2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
If you study all the existing materials on the Forex market, then trading will seem easy. But this will take many years. And the main goal of a trader is to make a profit, and not an endless study of the theory. There are only nine steps to learn how to start Forex trading.
1. Choosing a Broker
Given the oversupply, this is not easy to do. Select a few companies that have proven successful in this area and choose the one that provides the most favorable conditions.
2. Account opening
Having chosen a broker, we open an account with him, which can be of two types: demo and real. The first is designed to get acquainted with the market and provides an opportunity to practice and adapt. If you know how to trade on the stock exchange, then you can immediately open a real one. Since there are many different types of live accounts, before opening the procedure, familiarize yourself with such aspects as spread, commission, sizeleverage, etc.
3. Installing the trading platform
This is a necessary step in order to understand how to trade Forex. After all, all transactions are made through the platform. It also makes it possible to monitor the current market situation and conduct technical analysis. Four types of platforms have been created so far. The most popular and convenient is Metatrader.
4. Selection of currency pairs
Beginners are usually advised to start with the euro/dollar pair, since there, on the one hand, there is no high volatility, and on the other hand, most transactions are carried out. And it is for this pair that a lot of tools have been written (indicators, strategies, etc.), with the help of which you will better learn how to trade on Forex.
5. Mastering Technical Analysis
Before opening a deal, it will not be superfluous to do this type of analysis. This is a very painstaking process, so to optimize and speed it up, it is better to use special programs or read ready-made analyst reports.
6. Strategy development
The most popular answer to the question of how to trade Forex profitably is to develop your own strategy. If you do not want to do this, then you can use the existing ones. Sometimes even freely available strategies bring good money.
7. Opening an order
After completing the preparatory steps, you need to open a position. For this inon the installed trading platform, select "Open order" and specify the volume of the currency and other parameters. After we click "Buy" or "Sell", and our first transaction is open.
8. Profit taking
Now your main task is to decide on the closing price of the order. You can prescribe it in advance, or wait and close the deal manually. Each trader has his own profit limit and depends on the degree of his greed and the situation on the market.
9. Fixing losses
If the price is moving in the direction we don't want, we need to have time to close the position with minimal losses. As in the case of taking profit, this can be done either manually or by setting a stop loss in advance.
The question of how to trade Forex is inherently very capacious, and it is difficult to answer it within one article. In general, only you yourself can give a complete answer to it after many years of hard work in the foreign exchange market.
Happy trading!
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