While Forex trading may seem complex at first, more and more retail investors are taking an interest in it. A 24-hour market, Forex is none other than the market where currencies are traded – and it offers plenty of trading opportunities.
Don’t know where to start or how to trade Forex? No worries. We’ve created a brief guide based on experience from seasoned and successful traders to help you learn about Forex trading.
1. Start with demo trading
Do you want to invest your money in Forex and dream of financial freedom? Stop believing in Forex myths and start by practicing on a demo trading account first. If you are rooky, no need to deposit money with a Forex broker just to lose it all within hours. Doing so risks disgusting you and distracting you from trading. In order to avoid this, take a smart approach, learn the basics of Forex trading, and practice on a demo account until you are profitable, once a certain regularity is noted in the profits then you can finally get started in real mode.
2. Choose a good Forex trading platform
The first thing you will need to do to trade the Forex markets is to find a reliable and reputable Forex broker. There are a number of trading platforms to choose from, so that you could face a real challenge choosing one of them. To pick the one that matches your trading plan, start by checking a broker review and find out what its trading service is like. Check if they offer demo trading, what is the minimum deposit and maximum leverage. Do they offer the CFD trading?
3. Create a plan and stick strictly to it
If you do not stick to a trading plan you will ruin yourself very quickly. A trading plan includes several parameters that define not only security rules (take profit, stop loss) but also position-taking rules (market entry and exit signals), by not respecting a trading plan you practice randomly trading and we bet you will quickly end up with a big “0” in your trading account.
4. Take measured risks
Risk 50 pips to earn 5? What is going on in your head? Even if you win 10 trades in a row you will not make up for a 50 pip loss by taking only 5 pips of profit per trade. To trade in this way is quite simply to run into disaster. Are you going to bet € 10 to win € 1? Most likely not, so why do the same in Forex trading? If you want to maximize your chances of being profitable in Forex trading you absolutely need to understand what the risk-reward ratio is, include this parameter in your trading plan and stick to it.
Following these four tips already seems tiring to you? Know that in Forex trading you do not get rich overnight, but slowly! Going from the rank of novice trader to that of an expert Forex market speculator who manages to make a living from his profession is as difficult as moving from the rank of the medical student to that of the surgeon. However, the end of the journey will bring you something that other people will never have!