The Internet is crowded with Forex advertising. The media say that with the slightest effort and in the shortest possible time, and most importantly - without investment, you can become a millionaire. In part, this information is true, which makes the question of how to trade on Forex very relevant. Many people overestimate their strengths and capabilities, drawing beautiful pictures of the future, they merge one deposit after another. What is the problem and how to avoid adverse events?
Where to begin?
Studying the question of how to learn to trade on Forex, you need to immediately prepare for a long and not always easy learning process. It takes time, and effort, and material resources. It’s worth starting with the study of basic materials. This is not only the concept of the market itself as a mechanism, it is also working with the terminal, studying existing analysis tools, considering strategies and much more. The main mistake of beginners is that they relate to foreign exchange market not as a serious business, but as an opportunity to quickly "fill up your pocket."
It may take more than one month to develop your own trading strategy. Giving market research just a few hours a week is wrong. It will take at least several hours a day, or even more. Training and training again, without it anywhere. Before you start trading on Forex, you will have to go through the following steps:
- study of basic material;
- development of your individual strategy;
- testing the strategy on a demo account;
- using a strategy on a mini account;
- opening a PAMM account and making solid profits.
Technical and fundamental analysis
If you want to learn how to trade on Forex, you will have to deal with concepts such as technical analysis and fundamental. The technique is a graphical analysis of price charts, drawing figures, analysis of price movements in the corridor. The foundation is the opposite direction. It can be explained as an analysis of the economies of world states.
Here you will have to work with interest rates and mitigation programs, the unemployment rate and many other instruments of the global financial apparatus. In this category, it will be worthwhile to consider how to trade on Forex news. Despite the fact that most traders choose only one type of analysis, two tools in tandem are very effective. Remember, do not imitate the behavior of the majority, because the vast majority of traders lose.
Acceptance of loss
Obstacle to success in trading becomes self-confidence. You need to memorize that lossless trading is an unrealistic phenomenon. The main thing is that profits exceed them. The better the strategy, the less losing trades. Quite often, the market behaves in an unpredictable way. Price hikes that cannot be foreseen are usually triggered by market makers and hedge funds. For this you need to prepare mentally.
A pair of expert advice on strategy development
If you are interested in the question of how to trade Forex profitably, you should delve into the intricacies of creating your own strategy. A clear work plan will minimize losses and help control emotional outbursts. A good strategy has the following characteristics:
- The presence of clear points for entry and exit from the market. Can use as pending orders and analysis of the actual state of the market.
- The strategy must include stop loss and take profit.After opening an order, changing these values is strictly prohibited. In some cases, stop loss can be moved to the level without loss.
- The strategy should use pre-selected indicators.
- The choice of time interval for trading should not change.
- Each strategy should be adapted for a specific trading instrument (currency pair).
Searching for profitable strategies on the Internet and blindly believing them is strictly prohibited. Testing on a demo account with the introduction of cardinal changes is allowed. You need to be aware that not a single millionaire trader will tell in detail how to trade on Forex, and will not reveal all his secrets.
Which Forex trade?
Considering the question of which Forex trading is better to trade, you need to study most of the largest brokers not only in your country, but also in the world. You need to choose a platform according to a number of parameters:
- available lot size for trading;
- spread and commission;
- specificity of payments (deposit and withdrawal of funds);
- experience of the company and its level (the presence of awards and distinguishing marks is welcome).
Regardless of the broker chosen, trading should begin on a demo account. This will allow you to get acquainted with the trading terminal and its capabilities. Virtual money will help develop discipline and get rid of emotions. Using a demo account, without prejudice to your capital, you can develop your strategy and polish your skills.
Discipline yourself
Of great importance in trading on the Forex market is discipline. It is necessary not only to have trading skills, but also to strictly follow the rules of money management. Risk and capital management makes a big contribution to future success. Before trading on Forex, you need to eliminate such an enemy as greed. When a ready-made strategy brings a certain percentage of profitability, it is not worth changing it. It seems nothing complicated, but in reality everything turns out differently. In the pursuit of quick money, you can repeatedly face a loss of deposit.
Example: if you opened a position, but it went negative and almost reached a stop loss, you should not expect the price to go a little further than the intended border and turn in the right direction. By moving the stop loss level, the trader violates the rules of money management, and the deposit puts in jeopardy. According to statistics, in 95% of such situations end badly for the trader. A similar situation is unacceptable with take profit.
Mentors: are they needed?
Trading in the Forex market and making a profit is not an easy task. Trading involves risks, the responsibility for which is to be taken solely by yourself. With courage and perseverance, a good and professional mentor will not hurt. Finding a specialist is a difficult task. Remember: no one will ever help in this matter for free.
The cost of training can be called an investment in a secure future. After a while, the skills and abilities received from a qualified trader will pay off. In addition to technical skills, the mentor should teach the beginner the ability to master his emotions. A good teacher with extensive experience in trading on the market, with decent trading results, like no other, will tell you how to trade Forex correctly.
Today, many trading schools offer their services on the Internet. They hold paid webinars, help learn the strategies of millionaires. Students have round-the-clock support not only from teachers. Each student has his own manager. It’s not necessary to go to another city for training in trading.
You can learn the basics of trading in the foreign exchange market without leaving home. A huge plus of distance learning is not only saving time and money, but also in access to relevant literature offered by the centers. It’s not worth relying on the fact that you are special and you do not need to study. This will lead to a loss of time and a futile drain of capital.Only hard study can lay the foundation for successful trading.
How to start trading without investments
Trading on Forex without investments is quite realistic. It is not necessary to replenish the account from the personal budget. You can earn on your first deposit by the most unusual methods. Some brokers have the practice of holding contests on demo accounts, as a result of which the winner receives his first capital in the PAMM account.
All that a trader can earn from the amount provided to him, and will be his net profit. A slower way to make money is to post on topic forums. For each published message bonuses are awarded that are transferred to the terminal. Even if it takes a lot of time, the result will exceed all expectations. Monitor the offers of brokers, and you will definitely be able to find an acceptable option.
To summarize
Having examined superficially the question of how to start trading on Forex, we can summarize all of the above. All that is worth doing for successful trading in the market can be summarized in a clear sequence of actions.
- We understand what the Forex market and the currency exchange are.
- We study all terms (quota, swap, order, support and resistance lines, etc.).
- Open a demo account, get the first trading experience.
- We open a cent account, trade on a deposit of 5 to 10 dollars.
- We study the trading terminal.
- We watch video tutorials on technical and fundamental analysis, read literature.
- Putting knowledge into practice.
- We study the factors of fear and greed.
- After the skills are fixed, you can transfer to an account with a deposit from $ 100 to 200.
- We develop our unique trading strategy, test it and start earning.
If you want to become a successful trader, showing perseverance and perseverance, the expected result can be achieved.
