Forex for Dummies – Ultimate Quick & Dirty Guide For 2020
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Forex for Dummies – Ultimate Quick & Dirty Guide For 2020
How do you trade forex for dummies?
There are many advantages to trading in Forex, but a novice trader understands perfectly well that it is not as easy as it looks in theory or on paper. However, those who are just about to start their career as a trader do not know it yet.
Every person wants to be successful and rich. This is the goal that brings many traders to the currency market.
It is not a secret that a lot of beginners lose their initial deposit and just a small percentage of them don`t give up. They are the ones trying to gain experience and knowledge. However, many of them are making the same mistakes over and over.
Often novice traders cannot understand how to trade correctly in Forex? "Correct" trading involves a wide range of different aspects. The most important, for example, can be attributed to:
The desire to learn how to work in Forex
Psychological preparation of a trader
Ability to learn
Propensity to analyze
Making Informed Decisions
Availability of initial capital
Availability of free time
As we have already mentioned above, it is possible to trade on the Forex market using different approaches and methods. In any case, each of them requires a trader to devote a decent amount of time and focus. If we refer to manual scalping, for example, the trader must be monitoring the trades all the time. He needs to control the market situation and the slightest price fluctuations to open/close positions in time.
Scalping profits per trade are on average 2-5 points. Can you imagine how much time it takes for a trader to collect his daily profit? Sometimes the number of his trades per day is measured in hundreds. Today you can indeed trade with special trading robots - day and night "scalpers", but even their work should be monitored periodically.
In addition to all of the above, the trader needs to have a workplace and the appropriate equipment - a computer or laptop, as well as Internet access with a high-speed data transfer. A weak internet connection can cause loss of connection with the broker and provoke a loss on a trade not closed in time.
Beginner traders often cannot understand the very principle of making a profit in Forex. Understanding the nature of its formation is important for obtaining a stable income in the future.
Moreover, for you to start trading you will need a Forex broker providing you access to the market itself. All brokerage companies have their working conditions and offers of cooperation, which distinguish them from competitors. Some of them are:
Unlimited deposit amount;
Low minimum deposit requirements;
Profitable leverage 1:500;
Ability to choose an account with spread and commission;
Welcome bonuses when opening an account;
Instant cash flow into the account;
Regular promotions, discounts, and contests with the ability to get additional profits;
Skilled 24/5 multilingual support;
Withdrawal directly to the credit card;
Reliable trading terminal MetaTrader 4;
Ability to open an account in various currencies.
What is Forex trading and how does it work?
The Forex market is a worldwide currency market where an average participant can multiply his savings by trading on currency differences. This currency exchange began its existence in 1977. Trading was slower back then, as negotiations between representatives of different countries were conducted only by phone, which slowed down the process of selling and buying currencies. Despite this, the daily turnover in the Forex market just 30 years ago was as much as 5 billion dollars. With the development of modern technologies and the introduction of the Internet, people have significantly accelerated the process of trading and began to make more money on it.
The exchange is open not only to all corporations, companies and other legal entities but also to all willing investors who want to make money online. Every beginner trader has a question: how does Forex work? The essence of it is that a special program - the terminal - is installed on the user's computer, which, in turn, connects the computer with the Forex server. Through this program, anyone can send their commands to the exchange server and make profitable trades. Through Forex you can exchange currencies and earn at the exchange rate.
All Forex trading for beginners comes down to finding answers to questions such as: "When will the price start to rise or fall?", "When is it more profitable to buy or sell currency?" and the like. This part of the job is considered the hardest. As a rule, one or more methods are used to find solutions. All of them are combined into a whole science - this is technical analysis. The developed methods are reduced to the analysis of quotes chart by means of calculation of values of separate indicators. Technical analysis is combined with fundamental analysis (macroeconomic indicators) to get the most accurate forecast results.
To get the maximum profit possible, any trader must be aware of the quotes system and the rise or fall of the currency rate. Earning on Forex is a system of speculators who are trying to predict the fate of any currency. Simply put, if you feel that the dollar is starting to lose value and the euro is still stable, you sell it in the market until the USD has lost its nominal price, and when the rate goes down, you start buying it. After that, you wait for the next rise in the rate, and sell your savings at an inflated price.
Forex Lessons in this Forex for Dummies Course
A beginner usually learns about Forex by accident and immediately tries to "become a trader". The wording is wrong because only regular practice will make a trader out of anyone. On courses or in schools of Forex trading he will be taught to understand the specifics of the market and its principles of operation. There he will be told about the basic trading rules, will be taught to analyze the market and use trading tools. All these are the basics of market trading, on the basis of which a beginner player must develop his own tactics and trading strategy. It is not so difficult to start trading in Forex, as to hold on to it and, if not to increase, then at least not to lose the entire deposit.
Of course, you can start working on Forex instantly only by opening an account and depositing money. However, you should first open a training demo account. This service provides the opportunity to trade virtual money in a totally risk-free trading environment to understand the system, practice and protect yourself from large monetary losses. Demo accounts are used even by experienced traders who use new tactics and strategies in their practice or to test the order execution of a new brokerage company.
For you get started, check our “Forex for Dummies” over here. Doing that you will get the general idea of “who is who” in Forex trading and how to use that information in order to become a successful trader. After going through the "trading forex for dummies" lessons and trading on a demo account you can create a real account. To do this, choose a broker first, create a live account and deposit whatever amount you are thinking of, just make sure you are not taking bread from your table. After that, you need to through a simple process of verification and you are good to go All the registration process takes no more than 10 minutes, and the amount deposited can be multiplied by 2 and 100 times.
Where to start, what to strive for?
Before you decide it's time for you to start trading Forex in a real account, you have several difficult steps to go through. Let's write them down as a simple sequential algorithm. So, you have to:
Learn the basics of trading to correctly understand the events taking place in the Forex market.
Practice on a demo account for a while, excluding the possibility of a loss of real funds.
Find a trading strategy that best suits your character, personality and trading method.
Determine the degree of risk for your deposit and each position, study the rules and principles of money management.
Study the methods of market analysis.
In order to become more aware of the quotation process, it is recommended to visit related sites and closely monitor the currency rate. Uninformed trading based on intuition will not make you a professional trader. Anyone with an internet connection and the minimum deposit amount has an opportunity to earn on Forex.
Improve yourself and work on enhancing your trading strategy.
For beginners, the question of finding a reliable and profitable trading strategy is especially acute. Right, because there is no universal recipe about where to get it.
Final words – how to trade Forex for dummies
The first practical steps on Forex begin with responsibility for the result. Only you are responsible for the profit made and losses incurred. The market, friends, relatives and even an experienced trader-mentor have nothing to do with it. Define the main strategic goals and start moving towards them. Breakdown your mission into intermediate tasks. Set adequate time frames for their implementation. Move to the goal and constantly analyze what is happening. Take your time to earn a million or open more positions. It is better to make one trade a day, but understand the real reasons for what is happening. And remember, patience is a virtue.
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