Just before you start forex trading,ofcourse there are several questions to reply. How to choose a good broker? Shall I use something called a demo account? What all things should I know before my first job?
We can anwer these one by one , in order of their priority.
Make a choice on which broker to use is seriously personal to each business man. Certain brokers offer a range of options that some retailers will thrive, while other operators will just hate them for the same choices. It is necessary to examine and compare the characteristics of each broker carefully and make a choice of the one that will cause you to feel more good.
2.Open demo account
Once you had the decision of the broker that you like, it’s now the time to start a demo account. Many brokers will give you a trial of at least 30 days in their trading platform that gives you the opportunity to play or trade using demo money. Demo account is very nice opportunity to assure that you could feel comfortable with the broker’s trading tools. You dont want to start with real money without completely being comfortable with trading platform. Thus a demo account would help you not only get a strong base on how to make use of the broker trading platform, but also in the market during real times.
3.Learn about the leverage
Forex trading is usually done through leverage or trading at the margin level. Margin is ofcourse, a useful tool, but can be dangerous once not properly used. Forex brokers usually present anywhere between 50:1 to 400:1 leverage . Higher the figure, lesser will be the money to put on the business. The use of this leverage is just something which should be taken carefully.
4. Practice reading charts
Just before you begin making trades, you must familiarize yourself with the charts and how they do their work. It’s a good thing to become familiar with different maturities and different types of charts. The shorter period will be giving you a concept of how the market changes by the time. Longer time periods could show how the market moves over long periods and also the trends. Most mapping software will offer graphics such as , candlesticks, lines or bars. Try to take lots of time trying various looks and time to choose the style you’re comfortable with.
5. Making initial live trade
The first business is an exciting and nervous situation to get through. Demo account prepares technical aspects of the trade, but when actual money is at stake, emotions begin into play. so Its ‘important to keep a head and do your maximum to trade with the same modes, which takes place on a demo account. It can be a bit difficult, but if one can master emotions and use sound money management, everything is possible at this stage. If the first trade results in money loss, you should never give up, just analyze where you went wrong, and try again.
Forex trading is a continuous learning process. Trading mistakes can be costly. But If you can learn from the mistakes and do the better to avoid it in future, you could become a successful forex trader.