If you study all the existing materials on the Forex market, then trading will seem easy. But it will take many years. And the main goal of the trader is to make a profit, not endless study of the theory. In order to learn how to start trading on Forex, you need to complete only nine steps.
1. Choosing a broker
Given the abundance of offers, this is not easy to do. Select several companies that have successfully established themselves in this field and select the one that provides the most favorable conditions.
2. Opening an account
Choosing a broker, we open an account with him, which can be of two types: demo and real. The first is designed to familiarize yourself with the market and makes it possible to train and adapt. If you know how to trade on the exchange, you can immediately open the real one. Since there are many different types of real accounts, before the opening procedure, familiarize yourself with aspects such as spread, commission, leverage , etc.
3. Installing a trading platform
This is a necessary step in order to understand how to trade on Forex. After all, all transactions are made through the platform. It also makes it possible to monitor the current market situation and conduct technical analysis. There are currently four types of platforms created. The most popular and convenient is Metatrader.
4. The selection of currency pairs
Beginners are usually recommended to start with a pair of euros / dollars, since there, on the one hand, there is no high volatility, and on the other, the most transactions are carried out. And it is for this pair that a lot of tools have been written (indicators, strategies, etc.), with which you will better learn about how to trade on Forex.
5. Mastering technical analysis
Before opening a transaction, it will not be superfluous to do this type of analysis. This is a very painstaking process, therefore, to optimize and speed it up, it is better to use special programs or read ready-made reports of analysts.
6. Strategy development
The most popular answer to the question of how to trade Forex profitably is to develop your own strategy. If you do not want to do this, then you can use the existing ones. Sometimes even freely available strategies bring good money.
7. Opening an order
After completing the preparatory steps, you must open a position. To do this, in the established trading platform, select "Open order" and indicate the amount of currency and other parameters. After we click “Buy” or “Sell”, and our first transaction is open.
8. Taking profits
Now your main task is to determine the closing price of the order. You can register it in advance, well, or wait and close the deal manually. The margin of profit for each trader is different and depends on the degree of his greed and market situation.
9. Loss fixing
If the price moves in the direction we do not need, then we must manage to close the position with minimal losses. As in the case of taking profits, this can be done either manually or by setting a stop loss in advance.
The question of how to trade on Forex is inherently very capacious, and it is difficult to answer it within the same article. In general, you can give a full answer only yourself after many years of hard work in the foreign exchange market.
Have a good trade!