GUIDELINES TO TRADING FOREX
The following outlined steps can help you equip yourself to begin trading Forex.
GET AN ADEQUATE ONLINE FOREX BROKER
You can easily open a trading account with an online forex broker Irrespective of your location or region. You can open an account as long as the forex broker meets all your requirements as a trader, and is allowed to operate within your jurisdiction.
Make sure the forex broker is regulated by renowned regulatory bodies, like the Financial Conduct Authority (FCA), and also ensure that they abide by the rules and regulations that ensure the safety of their trader’s funds.
If your using a trading bot with a Hedging strategy in the USA this is prohibited, however we do have alternative brokers to work around this obstacle!
A trading robot will trade your account automatically and is perfect for beginner traders as it will give you instant profits as you can see in the photo below!
(Simon has been a member of ours for almost 3 months now!)
Click here for more information on the Forex trading robot
OPEN A TRADING ACCOUNT AND FUND IT
After you must have chosen a good forex broker then you go ahead to deposit funds into the account. There are several ways provided for depositing funds, depending on the first broker, it could either be through credit/ debit cards, bank wire transfer, and electronic payment methods like PayPal or Skrill.
ACQUIRE A GOOD TRADING PLATFORM
After opening and funding an account, you’ll be given access to a trading platform, or you’ll be provided with a direct link that can be used in downloading a trading platform. Several brokers offer their trading platform and also provide a 3rd party trading platform such as the MetaTrader5 and 4 platforms.
LINK YOUR DEVICE TO A STRONG INTERNET CONNECTION
To start trading forex you need a device with and internet connection, it could be a smartphone, tablet, laptop, or a desktop, (Ideally a windows laptop with a direct ethernet connection), this will give you the connection possible because if there’s any disruptions in your internet service it could effect your MT4 connection and lead to losses.
The reason we mention a windows desktop PC when your starting to trade Forex, is because the process is a LOT easier to set up your MT4 account and download it onto your desktop, if your using mac the processes is a little trickier.
TOP TIP – What we recommend if you are a mac user is buying a cheap windows laptop from Facebook marketplace and using this to dedicate to your Forex trading
After the completion of all the required steps, you are now ready to start trading forex. Before you fully delve into the forex market with real funds, it is advisable for you to first test your trading skills as strategies using a broker’s demo account. It gives you the ability of trading forex with virtual money. By doing this you’ll gather practical knowledge on how the fire market works, without you having to lose real funds.
FOREX TRADING STRATEGY TYPES
Once you’ve started trading forex with a live account using a trustworthy fired broker, you need to strategize a good trading plan that will increase your chances of earning more profits in the market. Several strategies can be used, you can also use more than one strategy, depending on what you want. The following outlined strategies are the most commonly used forex trading strategies by forex traders. Click here to join our FREE signals group where you will benefit from the experience of our professional traders
The scalping strategy is one of the most used strategies among Forex traders. It is the act of profiting from short-term market moves. This set of traders that use these strategies enter and exit the market quickly to catch a few pips of profit.
This strategy entails the entering and exit of positions throughout the day. The trader ensures to close all positions at the end of the day. Day traders always avoid the risks of keeping positions open throughout the night.
This strategy involves buying low and selling high. It’s the act of entering a trade based on signals given by momentum technical indicators such as the Relative strength index indicators.
This trade involves opening positions and holding the positions until the trend ends.
there are three key factors to profitable trading:
- You need to master the art of reading and understanding charts. The best way to master how charts work is through price action. Many professional traders use this method. Once you’ve been able to master the art of reading charts, you’ll be able to deduce when a market is increasing, declining, or going sideways. And with that, you’ll be able to choose the right strategy to apply in the direction.
- Make sure to trade Forex using a tested and trusted strategy or more than one strategy. By doing this you’ll be confident to stick to the strategy when the market dwindles.
- Make sure to trade using a solid trading system. A properly well-designed trade followed by a good trading plan that has been proven to work overtime is one of the essentials in generating profits in trades. A successful trade isn’t all about a good strategy, but also a good trading system.
HOW TO DEVELOP A GOOD FOREX TRADE PLAN
A good trading plan needs to be developed before entering into a trade. Entering the trade market without a plan is like traveling without a destination, you’ll be lost and probably stuck wondering. So the best thing to do is to put up a good trading plan that embodies a trade g strategy that you have been proven to work overtime and stick to it.
A good trade needs to consist of good risk management and money management strategy. Choosing the right trade that matches the amount of deposit in your account can positively affect your trading performance.
Another thing you should note is when to leave a trade. Most traders tend to linger in a losing trade with the hope of it’s value increasing, this is not a good idea, there is always a next trade that would be profitable. Always ensure to use limit orders in your trades. Properly set your stop loss and take profit orders. Once your market hits your stop-loss orders, close the position and move to another trade that’ll generate more profits.
Instead of taking the whole day trying to come up with a good trading plan. You can always join a social trading platform and duplicate the trade of another professional trader, that has been proven to be accurate.
The forex market provides the opportunity of finding trade openings at any time of the day. Also, you can easily start trading with as low as $10 depending on which broker you decide to use. You can always trade using leverage which gives you more chances to open more positions.
But also note that trading using leverage can be a risk as well. It goes both ways, it could either favor you or result in loss of funds. This is why it is advisable to use a reasonable leverage ratio when trading. We have variety of options to help people enter the world of trading, just please remember that it takes years to really master your craft, this is why we have profitable solutions for you (Signals/trading robots) that you can use to start making profit in the Forex market from day one while you learn how to trade by yourself.