The forex currency market is among the few places where everyone can try to feel themselves. Absence of superiors, non-existent limits on earnings, work schedule for which you are responsible – it is all in the business of trading.
But becoming so is not an easy task.
Before you start predicting the profit of a particular deal and making money from it, you must go through the following main steps. There are some of them, and these are:
- How to choose a forex broker:-
It is important to choose a good brokerage firm. When you start a trading account, the next step is to put money in it. Your money is a waste for scammers. There are cases when counterfeit companies merely mimic actual trading.
Some traders try their best not to return the benefits they have earned to customers by making various excuses. To do this, they use non-market citations or hypothetical server crashes.
Some people intentionally put sticks inside the wheels, equalise the spreads, quote, slip. Therefore, selecting a broker can be compared to laying the foundation to build a house.
In addition to licensing, you should study the reputation and history of the company carefully. Brokers, who have never followed the path of deception, cannot exist for long.
PrimeFin is one broker which is registered and licensed. Such brokers must be taken into consideration while trading forex.
The longer the broker is available in the market, the better his reputation becomes. From a trader’s position, it is not appropriate to select a company without history and reputation.
- Opening a Trading Account:-
When you have laid the foundation, you have decided on a reliable brokerage company. The next step is to open a trading account.
Forex trading is executed through it. A company can have many types of accounts. You should choose a specific one, focusing on your actions, volume, and intensity of capital.
- Downloading Platform
Trading on financial markets is executed using specialised software. The number of devices will depend on price analysis and your capabilities, depending on which terminal is selected. Indicators, advisors make script trading more comfortable and efficient.
Today, in Forex, the vast number of traders worldwide choose the MetaTrader 4 (MT4) platform. Its interface is intuitive, allowing for the first transaction to take place just minutes after the meeting.
In terms of equipment and opportunities, they are very large. Study the functional features of Meta Trader 4 in detail, and you will understand how much it can do for you.
- Introduction with theoretical part:-
Trading is a profession that, in principle, anyone can understand. But there are many secrets, without which you cannot grow from a novice to a high-ranking professional.
To become so, you need to study the theory that is devoted to the foreign exchange market. This applies not only to the technical analysis methods but also to understand the basics of pricing and the functioning of world markets.
- Opting for a currency pair and trading strategy
To understand the importance of system trading, reading a book about currency, commodities or world stock exchanges is sufficient. In the above-mentioned case, you can do the following:
Create your strategy based on the theoretical data obtained;
Taking someone else’s place while adjusting it for oneself.
The currency pair will play an important role. We recommend that novices focus on assets at a location where the spread price is the lowest. These are currencies in pairs such as: EUR / USD, GBP / USD, USD / JPY, AUD / USD, EUR / GBP, EUR / JPY, and many more.
- Testing theory and acquiring skills on a demo account:-
The building block advancement in the exchange business made possible in recent decades by computers and the Internet is electronic trading.
Modern platforms store a vast historical array of quotes, based on which you can automatically perform in-depth analysis, create a trading strategy and test your ideas. The strategy tester built-in MetaTrader-4 is worth learning at this place.
And yes, the demo account should also be taken into consideration. Thanks to this, you can trade in real-time with virtual money. But there is a major flaw in the demo account.
Here the trader does not risk losing real capital. Therefore, they act a lot more recklessly than trading in the real market.
- Spontaneous Transit to Real Trading
The initial experience gained on a demo account allows you to start using a real trading account – moving to the final stage. It is important to know that there is a big difference between real and demo accounts.
As mentioned above, it is implicit in anticipation of loss. In the case of real money, money losses are always taken at heart.
When you as a trader start trading real money, learn to put a hold on pause on time, work on your mistakes.
The few hours spent analysing transaction reports can reveal your trading strategy’s strengths and weaknesses and your own character.
In forex trading, you need to be disciplined and know the elements of forex analysis charts and technical tools in addition to fundamental analysis.
It also helps to chart and focus on your own trading plan. It is easy to start a trading and Demat account online and get access to real-time data about the market and comprehensive reports to help you gain a deeper understanding of the forex markets.