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Your Personal Guide: Learn Forex Trading for Beginners

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As known, trading in the Forex market may seem complicated, but the truth is that most people can master trading in a short time without having any financial education. Let’s learn forex trading for beginners with us right now.

Trading Process

The process of trading in the Forex currency market is as follows: 


  1. Access for traders to make trades is provided by a brokerage company.
  2. The brokerage company opens a trading account in the trader’s name, to which the funds are deposited.
  3. With the help of specialized software – trading terminal – the trader receives information on the history and price dynamics and makes requests to conduct the deals of buying and selling currencies
  4. The Forex company makes the transactions and records their results in the trader’s trading account.

If the rate of the purchased currency rises, the trader can sell it for another currency and make a profit – just as in a classic transaction at an exchange office. 

If the rate of the purchased currency begins to fall, the trader should consider selling it quickly to minimize his possible losses. 

The abundance of charts and functions in the trading terminal gives an impression to many beginning traders that trading is an occupation for highly qualified analysts. Of course, analysts with training have a good chance of quickly learning the basics of trading and beginning to make a profit from trading – and that makes sense – but a good portion of trading is technical information, not arcane knowledge. It can be taught and it can be practiced. 

It takes knowledge and practice to successfully trade real money. This knowledge and practice can be obtained by reading thematic literature, attending webinars of forex companies, or contacting a brokerage company that studies markets, educates clients, and provides financial tools for online trading. 

To begin with, we will build a path that will help you to arrive at the desired goal – to start trading in the Forex markets.

 

Understanding Forex

Forex has its language, so you’ll have to start your journey by learning the terminology. Before you make your first trade, you need to learn to understand the basic concepts, acronyms, and peculiarities of the Forex language. 

Once you’ve mastered the terminology, you can start reading books about Forex or watch free Forex video tutorials, which will help you understand terms, concepts, market participants, and key mechanisms. Once you familiarize yourself with the basics, it will become clear whether this topic is interesting to you and whether you want to study it further. In this case, it is worth taking a full training course. After that, you can try your hand at a safe demo account and gradually come to trading with real money.

 

Choosing a Broker 

You have to pick a broker first before you start dealing in the forex world. The financial company will assist you in making trades, with many brokers offering additional financial features. A reputable broker could help make the price difference between profiting on deals and losing the money between the rate and the asking price.

Don’t be afraid to thoroughly research and read reviews of various brokerage firms. Not all brokerage firms offer Forex trading, so make sure it is available before you open an account. 

 

Analysis of the World Economy

Making money trading currencies is all about accurately predicting the movement of the world economy. To become a profitable trader, you must convert your base currency into a quote currency set to rise in value, and then convert the quote currency back into your base currency when the value peaks. 

Study the trading positions, GDP, and political climates of the countries whose currencies you are interested in buying, and you will gain a great advantage by understanding which quotes currency is worth your investment and in which countries the economy is projected to grow. 

For example, you can take a look at the TradingView widget, which is a good starting point for diving into the world of Forex.

Staff writer

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