that offer this great deal, it was crystal clear to me, I needed to join right away. You get these rebates if you win or lose a trade.
Third, now it was time to build or find a stable expert advisor to do all my forex trading. An Forex Expert Advisor is simply a automated forex system that trades automatically on the metatrader platform. I realized this was a the superior approach because I always had problems with getting emotional while trading, and that will kill any trading account in a hurry.
Fourth, my money management in the past was horrible and I needed to find the right lot size to trade with my account size. I went to work and created a simple, yet powerful money management scheme that I adhere to for all trades.
Finally, It was time to find a dedicated virtual private server (VPS) to run my EA. At first, It was a bit overwhelming, but when you get everything set up it is exactly like running your home PC.
As you can see from the above points, your Forex Toolbox has some structure and it is up to you to do your homework and create you own FX toolbox.