The Forex Market is full of opportunities to make money. Many people have been able to achieve financial freedom through daily trading in it. That is not surprising. The dynamic financial market is the largest of its kind, with over $5 trillion worth of transactions being conducted in it every day. As a result, liquidity never dries, orders are always filled, and money is always made.
Because of the prospects, you might also be excited about it, too. Indeed, starting to trade Forex can be the best decision you will ever make for your finances. However, you need to get it right. This article aims to take you through the steps to start trading Forex.
Open a Forex Brokerage Account.
To have access to the Forex market, you need to open an account with a Forex broker. Without such an account, it is impossible to trade in the market. A Forex Broker is the intermediary between the Forex market and traders who are seeking to participate in it. The advent of the internet has led to the emergence of many of them.
Their emergence has helped to make Forex trading accessible to anyone. Before, the market could be accessed only by large, institutional investors who had all the technical expertise and financial edge. In an interesting twist of events, the proliferation of those Forex brokers has also led to a surge in brokerage scams. That is, many illegal brokers now exist and you should, therefore, protect yourself from them.
Hence, when you are shopping for a broker to open an account with, you should do your research. Is the broker registered with a leading, financial services regulatory authority? Hope the broker you are planning to use is not licensed by an offshore agency? For the most part, due to lax requirements for their registration in those regions, most offshore brokers cannot be relied upon.
- Forex Trading Platform
The next step is to assess the platform offered by the broker you have decided to use. The platform’s quality is an important factor that can either make or mar your trading career. For example, there are specific provisions that a Forex broker should make via its platform. These provisions help clients to have optimised trading experiences. Hence, without them, you had better not use the services of the broker.Those provisions include an extensive list of tradable products, research and analysis tools, a reliable customer support service, and competitive pricing. Additionally, it will help if the broker also offers the benefit of mobile trading. That will enable you to monitor the market, research instruments, and enter and exit trades on the go, without having to stay glued to a computer at home.Therefore, the barest minimums that any broker must support before you can consider using its services at all should include:
- Multiple trade execution modes including Instant Execution.
- Wide analytic tools such as multiple time frames and technical indicators.
- Security and convenience. Data exchange via its platform must be in accordance with high-security standards.
- Education
Next, if you want to really be a Forex trader, you should take your education with the utmost seriousness. The Forex market is complex and only those who are well-versed in its ways succeed. Hence, instead of being in a hurry to start participating in it, you should rather first be excited to learn about it. A standard broker should help in this regard.For example, many brokers provide educational resources for their clients. Those materials can be in the form of webinars, videos, blog posts, and courses. Expectedly, they should cover essential Forex topics such as fundamental and technical analyses and how to build winning trading systems.That is, you should learn about pips, currency pairs, margin trading and leverage, multiple time frame analysis, technical indicators, inflation and GDP growth, and monetary policy decisions. It is recommended that you patiently go through those topics before you ever attempt to make your first trade. You have to become a skillful analyst first to be a profitable trader later.
- Trading Plan
A trading plan is a systematic compilation of your trading conditions. That is, it is a document that contains the particular currency pair(s) you will be trading, your entry and exit conditions, and your risk and money management rules. Without such a plan, you should not even bother to start participating in the Forex market.A trading plan helps you to stave emotional trading. Once you develop the discipline to always follow it, you will be making logical decisions and eliminating the risks that come with emotional trading.
- Signal Service
Forex Signals are recommendations to help Forex traders make smart trades. They are generated by either expert traders and analysts or software. The difference in the means of generation of Forex signals has led to their classification into manual and automated signals. While manual signals are created by humans, the automated ones are generated by computer programs.Which one to use? That question always recurs among Forex traders. Both manual and automated signals have their advantages and disadvantages. However, the right one for you to use should depend on factors such as your situation, personal preferences, financial ability, and the amount of time you are willing to devote to the market.
However, no matter which one of the two you choose to use, make sure the provider is credible and easy to use. Also, ensure that its signals are reliable. That is why we recommend 1000pip Builder. Their 5-star rated, independently-verified signals are generated by an experienced trader and are aimed at netting at least 350 pips in monthly gain. You can subscribe to them here.
