With a 24-hour trading environment five days a week, the Forex market is one of the most active financial centers in the world. Due to the fact that the biggest foreign market exchanges are located in four time zones (London, Tokyo, Sidney, and New York), everyone has the opportunity to trade, no matter what time it is.
We are going to introduce you to 5 easy steps to start your forex trading journey. Take this as a step by step guide and you can start trading with confidence.
Know the basics
As trite as it may sound, the first step to start trading is through education. By watching videos and listening to podcasts, you will become one of the knowledgeable traders, which is a huge advantage at the beginning.
Knowing the basics will always keep you one step ahead. Note that the trading platforms offer demo-accounts where you can always practice theoretical knowledge and hone your skills. Download MT4 for PC and start practicing now.
Select the Forex broker and open an account
Choosing a broker and opening a brokerage account can be considered the next step towards starting the trading process.
Carefully study the market of brokers, compare all the advantages they offer and choose the most suitable for you.
Based on factors such as:
After that you can already open an account to carry out the trading process. Notice that there is an option to practice on demo-account before starting trading with your own money.
Select the strategy
You need to have a strategy to know what to do and where to go. A trading strategy serves as a guide what actions are taken when things go wrong or if unforeseen economic circumstances arise that could change your trading process.
Here are some trading strategies:
- day trading strategy
- trend trading strategy
- scalping trading strategy
- position trading strategy
Select the trading instrument
When we talk about trading in the forex market, we primarily mean trading in currency pairs. The most popular of them are: EUR/USD, USD/JPY, GBP/USD.
If the broker offers other trading instruments (stocks, futures, cryptocurrency), then it is up to you which one to choose for variety in the trading process.
Select the trading platform
After all, you need to choose a trading platform. One of the most appropriate options for Forex trading can be Metatrader 4 or MT4. It offers basic charts, tools and indicators that every trader needs to start making profitable trades right away.
The article presented 5 basic steps that you need to take to start trading on Forex. You should not forget about constant monitoring of the market and risk management. By combining these factors with the steps we told above, you will succeed in the industry very quickly.