Improvising as forex traders is a profoundly wrong choice. To start investing, and to do it with a certain profit, it is good for beginners to take some precautions. So let’s see what forex trading for beginners means.
Forex trading for beginners: although advertising messages suggest otherwise, is a very risky business. Of course, opportunities to make money are not lacking, but it is necessary to approach them in a very prudent manner, you must have behind a solid background of theoretical and practical knowledge.
Difficulties emerge from the beginning of one’s journey. Indeed, it is precisely that of the “beginner” the most difficult and dangerous phase…
Here are some tips and tricks that aspiring traders need to take to pursue a rewarding career.
Forex Trading For Beginners: The Study
The efforts of you beginners, even before investing your capital, you must be committed to a specific activity: study.
Of course, studying is not as fascinating as investing but it is an activity that cannot be avoided. What should you study in particular? The theoretical notions include the functioning of the markets, the dynamics that govern prices, the characteristics of each asset.
The study must be conducted with a historical approach, which therefore also embraces the past and compares it with what is happening in the present. You as a beginner must know the operation of the platforms but also practice the technical and fundamental analysis.
This last aspect plays a decisive role, as it allows
When you find yourself studying the theory you will be through
Of course, the sources are not lacking: books, ebooks, webinars, video courses etc. In some cases, it is the brokers themselves who offer the training contents and therefore prepare a more or less complete training course.
The practice represents another significant obstacle. The problem is the following: to practice it is necessary to invest in the real market, but this exposes to important risks.
The danger is to lose your capital as a beginner. To overcome this problem, some brokers (now the majority) make demo accounts available. These special accounts allow you to trade in the real market but with fake money. In this way, you beginner can practice without taking any risks.
The demo issue is one: Demo accountsdo not teach anything about how to manage pressure, how to control emotions, which also have a profound effect on trade.
Forex Trading For Beginners: Brokers
Important, to start well, is the choice of the broker. You
The same goes for some “exaggerated” promotions, which are mainly used to hide the dust under the rug. To choose a broker well, it is first necessary to understand whether the company we are dealing with is honest or not.
To understand it, it is sufficient to verify the possession of a license. In general, details of the license are included in the homepage. The next step, after having seen the latter, is to consult the official website of the regulator and proceed with a counter-check.
If you want a trusted reliable broker here are our top 3:
Once the honesty of the broker has been ascertained, it is good to analyze other elements, which allow us to understand if the broker is up to our expectations. The economic question is only one of the aspects to consider.
Of course, it is good that the broker does not exaggerate with spreads, but the offer in terms of assets, the quality of assistance, the speed of the platform and so on must be analyzed.
Forex Trading For Beginners: The Strategy
Once you complete your trading path (in truth you never stop learning), you need to make some strategic choices. These concern the management of capital, known as money management, and the market on which to invest.
The issue is very complex, and you should take it into consideration, because it is linked to the economic availability of everyone and to the approach, which can be prudent, courageous, etc.
The main advice
When it comes to Forex, rather than the market, you choose the pair or pairs to trade with. The dear old euro-dollar is still the most frequent choice, both in terms of readability and liquidity.
The possibilities are however numerous and each opens different scenarios. My advice, in this case, is to position yourself on a pair only after an intense study activity. Trading a pair means investing by succeeding, at least in theory, in predicting the quotations or reactions that will occur after an event.