HOW TO TRADE FOREX?

Hello fellow traders, now we will learn how we will be trading the forex and what things we need .

Forex trading is extremely profitable. However, it is also can be extremely risky. However, you can reduce your risk if you learn how to trade Forex successfully. Learning how to trade currency should be the first step for all Forex traders should learn. In this article will offer three tips on how to trade Forex.

1. Research

Research is important as it allows you to understand how currency exchange market works. Without researching, you will not able to understand most of the words and charts means. The purpose of research is to create a foundation of knowledge for this online money maker. Here are the 3 things I recommend you to research first.

• Research what causes the Forex market to move.

No currency rates move without a reason. Understanding the reasons why they move can create a good foundation for your next step of learning.

• Research the Terms

This allows you to understand the commonly used terms in research reports and strategy plans. This way, you will learn faster and easier in the future. Treat it as a Forex Language course.

• Research the Systems within the market 

Find out what tools you can uses to earn trading income. Demo accounts and free online courses can teach you and guide you in this journey of financial freedom.

2. Learn

Next step you should do is learn. Learning how to make money with strategy and planning. With a template in your mind. The propose of this step is to greatly reduce the risk when trading. Remember, like what Robert Kiyosaki says, “There is no risky investments, only risky investors”. And risk are often comes along with greed and lack of knowledge..

Forex traders use fundamental analysis, technical analysis, quantitative analysis and sometimes a combination of all three to make their trading decisions. Fundamental analysis involves the use of economic, financial and political news to determine trading decisions. Technical analysis involves the study of Charts to predict future price movements based on past price patterns and trends. Quantitative analysis consists of the use of preset statistical models and properties in quantifying price formations such as averages, retracements as well as identifying oversold and undersold situations.
Here are the 3 things I recommend you should learn first

Charting.
Learn all kinds of basic charts helps. There are 2 charts, Bar Chart and Candlestick Chart. Candlestick charts are the highly recommended charts for trading by many experts. Learn how to analyze those charts also. This way, you can get information from them.

Indicators and Chart Patterns
Chart patterns always give advance warning or predictions to the future rates. Indicators will signal you that a change in prices. Multiple uses of indicators will help you gain confidence in predicting the change of prices.

Trading plan
A trading plan is a plan that you have developed to include the trading strategy, money management, Trading routine, and the time to be in the market. Research and find out other successful forex traders’ trading plan and craft one that based on your budget, self imposed rules and objective.

3. Practice

You can never research and learn all there is to learn. Remember, omniscience never exists. Only the best exists. And the best practice first. Use what you have learn so far and try out in a demo account. By doing so, you gain:

Experience – Nothing beats experience. Experience is yours truly and uniquely. There is no other way to gain experience other than practice and actual trading.
Confidence – With practice, you gain confidence too. Usually it is because you have apply what you learn so far and it works. Not everyone can apply what they learn successfully.
Foresight – Forex is like a game of chess. Practicing what you have not only makes you confident, seasoned but also develop a unique and special foresight of what could happened next. Able to foresee what will happened next can really help. As indicators and chart patterns may not always be 100% correct. This could really save you a lot of money.

Here is thing I recommend you should learn too: Practice to Manage your money wisely.

You should always be aware of the amount of money in your account before placing a trade. If you think a long-term trend is developing, then you should consider whether you have enough funds to maintain your margin and withstand any movements against your position(s) that may occur. We encourage everyone who opens an account with us to ask themselves the following questions prior to entering each trade:

1) How much am I willing to risk?
2) What is my upside and downside potential?
3) What are the market conditions? (Is the market volatile or calm?)
4) What is the logic behind entering this trade?
5) When can I conclude if the assumptions/logic behind the trade are/is correct or wrong?

Before entering an order, you should consider both your entry and exit points. One of the mistakes most commonly made by traders, especially new traders, is letting emotions get in the way of their strategy.

A Forex beginner that learning how to trade in Forex should always research, learn and practice.

Remember there is always a lot to learn. However, do not fall into the trap of learning all there is first. You can never learn them all. Practice what you learn first, and then learn along the way. Do find a mentor if you still having problems.

And if you want to know about My Future goals in forex trading, you visit here!