There’s a myth about forex trading. Many people believe that Forex trading is very complex and requires a great deal of technical expertise to get started. We propose a series of strategies in this article to start trading in Forex with a minimum of guarantees.
The first thing we should do is answer a series of questions:
It is really hard to be a Forex specialist, but it is not at all complicated to have a basic knowledge to be able to trade, it is not necessary to graduate from Harvard or be an economic guru. As one American journalist said in the 1990s (speaking of the launch of the ADR-American Depository Receipt in Albania): “If Albania was able to launch it, how can we not do it?” Forex follows a fairly logical mechanic, and you can not usually learn everything thoroughly, but it is basic to achieve a sufficient level to succeed.
It is good, first of all, to have a positive trading vision. This does not mean that it is straightforward to trade.
The forex market provides many opportunities to earn large amounts of money every day. We can gain part of those possibilities depending on the abilities we have. This point must be emphasized, as two traders with the same strategy can achieve completely opposite results, one winning and the other losing money.
How can we learn?
Through books, training courses and video tutorials, the answer is simple. Platforms, such as the mt 4 platform or any other platform that has the appropriate certifications, must be verified. In general, it will last two to three weeks for a course to get started in Forex, which is not too long.
So is it easy to trade Forex?
With all the information that can come to us about how simple it is to trade Forex, we must be careful. It is difficult but not impossible, as we have already explained, so we must be wary of all those low-cost forums, messages and tutorials in which we are invited to perform actions without adequate training or information.
The Only Area of Difficulty:
Many traders understand that it is the most difficult thing to trade Forex effectively to decide when to close a position. This is known as a strategy for forex exits. This is the most frustrating and difficult part of trading, probably.
Many traders find that it is the hardest thing to successfully trade Forex to decide when to close a trade. This is known as a strategy of exit trade. It is probably the most difficult and frustrating component of trading and an area that in Forex education tends to be largely ignored.
What will those who trade Forex find?
When you go into Forex as a trader, you will appreciate certain striking variables that we will explain below in detail. Trading can be life-changing, but you must know how to trade.
A liquid market
The liquidity of this market is a reference to its “life.” It is considered the most liquid market in the world due to the number of participants, the volume of movement and the speed of entry and exit. With Forex, millions of traders move incredible amounts of capital every day.
It has great leverage
This allows small investors who, by investing only 10, can move 4000 pounds. If you were careful with this, however, it would help, since the losses will also be based on 4000 pounds.
Very low commissions
The commissions that are charged for each transaction are one of the obstacles that most traders find, particularly when buying or selling shares of large companies, the payments as commissions are quite high.
This does not occur in Forex. Indeed, a purchase of 1000 pounds can be made in the common currency, paying only between 5 and 20 cents.
This market does not sleep.
Although other markets do have a start and end time, there will always be one of the open markets in Forex. Whether it’s Asia or Europe or America, there’s always going to be some active product to buy or sell.
Ideal for daily trading
The best market for those who want to do intraday trading is obviously Forex. So, if what interests you is this form of trading, this market is the right one for you.
Finally, we can not fail to mention that the foreign exchange market is the only one that makes it possible to trade without constantly being in front of the screen. The psychological warfare that can play tricks on you can be based solely on numbers, thanks to the automatic trading option.
The amount to be won depends on the amount of pips received and the size of the contract we are using. The latter is even more critical because it will enable us to have as linear a growth curve as possible.
Obviously, we need a system of speculation with obvious rules that we can transfer to a demo after trying back-testing with good results and, most importantly, operate in real life.
All this is very good to keep in mind because every day, even 100% of our account, the Forex market allows hundreds of opportunities to lose money, and this is effortless. Fortunately, even with these dangers, Forex allows us to convert our operations into money with better statistical probabilities than in the game.
The amount to be lost depends on our broker’s number of pips obtained, our contract size and the commission (spread).