How To Get Started In Forex Trading

Alice

Member
Are you interested in gaining forex knowledge and learning how to trade? If yes, you’ve come to the right place. Here we discuss what forex trading is and how you can get started.

What is forex trading?

Forex refers to “foreign exchange”. Forex trading is the process of trading in foreign currency to leverage the differences in value between various currency pairs.

Benefits of trading in forex

Forex trading is a highly lucrative avenue because of the following reasons:
  • Forex has evergreen demand, making it very profitable.
  • It’s one of the comparatively easier types of trading that beginners can try.
  • This is a market where you can trade 24/7.
  • The forex market is very liquid, making it very easy to enter and exit.
  • This market is globally regulated very well, making it very safe to trade here.
  • There are tons of Forex technology available, which can make your trading experience easier.

Where should you get your forex knowledge from?

The first step to getting started in forex is gaining your forex knowledge. If you’re a college student specializing in finance, you may have a dedicated course in Forex management.

If you’re looking for alternative Forex knowledge and education options, you can easily find courses on platforms like FX Academy, Forex School Online and Platinum Trading Academy. Even platforms like Coursera and Udemy have Forex courses. Typically, you learn about things such as:
  • Dominant economies
  • Currency movements & management
  • Factors which affect economic volatility
  • Technical forex analysis strategies
….etc.

You can also contact your bank for Forex knowledge. Many banks organize regular webinars on Forex trading and teach strategies and tips that their customers can use to trade in forex.

Finally, it’s really important to follow forex blogs, forex performance online and in the paper, and purchase books on forex trading.

Knowing how and where to trade


Before you get started on a forex trading platform, you need to choose a broker to trade with. A broker is a financial services company that specializes in the stock market and forex trading. You can read our article on how to choose the right forex broker to learn how to find the best forex broker for your needs.

This broker will help you set up your forex trading account and commence trading in forex based on your unique trading goals. Many forex brokers allow you to try trading on demo accounts, which are practice spaces where no real money changes hands. Some companies also offer micro cent accounts, where you can start trading in really small values until you get the confidence to trade in larger quantities.

Once you have gotten your Forex knowledge and you have a broker, it’s time to find the ideal platforms where you can trade.

One of the most reputed Forex trading platforms is MetaTrader, which many traders and brokers use. Alternatively, you can also use other platforms such as:
  • Ameritrade
  • Forex Brokerage Turnkey
  • Stock Tracker
Tips for trading in the forex market

Once you complete all of the above steps, you can start trading. But to help you out, we’ve made a list of key tips that you should follow every time you trade in the forex market:

Read the news

Forex performance depends heavily on multiple political and cultural factors of each country. A change in Government, a national pandemic or a natural disaster, or a civil war can affect the value of the country’s currency. These events can also affect the currencies of other countries that have close ties with the afflicted nation. Remember to always keep up with current affairs so you know what’s going on.

Closely monitor currency fluctuations

Even when everything is politically and economically stable, global currencies can change in value continuously. It’s imperative that you start tracking their movement. This will add to your forex knowledge and you’ll have greater clarity about what to trade-in. You can see these values on your stock market website.

Develop a trading strategy

Your trading strategy should allow you to achieve your forex trading goals. This could be high returns, low risks, steady income and so on. Your choice of which trade to make, how often and what trading style you use (such as position trading or forex scalping), depends on these goals.

Leave emotions at the door

Forex trading is for the level-headed. You could lose a lot of money if you allow your intense emotions to get the better of you when you trade. Always be cool, calm, collected and practical when trading. It’s okay if your performance for the day isn’t great. You have plenty of time to make up for the loss. But emotional trading won’t give you positive results.

Add other currency pairs to the mix

All forex traders have their preferred currency pairs. But it's necessary that you not get fixated on just one. That way you’ll never be able to benefit from a different currency that’s rising in value. So, experiment with different currency pairs occasionally. A strong forex knowledge and insight into their current performance will be sufficient to make a positive trading decision.

Keep an eye on your trading position

Always be aware of where you stand in terms of your trading position. This will ensure you’re informed about how the numbers stand at the close of the market. You’ll also know what to do the next day. Most forex trading software gives you complete information about your trading position in the form of a dashboard report.

Don’t listen just to the trends

While forex trends are super important to keep note of, they shouldn’t be your only guide. As you gain more experience in forex trading and your forex knowledge grows, you’ll develop a feel for the market. Pay attention to your instinct and combine it with the technical analysis and trends you learn. Together, they’ll yield the best results.
 
Forex is a market that does not have a specific trading venue. Trading can be carried out via the Internet or by telephone.Many people ask the question: "How to join the ranks of traders and start forex trading?”. It's very simple,it's enough to choose a proven platform and have basic knowledge.Most of the platforms are designed for both beginners and experienced traders.
 
Appreciate the way you explained forex trading and the tips. I totally agree with all of these, especially ‘Leaving emotions at the door’. Logic is what matters the most in forex trading.
 
Getting started in Forex trading is exciting, because you're embarking on a journey that can be very rewarding if you know what you're doing.

Speaking about bitcoin loadable ATM debit cards….I just came across this site which seems to offer such cards for businesses: https://cryptocards.techBTC, ETH and other cryptos are accepted. Maybe its worth checking out.
 
These are some really essential points regarding forex trading that have been made here. I believe a trade is as good as a trader’s knowledge about the market. If a trader trades with zero market education, they would never succeed on merit.
 
Along with learning the forex basics, a trader must also learn to control their emotions. The whole of your trading career depends on the trading decisions you make. If you don’t think rationally, you won’t get what you want.
 
Develop a trading strategy

Your trading strategy should allow you to achieve your forex trading goals. This could be high returns, low risks, steady income and so on. Your choice of which trade to make, how often and what trading style you use (such as position trading or forex scalping), depends on these goals.
@Alice gave us good tip, but I would like to say something in this topic. When you developing a strategy, do it for trading conditions in your future broker. Simple example, minimum distance from current price when are using pending orders. Some brokers don't have minimum distance some brokers have at least 4 pips so if you developed strategy for broker without minimum distance, and you want to trade with broker which have minimum distance there is a risk that same strategy will lose funds in second broker.
 
Great points. It is very important to stay updated with the market news as it is the most important catalyst for short-term movements. This is the best way to monitor currency fluctuations and choose the right pair to trade.
 
It is very deeply explained, and I completely agree with all the points; I just wanted to add that you also need to “Stick to your strategy.” Do not get persuaded by the market highs and forget about Stop Loss. Make sure you follow your own rules and strategies.
 
I personally believe that the success of your trading career depends on how well you can make your trading decisions. They have to be correct and be made at the right time. Any wrong decision can be expensive. So, you better understand before you execute.
 
To get started with forex trading, the first thing to do is learn and get an understanding of the market basics. You will be able to move ahead in the forex market when your basic concepts are clear. Being knowledgeable helps you determine entry & exit points, use proper leverage, and build a trading strategy that works for you.
 
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