SPREAD AND CALCULATION : SUGGESTION FOR CRAZY RISK TAKER

One of the most risky strategy in forex is quick hit and run. It's refer to daily trader who do the trade shortly : enter the market then quit as quick as possible only in minutes, profit or loss, no hold any position. Of course, I'm not recommend this strategy and no one experts suggest this crazy strategy. But I see some beginners eager to try this completely trial and error strategy. If this bad choice is your choice, then prefer to use broker which have the littlest spread, if possible zero spread :-) but still trusted, because it will help you to rise your profit taking and reduce your loss possibility. Also I suggest you to put your Take/Profit and Stop/Loss order, soon after you enter the market to avoid unexecutable price when market move in quick.
The idea of my posting here is : what spread's impact for your trading strategy. This idea not only applied for crazy trader above, but also your trading strategy, specifically in use of Pending Order. Often we forget that the price between Bid and Ask is different about 3 point. Moving price is refer to Bid price : When we order Buy price it mean the price we get is 3 points higher. This condition also applied if we use Pending Order to enter market (not instant execution). For example, we want to order the lowest price to buy on 1st levet support, let's say 1.4000. Some hours coming when the price really move to price 1.4000 then rebound quickly. If we put Buy order exactly in price 1.4000, it mean we don't get the price because we order Buy price at 1.4000 which mean Bid price is 3 point lower = 1.3997, meanwhile the price only move to 1.400 before rebound (price 1.4000 in Bid, it mean Buy price only move down to 1.4003, not reach 1.4000).
Note that moving price shown in screen is Bid price (SELL) and Ask price (BUY) will be different about 3 points at average (some broker have zero pip spread with special conditions but other brokers even appliead 20 pips spread).

Wish always for your successful trading.

CALCULATE THE RISK : Start From Micro Account

To be a smart & wise trader is a long time process. It's possible to be a lucky man in your first trading, but it's not the aim because in your second trading may be your loss bigger than your first profit.
Open demo account first is reasonable choice before open real account. I strongly recommended to use Metatrader platform (most forex companies use it). Important Note : although you open demo account in Company A, but you have no obligation to open real account in that Company. The must to do is : Specify how long you want to learn in demo version (better periodically) then review the result. Many people too dare or too fear after try demo version. Whatever your conclusion after try demo version : dare or fear, my suggestion is to open real account with type MICRO account (or sometime called NANO account or MINI account).

If you able to manage your MICRO account, it's possible to change your limited budget into hundreds even thousand dollars. But how much your made deposite, stay to use your most successfull trading strategy of your micro account, do not change it only because you have more money. Always learn firs befor you made a change in strategy. Here my suggestion in trading your micro account :

• Use my strategy in step 1, step 2 and step 3 in maximum effort.
• Make a deposit that you can afford to loss (this is a golden rule)
• Trade with consistent amount of lot. For example, if you deposit $10, you must enter market with 0.01 lot or the littlest unit available (it's mean about 1 cent per pips).
• Use expert advise in wise and criticize way

Next post, I will show you the most simplest but accurate of my technical strategy I was used for more than 1 year. Be wise and always up to date your information.

WHAT YOU SHOULD AVOID TO DO

Do not withdraw broker's attention with suspicious activities whether intentionally or not. I have listed some activities which commonly made any difficulties for who do it with various extent. Usually such activities lies on 'grey area', i.e. little touch with their restriction in terms of services (TOS).
Here my list (you always can add other activities to the list for yourself) :

1. Do not submit two different account (for example, your account and your brother's account) with one computer/IP address. Although some brokers allow this submission but under strict review from time to time.
2. Do not made any twin transaction. If you open an account at the same time with your friend at the same city in the same broker, often you will contact your friend and made a same transaction with your friend with near same time and same lots number. Too many similarities in transaction only trigger their attention and give them a reason to cancel your transaction.
3. Do not made too many transactions with too many profits in too short time. Usually more than 200% profit made in less than 24hours will be identified as a system failure, out of the market or such things that in turn your transaction will be canceled. If the company is not a scam, your money still safe there, but without any profit you have been created and you should start the trading from zero profit again. Be wise, do your transaction normally. I suggest to do 1 to three transactions with profit target from 10 to 50 points as your beginning trade for each day. Even in case no signal suggested, do not made any transaction.

Well.... I have some other information but for your safe start, just focus your attention to the steps I've showed to you before (3 simplest steps to be a forex trader : STEP 1, STEP 2, and STEP3 ) . I wish you will be a succesfull trader in near future.
Good Luck!

STEP 3 : FIND RELIABLE SUPPORT

After followed STEP 1 and STEP 2; we have to step ahead to Find Reliable Support. Support is no merely point to company's support. It's important to find reliable and quick respond support from any company. But here I will help you (specifically if you are beginner) to find reliable support for yourself (learn forex easily and freely by yourself).
Although you can understand about the rules and have found your favorite company, you still need many helps to start the trading and many problems you will be faced ahead. Here I suggest you to find great places which you can ask almost everything you needed, or may be you can find the answer for yourself with do a little search or read something in the great places.
If you want information about trading support (when to BUY and SELL), you can get it for free with join many sites or broker's site that provide free information (some fully free, some only require to open a DEMO account). JUST JOIN and get important information for free!!

This is some suggested places to join for free (you can add many more) :

Gainscope

(1. Drop your name and your email, 2. Download the signal software, 3. Register by clicking Register button under login form, 4. Fill your chosen username and password, 5. You can anytime run the software to check if there is important news)

freeforexsignal
(Just Drop Your valid email, news send by email)
or if you want to see the market prediction directly go to their blog : http://www.freeforexsignal.com/blog/

Daily20pip
Visit this site to check important news : instantly

Also check great forums which give analysis about forex market news (Strongly recommended to join for free!) :

RealtimeForex

Forexfactory

Forexpeacearmy

This is my last simple steps but keep on your mind that this should not the end of learning process, do it wisely.

If you have done all 3 Steps and really understood and do it perfectly, then it's the time for you to start your career as an independent new trader !!! Treat your trial as your real trading!

Good Luck !

Next Post : Some Issues Which Should You Avoid!!

STEP 2 : FIND TRUSTED COMPANY

Many ways people suggested on how to find a trusted company. Truly no company which always 100% trusted because sometime human error happen even in the best company. Scammer not only point to the company but also point to persons who always try to cheat the system for their own benefit and often give a bad impact for many fair and honest persons.
Find a reputable company is one step ahead; but how trustworthy a company, if you do something trigger their attention (their suspect), intentionally or not, it will give any impact to your account; little or big. So you have to avoid some behaviors usually doing by scammer persons or cheaters ( I will show you some behaviors of cheater that potentially affect your account after I finished my 3rd step ).
Ok.. let's focus on how to find a trusted company in forex trading.

1. Search forex company in search engine like google, yahoo etc. If you interesting to invest in company AAA, then you can put keywords such as "is AAA scam?" or "AAA scam" and you can read the results one by one. If you found no negative comments; you deserve to try to invest in the company. You should continue with other verification ways (2 to 5), because if you found no negative comments; it's have two possibilities : the company is trusted or the company is newly operated.
   
2. Check or (if you want to) join with outstanding forums on forex theme. So many forex forums in internet, but I only recommend to check/join with two forum which respected by many forex company (proven many forex companies quickly answer if there is any problem with their services published at the forums. As consideration, not all forums withdraw forex company's attention and often get no any respond although they send a question to a forex company, it's depend on forum's significance to affect company's image). The more bigger the forums, the more attentions given by forex companies. Two great forums I suggested are http://forexpeacearmy.com (FPA) & http://forexfactory.com. Of course, although the forums is not always 100% independent and fair, but we can value and verify them by do a depth investigation with some tight criteria, decide yourself. Also you can search local forex forums in your country as another consideration.
   
3. Check the traffic rank in Alexa.com to know how many people visit a forex company
   
4. See the rank of forex company in sites focusing on review about online forex company, here I suggest you to check company's position at http://forexontop.com (only example, you can add other sites). However, the higher position not mirrored its bonafidity, but only point to how many people trust them. Usually, the more people use a company's service, the more trustworthy the company.
   
5. Ask to your best friend if he/she have any experiences with a trusted forex company.
   

Well.. if you have done all points above, it's mean you have found your favorite company. Then you can continue to STEP 3 .