Putting It All Together.
First, congratulations on finishing each of the separate Forex lessons in this course. While this series of Forex lessons will not make you an expert in foreign currency trading, hopefully, it will have given you an adequate introduction to get started. At this point, you should have a current demo account. Go ahead and make some trades. Apply some different theories (technical and fundamental) and see how you do. Monitor your daily profit and loss results, as well as the daily rollover records. Enter some stops and some limits which are close enough to the current trading prices to see how they are triggered.
Second, continue learning. Get a subscription to Currency Trader magazine. It is currently provided on a complimentary basis (although that may change at any time). It is an excellent resource and you will be well served by reading this cover to cover on a monthly basis. Obtain daily newspapers which have articles relevant to foreign currency. We would recommend the Wall Street Journal and the Financial Times. The Financial Times is not widely read in the United States, but it is an excellent newspaper which has many insightful articles on foreign currencies. It has also been favorably mentioned in Warren Buffet's annual letter. We have listings of both useful books and magazines. Review these and determine if any are of interest to you.
Finally open a live account. We hope it is with us, but whomever it is with, make sure they are a Futures Commission Merchant ("FCM") which is a member of the National Futures Association and regulated by the Commodity Futures Trading Commission. One need look no further than the bankruptcy of RefcoFX Associates, LLC to see the need for dealing with an FCM. During 2006, RefcoFX Associates, LLC filed for bankruptcy and froze the withdrawal of funds from the accounts of about 15,000 clients. While its affiliate, Refco LLC, was an FCM, RefcoFX Associates, LLC was not. While RefcoFX Associates was part of the bankruptcy filing and all accounts were temporarily frozen, Refco LLC did not file for bankruptcy and continued permit clients full access to futures accounts which were carried in the FCM. While the RefcoFX Associates, LLC situation had a happy ending (another FCM agreed to acquire all of its accounts and make all of its FX customers whole), the situation could have been avoided had its clients dealt only with an FCM. To read more about why you should only deal with an FCM, review the publication Trading in the Retail Off-Exchange Foreign Currency Market - What Investors Need to Know which is published by the National Futures Association.