How to Understand Forex So You Don't Lose All Your Money

1. Step 1

   Have a system. Without a system, you will lose money with Forex. That means one of two things: get educated about Forex (there are some fantastic books available on Amazon) or buy a software system that can trade for you.

2. Step 2

   Don't even consider Forex if you cannot afford to lose any money. In the beginning you must accept that you are going to lose some money through testing of your system. If you are worried about losing money then I would advise investing in Mutual Funds instead.

3. Step 3

   Forex trades 24 hours a day, so you have to take into account that you will spend a lot of time glued to a computer screen watching currency fluctuations. If you don't want to feel tied down then you need an automated system or you need to choose another form of investment.

4. Step 4

   To actually start trading with Forex you need little more than a Forex account (with some money in it, of course) and an Internet connection.