Before you start trading you need to follow a few steps. Forex trading is one of the most talked about and yet so little knowledge on it is known. Here is a step-by-step guide on how to trade Forex that will help you!
1, Decide Which Platform & Currency Pair To Start With
When trading forex you are exchanging the value of one currency for another. In other words, you will always buy one currency while selling another at the same time. Because of this, you will always trade currencies in a pair.
Most new traders will start out by trading the most commonly offered pairs of major currencies, but you can trade any currency pair that we have available as long as you have enough money in your account. For this walkthrough, we’ll look at EUR/USD (Euro/ U.S. Dollar).
2, Study the market
When you first start researching, you’ll find a whole wealth of forex resources – which may seem overwhelming at first. But as you research a particular currency pair, you’ll find valuable resources that stand out from the rest.
As a beginner, you should stick with a currency pair that shows some stability in one direction or another. Most platforms also allow you to use various technical indicators to see and predict the trends more effectively.
3, Create Your Order
You will need to use real money, so make sure your decisions are not only on your intuition, but sensible Start with purchasing one mini-lot, which is 10,000 units of the selected currency.
WITH A BUY POSITION you believe that the value of the base currency will rise compared to the quote currency. If you’re buying EUR/USD, you believe the price of the euro will strengthen against the dollar. In other words, you believe the euro is bullish (and the US dollar is bearish).
WITH A SELL POSITION, you believe that the value of the base currency will fall compared to the quote currency. If you’re selling EUR/USD, you believe the price of the euro will weaken against the dollar. In other words, you believe the euro is bearish (and the US dollar is bullish).
4, Take Note Of Stop loss & Takeprofit
You must know that these are like the most important perimeters when it comes to forex trading. you must adhere to these, Stop loss allows you to limit your losses if the market doesn’t go in the anticipated direction, and take profit allows you to exit the trade in profit after the market does the ancipated move. Then you need to confirm your order. Make sure you get a confirmation ticket number, as it will be necessary in case there is a dispute between you and the broker after the trade is completed.
5, Be Patient And Watch Your Trade
There isn’t much you can do. A good strategy may be to exit Forex completely to avoid the temptation of constantly monitoring the market movements and stressing yourself over the anticipated result. If you’ve set up your trade the right way, the chances of you getting disappointed by its results are minimal.
- When can I trade forex:
You can trade forex 24 hours a day, five days a week. The foreign exchange markets are worldwide and therefore follow a 24-hour global timetable.
Why trade forex
Forex is the most traded market in the world and when you understand the benefits of the market, it is easy to understand why.
24 Hour trading, 5 days a week
Unlike other markets, forex trading doesn’t have to stop when the sun goes down. Since forex is traded all over the world, trading markets are open 24 hours a day, 5 days a week, so you can trade when it is convenient for you.
No commissions or hidden charges
The costs of trading at FOREX.com are included in the spread—there are no hidden fees or commissions, so you can be confident knowing how much your trade is costing you.
Trading opportunities in bull and bear markets
The forex market offers traders the unique advantage of trading opportunities in both rising and falling markets. And unlike other markets, there are no restrictions or additional costs for short selling.
Trade more with less
Forex is traded with a degree of leverage, allowing you to take a position in the market with a fraction of the capital you would usually need. As much as leverage may increase your gains, it can also increase your losses so it’s important that you understand the risks of trading on margin.
Sell anything from the convenience of your home with the Fufatrade mobile app