|Verfasst am: 19.02.2021, 22:38 Titel:
Learn Forex Trading In 5 Key Steps
|Learning to trade forex is not easy. It takes time, dedication and a good deal of disposable income.
Many traders end up giving up because they don’t know what they’re doing. They have no guidance and are not sure how to progress.
But with these 10 steps to learn forex trading, you can make the process significantly easier! Of course, you don’t necessarily have to follow them in linearly, but doing so will help a lot.
In this article, we’ll look at the top 10 steps any beginner must make to learn to trade forex.
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10 Steps to learn forex trading
Follow these steps and you’ll get on the right path to becoming a great trader. Many of the steps listed here:
1. Commit to learning everything about forex trading
learn the basics of forex trading
If you’re starting from the very beginning, it is very likely that you don’t know too much about forex trading.
Sure, you may have decided that of all the instruments to trade, forex is the one for you, but you need to know all the basics.
There are many terms and phrases you need to understand.
Do not make the mistake of thinking that forex trading is like gambling. Forex trading is really a game of probability, and so you need to understand how it works.
You shouldn’t be making trades without understanding your chances of making a profit or a loss.
When it comes to doing your initial research, this may take some time and it is important to be patient at this stage.
A key thing to point out at this stage is that you’ll never really complete this step. The learning process is never-ending, there’s always new stuff to learn about forex trading.
Learning forex trading should be part of your trading routine, you need to make time for it every day, even if you’re a professional.
When you stop learning forex trading, you start putting yourself at risk. People forget things and start getting into bad habits.
2. Choose a broker
There are quite literally millions of different forex brokers to choose from and you should look at what each one offers.
If you did the first step right, then you should be able to understand what they are offering and how this compares to other brokers. If not, then you need to do more research!
Ideally, you should stick to a well-known broker, one that many people use and is trustworthy. You should be able to check reviews brokers and see what people are saying.
It is best to avoid lesser-known brokers as it can be harder to tell if they are scams or not. Further to that, they will likely not offer the same quality service a well-known broker will.
You also do not need to pay too much attention to special offers for new traders. If a broker is good, they shouldn’t need to offer you anything extra.
But none of this really matters if the broker you choose is not regulated! This is the most important thing to look for. If you can’t find out who regulates them, stay away.
And preferably, the country that regulates the broker should be the same as the one you reside in.
3. Open an account
open a trading account
Brokers typically offer a range of different accounts and at first, it can be difficult to choose what account will suit you because you probably don’t know what trading style you will implement.
As a beginner, it would be wise to open an account that doesn’t require too much money and allows you to trade in small quantities.
You don’t need to worry about leverage or a wide range of forex pairs at this point. Leave these to the professionals.
At Trading Education, we advise against setting up a demo account because this can give you false expectations about how the market moves.
Demo accounts also typically give traders far too much fake money to play with which removes the element of risk, which is always present in real forex trading.
It is important to bear in mind that although choosing the right account is useful, it probably won’t be the last account you open.
As you perfect your skills, you may consider different options.
4. Get a trading platform
Getting straight to the point, many forex traders use MetaTrader 4, widely known as MT4 (and to a lesser extent, MetaTrader 5 - MT5).
In fact, MT4 has pretty much dominated retail forex trading for the last two decades.
Because of this, there is a lot of documentation available to help you learn to trade forex on their platform and there are plenty of people to ask for help and forums to check.
There is nothing wrong with trying out other platforms, but MT4 will be easier to get started with at the beginning.
You should also check what your broker is compatible with. It is quite rare for a good quality broker not to work with MT4.
That said, your chosen broker may also offer their own platform, and some are fairly good.
As you can imagine, without a platform you basically cannot trade. Ideally, you should dedicate a good deal of time to learn how forex trading works on your trading platform.
5. Devise a risk management strategy
devise a risk management strategy
Putting together a risk management strategy is a crucial step before starting to trade.
You are completely free to start trading forex at this point now you have a broker and a platform, though it is highly advised that you spent a little more time preparing yourself.
A risk management strategy is basically a set of rules you apply to yourself to minimise the effects of losses.
A well-known risk management strategy is to only trade 1% of your what’s in your trading account per trade.
By doing this, your trading account will last a lot longer and you will be able to learn more about forex trading from each trade.
Learning to recognise risk goes hand in hand with the next step…
|Verfasst am: 20.02.2021, 13:23 Titel:
|How often do you trade online? This is mainly a question to those who achieved some stable and good results. I have no time to trade every day, and therefore, my forecasts are not always correct. I believe I need to take more classes or train harder. Even if I use high rating forex brokers tradersunion.com/ratings/forex/common/, without proper preparation, I will not succeed.