Before beginning understand you need to back test your strategy before live accounts. This is a great back testing software:
No Nonsense Trader Forex Trading Beginners Part 1
If you are new to forex and want to understand a No Nonsense method of trading let me explain it in a way that I wish someone had explained it to me before I started.
Forex Trading is a lot of Stock Trading but between currencies. The only difference is, there is an unlimited amount of money out there, while stocks only have a certain number of shares.
Understanding the concept of a currency trading is easy to understand. Just as a ‘medication’ is bought and sold in grams, a unit of currency is sold in a unit called a ‘lot(s)’.
The currency price moves in what is called pips. This is what 1 pip looks like = .0001 for every currency type but Japanese Yen which 1 pip looks like this .01.
A No Nonsense forex trading method only trades the 28 major currency pairs but also allows the Singapore Dollar as well, so 36 currencies are actually traded. All the currency pairs look like this as their symbols.
The one pair in particular that doesn’t trade well is the EUR/CHF. It doesn’t trend that well and the No Nonsense forex trading is based on trends. The No Nonsense method broken down to the essence is a trend following system.
This trend following system is a self-built system by using indicators in a software program called MT4 which is a software program designed for Forex trading since 2005.
If you are someone that is exclusively MAC/Iphone orientated like myself, this is going to be the biggest hurdle of your life to overcome. You are going to go out and buy a Windows Laptop computer which runs a windows operating system called Windows 10.
This was for me new territory since I worship all Apple products. I think the biggest mistake for anyone starting this trading method is to continue using their MAC and trying to work around not getting a Windows computer.
The best thing you can do is look yourself in the mirror and say to Windowns 95, I am coming back home. The reason why you want to use a Windows laptop is because it flawlessly runs MT4 and all the additional back testing software and every MT4 indicator opens and can be added as needed.
Do not partition your Mac to be a Windows computer. You are ruining your perfectly good Mac, trust me on this one. Buy a low end Windows laptop and hook it to a cheap 27 inch monitor. That way you can do all of this at home comfortably and you can also take it to go when you travel. This is going to take you sometime to personally absorb and comprehend but it’s the only way moving forward.
Now that your equipment is out of the way, let’s move onto the software called MT4, this is a software program you can download for free when you sign up for a free brokerage account. A good broker to visit is either OANDA, ProFX, FBS or XM to get the MT4 account installed and setting up a free demo account with them.
From this point on, you should start getting intimate with MT4 software by placing traditional orders with the normal functionality of MT4. You can then figure out how to add indicators onto your screen and take some time to figure out the function of every button. Try to wager massive amounts of demo money to see how easy it is to win or lose randomly.
Once you have reached this point you are ready to settle down and begin making your own algorithm based on the No Nonsense Trader forex method.