In the race of building Career, some people thrive in the role of the winner, while some others can only watch from afar. For those who want to be on the winning team, you have to start early in your career. This is exactly what this article is about. It’s going to show you how successful traders have built their careers and become market leaders for the rest of us.
Before we get into all that though, we think it’s important we talk about what a trader actually does and why they’ve become so popular with millennials these days.
What is FX Trading?
FX Trading means you are trading foreign currencies against one another. Indeed, this is the market where currency pairs are traded. For example, most fiat currencies are pegged to the dollar. In short, it is an exchange of currencies between them according to an exchange rate. The price of a currency pair constantly changes depending on the transactions carried out.
The most common pairs traded are EUR/USD, GBP/USD and USD/JPY, and then there are the crosses like EUR/GBP, GBP/JPY and USD/CAD. In Forex Trading, you can buy one currency and sell another currency.
The Forex market is open from Sunday midnight to Friday evening 24 hours a day. In practice, we do not hold a currency pair. It is a contract for difference (CFD) or another derivative product available from most brokers. This global market which has very high liquidity. This means that CFD trading is very easy and brokerage fees are therefore very low.
You can use an online platform and start trading. Usually, you start by having a demo account which allows you to practice trading. You will learn about currencies, the markets, different order types and strategies.
How to do it with a Demo Account?
The first step in learning about FX trading is to start with a demo account. This allows you to practice trading without risking any money. You can open a demo account at any platform which provides such an account, if you want to start with an online broker. Demo accounts can make mistakes and you won’t lose any money if you do make mistakes. If you accidentally enter the wrong trade or place an order that doesn’t meet the terms of your contract, then there is no loss.
What is the difference?
In a Demo Account, your trades are based on simulated conditions using fake money. In real trading, you will pay for each trade that you enter and this is where the difference between a Broker Taker and a Broker Maker comes into play. Every broker offers free trials for both the types of accounts. If you have a broker who does not offer a demo account, then that’s just your luck.
There are some restrictions when it comes to the accounts. For example, with a demo account and an actual trading account, you might not be able to access the full range of features and features available on an actual trading platform. However, that shouldn’t stop you from trying and finding out if Broker Taker or Broker Maker works best for you.
If you want to make FX trading as your main source of income then you have to follow some practical tips.
As a beginner or expert trader, there are some golden rules to follow to be successful in this field:
- Establish a trading risk profile
Before making promises, you have to familiarize with the important market’s fundamentals. Follow some experienced traders and analyze their market analyses before trading. Don’t just think with your heart and follow your gut instinct while making trading decisions. Make sure that you have set a stop loss and start planning your trades.
- Keep it simple
Start with simple guidance and after that when you gain more knowledge about it, you can make the trade more complex. If you are confused, don’t play with diverse strategies. Stick with one strategy until you gain some experience in the field.
- Open a trading account
If you have decided to trade, then it’s time to open your own trading account. You can follow all the instructions that are provided by your broker. Some brokers provide demo accounts which allow you to practice trading and learning tools like a simulator. You can learn about the platform, market, different strategies and watch live news to stay up with what’s happening in the market before making any trades.
- Selecting an appropriate forex broker
When you select a broker, you have to look at their services, customer support, trading platforms and fees. You can check out clients’ reviews before signing up with any broker. For example, if you read a review on HyperForex, you’ll realize how it’s especially designed to be helpful to forex traders. You can also ask around from people who are already trading with that broker to find out if it is worth it or not. Choosing an appropriate FX broker is essential for your success in the field.
- Using Forex Trading Tools to Gain Knowledge
There are some learning tools available on the internet that can help you in your FX trading journey. For example, the free forex trading platform IQOption provides a simulator and an e-book on how to make money from Forex Trading. Some other tools also provide analysis reports and news to help you stay up with what’s happening in the market.
- Setting Achievable Goals and Challenging Yourself
Setting achievable goals for yourself is an important part of the trading process. You can set smaller goals and challenge yourself to reach those goals. Make sure that you start with a demo account before moving on to real money trading. Apart from this, you can also do some extra things like studying the basics, keeping a trading journal, trading signals and taking price action.
- Follow the News
Being aware of news is an important part of the Forex market. It provides you with vital information regarding important events that are happening in the market. After following some news channels and financial blogs, you will be up to date with all happening in the Forex market.
Is it hard to be successful in forex?
Success in forex is not hard if you know what you are doing. If you don’t, then it is not easy to get started. The most important thing that a beginner needs to learn is how to trade. They also need to understand the basic rules of trading the volatility. They cannot just start buying and selling without understanding the market and then consider themselves successful traders.