Home Swing Trading Forex in Detail Resources 24 Hour Trading
1 A good computer with Windows 2000,Windows XP oprating system.
2 A broadband internet connection.
3 Risk Capital . Risk capital is the capital with which you carry out high risk high reward activities to generate high earnings. Ten percent of your networth is a good measure to calculate risk capital.You can allocate ten pecent of your income towards forming your Risk Capital. Once you have built Risk capital you can use it for high risk investments.However one basic rule for trading is that you should never ever trade with borrowed funds.
4 For trading stocks identify a good broker and start a demat account and trading account with the broker firm.Open a SB account with a bank stipulated by the broker firm.You can discuss the details such as broker charges, trading tools available with them to help your trading, funds transfer facilities or any other trading matter with them before filling in the application form.
5 For trading forex you have to find out a good market maker.You can open with them a trading account. Reserve Bank of India has relaxed many of its rules.You have to check with RBI and your bank for doing this.This transfer is possible according to RBI guidelines.You can trnsfer upto 50,000 USD in a financial year now. Here there is no commission, instead there is spresd with each currency pair.There are many forex market makers and with each the spread differs.
6 Now you are ready to trade. You have decided what to trade?How to trade? You need to develop a trading method incorporating all the aspects of money management which I will detail in the later part.Emotional trading without a properly tested trading method is you road to destruction of your trading capital.Plan your trade and trade your plan consistently to make profits.
7 You have a method.It should be back tested on historical and real time data before use.
8 You have a winning method with a statistical positive expectation. Now you should have the commitment and discipline to follow your method in all its aspects.
9 Repetition,evaluation and modification of your method using it in demo and real condition will ultimately give a robust and sound method and help you building you expertise as a trader.
10 Trading is not a quick rich scheme. Like in any other profession music, dance, medicine, law, engineering , this profession also takes it time to build the trading skills required to make you expert and give you good money.You should have the passion,dream,hardwork and the patience to pass through the starving artists phase.But people are doing it and you can also do it