How does Forex trading begin?
In this article we will discuss where to start trading on Forex, what pitfalls await a first-time currency speculator, and, actually, what are the qualities that a currency trader should possess, as well as for whom Forex market is absolutely contraindicated.
It is no secret that a good start is a very important moment on the way to success. And trading on exchange market is not an exception. Most beginning traders make a mistake and immediately open a big account and try to trade on the first currency pair they come across, often without any preparatory work. No doubt, such an approach leads to immediate and tangible losses.
So, if you decide to start currency trading, you will first have to find a broker who will connect you with the giant currency market itself, giving you quotes, conducting transactions and paying out profit.
This is a very responsible step because a lot depends on the broker in forex trading. For example, a trader sees a price movement and wants to enter the market, and it is at this point that the connection between the trading platform and the broker's central terminal is severed. Or the trader wants to withdraw the profit earned, but there are a limited number of withdrawal methods and all of them have huge interests.... There are many options, so you should work hard at the beginning to avoid bitterness and disappointment at the end.
It is best not to be lazy and collect on the Internet reviews of real traders about this or that broker. Besides, there are independent online resources, which develop their own ratings of the currency market brokers according to a number of criteria.
The next step is registration at the broker and downloading a platform. Registration is relatively simple, so there is no need to focus on this stage. Download the terminal and open a demo account. Then it is necessary to get access to more complete information. Most brokers provide it, but it is not superfluous to register at other large financial platforms, read and assimilate as much information as possible.
The most important economic news are crucial in currency trading as they frequently cause significant price movements when the price is "going crazy", marking peaks and troughs which may adversely affect a trader's deposit if he or she has been careless enough to enter the market at that moment. Therefore, the next important thing is to have an economic news calendar at hand. There are a lot of them on the Internet, the main thing is to have it handy and accurately reflect all the necessary information.
Then you have to choose the appropriate trading system. There are thousands of them, all of them are fully described, but it's better not to be in a hurry to choose, because for every trader the trading system is strictly individual. If you have downloaded any strategy, you should test it on a demo account for two or three weeks and only then switch to the real account. Yes, with time you will work out your own trading system that suits you, but for now learn to watch the price and make appropriate conclusions. Never buy anything! No trading system is perfect, and no super indicators that will always trade on the plus side do not exist. So it makes no sense to give your money to some guru in the financial markets, who is more successful at deceiving newbies than at trading Forex. You have to remember that trading without losses does not happen by default, so you should try to keep the number of profitable trades well ahead of the number of losing trades.
A demo account may also help in self-control, because the main factor of success in Forex trading is trader's psychology, which is inconceivable without discipline. That's why you should train yourself to trade properly on a demo account, as if you were trading with real money. You should not grab your head after each losing trade and look for new entries. Practice shows that such actions result in huge losses and often even complete loss of the deposit. The best thing to do after losing a couple of trades is to turn off the terminal and take a rest.
Finally, let us look at a few types of people who should not waste their money, nerves and health to trade Forex. These are:
(a) Pessimists. If after each losing order you think that Forex is a scam and you cannot make profit here, then it is better to withdraw your remaining money and forget about currency trading.
b) Those who are convinced that trading is an easy way to earn money that you do not need to learn. Alas, this is a misconception. You will have to study long and painstakingly, and the punishment will most likely be "rubles". Forex requires good reactions, patience, self-control and a constant search for information.
For others, Forex trading can become a springboard to success, provided, of course, one understands that trading is a serious business and not a place to catch windfall millions.