Forex Trading - How to Start?
How to start trading Forex? There is no single answer. But there are general principles for the correct start of building a career trader, avoiding the most gross and unpleasant mistakes. In general terms, they all fit into the following points:
• study the rules and methods of Forex trading;
• gain general knowledge to successfully predict changes in the exchange rate;
• choose a reliable broker.
There are times when a trader begins to make the first transactions at random, without any knowledge, and they turn out to be successful. But this success is short-term, because a lack of knowledge will inevitably affect and money will be lost.
A lot depends on the choice of broker. An unscrupulous broker, and even more so a fraudster, is capable of absolutely accurately reducing any efforts to a trader to zero. But the choice of a broker is a topic so capacious that it will be discussed in a separate article. In the same, those questions are considered, the solution of which will help to take the first steps productively.
Sources of Forex Trading Information
Today, there are a lot of resources and information materials on Forex trading. In addition to information on the Internet, there are:
• educational literature;
• training courses;
All this together makes it possible to learn the basics of trading either independently or under the guidance of a teacher or trainer - depending on how it is more convenient for a future trader to perceive knowledge.
In addition to specialized knowledge, a trader will need an understanding of the processes occurring in the economy and their impact on fluctuations in exchange rates, as well as the relationship of political and economic processes. In this regard, in addition to targeted training, communication with experienced and successful traders can be useful.
First steps. What is worth knowing?
The following tips are simple, but you should not neglect such basic things.
• Be very careful when choosing a broker. The company must be reliable in the first place;
• Start trading with a demo account. This will help to master the software without financial loss;
• After a demo account, it is advisable to try a cent, if possible. In addition to understanding how currency rates fluctuate and how a trading terminal works, an important factor is the psychological mood of the trader and his ability to react in time and adequately to exchange fluctuations. A cent account in this sense is the best option in order to adapt to real money trading;
• After a cent effort, you can take on trading accounts for beginners. Moreover, on the one hand, the deposit of such an account should not be more than the amount that you can afford to lose by making a mistake. On the other hand, to conclude transactions on 0.01 lot, the deposit amount must be no less than $100.
• Each time, after completing a trading session, or rather a deal, you need to analyze your actions. This method increases the effectiveness of the accumulation of the necessary knowledge and skills;
• In no case should you let the excitement overwhelm yourself. Losses need to be controlled. Losses from one transaction should not exceed 4% of the current deposit amount.
• An inexperienced trader is better not to keep open more than 2 transactions at a time.
• Do not pursue profit "right now and a lot". Such a result for a beginner - from the category of science fiction. If in the first months the profit of 5% of the deposit - this is a good result.
Knowledge accumulation and self-control
A very important factor in the accumulation of experience in currency trading is the analysis of their own actions. It must be approached systematically, developing the so-called individual trading system of the trader. What is it for?
In trading, especially at first, the emotional factor is very important. It is under the influence of emotions, in most cases, erroneous steps are taken. Developing its individual system, the trader prepares the algorithms of actions in various situations in advance. Thus, his decisions will always be based on a cold calculation.
After the transaction, all actions and its effectiveness are analyzed and the system, if necessary, appropriate adjustments are made.
In addition, one should not expect from the first steps that a trader will be able to immediately fully support himself at the expense of Forex. At the initial stage, trade here cannot be the main source of income. The trading process itself should be liked and captivating. If it becomes a dull necessity, multiplied by inexperience, the trader will never succeed.