Surfing the internet, it is very likely that you will notice the advertisement for trading Forex.
You are so curious to know what Forex is all about, then this article is made for you.
Why do you need to start trading?
Too tired of working for others and waiting for monthly paychecks? Wanting to make some extra money? Wanting to make profits from home? Or you are having an idle budget and trying to get a passive income rather than saving it in a bank at low interest?
Trading forex can meet all of those above purposes and each of them will have their corresponding trading styles and tactics.
Besides, trading forex is also a good practice form where you can learn to analyze, to keep composure, to be disciplined and concentrated.
So what are you waiting for? Let’s start trading!
How and where to start?
Education
The very first thing you need is forex education. I can guess that you are searching for that keyword at the moment but it’s not that easy.
The essential thing is that you need an original education course that provides everything systematically with easy-to-understand illustrations, not just some copied, modified or out-of-date articles.
At NSBroker Education and Education, you will get everything you need:
For a newbie, they offer:
- Terms and definitions
- Video lessons
- Webinars
- Calendar webinars
- E-book
And if you are already a trader, that site also provides:
- Financial news
- Technical analysis
- Market reviews
- Investment strategies
- Traders advice
- Economic calendar
Broker
You are now well equipped with forex knowledge, the next thing to do is choose a proper broker. Basically, the broker plays the role of intermediary between you and the market and they earn on the difference between the bid and ask price. There are more and more brokers offering trading service every year but not so many of them are decent and worth to trade with.
The first thing you must consider is the broker’s legalization. NSBroker is regulated by the Malta Financial Services Authority (MFSA) under License no. IS/56519 for 7 years. It is also needed to mention that MFSA is the only regulator for financial administration in Malta and its reports go to Parliament every year so you can fully trust NSBroker.
Furthermore, by complying with European Markets in Financial Instruments Directive (MiFID), NSbroker is also endorsed for providing its services in many European countries:
- United Kingdom – Registration Number: 595195 by Financial Conduct Authority (FCA)
- Germany – Registration Number: 131055 by Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin)
- Spain – Registration Number: 3354 The Comisión Nacional del Mercado de Valores (CNMV)
- France – Registration Number: 74397 The French Prudential Supervisory Authority (Autorité de Contrôle Prudentiel – ACP)
- Denmark – Registration Number: 9221 The Danish Financial Supervisory Authority (FINANSTILSYNET)
Another thing every trader should take into account when choosing a broker is where and how their fund is treated. Fortunately, NSbroker client fund is segregated from the broker’s account, confirmed by Price Waterhouse Coopers (PWC). This guarantees that your money is solely used for your trading purpose.
The next thing is liquidity, in abnormal market condition, unrecognized brokers usually witness low liquidity with stretching spreads, which can be a disaster.
This does not happen to NSBroker who cooperated with prestigious providers like Barclays, CitiFX Pro or UBS, you can sit back and have no worries on liquidity. The spread is also low from 0.4 pip; besides, there is no commission fee for trading.
NSBroker also offers negative balance protection prevents your balance from losses that exceed your fund.
Trading Platform and Tradable Assets
MetaTrader4 is still the most used trading platform but it is gradually replaced by the new version MetaTrader5. Inherited from the best of MT4, The MT5 platform is dynamic but still user- friendly, providing traders with a powerful range of features and tools.
One important factor deciding how the attraction level of a broker is the number of trading instruments. NSBroker breaks them down into 4 categories with a total number of over 250:
- Forex
- Commodity futures
- Share indexes
- Energy carriers
Deposit & Withdrawal
This is the last thing to evaluate a broker. You don’t want your money stuck somewhere in the banking system. NSbroker accepts different payment methods via
credit card or bank transfer. The specific processing time for each activity can be found on the Withdrawal Information and General Fees tab of NSBroker. And most importantly, all of them takes no fee.
How to avoid mistakes and losses?
You have the knowledge, you choose your suitable broker then the next question is how to make profits and avoid losses.
Making mistake and get losses are inevitable parts of this game and the only thing you can do is to live with them. However, if you do it right, you can limit them at an acceptable rate but still generate considerable profits at the same time.
- Be disciplined: 10 out of 10 traders will give you this advice. This article will not dig deeper into this topic but in general, you have your strategy proven and you stick with it. You win 10 but the market keeps going to 50, that’s very normal and no need to regret since you predict it right and you stay with your plan. In contrast, you lose and your stop loss activated, it’s also normal and your tactics have done its job.
- Keep practising: Anything can happen in the market and you must be ready for it. NSBroker provides traders demo account is a perfect tool to sharpen your skill, test tactics and simulate different situations.
As long as your win still overwhelm your loss, you still win the long race eventually. If you keep losing in consecutive orders, you need to stop and re-examine your strategy. It may need adjustment and re-tested.
Conclusion
Forex trading is an interesting job but making a regular profit from it is challenging and not suitable for all investors. In order to be successful in this market, you need a good education base, a decent broker to work with, and a strong mentality to drive your trades to win.
