Planning to become a Forex trader? Then you’re exactly where you need to be! Here you’ll be able to learn how to start your trading journey in 5 simple steps. So to become a trader in the largest market in the world, keep reading!
The Forex market is a great starting point for all kinds of traders! So whether you’re a beginner or a seasoned trader, a position trader or a day trader, this market is suited for you. Plus since it’s the largest market around, this makes it the most liquid as well, meaning there’ll be little to no added fees.
So to start trading with Forex, down below is a step-by-step guide on how to do so!
How Do I Start Trading In Forex?
Starting your journey in Forex is relatively easy. Basically, someone handles your account but the strategy, choices and money are all you. So before getting into Forex trading, know more about how it works, its pros and cons, dos and don’ts and so on.
Knowing a hefty sum of things will make your trading process easier and swift. Plus, knowing more about the market can help you construct better strategies, plans and decisions. So to help you out, here’s a simple guide on how to start trading with Forex:
Choose How You’d Like To Trade
As mentioned above there are various ways to trade in Forex. Every step, aim, profit, and trading range are dependent on the kind of trader you want to be. But once you know what type of trader fits you best, everything else will fall in place.
Open An Account
To open an account, you simply need to register with a broker. There are various ones on the web, that all come with their own benefits, fees, regulations and processes. So before actually opening an account, you have to find a brokerage perfect for you but once you do, this is how you make an account:
- Head over to the brokerage’s website and click ‘Register’ or ‘Sign Up’ afterwards and fill up the standard form. This will require data such as your name, date of birth, phone number, email and so on.
- Afterwards, you’re going to need to provide a username and a password. Make sure it’s reasonably hard but something you can remember.
- Then you can start and log into your account to see if it works. You can do this through any device like a computer, laptop, mobile phone or tablet.
- Lastly, click ‘Open Account’ after selecting the type of real account from the list.
Create A Trading Plan
Before trading, you first have to come up with a plan. This is to have a clear and organized vision to reach your end goals. Without a plan, you’re simply aimlessly trading around without a concrete plan which can make you lose more money in the long run.
This is why knowing the market first, before heading in, is essential. This can help you create realistic and effective plans when trading. Plus you’ll know what to expect from the market and can create ways to avoid risks and losses.
Come up with a plan that will work for you. Don’t copy other traders’ techniques since some things might work for others that might not work for you and vice versa. So construct a strategy that fits your ways better.
Pick Out A Trading Platform
Once you have a plan in place, the next step is to pick out a trading platform you’d like to work with. Various kinds offer exceptionally great features and tools. So before settling with a trading platform, do your research and map out your options.
Getting a great trading platform perfect for you and your trading needs can significantly help your trading career! To give you an idea of what to look for in one here’s a list:
- Good Reputation
- Great customer service
- Low fees
- Low initial deposit
- Little to no limitations on withdrawals and deposits
- Great analysis tools
- Has learning material (Webinars, blogs…etc.)
- Available currency pairs
- Great leverage and margin
Last but certainly not least, start trading! Once you’ve completed every step you can now start and make your first trade. Remember, this market is volatile so it’s crucial to keep a close eye on your position and monitor it frequently.
Once the market is where you want it to be, you can close your first position and are now officially a Forex trader!