Forex trading for beginners
Forex trading starts by registering a newbie on the broker's website. It is a company that connects traders to the global market. Usually, registration is quick and easy, as the client specifies the name, surname and other data. Once the profile is created, the new user downloads the trading platform - either Metatrader 4 or 5 or the terminal configured by the brokerage staff.
You can trade on your computer or mobile device. Instructions for working with the trading platform are available on the broker's website. After installing MT4 (or another platform), a novice opens it and sees the charts of major currency pairs. The terminal allows using dozens of indicators and metrics for market analysis.
A beginner should work on a demo account with virtual currency. The only difference is that this money cannot be withdrawn to a bank card. And in the other case, the demo Forex trading for beginners is the same as the real one. A newcomer can try out the assets of interest using virtual funds and train his skills with trading strategies. After that, you can switch to real markets.
To trade with real money you need to go to your cabinet, open an account for dollars, euros or other currencies and click on "Deposit". You will open a page where the broker offers various systems for depositing funds such as bank cards, internet systems, electronic wallets, etc. The assortment depends on the broker.
Trading Forex - what to pay attention to
All currencies on the market are denoted by three Latin letters: USD, EUR and so on. You sell one for another. For example, the EUR/USD rate is 1.2, which means that for 1 euro you have to give 1.2 dollars.
If they say that EUR/USD has grown to 1.3, it means that for 1 euro they give more, 1.3 dollars.
If EUR/USD has fallen to 1.1, it means that for 1 euro they give less, only 1.1 dollars.
The first currency in the pair means that all transactions are made with it. EUR/USD means that you sell or buy euros for dollars. The reverse pair USD/EUR denotes that you are selling (buying) dollars for euros.
The price changes in pips. One pip is the smallest possible change. If the price changes as predicted by the trader, he earns several dollars per 1 pip. If the forecast is wrong, then several dollars per point are lost. Online Forex trading program calculates everything by itself, and you see on the screen the clear values in dollars, euros or other currencies.
The main question for Forex trading
Now, the central question of all traders sounds like this: What to do now, buy or sell? How will the price change today, tomorrow, in a week?
Technical and fundamental analysis is applied for the forecast. The first includes an examination of the chart with the help of select indicators, the second one - the study of factors that affect the price: politics, world economy, etc. The prices are displayed with the help of Japanese "candles". They indicate:
the maximum amount at the beginning and end of the day
the opening and closing price of trades
as well as the rise or fall of the rate.
The charts are drawn at intervals of one minute, half an hour, a day and several days.
These are the principles on which the participants of financial markets trade manually or using robots. There are as many strategies as there are traders in the world. Beginners can benefit from social trading, copy trading and expert advice. Relying on the experience of lucky masters, you can learn to trade successfully on your own.