Recently, Forex trading has become one of the most popular online deals that attract attention worldwide. Almost no financial or tech enthusiast did not want to try to do this job.
Those who encounter the term “Forex Trading” for the first time should keep in mind that it is a matter of trading one foreign currency for another. Traders make money by increasing the value of the purchased currency.
It all happens on the current, biggest decentralized financial marketplace globally, known as the Forex market. Available to traders and investors 24 hours a day for more than 5.5 days a week, with a daily turnover of $6.6 trillion, it’s no wonder why people rush to try doing it.
If you are among these Forex enthusiasts, we’ve provided you with a simple step-by-step guide on starting your trading career today. Let’s begin, shall we?
#1 Choose a regulated Forex broker for your trading
The first step towards a successful Forex trading career requires choosing a regulated Forex broker of the highest quality, where you’ll open your brokerage account. Regulation of a broker means that a financial service body regulates your preferred financial service company allowing you access to a trading platform for foreign currency exchange.
Choosing a regulated broker is crucial because plenty of unregulated brokers are usually scam sites made to steal your personal information or bank/credit card details. Thus, while choosing the right broker, make sure it is regulated by financial institutions, such as the National Futures Association in the USA.
#2 Find the best trading strategy for your goals
After finding the right broker and opening your brokerage account, it’s time to choose the best Forex trading strategy for your goals and needs. We highly recommend finding the best forex strategy for consistent profits and sticking to it if you are seriously interested in a long-term and successful career.
If you are a short-term trader, two possible trading strategies may be considered. The first one is the day trading strategy, where you’ll be buying and selling currencies within one day. The second one is trend trading, which requires using technical indicators to identify the direction of the marketing momentum.
On the other hand, if you are more of a long-term Forex trader, the strategy that we highly recommend to you is the positional trading strategy. It’s a foreign exchange strategy where you’ll hold positions for more extended periods. It can usually be from months to years.
#4 Pick a currency pair and practice trading
Besides choosing a regulated and relevant Forex broker and an adequate trading strategy, you should also pick a currency pair you wish to trade. Currently, on the foreign exchange market, the most popular currency pairs are EUR/USD and USD/GBP, but you can also choose among numerous other currency pairs that your broker offers.
Once you choose a currency pair, it’s time to practice as much as possible with your strategy. Sometimes you’ll have to try harder and get over hard times since more than 85% of beginners quit Forex during the first couple of months and have unrealistic expectations.
If you are persistent and hardworking enough, you’ll have a great chance to make your trading goals come true. The key is not giving up on trading, no matter what! Good luck!