Trading
Forex, on the currency market, can be a exciting hobby as well as a great
source of investment income.
Here
is a step-by-step guide by Forex expert Carmelo Cerrelli, that will help you learn to trade Forex, so
make sure you follow the steps mentioned below in this guide in order to start
trading in this huge and lucrative industry.
Step 1: Learning Forex Trading Basics
- Understanding the basic
Forex terminology is imperative before you start trading.
Base Currency is the type of currency you are going to spend.
Quote Currency is the type of currency you going to purchase.
- Forex trading simply refers
to selling of one type of currency in exchange to purchase another type of
currency.
- It’s imperative to read a
Forex quote which has two numbers:
The bid price on the left
The ask price on the right
- You must carefully decide
what currency you want to buy and sell.
- Learning how to calculate
profits is very important.
Step 2: Opening an online Forex brokerage account
- It’s imperative to research
different brokerages in order to choose someone with vast experience in
this industry or someone who has been in the Forex trading industry for 10
plus years, as the experience signifies that the company has the required
experience, also knows how to take care of its clients.
- You must always remember to
request information about how to open an account. Online Forex account
opening will give you two options:
In a personal account you can execute your own trades.
In a managed account a broker will execute trades on your behalf or for
you.
- It’s imperative to fill out
the proper paperwork. There are two ways you can ask for the paperwork: by
mail or simply by downloading it in the form of a PDF file.
- Now at this step you can
simply activate your account. Your broker will email you the link to
activate your account, in order to get started with trading.
Step 3: Focuses on Trading
- You must always analyze the
market thoroughly.
- It’s imperative to determine
your margin, which should depend on your broker's policies.
- Now at this step you can
simply place your order.
- It’s imperative to watch
your profit and loss in addition to not getting too emotional, simply
because the Forex market is very volatile and you will see a lot of ups
and downs.
- What matters in the end is that
you must continue doing your research and stick with your trading
strategy. Sooner or later, you will see profits.
