Getting started in the forex world and trading foreign currency is a relatively easy process. The barrier for entry is quite low as some forex brokers allow you to begin trading with $200 in your account. In fact, anyone with a couple hundred dollars and a computer can be trading forex tomorrow; however, trading forex and trading forex successfully are two different things.

It is important when getting started to first understand forex terminology, basic trading rules and the platform of your preferred broker. The best way to accomplish this is to open a demo account with a reputable forex broker.

When you begin, stick to 4 hour or daily chart until you really learn to trade. Shorter time frames than this are really difficult to master and price movements can be quite arbitrary.

Generating a high number of pips will not it itself make you successful. You've got to get a serious handle on money management to help build and sustain the capital from your successful trades.

Making money on a consistent basis requires tying together a good system that produces repeatabe results, sound money management and discipline and patience. These last two can not be emphasized enough. Without the discipline to stick to your plan and the patience to wait for the proper entry and exit for your trade, you will inevitably fail in the long run.

When you are able to put all the ingredients together for a successul series of trades sustained over a respectable period of time, only then should you consider opening a real money account and trading forex with your hard-earned cash.