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Trading the Foreign Exchange Market has never been as accessible as it is today. With an internet connection and a computer or mobile device, anybody can access the market to exchange currencies.
Apart from accessibility, another major pull factor attracting people to the Forex Market is availability.
The market is open 24 hours a day, five days a week based on four major trading sessions times: New York, London, Tokyo and Sydney!
Trading Forex is an excellent way to generate income, especially with the variety of assets available through brokers such as LonghornFX. Whether you’re a beginner trader or have a few years of experience under your belt, our step-by-step guide to Forex Trading will help you learn the basics needed to succeed!
1. Learn the Trading Language
Learning any new skill requires you to familiarise yourself with new terminology and jargon - and trading is no different. At first, the language used by traders may appear completely foreign to you, but you don’t forget that smooth seas never made a skilled sailor. There’s a vast choice of resources available online, so start digging!
After doing your research, you’ll likely realise that it’s not as intimidating as you thought. In no time, you’ll understand what it means to feel ‘Bullish’ or ‘Bearish’, how to avoid FOMO, what an ‘Exotic Pair’ is and much more.
At this point, it would be a good idea to join a community of like-minded traders online, be it through Reddit, Facebook groups or even Twitter. Network, connect and share your experiences because those who made it to the top were once in the same position as you!
2. Formulate a Strategy
There’s a lot of talk about choosing the right Forex Strategy online, but the reality is nothing beats simplicity. Plus, technical analysis can be daunting, especially for beginners. Keep it simple by first deciding on the basics:
- When to open a position
- When to close a position
- How to manage your risk
Once you put together your own set of rules, you can start practising on a Demo Account, which brings us to step 3...
3. Choose an Online Broker
Once you’ve gained confidence through Steps 1 and 2, it’s time to take action. You’ll need to choose an Online Broker through which you can start trading. Finding the best Online Broker for you can take time, but there are a few key things to look out for.
The variety of assets offered by brokers is one factor that truly sets apart the best broker from the rest. With LonghornFX , for example, you can trade on over 150 assets, including Forex, Cryptocurrencies, Stocks, Indices and Commodities.
Second, keep an eye out for brokers offering optimum trading conditions, such as low fees, narrow spreads and high leverage to boost your profit potential. Finally, find a broker that offers excellent customer support, so you’ll know that somebody is there to answer your questions any time you need!
4. Start Trading!
Whether you prefer to start trading using a Demo Account or a Live Account, remember to give yourself time to learn. You’ll need to put in enough screen time to watch how prices move and how charts work.
Set goals for yourself and practise using Stop Losses and Take Profits. Most importantly, start to understand your own psychology when looking at market charts. Trading is a skill that can only be mastered with time, so better start sooner rather than later!
5. Keep on Learning
Let experience be your guide. All traders experience profits and losses throughout their lives, so don’t set your expectations too high at first. With each trade, you’ll learn how the market works and begin to notice patterns in your trades. Some traders like to keep a Trade Journal to help them keep track of their activity, too.
Keep on reaching out to your networks, practising new strategies and handling your emotions in trading. You’re all set to start earning money through Forex Trading.
With a minimum deposit of $10 and a wide variety of tradable assets to choose from, LonghornFX is the go-to broker for Forex Trading. Sign up today and create your free account!
