How To Start Forex Trading And Become A Forex Trader

By Steven Hatzakis Wednesday, December 20, 2017
Forex is the biggest and most liquid market on Earth. Do you want to try it right now? Check this post to know how to start Forex trading!

Foreign exchange market or FX are the other common names of Forex, where all the international currencies are traded. It is the biggest and most liquid market on Earth. Average trading volume goes beyond $500 billion every day. Perhaps even almost stock markets in the world are combined, there is no comparison.


If you have not tried any Forex trading before, you may wonder how to start Forex trading. We made this post for you!

Why Is Forex Popular?

Decentralization

This is one of the unique aspects of Forex. Traders from all over the world can conduct transactions via networked computers. The FX opening hours are 24 hours per day and 5 days per week. Traders can exchange currencies in big financial centers of Hong Kong, New York, London, Tokyo, etc. at any time zone. It means when trading hours end in the US, the Forex market restarts again in Tokyo or Hong Kong with price quotes in a state of flux.

The Need of Exchanging Currencies

As we all know that currencies are one of essential things on Earth because people need them exchanged to carry out foreign trade and enterprise.


For example: the U.S. company wants to import cheese from France. In order to pay the products in euros (EUR), the importer would have to equally switch the U.S. dollars (USD) to EUR. In common with traveling, a French tourist can’t spend money to visit the pyramids in Egypt as it’s not Egyptian pound unless the tourist exchanges the EUR into local currency at the present exchange rate. That results in Forex market’s establishment.

Ease of Access

Because of a low deposit at the beginning of Forex trading, it’s approachable to anyone who needs an account to experience or starts Forex trading.

Developed Community

As the purpose of following the Forex trading information, traders usually join not only specific forums created for Forex traders but also communicate or discuss via Facebook’s groups. Many special social websites are designed for traders as well. Forex traders around the world can find out associated information in every language. It doesn’t limit the development of communication but exceeding into action, which is called the social trading in some ways.

Available Demo Accounts

For the beginners who are uncertain about starting Forex trading, a demo account is so helpful. Using this kind of account, you don’t need to deposit your money or make any commitment. Just sign up and begin practicing Forex trading. Taking advantage of no strings attached, you may deal without a limit, and your account will never expire unless it is inactive. For that reason, your trading skills are improved steadily.

How to Start Forex Trading?


Step 1: Learn Forex Basics

Before taking part in the FX market, you should learn and understand some important points and terms such as brokers, exchange rate, currency pair, cross rate, leverage, pip, bid, margin, etc.

Step 2: Find a Good Forex Broker

You first search for a large Forex broker who is regulated. That’s because more resources of the larger broker can guarantee its stability if the market is volatile. Then, take notice of the minimum deposit amount that market marker offers. Also, list of the terms and Forex bonuses

Step 3: Check the Broker’s Statistics

The Commodity Futures Trading Commission helps you observe your broker’s financial statements. In addition, you can check BASIC online to know whether the firm is in trouble with customers or regulators or not.

Step 4: Start with Demo Account

Access to a website specifically designed for creating Forex demo account and follow its instructions. Then, check your email to look for credentials instantaneously sent after registering an account.
A demon account which has the same functions as live accounts are useful for beginners find a suitable platform for themselves. One thing makes virtual trading accounts differentiate from the live ones is not dealing with real currencies.

Step 5: Practice

Start practicing trading until you are ready for experiencing in the real currency market.

Tips to Become a Successful Forex Trader

Tip 1: Don’t Be Hesitated

The only prerequisite for becoming a Forex trader is never procrastinating. Postponing until tomorrow is not the characteristics of successful people. You must capture every chance to attain your trading objectives. To avoid being hesitated, you should persist with it until succeeding.

Tip 2: Practice


FX is so risky more than other exchange markets since it’s an unpredictable market. Only a little bit change in price can easily affect profits or losses until being ensured that you deeply know almost the risks then starting Forex trading.

“Practice makes perfect!” This is always true. So, develop your trading skills by keeping training yourself with a demo account.

Tip 3: Enhance and Adhere to a Trading Strategy

Setting a clear vision, clarifying market moves and also your actions, choosing the most suitable strategies, defining your reasons are important factors that lead you to success. However, those things take a lot of time to carry out.

Instead of keeping away from changing your plan suddenly even though you make any mistakes or be afraid of losing money, you have to stick with your beforehand strategies because leaving immediately may only make you confused.

Tip 4: Do Not Overuse Demo Account

At least three months trialing a demo account, you are ready for live trade because postpone with a demo account is not your final destination. However, make sure that you have enough Forex knowledge to change to live account.

Tip 5: Set A Stop-Loss

Utilizing stop order to prevent you from surpassing your limitation that may cause a lot of unexpected losses. Whenever it reaches a certain level, this tool will close your trade.

The other steps are also helpful for beginners to become a Forex trader

  • *Set your emotions apart from trading.
  • *Trade only when you ready for it.
  • *Every trader used to suffer losses, so don’t be too scared about it.
  • *Technical and fundamental analysis are both needed.

Conclusion

To become a successful Forex trader is not a destination but a long process. Facing and wading into one of the most popular virtual currency markets in the world, you may suffer a lot of losses or failure as well. Nevertheless, keep moving forward with your attempt and passion, you will get what you desire.

Hopefully, now you know how to start Forex trading. Thank you for reading!