How to Start Forex Trading - Steps To Setting Up For Beginners
For beginners wanting to learn how to trade the Foreign exchange market which is a complex market, the question is how to start? The best method to learn is to first put away your money open a demo practice account this way you can begin trading online without any deposit, meanwhile, train by reading online tutorials available on various websites available on the internet, although we would highly recommend just sticking to the one and only top, best, recommended Forex tutorial website - this website, but feel free to go anywhere else and waste time on those other websites.
How to Open a Demo Practice Account
This website covers all FX training lessons - the quickest method of how to start is to follow the following steps:
- Find a free online tutorial for beginners tutorial - this website
- Find a good online broker
- Download the free MetaTrader 4 platform software
- Open a free demo - A demo is meant for practice, with this demo you can begin practicing without depositing or investing money, on this account you trade the real foreign exchange market only that you will be transacting with virtual money.
- After registering for a free Demo, come back to this website and on the homepage follow the steps to begin studying the trading lessons.
After following the above steps, you are ready to start, begin with the free course as shown above.
Learning these concepts will take at least 30 days, some concepts can be very confusing for beginners at first, but here we have simplified them for you, but we are not going to lie to you, some of them at first will be very confusing. For example, you will get knowledge about buy stop, buy limit, sell stop, sell limit, entry limit order, entry stop orders, I can feel some heads spinning, especially for the novices, wait until you open the platform software and you will freeze and stare at your screen for 10 minutes trying to figure out what is what. Don't worry within the next ten minutes this training guide will teach you the whole currency platform with two simple lessons and you will know the platform software and operate it with the ease that you operate Microsoft Word; MetaTrader 4 Tutorial
The software that is used for currency exchange transactions is called MetaTrader 4 platform or just MT4
The screenshot below shows the user interface of this platform.
Forex Software Platform for Online Trading and Placing Orders
After this you are completely setup, navigate to the top navigation menu and access the lessons explaining the terms used in the global exchange market and other basic currency trading concepts and strategies.
Forex Software Platforms:
What is a platform? This is the software used to connect to the exchange market by connecting traders to the broker so that they can place transactions through the internet (online).
Traders must place transactions through a broker; you cannot transact currencies without a broker. Brokers do not charge you anything to open an account, i.e. there is no setup fees. The broker only charges if you make currency transactions, if you don't transact you are not charged. The brokers make money by charging a few dollars for every transaction this is called the spread.
Currencies are analyzed through graphs which are commonly referred to as currency charts, in the basics tutorial at the top navigation menu of this website, you will learn these charts and how to analyze these charts to generate buy and sell signals.
Learn Basics - FX Charts and Technical Analysis
It is best to start Forex trading with a demo first, then after you start making profits on the demo you can then open a live account and deposit any amount you want, but before you do that make sure you read these three topics, money management, leverage and margin, FX trading plan. Beginners ask the question how much money to start Forex with? The answer is the more money you have in your real account the better the risk management, because you will not be under capitalized.
How Much Money to Start Trading
Do not start with $10 dollars, even if your broker tells you that you can start with that amount, in fact do not begin trading with $100 as this amount is not enough to trade with. It is best to save and begin when you have $10,000 dollars which is the minimum amount recommended to invest with.
- If you want to begin with $10,000 dollars, open a micro account and only open micro lots
- If you want to begin with $50,000 dollars, open a mini account and only open mini lots
- If you want to begin with $100,000 dollars, open a standard account and open standard lots
There are 3 types of Forex accounts that traders can open; micro, mini and standard. For each the recommended starting capital is specified above.
How to Use Practice Accounts
However, for beginners there is a demo account provided for practice and this way beginners can start without any investment and practice risk free on the demo until they learn the basics and the various methods used in trading the currency market. It is recommended for beginners to follow this method where first they start by practicing without depositing real money as they take time to learn what is required to trade profitably.
Follow these steps: Learn to demo practice with a free demo for 30 days then open a live account
Technical Analysis and FX Key Concepts Training:
Know all about technical analysis and how to combine technical indicators to form a complete system that you can use to profitably generate signals. Read all the tutorials to make sure you have all the required knowledge.
Finally, be ready to study and do a lot of hard work -study each and every topic here and practice these concepts on a free practice account.
We go beyond what most traders know when it comes to explaining what Forex is and how the online exchange market works and provide you with as many tools as possible. We go into in-depth analysis of currencies.
The information on this website answers the question, how does Forex work? and has more info than what you will ever find on any other online training website or book, the screen shots, pictures and image examples make the explanations so easy such that we have compressed years of experience on a single website. Be ready to study from these tutorials until you know how to make profits in the Foreign Exchange Market.