Any point of activity in the financial market, such as trading Forex, requires knowledge and a strong base.
Anyone who leaves this in the hands of fortune or chance ends up with nothing because trading online is not about fortune, but it is about predicting the market and making the right decisions at the exact moment of such activity.
The goal of this write-up is to give you the required knowledge needed to understand forex trading basics and the ability to trade by yourself.
Before embarking on the journey of forex trading, these steps as to be thoroughly kept in mind.
Learn about forex
For any life business, adequate knowledge is surely needed, therefore, before venturing into forex trading as a beginner, it is mandatory to carry out a lot of research that will equip you on the knowledge about the cons and pros of forex trading.
Select a brokerage account
Before you commence forex trading, you need a forex broker. As a new beginner, it may be difficult to choose or identify the best one, that is why most of them offer a demo account, to test trading format, MetaTrader platform (MT4 platform), e Torro, etc, are an example of trading software.
Image source : www.ifcmarkets.co.in
Fund your Forex Account
A new forex trading beginner must have a registered account on any trading software, where you can add funds. You can start with a few hundred dollars to see how it looks like.
Mostly, this platform has a demo, where you can have some virtual money between the range of 10k currency units – 100k currency units to play with before you decide to open your real account. By doing this, it will allow you to know how order placing works, how to place stop-loss, etc.
Get a mentor
Before looking for a mentor as a beginner, you must have basic knowledge about forex trading, that's where your research work on forex trading speaks, the mentor is only there to guide you through the basic steps and how to trade successfully.
As a forex trading beginner, it is very essential to know some basic terminologies used in trading such as :
1. Forex Account
A forex account is an account that you use to make currency trades.
An ask is the lowest price at which you are willing to buy a currency.
A bid is a price at which you are willing to sell a currency.
4. Bear Market
A bear market is one in which prices decline for all currencies.
5. Bull Market
A bull market is one in which prices increase for all currencies.
Leverage is the use of borrowed capital to multiply returns.
Margin is the money set aside in an account for currency trade.
A spread is a difference between the bid (sell) price and asks (buy) price for a currency.
Trust you found this write-up useful.