How to start forex trading as a beginner? First, when you learn the basics, as you will find out below, you should think of starting with a demo account. A demo account is one that you can open for free with free credit, but you must match the free credit with the money you can afford in real life.
How to start a forex trading as a beginner?
Why did I bring this up earlier? Because it may have an impact on your trading in the future. If you open a demo account with, say, $1000, and you cannot afford $1000 in real life, it will affect you when you start in real life with $200.
Well, this topic is often asked or asked by so many new traders. In this article I will make it short and simple. The first thing you need to know is what is Forex?
What is forex?
Yes, forex is simply foreign exchange Some people call it FX while others call it forex. Well, forex, or foreign exchange, is the exchanging of one currency for another to make profits! The currency is paired together to form a single currency pair.
A currency pair is a combination of two different recognized countries’ currencies. Well, to start trading Forex, you need to put the basics in place! The fundamentals are simply understanding what forex is.
And how to use take profit and stop loss orders, as well as knowing when to enter and when not to enter a trade! With all of these in place, you will be successful.
What is currency pair?
A currency pair is a combination of two different countries’ currencies to form one single currency pair. To trade forex, we need the currency pair.
In forex trading, we are trading one currency pair but directly doing two actions. If you open a buy order or buy position on EURUSD, what happens is you are buying euro and selling USD.
And if you open a sell order or sell position on EURUSD, that means you are selling euros and buying USD. Now you see how important currency pairs are in forex trading.
What is base and quote currency pair?
The base currency and the quote currencyLet me get this straight The base currency is the main currency and is always in front, and the currency next to it is the quote currency.
In the case of EURUSD, EUR is the base main currency while USD is the quote currency. Well, let’s say EURUSD is 1.67009 What this means is that 1 EUR is equal to 1.67009 USD! You see!
Yes, that is it The USD is the quote currency, and any action you take only affects the base main currency, not the quote currency. If you buy or sell, it affects one currency and the base currency only.
Which is the best currency pairs to trade?
To be honest with you on joebenz.com, we will let you know the truth. All currencies are good to trade, but we have some currency pairs that are better to trade in certain conditions. Well, as a good trader, you need to study each currency pair and when they perform better.
Let me reveal a secret about when currency pairs perform: most currency pairs perform better at the start of their session!The EURUSD and GBPUSD are now performing better at the start of the London session.
Then USDJPY, EURUSD, and AUDUSD perform better at the opening of the US session, and USDJPY, AUDUSD perform better at the opening of the Tokyo session. Well, take your time to study when currency pairs perform better for your trading style.
To trade forex effectively, you must also study the pairs you will be trading; rest assured, you will not be trading all currency pairs, and as a trader, there must be one or two specific currency pairs you will enjoy trading with. Take your time, and I hope you will find out.
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How to trade forex with $100
A lot of newbies will want to know if it is possible to trade forex with $100. Well, in this part of the article I will answer that! Yes, it is very possible! But wait, let me make it very clear to you first. You will have to create or register an account with a broker that can accept that!
Then you will also have to make sure that the broker has a low spread and also has no or low commission. Make sure you only use 1% of the $100 to trade forex with it.
That means you’ll be trading with only 0.01 lot size per trade, or $1 per trade, and you won’t be able to open more than one position. With all of that in place, yes, you can trade forex with $100.
Is it true that forex trading is risky?
That hasn’t said, we at joebenz.com let you know the truth and the basics of all you need to know about forex. In this part of the article, forex trading is very risky. Yes, you heard me right, very risky!
If you don’t know how to properly manage your account, you can as well destroy it. Yes, let me use the word destroyed to a stage of you not having any funds left in your trading account!
Forex trading is not suitable for anyone starting out with no prior knowledge! Well, if your question is how risky or riskier is Forex trading, the answer to your question is yes, forex is very risky. And be very careful when starting forex trading as a beginner.
Forex trading in Nigeria
Most beginners from Nigeria do ask we can we really trade forex and also make it right in Nigeria? The answer to this question is very much yes!
Forex trading is legal all over the world and is not gambling, for your information even the banks and big institution do trade forex, well you can make money trading forex from Nigeria and is very much legal.
Is forex trading profitable?
I believe it is not difficult to be lucrative in the forex market. You must have the discipline to trade forex correctly. Have you ever considered how expert forex traders achieve such high levels of success? It isn’t only because they have an excellent forex trading system or a winning forex approach.
Let me share a forex trading secret with you: professional traders are the ones that lose the least, not the ones who make the most! They do this by correctly answering these million-dollar questions.
1. What is the present state of the foreign exchange market? Before you accept any forex trading signals, you must first figure out if the market is trending or choppy. Indexes like the Asia/Pacific, Europe, and Dow Jones Industrial Average can be used to study the market.
The majority of the time, market fluctuations are dependent on how the current economy is operating, and traders will make decisions based on this information.
Do you have a high level of mental alertness or do you have a high level of stress? Before you even begin to look at the charts in forex trading, it is critical that you have a calm and clear head.
Do not trade while you are tired or anxious, since you are more likely to make errors and jeopardize your forex money. Even if you use one of the greatest forex trading systems, you won’t be able to focus properly if you don’t have the appropriate mentality.
3. Do you have a stop-loss or a goal for when you want to get out of a trade? Trading without a stop loss is one of the most common blunders made by forex traders. Even though I’ve told my members over and over that every position needs a stop loss, many of them still trade without one. Is it possible that you’re one of them?
Do you realize that if you don’t use a stop loss, you might quickly lose your whole trading account? People who do not set a stop are at a disadvantage since they do not want to lose. And, as I already said, forex trading will undoubtedly result in losses. That is how professional traders go about their business.
It’s about how you deal with your losses, not how you attempt to prevent them. Unless you’re swing trading, never use a large stop loss. Nonetheless, a range of 50 to 80 pips will serve as a fair guide.
4. Do you know when it’s appropriate to initiate a trade? After you’ve figured out when to stop your losses, it’s critical to start a trade with proper timing, particularly if you’re trading intraday.
If you don’t have a strong forex strategy, you might look for online trading software that can supply you with precise forex signals. Oscillators like Stochastic and RSI are the key forex indicators for my trading method, so I use them a lot.
If you have a tight stop loss, timing is crucial because you want to catch the trade early but at a time when you have a better chance of winning. I understand that this is a difficult task for a novice, but practice makes perfect!
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Best Forex trading Strategies
When you talk about the best forex trading strategies, it is of course very possible to have them. I have seen lots of them over the years. Making money trading forex is 1000% possible. Many people, especially beginners, never believe that it is possible to make money trading the financial market.
I have a good source from which I can assure you will have a good forex trading strategy that can totally change the way you trade forex for good. Let me share this wonderful source with you.
Click here now and see. Or better still, you can click on the button below and discover some cool and amazing forex trading strategies that can change your life completely.
Best forex trading Indicators
In the world of the financial markets, finding the best forex trading indicator that can win you money is extremely difficult. I have seen people, or better still, traders, battling with how to win their trades daily. There are hundreds, if not thousands, of indicators that can do just that for you ASAP.
But finding such indicators, especially free, can be so frustrating and difficult. In this part of this article you will discover some good indicators that can win you money every single day you trade. The whole thing will be a win-win situation, and guess what! It is 100% free.
To get those amazing free forex trading indicators, you need to click on the link I just provided below and see the magic. Click here now!
What are the best currency pairs to trade?
Traders may trade with far more leverage and lower margin requirements than they do in equities markets. But before you dive into the fast-paced world of forex, you’ll need to know the most common ways that currencies are traded with each other. Here are six of the most widely traded currency pairings in forex.
- Trading the “Gopher” in USD/JPY
- Trading the “Cabl” in GBP/USD
- Trading the “Aussie” (AUD/USD)
- Trading the “Loonie” in USD/CAD
- Trading the Yuan (USD/CNY)
What are the currency pairs to trade in each session?
The fact that the foreign exchange market is open 24 hours a day is one of its most appealing qualities. Investors from all around the world may trade during regular business hours after work.
or even in the middle of the night, thanks to around-the-clock trading. When it comes to forex trading, though, not all times of the day are made equal.
Although the most liquid of asset classes, forex, always has a market. There are times when price movement is continuously turbulent and others when it is quiet.
Furthermore, owing to the overall demography of those market participants who are online at the time, various currency pairings display different levels of activity at different times of the trading day.
In this post, we’ll go through three main trading sessions, look at what sort of market activity to anticipate during those times, and illustrate how to use that information to formulate a trading strategy.
The 24-hour forex trading session may be divided into three trading sessions that are easier to handle. Rather than attempting to trade the markets 24 hours a day, traders frequently concentrate on one of the three trading times.
The Asian, European, and North American sessions, often known as Tokyo, London, and New York, are the busiest times of the year.
There are instances when sessions overlap, such as when peak activity in Europe and North America occurs within the same four-hour period. When forex trading sessions overlap, volatility might increase.
Understanding the Forex Market 24 Hours a Day
A forex market that is open 24 hours a day is good for both institutional and individual traders because it ensures liquidity and lets people trade at any time of day or night.
Although currencies may be exchanged at any time, a single trader can only keep track of a position for so long.
Because most traders are unable to monitor the market 24 hours a day, there will be occasions when chances are missed, or worse, when a spike in volatility causes a move against an existing position while the trader is not there.
As a result, a trader must be aware of periods when the market is volatile and determine when it is ideal to reduce risk, depending on their trading style.
The market is traditionally divided into three peak activity periods: Asian, European, and North American sessions, commonly known as the Tokyo, London, and New York sessions.
Because the three cities represent the key financial hubs for each of the regions, their names are interchangeable.
When these three powerhouses do business, the markets are the most busy, as most banks and enterprises in the relevant areas perform their day-to-day transactions, and there is also a higher concentration of speculators online.
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Session of Asian Forex (Tokyo)
The Asian markets are naturally the first to see movement when liquidity is restored to the currency (or FX) market at the start of the week.
The Tokyo capital markets, which operate from midnight to 6 a.m., unofficially reflect activity from this area of the globe. Greenwich Mean Time (GMT) is a time zone in the United Kingdom (GMT).
However, many other significant nations, such as China, Australia, New Zealand, and Russia, were present throughout this time.
Given how dispersed these markets are, it’s understandable that the Asian session’s start and conclusion times are extended beyond the regular Tokyo hours.
Asian hours are often thought to be between 11 p.m. and 8 a.m. GMT, allowing for activity in these various markets.
|Session||Major Market||Hours GMT|
|Assian Session||Tokyo||11:00Pm to 8:00Am|
|Sydney||10:00Pm to 5:00Am|
|Europe Session||London||7:00Am to 4:00Pm|
|American Session||New York||Noon to 8:00Pm|
Can forex trading make me rich?
Is it possible to get wealthy via FX trading? Although our first answer to that question would be a resounding “No,” we need to modify it. If you’re a hedge fund with huge funds or a very good currency trader, forex trading may make you wealthy.
However, rather than being an easy route to riches, forex trading may be a rocky road to massive losses and possible penury for the typical retail trader.
But first, let’s take a look at the numbers. According to a Bloomberg story from November 2014, two of the largest forex providers at the time, Gain Capital Holdings Inc. and FXCM Inc., sent reports to their customers. FXCM Inc. (FXCM) and GCAP Inc. 68 percent of investors lost money trading currencies the previous year.
While this may be construed to suggest that around one out of every three traders does not lose money while trading currencies, this is not the same as becoming wealthy via forex trading.
In quest of quick returns, many retail traders flock to the forex market. According to statistics, the majority of ambitious forex traders fail, and some even lose a lot of money.
Leverage is a double-edged sword, since it may result in both large gains and large losses. Forex traders face problems like risks with the other side, platform failures, and sudden spikes in volatility.
Unlike stocks and futures, which are traded on exchanges, forex pairs are traded over-the-counter without the need for a central clearing house.
It’s important to remember that the Bloomberg numbers came out just two months before a sudden earthquake in the currency markets showed how dangerous FX trading can be.
On Jan. 15, 2015, the Swiss National Bank lifted the three-year-old ceiling on the Swiss franc versus the euro of 1.20. As a consequence, the Swiss franc rose by as much as 41% versus the euro on that particular day.
Due to Switzerland’s central bank’s unexpected decision, hundreds of millions of dollars have been lost by forex traders of all sizes, from small individual investors to large institutions.
Retail trading losses wiped out the capital of at least three brokerages, making them insolvent, and pushed FXCM, the biggest retail forex brokerage in the United States at the time, to the brink of bankruptcy.
If you understand all of the fundamentals of forex trading, you can make a lot of money. I’ve seen a lot of individuals make a lot of money trading forex over the years.
What to know before starting forex?
Let me tell you a few things you need to know before starting forex trading as a complete beginner. I will map out a few important points you need to note down. Let’s get started:
- You most not be greedy
- Be OK with your little profits
- Always ask questions
- Trade with others
- Deal with your emotions
- Avoid trading psychology
- Be grateful always
- Don’t avenge the market after lose
Things to have before starting forex?
Finally, before we end this article, let’s see what you need to have before starting forex trading as a beginner. Many beginner traders don’t have what I am about to show you in mind before starting. Let’s get started:
- You need a good computer, Laptop or Desktop
- You need a powerful internet connection
- You need basic forex trading knowledge
I do hope you find this article very helpful and please make sure you share this article with others, like friends and family.
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Conclusion and set your goals
Yes, try and set your goals! Setting your goal is part of trading Forex, and also, success starts from there! Well, lots of traders have no trading goal or goals, but to be successful you need a goal or goals. What is setting a goal in forex? This is the question I would like you to ask!
Well, the set goal is to know the best time to exit a trade, know when to say yes, I am OK with these profits, and kick greediness out of the way for good! Setting your goals is the key to success, and it starts with you! Setting your goals is as good as setting your profit target.
And knowing your profit target is the same as knowing your success ahead of time! No one doesn’t like success, right? Well, I pray that success will follow you and be your guide in Jesus’ name amen.
I just hope this article changes the way you trade forex and also brings success to you! If you want to get more value from me about forex in videos, strategies, and indicators, subscribe to my YouTube channel: Joseph Benson.
If you have any comments, you can as well drop them in the comment section below. Thank you so much. I hope to see you next article Bye-bye, with much love from Joseph Benson
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