A Step By Step Guide For Beginners In The Forex Market
Trading in Forex for beginners" is a common search term for those
looking to get involved in this lucrative business Therefore if you
are interested in trading currencies then the following steps are
strongly recommended
1 - Learn the Basics
How does a forex trade work ? Why do currencies fluctuate ? You should always learn the nuts and bolts of trading on the forex market By reading forex articles you are already on the right path It's also imperative that you understand that there is a considerable risk with trading currencies
No trader ever profits from "every" trade Successful traders are said to be profitable from a 50% hit rate That's from every 10 trades 5 are profitable Or your loss on your losses is less than your profit on your wins
Never trade what you can't afford to lose The 10% rule is a good rule of thumb Never trade more than 10% of your account
2 - Test your skills with a Demo Account
One of the suitable and easiest ways to see if this trade is for you is to trade on a Demo account; all reputable forex system companies will have them
You can try techniques like "play money" where no risk is involved with a virtual balance of $50'000 Each lot is a $1000 with a leverage of $100'000 more than enough to test the water
Advantages
1 - You will get free information from support 24/7 which will help ease you into to currency trading
1 - Learn the Basics
How does a forex trade work ? Why do currencies fluctuate ? You should always learn the nuts and bolts of trading on the forex market By reading forex articles you are already on the right path It's also imperative that you understand that there is a considerable risk with trading currencies
No trader ever profits from "every" trade Successful traders are said to be profitable from a 50% hit rate That's from every 10 trades 5 are profitable Or your loss on your losses is less than your profit on your wins
Never trade what you can't afford to lose The 10% rule is a good rule of thumb Never trade more than 10% of your account
2 - Test your skills with a Demo Account
One of the suitable and easiest ways to see if this trade is for you is to trade on a Demo account; all reputable forex system companies will have them
You can try techniques like "play money" where no risk is involved with a virtual balance of $50'000 Each lot is a $1000 with a leverage of $100'000 more than enough to test the water
Advantages
1 - You will get free information from support 24/7 which will help ease you into to currency trading
2 - You can evaluate a number of trading strategies with no risk
3 - You can get free access to a team of seasoned professionals 24/7
4 - A free practice account usually lasts for 30 days
5 - Demo accounts are free
6 - Some companies provide power courses i e actual forex trading courses normally for a price less than $20
3 - Take a Forex Power Course
As experienced traders will tell you the best way to learn is to ask a ton of questions If you're unsure of who to ask or where to go take a power course this often suite most novice traders
Courses can be taken online and you will be guided by professionals where you will get interactive instructions 24/7 for normally the first week of a course and competitions are normally thrown in where you get a chance to profit from your input
Courses more importantly however will teach you how to identify clues about future market activity through studying Forex charts You will learn to find trends and gauge what potential profit they offer
Fundamental analysis is also taught we you will learn how important political and economical factors affect currency values
These types of courses normally also offer you access to an experienced instructor for the first year of your trading profession
4 - Open a Live Account
If your keen to get started but don't have the time to learn steps 1 to 3 but your interested in diversifying your portfolio you can open up a managed forex account
5 - Identify the daily trend
Every trade you open should be opened in the direction of the daily trend No matter the time frame you use you should trade with the overall direction of the market And the good news is that finding the daily trend is not hard at all
Many traders just use the set SMA simple moving average to find the trend When the Forex market is above the daily SMA the market is trending up The opposite is also true if the market is below the set SMA Follow these simple steps and you'll have a smooth ride getting started with Forex trading