How To Get Started in Forex Trading – A Newbie Guide

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How to get started in forex trading

Overview

Trading is an activity that has gone from being limited to large corporations, banks, and other participants, to any individual becoming a trader, with some even choosing it as a career path.

Beginners to forex trading may feel apprehensive and intimidated by the sheer size of the forex market. However, its size is one of the aspects that makes it so easily accessible. The volumes which are traded on the forex market make it extremely liquid, this ensures that orders can be executed fast, and it also lowers the cost of transactions.

This means that new traders can start trading with extraordinarily little capital. In addition to this, there are also numerous regulated brokers that make ample provision for beginners by offering cent trading accounts, where traders can trade in a live environment without risking a lot of capital.

However, even though this all seems exciting, beginner traders must start with the basics of forex trading before they can start trading in a live environment.

Forex Trading Education

The first step towards becoming a forex trader, is for traders to educate themselves in forex, the financial markets, what drives prices in these markets, and how live trading environments work.

There is a wealth of information available that beginners can use to educate themselves. Educational materials, resources, and tools are offered on the internet and requires a simple search. Traders can search especially for the following:

  • Guides and tutorials
  • Videos
  • Webinars and seminars
  • Practical and interactive training sessions
  • Trading training academies, and more.

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Choose a Forex Broker

When choosing a forex broker, there are several factors that beginners must consider and use as criteria to evaluate brokers before choosing one:

  • Regulation and security of funds.
  • Fees, spreads, commissions, and all other trading and non-trading fees, and the transparency of such fee schedules.
  • The ease with which deposits and withdrawals can be made.
  • The trading platform offered.
  • Education and resources offered.
  • The ease through which traders can contact customer support and receive help, and several others.

Open a Demo Account and practice

Once traders have selected their broker, they can proceed to register a demo account with their broker. This allows them to explore what the broker offers and, more importantly, provides them with a way to practice trading in a mimicked live trading account without risking their funds.

Compile a Trading Plan

This is a crucial component of trading and must include the trader’s goals, risk tolerance level, methodology and their evaluation criteria. Once traders have this in place, they must make sure that each trade they execute falls into the parameters of this plan.

Not only does it cultivate self-discipline, but it may be the one thing that stands between failure and success, especially where beginners are concerned.

Start with a Cent Account and start trading

Beginners are advised to choose a broker that offers a Cent Account for the simple reason that it is still a live trading account, but everything is indicated in Cents. Even though traders will not make substantial profits on such an account, it also means that they will not face substantial losses.

Learn more about forextrading on forextrading.africa

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