Forex stands for Foreign Exchange Market (FX). It is the largest market for currency trading - that covers the whole world. A lot of information about Forex trading is available today. Analytics, news, trading strategies, trading signals, auto-trading systems and much, much more. This information is very complicated so novices usually get frustrated because of information overload.
And usually the most asked questions are: What to start from? Whom to listen to? Is it really so difficult to trade or not? I'm not going to answer all of these questions now - not at this short article. But I'll try to summarize my knowledge and write some useful tips that will help novices to understand the whole thing and finally get ahead in this Forex Trading game.
So what exactly should you do as an aspired forex starter? Here is a short plan for you:
And usually the most asked questions are: What to start from? Whom to listen to? Is it really so difficult to trade or not? I'm not going to answer all of these questions now - not at this short article. But I'll try to summarize my knowledge and write some useful tips that will help novices to understand the whole thing and finally get ahead in this Forex Trading game.
So what exactly should you do as an aspired forex starter? Here is a short plan for you:
- Set a time limit for 5-7 days (free days I mean). During these days try to absorb as much information about Forex Trading as possible. Use Google and your imagination to search. You can start from "forex", "currency trading", "forex trading" etc. After this period stop consuming information. At all. Just sit down and try to summarize it. The pen and the piece of paper will be truly useful for this.
- Choose your first broker. I'll recommend one later. Don't make things too difficult - you just need to get started, right? Don't begin with huge deposits, I recommend to start your trading from Mini-Forex or even Demo account if you don't have a few hundred dollars to open mini-account.
- Pick your primary trading currency pairs/crosses and stick with them for at least three-four weeks. Get used to them. I recommend eur/usd, gbp/usd, aud/usd and cad/usd but it's not very important - just choose what you like.
- Pick a trading strategy - and use it for three-four weeks no matter what happens on the market. Then decide, if it's worth using for you or not. This step is very complicated for the majority of beginners - just because they make it complicated. I'll cover this topic in more detail later, for now - just choose what's simple and free. You don't need to re-invent the wheel, you just need to get your basic trading experience.
- Manage the risks in your forex trading. Use stop-loss orders to control your potential loss. Don't risk more than 10% of your deposit in one deal if your deposit is less that $10 000 (and it should be less - remember what I said earlier about mini-forex).
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