First things first: you’ve got to get that knowledge. Whether it’s from a book, a mentor who’s popped up in your life, or a site focused on the ABCs of forex trading, the learning phase is crucial. But here’s the catch—no matter how much info you cram into your brain or scribble into a notebook, it’s all pretty much useless without rolling up your sleeves and putting it into action.
If you’re feeling stuck, overloaded with notes, and not sure where to even begin—don’t stress! This post is here to point you in the right direction, helping you set up with the right tools so you can put that knowledge into play and start trading for real.
Table of Contents
General Knowledge about FOREX 👉👉👉👉👉👉👉👉
General Knowledge about FOREX
When it comes to general knowledge about forex, prospective traders have a range of resources at their disposal. Books like Trading in the Zone by Mark Douglas and Currency Trading for Dummies by Brian Dolan offer solid insights for beginners and seasoned traders alike. Websites such as BabyPips provide comprehensive guides and tutorials, while mentors— like Cue Banks, DrewzieBanks, Alex G, Lambo Raul,whether through personal coaching or online courses—can give you tailored advice and strategies. These resources build a strong foundation, helping traders understand market behavior, key strategies, and risk management.
IYKYK
A Signal & A Screen
In today’s world, Forex trading doesn’t demand complex setups or hefty equipment. In fact, all you need to get started is a screen, a stable internet connection, and the determination to learn. It’s remarkable how the power of trading has been simplified to just a few essential tools that fit right into your daily life. Whether it's your laptop, tablet, or mobile phone, the gateway to the world’s most liquid market is just a click away. Welcome to an era where opportunity sits in the palm of your hand.
If you have access to the internet, you’re already halfway there. For those who don’t (though I’m not sure how you’re reading this, haha), there are always local libraries, community centers, or even cafes where you can connect for the price of an overpriced hot chocolate. And if you’re feeling bold, you could even ask friends or family to use their internet. We live in an age where tools and information are just a bit of hustle away—so make it happen!
Once your internet is sorted, the next essential is a screen for learning and placing trades. Most of us already have a smartphone—be it an Android or iPhone—and both work perfectly for starting out. For those without a phone, the resources mentioned earlier can tide you over until you’re able to save up for your own device. When you’re learning, I highly recommend using a laptop or monitor. A larger screen allows you to absorb information more effectively and makes backtesting your strategies much smoother.
TradingView and Beyond
You got your internet and your screen to start learning and trading, now what? One word TradingView. TradingView stands out as a powerful charting platform, offering customizable tools that help traders analyze trends and make informed decisions.
Click to create an account
Pairing this with Forex Factory & Myfxbook ,you to stay updated on crucial red-folder news events (News Calendars) that can impact market movements. They both provide valuable data and performance tracking, giving traders insights to refine their strategies.
Click to create an account
Click to create an account
Using these three resources together can give you a well-rounded edge, ensuring you’re prepared both technically and fundamentally in the dynamic world of Forex trading.
Trading Accounts
Creating the right type of trading account is a pivotal step in your trading journey. Whether you’re just starting out or ready to test your skills on a live account, understanding the differences between a demo account, live ECN account, and prop firm challenges is essential. Bu t first and foremost, allow me to explain the difference between a Trading Platform and a Broker and a Prop Firm
Trading Platforms
When it comes to trading, choosing the right platform is essential for executing your trades. Earlier this year (2024) MetaTrader 4 & 5(MT4&5) has quickly made their disappearances from the US clients due to some fraud allegations. This stir up scared a lot of traders including myself, but when one door closes many other doors open. Leading the migration to other trading platforms such as DX Trade and Tradelocker which boasts a user-friendly interface and support for automated trading, advanced customization and multi-asset capabilities, each platform has its unique strengths. There are other platforms that the US market has access to but I am only using these two at the moment and will cover the rest at another time. Whether you’re a novice or an experienced trader, understanding the nuances of these platforms can empower you to select the best fit for your trading style and goals.
Now depending on the broker you are using DX trade can be provide via mobile app and/or web access. The version of DXtrade can vary as well between brokers, so that is important to note when using this platform. Of course the more recent version is the most likely suitable to use but at the end of the day, they both perform the same task.
After the news with Metaqoutes, TradeLocker came through with a bang! as new trading platform they are still fixing bugs but with their 24/7 customer support, they are handling everything in a timely manner. Their sleek use interface allows all types of trades to take advantage of the markets. Cannot wait to see what else they are going to add to the platform. By far my favorite trading platform to use since MT5.
Brokers
Brokers are financial service firms that provide access to trading instruments like Forex, CFDs (Contracts for Difference), commodities, and more. They act as intermediaries, executing trades on behalf of their clients in the financial markets. They offer services such as leveraged trading, tight spreads, and multiple trading instruments including Forex, commodities, and CFDs. Brokers may offer different types of accounts, such as standard accounts, ECN accounts, and more, with various fee structures and spreads. Most brokers will provide various types of trading accounts like a Standard, ECN, or demo account
ECN Account
ECN stands for Electronic Communication Network. This account type is designed for traders who want tighter spreads and direct access to the interbank market.
Features:
Tight spreads: Often close to zero but may vary depending on market conditions.
Commission fees: Brokers charge a commission per trade (e.g., $6 per lot traded).
Market execution: Direct market access ensures transparency with no dealing desk intervention.
Pros:
Low spreads make it easier to calculate costs.
Suitable for high-frequency trading strategies.
Cons:
Commission fees can add up.
Requires more capital due to tighter spreads and potential volatility.
Standard Account
The Standard account is a more traditional option and usually comes with slightly higher spreads.
Features:
Wider spreads: Costs are included in the spread instead of a separate commission.
No commission fees: Most brokers incorporate their fees into the spread.
Best for: Beginners or casual traders who prefer simpler fee structures.
Pros:
Straightforward pricing with no additional commissions.
Easier to manage for new traders due to simplicity.
Cons:
Wider spreads can increase the cost of trading.
May not be ideal for scalping or strategies requiring tight spreads.
Demo Account
A Demo account is a practice account that simulates real-market conditions but uses virtual funds.
Features:
Risk-free trading: Use virtual money to practice without financial risk.
Real-time conditions: Simulates live market conditions, including spreads and execution.
Best for: New traders or those testing strategies.
Pros:
Perfect for learning and testing without monetary risk.
Helps build confidence in the platform and trading strategies.
Cons:
Emotional aspect is missing since no real money is involved.
Execution and conditions may differ slightly from live accounts.
Pro Tip: If you're new to the field, and have no idea what you’re getting yourself into, or never have worked with a specific broker before. Start with the demo account and get a feel for how they handle your style of trading and how responsive they are to you should you run into any hiccups.
A demo account provides a risk-free environment for practice and skill-building, perfect for getting familiar with strategies and market behavior. Transitioning to a live ECN account introduces real market conditions with tighter spreads and faster execution—ideal for traders ready for the next level. For those seeking a more competitive edge, pro firm challenges offer the opportunity to trade funded accounts and showcase your expertise under specific rules. By choosing the right account type for your current goals, you can strategically progress from practice to professional-level trading.
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Brokers like Osprey and KOT4x serve as the essential link between traders and the financial markets. These companies provide platforms, account types, and trading conditions that cater to both novice and seasoned traders.
Osprey ,KOT4x, and Hero FX in particular, have gained popularity for their user-friendly platforms *cough* TRADELOCKER *cough* (Not Hero FX, they have an great and UPDATED DXtrade Web Platform) and flexible account options, making it easier for traders to customize their trading experiences and meet their specific goals.
I currently use both of these for my personal accounts an pan to add a few more after testing them out some more.
Competitive: Low spreads and fair commissions are industry standards.
ECN Accounts: Access to Electronic Communication Network (ECN) accounts for improved liquidity.
Easy Demo Accounts: Convenient access to risk-free demo accounts for skill development.
Regulatory Compliance: Operating under strict regulators ensures security and investor protection.
24/7 Customer Service: Round-the-clock support for prompt issue resolution.
Fast Withdrawals and deposits: Expedient withdrawal processes for hassle-free transactions.
Prop Firms
Proprietary trading firms, or prop firms, offer a unique pathway for traders who want to leverage larger capital without using their own funds. By participating in an evaluation process that tests their skills, traders can access significant funding if they meet the firm's profitability and risk management criteria. Prop firms typically share a portion of the profits with traders while enforcing strict drawdown limits to manage risk. This model appeals to skilled traders looking for a chance to maximize their returns without the financial risk of trading solely with personal capital.
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Pros:
Access to larger capital pools: Trading with proprietary firms allows traders to bypass the limitations of personal funds, giving them the opportunity to manage substantial amounts of capital and potentially increase their earning potential significantly.
Limited personal financial risk: Since traders use the firm’s capital, they are not risking their own money on trades. This safety net reduces the emotional pressure associated with personal financial losses.
High profit splits for successful traders: Many proprietary firms offer lucrative profit-sharing agreements, ensuring that traders can take home a substantial portion of the profits they generate, often upwards of 70-80%.
Encourages disciplined trading practices: The structured environment of prop trading firms often promotes consistency and adherence to a well-defined trading plan, which is a cornerstone of long-term success.
Provides a pathway for skilled traders to scale up: For traders who have proven their skills, prop firms offer a clear path to scale their operations and access even larger capital, opening doors to higher income potential and professional growth.
Cons:
Evaluation fees and pass criteria can be challenging: To gain access to a firm’s capital, traders often need to pass rigorous evaluation processes that include meeting profit targets and adhering to strict risk management rules. This can be both mentally and financially taxing.
Strict trading rules may conflict with personal strategies: Prop firms impose specific guidelines, such as daily loss limits or maximum position sizes, which might not align with a trader’s preferred style or approach.
Limited freedom due to rules on risk and profit management: The rules imposed by prop firms can feel restrictive, as traders must operate within a predefined framework that limits flexibility and creativity.
Short-term focus: The evaluation models used by many firms often pressure traders to achieve results quickly, which can inadvertently lead to reckless or high-risk trading behaviors that are not sustainable over the long term.
Evaluation costs: Most proprietary firms charge fees for the evaluation phases, and these costs can become significant for traders who fail multiple times, creating additional financial strain before they even begin trading with firm capital.
Overall, Trading Platforms are your tool to executing your trades in the market, Brokers provide trading access and Prop Firms focus on funding traders.
Journal/ Note Taking Tools
A trading journal is an essential tool for any trader striving for consistent success in the markets. It’s more than just a record of trades; it’s a mirror that reflects your decision-making process, emotional patterns, and the effectiveness of your strategies. By documenting your trades, you gain valuable insights into what works, what doesn’t, and why. It helps you identify strengths to capitalize on and weaknesses to address, creating a feedback loop for continuous improvement. Whether you're a beginner or a seasoned trader, maintaining a journal is a disciplined practice that sharpens your edge and keeps you accountable to your goals.
Notetaking Platforms:
Excel Log
Notion Trading log
TradeZella
In that order is what I started out with. Well once I actually started to take notes into my second year of trading lol. Before coming across TradeZella, what I use now, I created my own journals from scratch. You can find both in the free resources tab on the homepage of the newsletter once they are ready to be downloaded (Still finetuning so its all user friendly).
A Trading Plan
A trading plan is the backbone of any trader’s success, serving as a personalized roadmap that outlines your strategies, risk management, and goals. It provides structure, helping you make rational decisions even in volatile market conditions. Without a plan, trading becomes impulsive and inconsistent, leading to unnecessary losses. A well-crafted trading plan ensures discipline, reduces emotional interference, and keeps you aligned with your financial objectives. It transforms trading from guesswork into a calculated, professional approach.
Key Components of a Successful Trading Plan
Trading Goals: Define both short-term and long-term objectives that are specific, measurable, and achievable. Short-term goals might focus on improving your daily execution, while long-term objectives could include reaching a consistent percentage return in a month or to achieve a certain amount of funding from prop firms.
Preferred Market(s): Clearly identify the financial instruments or markets you plan to specialize in, such as Forex, stocks, commodities, or indices. Focusing on a specific market allows you to develop expertise and better understand its unique behavior and trends. There is always an instrument that will suit your hours of trading, you just have to do your due diligence.
Trading Schedule: Set a structured schedule that aligns with the market sessions you are trading and your personal availability. Consistency in your trading hours helps create discipline and allows you to focus on specific timeframes when the markets are most active.
Strategy Details: Develop a detailed outline of your trading approach, your entries, and your criteria for exiting positions, and how you will determine the size of each trade to balance opportunity and risk.
Risk Management Rules: Establish guidelines to protect your capital, including the maximum amount of risk you are willing to take per trade, how you will set your stop-loss orders, and the risk-to-reward ratios you aim for to ensure profitability over time. Pro tip, don’t set your SL based off a price, set it you actual structure.
Performance Metrics: Decide how you will measure your progress and success. This could include metrics such as your monthly return percentage, win/loss ratio, or average risk-to-reward ratio. Regular tracking ensures you stay accountable and can pinpoint areas for improvement.
Psychological Discipline Plan: Create a plan for managing emotions during trading. This might involve techniques to stay calm under pressure, steps to prevent impulsive decisions, and ways to regain focus after a tough session or losing streak.
Market Analysis Process: Determine your method for analyzing markets, whether it’s through technical analysis, fundamental analysis, or a combination of both. A clear process helps you make informed decisions and reduces guesswork.
Contingency Plans: Prepare for worst-case scenarios by outlining actions to take during losing streaks, unexpected market events, or technical failures. A solid backup plan ensures you can recover and adapt without panicking.
Review Process: Schedule regular reviews of your trading performance, strategy, and plan. Use these evaluations to identify what’s working, what needs adjustment, and how you can refine your approach as market conditions change.
A well-thought-out trading plan is not static; it grows with you, adapting to your experiences and the ever-changing dynamics of the market.
Don Leche’s Takeaway
Believe it or not, I traded for months without knowing what Tradingview was…. I spent a year and a half trading without notetaking…. I spent almost 2 years without trading a prop firm challenge……. but no you don’t have to under go that….
There it is your roadmap to starting. No excuses now am I right?? 80% of the fight is just starting and now you know how to do it so ill see you at the finish line!