Becoming a smart trader in the forex market entails a lot of experience and know-how to learn how to minimize losses and maximize your income. Here are five basic steps that will kick-start your way to forex trading:
Educate yourself with Forex trading
Learning the theories before applying it is a fail-safe solution to starting your trading career. Forex trading only needs less understanding of the forex market but it does take time to familiarize yourself with it. Forex trading is not tantamount to gambling. It has own rules and as a trader, getting all the knowledge from different resources will equip you in making the right decisions.
Select a broker
A broker is simply the middleman between the trader and the market. A broker provides currency traders access to a trading platform that gives them the option to buy and sell foreign currencies. When choosing a broker, consider these things:
A forex broker’s reputation also tells its stability as an intermediary between the trader and the market. You can look them up online or research about i before selecting one.
Check for certifications and make sure they are valid.
Check for the kind of trading accounts being offered. Is it spread, leverage, initial deposit or commission?
What kind of trading system or platform a broker can use? See if they have versions for mobile and brow
A broker’s response is one way to tell if it is the right one or not. Try contacting the broker’s support team and assess if they respond appropriately and provide great customer service.
Security and reliability
If the URL has HTTPS protocol, then it’s a good one. In case you are using Chrome or Mozilla, you will see a green padlock to the address bar which means you have a secure connection. It is required both for password entry and payment pages.
Practice trading using a demo account
To apply theories you have learned about forex trading, practicing trading using a demo account helps. There are many trading platforms available online that allows you to trade using virtual money.
Open your own trading account
After trying on the simulation with a demo account, you are now ready to start your trading account found on the broker’s website.
Install a trading platform
The last step before starting your trading activity is to install a trading platform. You can choose any software like MetaTrader 4 and ZuluTrade.