Forex Trading Basics For Beginners - Photo credit:ericavillalontrader.wordpress.com, Edition by Amber255 via Bitlanders.com
This blog is about Forex trading. I have written some articles about investments, about ways to earn online, but still avoided the theme of Forex trading. Although many people consider it the best way to earn online. I must say, I am not a forex trader, but I know how to trade and even tried a little.
In short, the story is such. A few years ago when I searched for ways to earn online, I came across one affiliate program, and my referer there was a forex trader who involved me in this business too. I invested some money, and he started teaching me all the nuances of Forex trading, and at the same time, he traded for himself and for me. I usually used the Demo platform, and few times only traded on a live forex platform but with a guide of my mentor. It was a very interesting experience that lasted a few months, and then I said - it is not for me, I do not want to gamble because I feel a lot of stress. Forex (FX) is the market in which currencies are traded. The forex market is the largest, most liquid market in the world, with average traded values that can be trillions of dollars per day. It includes all of the currencies in the world.
Credit: investopedia.com
In general, gambling for money always passed me, and I hope, it will pass me in the future too. But sometimes I think that I could make some money in Forex trading if I wanted to. Actually, the most novice Internet workers consider Forex as one of the easiest ways to make money online. And they think it is a fast way to earn.
Since I have written rather an impressive number of blogs about income generation options, it seems to me that now I am ready to talk about Forex trading, the level of income from it, some tricks, etc.
I repeat - I am not a professional Forex trader even if I have tried it through my lessons. But I can share Forex trading basics that every new trader needs to know.
Forex Trading for Beginners - The Basics - Video credit: KATOMATE01 via Youtube.com
What Is Forex?
Are you interested in earning on Forex? Then learn a few rules for working with this currency market.
Spending time on the Internet, each of us has thought about making money on the Web. Of course, we earn at Bitlanders, at other sites, since the advantages of working on the Internet are obvious:
~ no attachment to the workplace.
~ there is no disgruntled boss and envious employees,
~ you earn income, which depends only on your abilities,
~ you have free time to devote to anything.
And work on Forex trading successfully meets all the listed benefits.
So what is Forex? This is the currency market in which people sell and buy currency. It is working 24 hours a day, 5 days a week. Saturday and Sunday are days off. Forex operates for 40 years, which cannot but cause confidence in it.
Forex trading basics for beginners - photo credit: youtube.com
The English abbreviation FOREX we translate like this - currency exchange or currency exchange operations. Income from the market activity is the difference between the selling and buying of currencies and not only currencies (stocks, gold, oil, for example). Many people believe that Forex earnings vary from the amount invested, but there is a big risk of losing everything.
You need to understand - it will be not easy to newcomers in Forex. It is necessary, for a start, to familiarize yourself with the rules, risks, opportunities, terms. Do not ignore the advice of experienced traders. Even if it is competitors in the fight for a tasty piece.
It is necessary to start trading with the help of Demo training programs where you can accumulate experience and the necessary knowledge without the risk of losing your own funds.
Foreign exchange market - Photo credit: twitter.com
Do not be too self-confident, do not neglect the training.
For a beginner, the first failure in Forex trading can discourage, if not forever, then for a long time. The basis for starting work with a real account is the stability of the indicators for a month on a demo trading platform. Work on Forex with real money often drives a player into a stupor. Therefore, we put aside panic and fear of the unknown and learn. On Demo trading platform you do not risk anything, so learn till you feel confident for a live forex trading.
Another important point is the study of the history of the Forex market. But even perennial observations cannot guarantee beginner the luck or profit. Market analysts can only make predictions of the behavior of prices for currencies, which are often not justified.
Approximately three years of experience in the foreign exchange market allow you to make decent money on Forex trading. Fairy tales about the ease of trading, distributed throughout the web, is a myth. Only an intermediary earns always, regardless of your successes or failures.
Forex trading basics for beginners - Photo credit: twitter.com
Forex Traders And Trading
Forex traders - persons engaged in trade (game) on the market. In other words, it is me and you, if we decide to trade Forex. A good trader is a person with an analytical mindset, seasoned, able to assess the situation and leave a losing trade in time, as there is a risk to waste already earned money.
It is necessary to draw up a clear plan of action from beginning to end, to avoid unjustified risks. After completion of each operation, it is necessary to work on the errors, to name the reasons for which we had to deviate from the prepared plan.
At Forex, as in any other investment operations, the risk is inevitable. The risk is high, medium, and low. It is clear that the larger the amount of the invested amount, the higher the risk ratio. But still, all the work in Forex is built on the game, so you have to take the risk. Moreover, no one can tell you how to make a million in Forex without a loss.
In the early stages of a career, it’s not worth risking big money. And trying to recoup, as gamblers do, can lead to total bankruptcy.
Ways to earn online - Forex trading - Photo credit:youtube.com
Brokers
Intermediaries between the trader and the Forex market are brokers and dealing centers. Intermediaries between the trader and the Forex market are brokers and dealing centers.
There is no such as the minimum amount to start working on the Forex exchange. Although brokers consider the ideal amount of 2-3 thousand dollars to open an average account, it is clear that most beginners are willing to risk a dozen or two, but not more. The bottom line is that in the currency market, small amounts, even if invested super-successfully, will bring a small profit.
In the morning you spent 20 dollars on buying another kind of currency, and in the evening sold it for 22 dollars. Your profit is 2 dollars. It is clear that in order for it to become weighty, you need to make much higher investments. Also, brokers offer the opportunity to choose your own leverage and choose its level independently.
Making money in Forex - Photo credit: ironcoveins.com/blog/
Leverage is the ratio of your money to the money you borrow from a Forex broker. So you have a dozen, you choose leverage of 1:10 (one to ten) and you have a hundred. It is clear that this hundred is exclusively for trading on Forex. You cannot put this money into your pocket. And if you fail, you owe your broker.
But, as already noted, a beginner in Forex cannot be overconfident and, if in doubt, do not start the operation. And if you do not have cash in principle, then taking a loan is a very stupid step.
By the way, low-quality work of your broker can much harm the work on Forex. After all, it is he who carries out your orders on the stock exchange and in case of his sluggishness, you will have an inevitable loss. And the Forex market works in such a way that you cannot trade without a broker.
Making money in Forex - Photo credit: asmororendra.blogspot.com
Forex Trading Rules
So, here are a few rules for those who want to start earning on Forex:
Collect as much information as possible about the stock exchange, the rules of its work, participants, intermediaries. And ask for information not only from the websites of intermediary organizations, which often show only the positive moments of trading on Forex, but also information from independent sources (traders forums, experiences of friends, etc. Forex is the very case when it is better for a beginner to start practicing after obtaining good theoretical knowledge.
Familiarize yourself with the risks that may arise in various situations. Evaluate how much you are willing to risk, and the loss amount that will not bring you significant material problems. In short, be ready for the worst, since it is you who bear full financial responsibility for all unsuccessful transactions with currency, force majeure, etc.
Forex trading guide - Photo credit: twitter.com
Use Forex tools such as forecast and analysis, especially if you are a beginner. Forecast and analysis are based on monetary and financial, economic and political news. Of course, you can not trust the market forecasts, but can a beginner predict better? Trusting the forecast from Forex and playing for small amounts, you can earn at least something. After all, similar situations occur on the market regularly, allowing you to develop an algorithm of behavior. Technical analysis is signaling the best moments for opening and closing deals, and it is saving your time to study the situation.
Do not rush to earn all the money in the world at once! Having received a certain profit in Forex, do not lose the sense of proportion: just a few minutes more, and you can lose all your earnings. It is necessary to learn how to use the functions of limiting the level of profits and, most importantly, losses. In case of an incorrect forecast for currency prices, the transaction closes automatically, which can save your capital.
In general, if you have already decided to devote your time to conquering Forex, then take it very seriously, and everything will work out.
Currency market - Photo credit: ugbbcapital.blogspot.com
Some Tips From Me
First, remember: Forex - this is not an easily available freebie! All work in Forex is pure speculation. Moreover, speculation on not something real, but on air. And there, where is speculation, everybody cannot benefit. And the more air, the less those in a plus.
Secondly, success in any type of activity usually comes to the beginner with experience. And with regard to Fforex speculation, the experience is especially important. Plus, achieving a result in any normal business takes time, and in the case of Forex, it also takes money.
Thirdly, besides the well-known drawbacks of gambling, Forex has one more: there is always an intermediary between you and the exchange, on which a great deal depends. In general, Forex for a beginner cannot be called the best option to make money. And for non-beginners too. There are more simple and clear ways to generate income on the Internet. And first of all, it's Bitlanders. There you do not risk anything.
But if you didn’t stop everything written above, go ahead! Good luck!
Top 5 Forex Trading Tips For Beginners - Video credit: UKspreadbetting via Youtube.com
On The Final Note
For the beginners, it is essential to learn how to keep up their capital, not to grow up it. The main goal is to cut the risk. The easiest way to do this is to trade in the long run. As a rule, beginners Forex traders do not understand that the most successful traders earn from long-term trends. They open their orders for weeks, months or even years. In this way Forex works more like an investment than a lottery.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss in excess of your initial investment.
Credit: dailyfx.com
Trading for the long run, it is important to have patience and choose small volumes. At the same time, you will spend less time at the computer and therefore, will have less stress. Of course, math is also important in Online Forex trading. Fortunately, traders have a few simple ways to calculate the balance, leverage, and trading volume to cut the risk. But about that, we will talk next time.
If you expect Forex trading is a venturesome, simple, and fun way to make money, then go to the casino. There you will get drinks, will spend time with your friends, and have fun.
Forex Trading Basics For Beginners - Photo credit: investopedia.com
Forex is a complex business, and it requires your diligence, long-term commitment, and attentiveness until you start earning a stable income.
And if you manage to understand Forex subtleties, you manage to earn good profits by trading just a few hours a day.
SUCCESS!
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