Yes, anyone can do forex trading without experience. But without experience in the forex market, you will most likely not be a profitable trader.
To be a profitable trader who makes consistent profits in the markets you need a lot of experience. How do you gain this experience? by trading every single day.
Of course, if you are doing swing trading or position trading you will not trade every single day. But in this case, you should still analyze the markets every single day.
How to gain forex trading experience
To gain real forex trading experience you need to trade in the live markets with experience in losing and winning trades.
If you are a beginner trader, you will experience a lot of losses but that is the obstacle you have to go through if you want to become a profitable trader.
Most people start forex trading thinking that it is a get-rich-quick scheme. It is absolutely not. Can you get rich with forex trading? Absolutely but it takes time and effort.
That said you can experience big profits in a few days but if you are not a good trader, you are most likely to lose your profits in the next few days.
Learn the right trading skills
You have to learn the right skills to become a profitable trader. When you learn the right trading skills you don’t need much experience as someone who doesn’t have the right trading skills.
To learn the right skills you can invest in trading books and trading courses. We don’t recommend most online paid trading courses. This is mainly because most of them are overpriced (can be more than $1000) and teach very basic trading skills that you can find free online.
That’s why we recommend you to go through our trading course which is completely free, that will guide you step by step on how to become a profitable trader. The course will cover several things which are important trading skills. These important trading skills are.
This is a very important skill for a trader to develop. You have to control your emotions when trading because you will experience losses. You should not let your losses lead to more losses. Always stick to your trading plan.
Discipline is key. After you make a trading plan you have to stick to the trading plan and execute it day in and day out. Sometimes you will feel like it’s not worth it but don’t let this make you quit. You have to be disciplined.
Learning how to read the news and understanding how the news will impact the forex market is very useful. This is a good skill to learn as well.
This is the holy grail. Knowing how to do proper technical analysis is extremely important if you want to become a profitable trader. We go through this in our free guide in extreme detail. We also give you several technical analysis trading strategies that you can use to become a good trader.
This is a very important skill as well. Managing your risk for every trade you take is important. Again refer to our trading course to learn how to manage your risk.
Journaling/Tracking your trades
Tracking your trades is one of the most important skills/habits that you must develop in order to become a profitable trader.
Lucky for you, we have created a free trading journal based on google sheets (which can use in excel as well) that you can use to track your trades. Always make sure to journal every trade you make.
We also recommend you have at least $1000 that you are willing to lose to gain experience. Because if you are new to trading you have to know that you will lose some money. Think of this money that you will lose as education.
To be honest, $1000 is nothing compared to most college/university degrees. Some university degrees cost more than $100,000 and 4+ years of your life. And you get mediocre jobs that pay like $50,000/year.
So if you are not willing to lose $1000 to gain experience in the forex markets which is absolutely nothing compared to the costs of these college/university degrees cost, trading is not for you.
Also, it is important to have patience. You are not going to become a profitable trader overnight. There are traders that become profitable overnight but it is rare. Expect at least 6 months to really understand forex trading.
Then expect 1 year to get to a level where you will become a profitable trader. Again, if you look at the timeframe it is nothing compared to the time it takes to complete a college/university degree (3-5 years).
The great thing is that once you become a profitable trader you will be able to make a lot of money. Let’s say you manage to get to a level where you make 10% returns a month and you have $30,000 in your trading account. That means that you will be making $3000/month in profits.
10% monthly returns in the forex market is very respectable. If you show your trading performance to investors you will be able to raise capital. Some traders, go on towards raising millions of dollars in trading capital.
That means that you can make $100,000/month in profits. Let’s say you give investors 50% of the monthly profits, you should be able to make $50,000/month in profits. No job will pay you this much unless, of course, you are a CEO of a big company.
But the difference is that you can trade forex any time of the day (Mon-Fri) on your own time from anywhere in the world. If you are a CEO of a big company, you will have to work 12-hour days because you will be managing 1000s of employees. There is a huge difference.
Game plan for you to gain experience and become a profitable trader
eToro is great broker as well. It has a wide range of assets that you can trade with.
Deposit the amount of capital you have. Now, some traders say you have to first trade in a demo account with virtual capital. This is fine, but the problem with demo accounts is that you will not really have any emotions when trading because you are using fake money.
When real money is on the line, then most traders get emotional. You have to get used to trading with real money. But this step is really up to you. If you want to gain experience quicker, you can skip using a demo account.
This also depends on how much money you can afford to lose initially. If you are at a stage where you are comfortable losing at least $1000 without impacting your life, then we recommend skipping trading with a demo account and start trading in the live markets.
Also, make sure not to risk more than 1% per day when trading in the live markets. We recommend you start doing day trading first.
Some traders do swing trading or scalping. With swing trading, you will take 1-3 trades a week. This is not enough trade for you to take to gain experience in the forex market quicker.
On the other hand, scalpers take 10-100 trades a day. This is too many trades to take, you will be overwhelmed when tracking your trades.
Ideally, take 2 trades a day. Then track your trades with our free trading journal. Make sure to journal every trade you take. With our trading journal, you should input the following parameters for every trade you take. These are,
Currency pair you are trading
The trading strategy
Entry point, stop loss, and take profit.
profit and loss
The risk-to-reward ratio and the account growth rate will be automatically calculated.
Do this for 12 weeks (3 months). This is a good enough time for you to get data for your trading. After you track all your trades for 3 months straight, you will see patterns in your trading.
You will know what trading strategies work, and what trading mistakes you make. And what good trading decisions you made. This way you will be on your way to becoming a profitable trader.
As discussed in this article you can definitely do forex trading without experience but to become a profitable forex trader you have to gain experience in the markets. As discussed if you are interested in learning how to trade in the forex market, make sure to check out our free guide.