Forex trading has been popular since its inception. However, due to current economic conditions, many Forex traders have turned their attention to Forex trading platforms. Forex stands out for ‘Foreign Exchange.’ It’s an adrenaline pumping, heart-pounding currency trading platform that allows anyone to take part and have the potential to make a lot of money. It started in the 1970s when floating currencies (and free exchange rates) were first introduced.
Forex market is the largest in the world. Every day, it trades at a staggering 2 trillion dollars. It is also unique because of many reasons. This is a market that requires very few qualifications and is not subject to external control. Furthermore, it can’t even be manipulated which makes it ideal as a Forex beginner. Forex trades money so quickly that it is impossible for one investor to have a major impact on the price of any major foreign currency. Forex beginners will always have buyers and vendors to turn to. Forex traders are unlike stock trades that are often closed.
Forex beginners should know that making money isn’t easy. They could be left with financial debt if they don’t have the knowledge or tools to help them make it. Many new traders succumb to the temptation of Forex trading and chase their losses, creating a bigger financial hole. This article is to provide Forex beginners with the necessary information so that they can make money trading Forex and climb up the ladder of success.
1. Research Is Key
It is not uncommon for Forex beginners to find research tedious and monotonous. But it is important that they have an understanding of how the Forex system functions. Forex beginners need to know the platforms, timeframes and currencies they are using. They also need to be familiar with how the lot system works, as well as how to calculate pips. These are just a few basics. To be a Forex pro there will be more. Forex beginners need to read extensively and learn as much as possible before they can invest their savings. Start small and continue to grow.
2. Automated robotics can help
Forex beginners should not try to trade manually at first due to market volatility. Instead, they should choose one of the many Forex bots that are available to help them get started. Forex robots can be set up by professional traders so they can accurately predict market movements.
There are many Forex robots you can download for free that are extremely good. However, it is always a good idea not to forget to purchase the paid version. These versions are continuously updated with the latest data so that your robot trades correctly every time. Forex robots do not constitute illegality. In fact, major corporations are using them to help make large-scale money-making decisions.
3. Get A Demo Account
Many trading platforms offer Forex beginners the opportunity to open a demo. Forex trading is like any new skill. You need to have patience and expertise in order to master it. Forex beginners should develop their own trading strategies as there are no universally successful trading strategies. Forex beginners can start with a demo account, which allows them to build a stronger foundation for the platform and experiment with different strategies and ideas without risking any real money.
Trade on the demo account for a few days until you are comfortable trading. When you feel that you have a good understanding of the Forex platform, then move your trades to the live account. You are better to continue trading on the demo account until you feel comfortable with the Forex platform.
4. Be away from your emotions
Forex traders are aware that there can be a lot emotion involved. Forex beginners should not chase after losing trades and shouldn’t be greedy when they do win. Forex beginners shouldn’t react in a way that blocks their ability to think clearly. Trading too often can lead to increased trading risks and poor money management. Forex is an example of pure gambling. If you trade without analysing the market, it’s like playing a video game. It’s not fun to lose money while playing games.
5. Never Risk More Than 2-3% Of Your Total Trading Account
There is a difference between a Forex beginner who is successful and one who fails. The first will be able withstand unfavorable market conditions while his account will be lost after 10-15 unprofitable trades. Long term results can vary between traders using the same trading system. It will all come down to how you manage your money. Here’s a quick fact: In order to save 50% of your account balance, you need to return 100% to restore it.
Forex beginners need to thoroughly research the platform and analyze market trends. The demo account allows them to test out strategies, then only once they feel confident can they open live trades.