If you are new to trading currencies, you probably have a lot of questions. First, you need to select a reputable broker. There are dozens and dozens of brokers out there, so you want to make sure that you select the one that best fits your needs. By practicing on different sites with play money, you can easily find the trading format that best suits your needs and style while using Tom’s EA. Paper trading is a valuable tool; not only does it allow you to refine a strategy, it lets you get the proper feel for the trading software that you will be using when you start trading for real.

Next, you want to determine how much you will be trading with. You want an amount that you will take seriously, but not so much that it impedes your lifestyle. If you trade with too little, you will be more prone to making rash decisions. If you trade with too much, emotional losses can occur. Both of these can be detrimental to your trading capital.

Third, you want to select which currencies you want to trade. Most people stick to the big four currencies: the U.S. dollar, the Euro, Great Britain’s pound, and the Japanese yen. These currencies account for by far the largest share of currency trading around the world. It’s probably best that you stick to only one pair of currencies, such as the USD/EUR pair. Start out with two and work your way up. There are a lot of things to learn with just two currencies, wait until you master this prior to trading more than two currencies.