Step-by Step Guide on How to Trade Forex by Forex Expert Carmelo Cerrelli

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.