How to start trading forex? Knowledge is power. This age old saying is true in all walks of life but maybe even more so in the world of trading.
Whether you are online trading forex, stocks, Bitcoin or wider cryptocurrencies, understanding how to act on that knowledge has the potential to bring truly great rewards.
Without question, every long term successful trader is aware of what is happening in the markets in order to make the best decisions. The question then is how much time do you have to devote to your portfolio and where will you choose to spend your valuable time?
LEARN HOW TO START TRADING FOREX, STEP-BY-STEP
Time needed: 1 hour and 17 minutes.
- What Is Forex? – c. 5 minutes
An introduction to the forex market, the difference between majors, minors, and exotics, plus a basic overview of some beginner level trading terms.
- Forex Market Open Times – c. 5 minutes
The 4 main forex sessions broken down throughout the day, with the key ‘overlaps’ on trading periods highlighted with their corresponding volume averages.
- Beginners’ Guide To Charting Software – c. 7 minutes
The first look at what is charting software and how traders use them. What are the free charting software available, what do the different charts look like, and a simple way to turn charts into one of your best trading tools.
- Trading Charts and Indicators – c. 9 minutes
As we have covered the introduction to charts in step 3, it is time to look at what types of indicators you might be using on your charts. We take a look at some of the most popular trading indicators that are used to determine the most suitable entry, and exit points on a trade.
- Fundamental Analysis Forex – c. 7 minutes
A brief overview on what is fundamental analysis Vs technical analysis and what key data points one might look to when considering a fundamental analysis on a currency.
- Forex Risks – c. 8 minutes
We take a look here at some of the biggest risks you will encounter when conducting forex trades and how you might go about mitigating these. A dig into external as well as internal risks.
- Top 3 Tools for Forex Beginners – c. 4 minutes
Now you know a little more about some of the forex basics, here are 3 simple steps that you might want to take before engaging in real forex trading. These ‘tools’ could be considered as real essential introductory steps that will help you prepare for real trading before you commit any of your own funds.
- Minimum Deposit For Trading c. 5 minutes
A guide to the different types of trading accounts you might encounter with various brokers, or trading platforms, along with the typical minimum deposit levels you will find. Please Note that the minimum deposit offered by the platform is not necessarily going to give you the best opportunity to execute a proper trading plan.
- Global Forex Regulators c. 7 minutes
We delve into the regulatory bodies that govern the forex trading industry around the world, considering some of their differences as well as what they are there to provide to the trader. You will also find links to each of the global agencies and their regulated broker registries.
- Is Forex Trading like gambling? c. 6 minutes
Here we will consider the similarities and differences between forex trading and gambling, and how one might go about keeping their trading to a responsible level by having a clear plan.
- Managed Forex Accounts c.14 minutes
A deep delve into the world of managed forex trading and forex accounts for those considering the ‘hands off’ approach to trading. We cover some of the big forex scam warning signals to look out for, as well as introducing some other options to a managed approach for lower entry levels to the marketplace that will also give more flexibility to you as a trader.
Get A Forex Education
Events calendars, charts & fundamentals, trends, analysis and broker announcements could end up dictating large portions of your time if you let them but if you are serious about profiting from trading this would be time very well invested.
There is a clear list of market relevant events which is worth familiarizing yourself with (calendar) before the days and weeks ahead and you definitely need to keep an eye on some of these events before you begin to start trading forex.
Make sure you understand the basics of forex trading, invest some time in your forex education and come out the other side prepared to trade for real.
Tony Blair won office as UK Prime Minister in 1996 with his policy of “education, education, education”. To make money trading forex you need to heed those words of education and remember that school can be one of the greatest times of your life so don’t forget to enjoy it.
We have our own mantra of 3 L’s, learn forex, leverage forex, love forex. If you learn you will be able to leverage for gain and love then just comes naturally.
Before You Start Trading Forex, Have A Trading Plan
In all serious undertakings you need to have a basis of a plan so before you start trading forex make sure you have a plan. You would not dream of having a house built without looking at the plans first and you could likely not climb a mountain without incident if you fail to first plot your route.
Do not expect your forex journey to go according to plan, which likely involves making money, without knowing what success looks like and what path can get you there.
We recommend that whatever your level, create a routine that gives you all you need to know within a manageable capacity. Remember not to be overwhelmed by the volume of market noise. Keep the calm by planning well and know what you are looking out for.
Your forex plan can involve a number of trusted resources and insights
If that all sounds like a bit too much, feel free to use our trading news feed to get the most relevant forex information and straight forward interpretations to do some of the work for you.
Leverage Forex has a team of contributors who are devoted to providing the best information with the minimum of jargon. The aim is to help our community create the best trading strategies that really work with the holy grail being simple – a profitable trading account providing an income for years to come.
Leveraging knowledge is essential to start trading forex
Find The Right Forex Broker Before You Begin Trading
The goal of the LeverageForex community is help our community begin to start trading forex, to share both the method behind behind building a successful trading strategy and the right broker to compliment that.
It may seem obvious but selecting the right broker for the product and style you will be trading can be crucial in ensuring you get to keep as much of your portfolio working for you as possible without sacrificing the things that you will need by going too ‘lean’ on broker services.
Feel Free To Use Multiple Brokers
Many traders will have different accounts with separate brokers to fulfill all of their trading requirements as each have different USPs. There are various different types of brokers, and not a one size fits all scenario. Some brokers will have dedicated sections on how to start trading forex themselves, built out as an educational offering.
Someone looking to trade major forex pairs 90% of the time with a minor taste for exotics or cryptocurrencies will have a very different broker need from somebody looking to trade exotics or crypto in the majority. The broker used for the 90% of activity may not be the right one for the other 10% of activity and in most cases, they wont be.
Knowing your trading intentions, likely markets and your style will help you to choose the best brokers for you. We have broken down swathes of reviews and done the hard work getting to the bottom of the truth, who is the best broker for trading?