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Forex is the world's largest financial market. According to BIS, in 2019, the daily turnover of the market was about 6.6 trillion USD. Most Forex players buy and sell currencies to make money on the difference of exchange rates, i.e. speculate.
Trading in Forex, though simple might it seem, requires certain preparation and knowledge; only professionals make real money. Nowadays, there is a lot of literature on Forex describing methods of market analysis and trading currency pairs as well as psychological aspects of trading. However, a newcomer in Forex gets lost in a flow of information, not knowing where to get started.
What to begin with in Forex?
Step 1
Firstly, get acquainted with the very idea of Forex, its history, peculiarities of trades. You need to get an initial understanding of what you will be dealing with and what are the main concepts of Forex trading.
Step 2
Next thing, you need to open a demo account to get to know the trading platform and instruments, i.e. Forex currency pairs presented on it. At this stage, the broker from which you will download the platform for your demo account does not really matter. Your task is to master the trading platform.
Step 3
Thirdly, get acquainted with price charts, methods of their analysis, and trading strategies. This stage might take long, lasting not just in your apprenticeship but during your whole trading career.
To make the search for certain information easier, split the process into several stages:
3.1 Studying fundamental analysis and tech analysis: get to know the methods and instruments used for analysis.
3.2 Studying trading systems: get to know trading systems, learn to create them yourself, get to know the methods of assessing and optimizing them.
3.3 Studying psychological aspects: trading in Forex, you need to control your emotions because if you fall prey to them, your deposit will be wasted.
Step 4
Your fourth stage of development as a trader will be the creation of your own trading strategy and work on a demo account. You will learn to trade and analyze your results in Forex. You will create your own system and learn to test and optimize it. However, this stage is tightly intertwined with the previous one because learning to trade is most efficient when you study the theory and practice at once.
Step 5
At the final stage of mastering Forex, you will open a real trading account. Choose a broker providing high-quality services in the currency market. The results of your trading will depend on the quality of quotations put, the speed and the conditions of order execution.
Bottom line
When you just get started trading for real, try cent accounts:
- It is easier to adapt to Forex trading for real;
- Cent accounts do not need many investments. Mind that the majority of beginners lose their first deposits quite soon — due to a lack of experience, knowledge, and control over emotions.
Learning the market and trading in general step by step, being patient and persistent, you will create your trading tactic and understand the essence of the market.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
