FRIENDSFOREX • LEARN. UNDERSTAND. PRACTISE. GROW.
A practical starting point for new Forex learners
Forex trading is a skill that requires study, practice, patience and risk management. Use this checklist to take your first steps in a sensible order. It does not promise profits or tell you what to trade.
Start with understanding, not urgency. You do not need to rush into a live account. Build your knowledge and practise the process first.
1. Understand what you are trading
- Learn what Forex is: the market where one currency is exchanged for another.
- Understand currency pairs. In EUR/USD, EUR is the base currency and USD is the quote currency.
- Learn pips, spreads, bid, ask, lots, leverage and margin before placing a trade.
- Understand that a rising pair means the base currency is strengthening relative to the quote currency.
2. Learn how risk works
- Understand leverage. It increases exposure and can magnify losses as well as gains.
- Decide what you can afford to lose. Never use money needed for living expenses.
- Learn how stop-loss distance and position size affect the amount at risk.
- Write down your risk limits before trading. Do not increase risk to recover a loss.
- Do not rely blindly on signals. Understand the idea, its risk and what would invalidate it.
3. Practise before trading live
- Research a broker independently and check whether it is legally available in your jurisdiction.
- Practise on a demo account, including stop-loss and take-profit orders.
- Keep a journal: setup, reason for entry, risk, result and lesson learned.
- Review a meaningful sample of trades. Do not judge a strategy from one or two outcomes.
- Avoid rushing because of screenshots, profit claims or fear of missing out.
4. Check your readiness
Before considering a live trade, ask yourself:
- Can I explain the currency pair and why its price may move?
- Can I calculate the amount I could lose if my stop-loss is reached?
- Do I know where my trade idea is invalidated?
- Am I using money I can afford to lose?
- Can I accept a loss without revenge trading or immediately increasing risk?
- Have I practised the process on demo and recorded the results?
5. Your simple first-week action plan
| Day | Focus | Action |
|---|---|---|
| 1 | Forex foundations | Learn what Forex is and how currency pairs are quoted. |
| 2 | Market language | Understand pips, spreads, lots, bid and ask. |
| 3 | Risk basics | Study leverage, margin, stop-loss and position sizing. |
| 4 | Charts | Learn candles, timeframes and basic chart navigation. |
| 5 | Demo practice | Practise opening and closing a demo trade with a stop-loss. |
| 6 | Journal | Record your decisions and what you learned. |
| 7 | Review | Identify what you understand and what needs more study. |
Your next step with FriendsFOREX
Continue with our free Forex learning pathway. Work through the lessons gradually, practise what you learn and build your understanding before making trading decisions.
FriendsFOREX — empowering people through knowledge, skills, financial growth, and freedom to the glory of God.
Risk notice: Forex and leveraged products involve significant risk. You may lose some or all of the money you deposit. This guide is educational only, is not personalised financial or investment advice, and does not guarantee trading results. Check the legal status and regulatory standing of any broker or product in your jurisdiction before using it.
Website: https://friendsforex.pages.dev/ | Free Academy: https://friendsforex.pages.dev/academy.html