There are four steps to taking your first forex trading.
Learn how to do Forex Trading and Essential points to keep in mind while trading in Forex Market
1. Choose a currency pair: When you trade forex, you’re exchanging one currency’s value for another. To put it another way, you would always purchase one denomination while selling another. You would always swap currencies in pairs as a result of this. [Forex trading]
2. Research and analyze the market: The framework of your trading activities should be research and analysis. You’re operating on emotion if you don’t have these. This isn’t usually a good thing to do.
3. Read the following quote: You’ll note that there are two prices for currency pairings shown. The initial rate is the value at which the currency pair can be sold. The following rate is the cost of purchasing a currency pair. The spread is the difference between the former and the following rate. This is the fee the dealer charges to complete a transaction. Dealers’ spreads will differ.
4. Decide on a position: Forex trading is not the same as stock trading. You can anticipate on market back and forth movements because you are purchasing one currency and selling the other at the very same time.
A BUY POSITION is one in which you expect the valuation of the main currency will grow in relation to the currency in exchange.
If you take A SELL OPTION, you consider that the main currency will depreciate in relation to the currency in exchange.
FOREX TRADING ESSENTIALS : [Forex trading]
1) Broaden your time horizon – If you’re a novice Forex trader, you really shouldn’t glance at a price chart that’s below 60 minutes old.
2) Limit your potential profit to 5% of your trading money – Leaving more than 3% to 5% of your invested amount on the table is a big no-no.
3) Consider giving your exchange time to work – You could only use the alternative choice in an effective manner if your stance is properly sized… as mentioned in option 2) above. In Forex, prices vary dramatically, and you must be certain that a loss is indeed a loss before closing a deal that is heading opposite to your strategy.
4) Reduce your reliance on technical indicators– Technical indicators derive their data from previous events, thus they can’t anticipate the future.
5) [Forex trading] Only trade one or two currency pairings at a time, and stick to the majors rather than the crosses. Fundamental data is the primary driver of currency prices. It will be tough to stay current if you trade too many currencies.
6) Average your trades in and out – If your income statement is less than ₹50,000, ask your broker to permit mini-lots for you. This will enable you to estimate in and out of all your trades, which is a wonderful method to give your account more flexibility.
7) Maintain a close eye on the statistics for your exchange pair(s) – Learn about the data that is about to be released. When these releases take place, volatility often skyrockets. Data releases frequently result in a shift in the trend. You should take them seriously.
8) Identify the trend and jump on board– As with any sort of trading, the best bet is to figure out which way prices are heading and then trade in that path. It’s not necessary to use anything fancy; a basic moving average on your candlestick chart would enough. If the current market price is towards the top or bottom extremes, proceed with caution because a trend change may occur once that extremity is achieved.
9) Learn to take a profit – If you pin your hopes too high, a winning position might soon turn into a loser. Because of the price waves in Forex, it’s great for averaging into and out of situations by employing numerous entry and exit locations for each trade.
10) Don’t listen to “Gurus” – Don’t ever fall for the trap of trusting everything you hear, or even most of it. You must consider the economic facts from your respective countries, as this is what determines currency exchange rates. Because of the large size and nature of the Forex market, no insider information is available. You have the same info as the rest of the players in the game.
Official website: https://www.forex.com