Foreign currency trading (or forex trading) may be something that you’ve always wanted to dive into and explore, but never thought you could because of the daunting nature of the industry. Well, even though it is quite daunting and can be pretty complicated at times, anyone can break into forex trading with the correct knowledge, training, and lots of practice. But with the extensive nature of the Internet, it can be tough to figure out where to start learning. This beginner’s guide will give you the boost you need to get started in the big wide world of forex trading.
Know the Basics
Forex trading is like learning to drive a car. You’ve got to learn the basic theories and information behind it before you can get hop behind the wheel. Start at the beginning with the “eight majors” – the top currencies used in trading. One of the most crucial things to know in forex trading is that currencies are always traded in pairs, known as currency pairs. When trading, you are effectively selling one currency, buying another, and paying/earning country interest on each, respectively.
Seek Out the Experts
Just like trying to learn the piano, guitar, or any other instrument, it’s best to learn forex trading from someone who already knows what he or she is doing. Seek out mentors or trading educators through sites like LinkedIn to find someone who can share their knowledge with you. Trust me, it will make your life a whole lot easier, so you don’t have to attempt to figure out this complex industry all on your own.
Along the same lines, you want to shop around and find the best broker for your needs. Online brokers, such as Portex Markets, will provide you with quality trading platforms and a host of other benefits that will help you in your forex trading journey.
Figure Out Your Personal Forex Strategy
There are tons of forex trading strategies out there for you to choose from. The key is for you to choose one strategy that works for you and what you want to achieve, then stick with it. Take the advice of the experts you sought out from point #2 and ask them which strategy is best. Then, take that strategy and run with it. You’re going to have much more success if you stay with one strategy, rather than constantly shifting from strategy to strategy.
Practice Makes Perfect
You might be tired of hearing this old adage every day of your life, but you’re going to hear it again just this once! OK, I can’t promise you that you won’t hear it again, but I can promise you that it rings true, even in the world of forex trading. Before you commit cold, hard cash to the trading world, paper trade on a demo to really understand the ins and outs of the system you’re going to be using. The last thing you want to do is lose cash first hand because you didn’t take the time to practice!
Patience is the name of the game. It really is a virtue! If you’re looking to make consistent money in forex trading, you need to train yourself to be patient and think long-term, rather than in the short-term. You might get pretty frustrated at the start because of the complexity of the trading world, but if you’re patient and really dedicate yourself to the trade, it’ll pay off down the road.
So, there you have it! You can now call yourself an official beginner at the wonderful world of forex trading. It’ll take some time until you can be called an expert, but don’t worry – everyone has to start somewhere. Keep learning, stay patient & disciplined and you’ll get there in no time.