Advertorial | Forex Trading: A Beginner's Guide
With job postings still scarce, job security dissipating, and wages seemingly stagnant at best, many people are trying to establish some security by creating multiple streams of income. Many would like to try their hand at currency trading, but they do not know where to start.
Forex is one of the largest world markets. Moreover, the bulk of its participants are private traders who profit from changes in exchange rates.
Simply put, the universal principle of trading “buy cheaper, sell more expensive” also works here. Trading online with FXTM gives everyone a chance. Neither the level of education nor the degree of employment or well-being matters.
What to Start With?
The process of starting a market can be divided into several stages.
Choosing a broker
Brokerage companies provide technical trading tools, that is, programs which you will enter into transactions with, and also offer the necessary information support and training services for Forex trading for both beginners and experienced traders.
There are quite a lot of brokerage companies. What else is worth paying attention to?
*Broker experience. This can be seen by the number of open client accounts.
*The minimum deposit, or the so-called entry threshold, starting from which the broker is ready to work with clients.
*It is important to receive a lending service during the bidding process. That is, whether the clients will be able to purchase assets worth more than their deposit with the support of the broker.
The availability of training programs and a demo account for beginner investors is an additional pro.
Forex Training: Getting Started
Before you start playing Forex, you need to figure out what's what. There are several ways to do this:
* Read special literature. This will give you a general idea of how the international currency market works, what analysis and strategies are, how much stocks you need to start trading on Forex and how to increase your chances of success;
*Open a demo account. This account is absolutely no different from the real one: you also trade currencies, monitor the market, enter into transactions, earn or lose money. The only difference is that these finances are virtual, that is, you will not earn any real money, but in case of a failure, you will not lose anything. Moreover, you can earn on start-up capital with the help of a demo account.
Determining your Goals
To succeed at ForexTime, you need to know what you want. There is no place for emotions, the key to success is not luck, but a cold-blooded system following.
Choose the type of control:
* Traditional trading assumes that the trader will monitor the market situation and enter into transactions manually. It is this type of game that makes novice professionals. But traditional trading takes time, and it has some risks, as any novice trader makes mistakes.
* Trust management is the transfer of rights to conclude transactions to a professional trader who does not make the mistakes that a beginner or a computer program can make.
Choosing a Forex Trading Strategy for Beginners
The trading strategy is the most important element of Forex trading. There are a lot of strategies — over a hundred, and you will need to choose the ones that best suit your needs.
* Short-term trading assumes that a trader monitors minor fluctuations in the exchange rate for a short time — not longer than a day or just several hours.
* Long-term trading is a strategy in which a transaction remains open from several weeks to several months. Such strategies are suitable for those who have invested substantial funds in Forex and are ready to study global trends.
* Medium-term trading is holding an open position for up to several days or even a couple of weeks. Requires less presence, but more theoretical knowledge and immersion in the subject.
Within each of these strategies, dozens of techniques and approaches can be distinguished, but this is another topic.
Choosing a Platform and Opening an Account
Any brokerage company in Nigeria, South Africa, and any other country offers several types of accounts for different needs of a trader:
* Demo account — a training account for developing trading skills;
* Cent account — for real money, but for very small amounts;
* Standard account — a classic account for professionals;
* Forex professional accounts.
Trading platforms are the programs with which you will trade on Forex. The requirements for a trading platform can be briefly reduced to the following: this is a program that will provide the trader with the maximum necessary trading and analytical information, ensure high-quality reception and execution of trade transactions.