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Money-Management Articles >> Forex, An Alternative Investment Vehicle, Part 2
By Ference Kish In the first
part of this article I have outlined 10 good reasons why Forex (Foreign
Currency Exchange Market) is an excellent investment opportunity for
anyone to make money, online, even with very little start-up money
available. In this part I will explain how to get started.
If you want to make money with Forex, online, you have to think of it as a
business and treat it as such. You have to get serious about it and you
need to get organized. Initially, you have to 'go to work' just like you
would in a conventional business. Set aside some quite, work hours for
yourself, in a quite corner of your house so you can concentrate on your
business without any interruptions.
Also, as with any other business or trade, you have to train yourself and
hone your skills, continuously. The Forex offers an amazing opportunity to
make money, with little effort in record time, however, you have to know
what you are doing and you do have to put in some work. Just as you would
not allow your 10 year old kid to drive your fancy, expensive car, it
would not be a good idea for you to jump into trading the Forex without
learning how to drive this 'vehicle'.
If you are a beginner spend some time on reading up on the Forex and
perhaps find someone who is already trading successfully. Ask them to
mentor you or allow you to look over their shoulder. Once you have some
idea on what makes Forex tick, you should open a demo account with one of
the many reputable online brokers. This is the best way to learn what
happens to your money and your account in the real world without actually
risking any of it. You also have to develop good record keeping habits.
It's not a hard job to do it, you just have to be disciplined enough to
keep up with it. Again, it's no different from a normal business except
that the rewards can be much, much higher in relation to the work you have
to put in and of course you can do it from anywhere as long as you have
access to the Internet.
So, here is a simple list of how to get started:
1) Setup a quite corner for yourself as a work-area,
2) You must have a reliable computer and reliable connection to the
Internet, if you can afford a second connection to the Internet with a
different service provider than it's even better (I'll explain why in a
future article). Also make sure you are comfortable and have plenty of
light, a dingy, dark corner will soon dampen you enthusiasm,
3) Set aside some 'quality' time for you business the same time, every day
in the beginning, you can spend less time as you get more experienced,
4) Find out more about how the Forex works, train yourself and find a
mentor who is already trading successfully,
5) Open a demo account with a reputable online broker,
6) Start keeping a record of everything that you do and why you do it. The
easiest way I found to do this is with a simple Excel Sheet or something
similar,
7) Analyze the results of your actions and see how they affect the balance
of your demo account,
8) Make backups of all your records, I can't emphasis this enough, it's
really, really important,
9) Revise your actions and record keeping methods then go back to step 4.
It may sound a lot, however, most of it is common sense and applicable to
any and all businesses. It is critical that you keep a record of
everything that you do, whether it's changing your chair or the lighting,
a new trading platform. Whatever you do make sure you have a record for it
and an indication of how, if at all, it has affected your trading ability.
I have records of everything I do, not just for Forex, but for all of my
other businesses going back 7 years! Now, that's a lot of record keeping
but with computers it's real easy.
I think we have covered a lot in this second part. I'll go into more
details in future articles. Meanwhile, go through this article and start
putting my suggestion in to action. If you have any questions about what
I've said above or need information on anything related, just refer to the
resources and links at the end of this article.
Wishing you success,
Ference
This article was added on: April 16, 2006.
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