HOW TO TRADE FOREX, THE BASIC TO TRADING FOREX ONLINE.
Hello there Welcome to my blog, thank you for passing by. By opening this link or blog post shows that you have heard about or know something about online forex trading, and you want to know more about it. Before we go further into the basics I would like to say this won't be an easy road it won't be a smooth sail, but it's going to be hard, and it's going to take a lot of dedication to this craft to master the basics and become profitable and move on to become the next George Soros (who knows, right?).The Foreign Exchange Market (also known as the FX Market) is an over the counter (OTC) market where people buy and sell hence determine the exchange rates for all the currencies. The Forex Market has a turnover of 6.6 Trillion (a lot right.) and this is distributed between dealers, central banks, hedge funds and retail investors among others.
The journey to learn forex begins…
1) Learn the Basic Terminology of the FX Markets (used interchangeably with Forex Markets)-If you have ever heard or watched an FX movie you will hear terms like candlesticks, pips, quote price, long or short position, spread etcetera and in learning these terms you grasp the forex language and also learn the basic stuff in FX Markets. For you to learn these terminologies you can look into this free site (Dont take it for granted).
2) Learn an FX strategy or Technical Analysis- in the FX markets you just don't sell because the chart is going down or buy because the charts are going up. You have to do what is called an analysis and in this analysis is where you come up with the probabilities that force you to buy or sell. We look at technical analysis because it's the only thing that allows us to remove all unworthy probabilities and leave only those that are profitable. Strategies you can learn are already on the blog which include Divergence and Trendline Analysis for beginners.
3) Start Demo Trading -After following these first two, because Online Forex Trading is not Theory there is a need for you to move to practical but without risking your hard earned money hence there is a need for you to open a brokerage account in which you can use, in which you only need 1 which is called a demo account which simulates everything that happens in the markets. (try this broker)
a) One thing to note is do not be deceived by the amounts they claim to give you for example “Get $100 000 demo account and learn faster” you can't learn faster just because you have a bigger demo account it only slows down your growth and also destroys your psychology which we are going to discuss in this blogpost.
b) If you are never going to start your trading journey with $100 000 please please dont open a Demo account with $100 000. Only open a demo with the equivalence or just higher or lower than the amount you want to start with for example “You want to fund your real account with $5000 you have to practise with an account in the range of $5000 so as to make you comfortable ”
c) In this trading session you are putting The Basics in 1 and the Strategy in 2 into practice and please don't hurry the process make sure you grasp the concepts and you can use them properly before rushing to make profit (or loss)
4) Master Trading Psychology - although it's put at the bottom let me assure you it's not the last thing you want to know, it's actually one of the fundamentals of trading. Trading Psychology being how your mind works in trading (not the actual definition though lol). When you get into a loss how does your mind react and what emotions are triggered during that period in which it can cause you to act irrationally for example The feeling of Missing out on a Trade because the candlesticks are already fast moving down and you want to enter the trade in which the decision to enter has not been influenced by technical analysis but by Psychology (your mind) in which this is one of the mistakes you may want to avoid hence for that you can read books on Emotional Management during Trading which teach you how you should react when your trade starts going in a loss or your stop loss hit.
5)Make informed Decisions- Design a Trading plan which you should follow (Must!) and this plan should contain the following and more , the pairs to trade, the Risk per trade, the Take Profit per trade etcetera and if you can follow this you can become profitable considering its a solid plan. If you don't have one you can download one from our blog and customize it according to your needs here. Never leave the trading plan no matter how much the trade looks good never leave the plan (had to make it bold) and make sure you follow up on bad trades and why they did not go according to plan and strategy and in that you won't make the same mistake again
Follow this and more on our blog and other sources of information. Wishing you great success in your trading journey.
Peace Out:)
Disclaimer:
THIS Post AND OTHER MATERIALS FROM THIS/IN THE NAME OF THIS SITE(fxstrategylife.blogspot.com) IS FOR EDUCATIONAL PURPOSE ONLY. FOREX TRADING CARRIES A HIGH LEVEL OF RISK, AND MAY NOT BE SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE HIGH DEGREE OF LEVERAGE CAN WORK AGAINST YOU AS WELL AS FOR YOU. BEFORE DECIDING TO INVEST IN FOREIGN EXCHANGE YOU SHOULD CAREFULLY CONSIDER YOUR INVESTMENTS, OBJECTIVES LEVEL OF EXPERIENCE AND RISK APPETITE. THE POSSIBILITY EXISTS THAT YOU COULD SUSTAIN A LOSS OF SOME OR ALL OF YOUR MONEY AND THEREFORE YOU SHOULD NOT INVEST MONEY THAT YOU CANNOT AFFORD TO LOSE.
