In the beginning, almost every trader joined the forex market with zero experience. At this stage, you can say trade is not very profitable and full of losses. But with the passage of time traders start to learn and earn. To grow as an experienced trader, they’ve to struggle a lot.
If you have no experience and want to earn money trading forex, you are at the right place.
Let’s read out the topic: How to make money trading forex with no experience?
Both experience and education are very important in forex. To gain experience you can practice your trading strategy and skills on a demo account. If you want the real experience, it’s better to switch to the small account of real money after trading 400pips on demo. No trader is perfect; it may take years and years to become a successful experienced trader.
Because of the risky nature of this money market, it is unpredictable. However, an average professional trader may take 3 yrs. to gain experience in risk management. It also depends on the individual trader’s approach and trading style.
Is It Possible To Make Money Trading Forex without Experience
Trading forex is not a game that you’ll learn instantly. It is a complete understanding of the money-making system.
It requires firsthand knowledge of forex basics. You can’t trade it without proper education and practice on a demo account.
It’s impossible to jump directly on making money in forex without gaining experience. For some traders, becoming an expert may take 1 year to 3 years. It also depends on what type of trading style you adopt. Becoming a professional trader may require a lot more experience.
Furthermore, every trader has a different learning approach, emotional level, and risk management skills. A trader with the highest IQ level and psychology control may take less time to become successful as compared to an emotional trader with average intelligence.
One more thing, intelligence alone is not enough to make you a profitable trader. Using intelligence at the right time in making the right decision is important.
This money war is all about your decision power and your knowledge about the current market situation. Experience is a factor that polishes your decision-making power along with the practical implication of acquired knowledge.
If you want to earn with zero experience, you‘ll have to prepare yourself to lose more than an experienced trader.
How to Make Money Trading Forex with No Previous Experience: 5 Steps
It is impossible to make money trading forex with zero experience. But there are ways that you can get experience and money without spending more time.
Below are 3 essential steps to follow if you want to make earn money in forex with zero experience:
Step-1 Start with Demo Account
When you hit forex with zero experience, you can still learn. Thanks to the demo account facility that almost all brokers provide! Here you can implement your forex knowledge to practice without wasting real money.
Expert traders advise never to jump to a real money account without trading 400 Pips on a demo account with consistency. Try to spend at least a minimum of 3 months on the demo account. It is part of your forex education.
Moreover, it is the only way to get experience after getting knowledge about forex.
Step-2 Switch to Small Account
After spending enough time on the demo, it is advisable to switch first to a small account. Never jump to account with big capital after switching from the demo.
Always join a small account or micro account that many brokerages allow with eleven $25,$50 to $100; even you can start with $1. Keep in your mind that you can never make a huge profit out of a small account in a month.
All you need to learn is to practice your trading strategy on this account without risking more money. Moreover, such an account is very beneficial from a learning point of view on the live trading platforms.
However small accounts based on forex signals are not advised for every trader. The reason is that it can disturb your natural trading flow.
Step-3 Keep a Trading Journal
If you want to start with zero experience, it is important to maintain a trading journal. It is a document that you can prepare yourself on excels or you can buy it if you want to keep a hard copy of your trading records.
Here you‘ll add the record of your weekly, monthly, or yearly earnings and losses. In this way, you can compare your performance from one week to the next.
You can further add your risk-reward ratio, trading strategy and trading time, pips, and where you want. At the end of the trading session, you can count your profit and loss.
Step-4 Use Authentic Indicators and Charting
The next step is to focus on spending authentic indicators and charting. When you practice your strategy with a small trading account, it is important to learn more about indicators.
Don’t try to be a forex junkie. It means it is not advisable to use different systems and indicators. Try to stick to an authentic technical analysis system.
Step -5 Consistency & Risk Management
Consistency is key to success. The main aim of practicing trading strategies on demo and micro-accounts is to develop consistency. When you are consistent you‘ll never go for a high-risk reward ratio.
Moreover using high leverage kills. It requires time to develop all these skills. So, to become an experienced trader you will have to put in time and effort.
How To Become An Experienced Trader:3 Tips
Now it’s clear from the above discussion that experience is an essential factor to become a successful trader. You can’t get experience in just 2 or 3 months of struggle.
It may take a lifetime to become an experienced trader. Due to the risky nature of forex, perfect traders with zero losses never exist. By getting experience in forex does not mean trading with 0 losses, it’s impossible. It means to cut short your losses after learning more from your mistakes.
Below are 3 tips to become an experienced trader:
Get Forex Education or Mentorship
Education is the first step and without it, you can’t gain experience. There is a lot of material available on the internet, YouTube, and other websites or mentors to teach you about forex basics.
If you want in-depth knowledge you can join paid mentorship programs of forex education. Beware there are a lot of scams in this as well. Choose your mentor after checking his track record.
Spend Enough Time on Demos and Small Account
After getting all the required Info, it is important to spend time on Demo accounts. It is a good way to apply your trading strategy without risking real money. After successfully trading 400 pips on demo, you can move to small accounts of real money.
Stay In Touch With Successful Traders Community
If you want to benefit from experienced traders, it is important to stay in touch with them. There are many platforms on telegram and other apps where you can get in touch with experienced traders. Here you can ask questions to them directly related to your trades. You can share your trading experience with other traders as well
Can a beginner make money in Forex?
Yes, beginners can earn money. But making money regularly is very difficult. Many factors like emotion, market situation, leverage, and investment can affect regular income out of forex.
How much do beginner Forex traders make?
The beginner’s earning in forex trading depends on trading strategy and risk-reward ratio. After risking 1% to 2%, they can make 5 % to 15 % of average capital monthly.
Theoretically, it’s possible. But in reality, slippage and other factors may not allow you to make more than 5% to 6 % of total capital monthly. Even with a decent win rate of 55%, making 15% seems challenging.
Can I trade without experience?
In every field experience is a must. Similarly in forex, you can’t make money without experience. But it does not mean spend as long as you can on the demo account. It is important to switch from demo to live trading small accounts to gain live trading real experience.
It’s evident from the above post that experience is a must to make money in forex. Without experience, this financial war is just like hitting the ground without any awareness of using tools and gadgets. Obviously, you’ll lose the war.
The same is the case with forex. You need to win it with your knowledge, experience, and skills. For experience, you may need practical implementation of your knowledge. So, stay in touch with the expert trader’s community. Happy trading!