- 1). Read a variety of different trading books to help you decide which trading strategy to use. You can also do some online research to find information about different trading strategies. Once you settle on a strategy, decide if it will work for the type of market that you want to trade. For example, a strategy that works for the stock market may not necessarily work for the currency market.
- 2). Open a trading account with an online discount brokerage once you decide on a trading strategy. Research the reputation of the online broker before you open an account. Complete the online forms to establish your account and send in your deposit. Find out how long it takes for the deposit to clear, so you know when your trading account will be active.
- 3). Set up a charting program to help you with your trading decisions. Unless you already know which program you want, you will have to do some research to find the right charting package for your trading requirements. Once you install the program, learn how to set up a chart and then customize it to use for help with your trading decisions.
- 4). Practice trading in your broker's demo account before you trade with real money. A demo account allows you to trade with fake money, which is the safest way to test a trading strategy. Analyze your charts to find a trading opportunity, then enter a trade in your demo account. Set a profit target and a maximum loss that you will accept on the trade. Follow the progress of the trade using your charts. Exit the trade when you achieve your profit target, or if the position goes against you, exit for a loss.
- 5). Trade using real money from your brokerage account once you are confident that your trading strategy is sound. Use only a small amount of your available capital for the first few trades. After you experience the emotions of winning and losing a trade with real money, begin to trade with the normal amount of capital that you intend to use on a regular basis.
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