Learning to trade Forex: four steps to success

To successfully trade forex, you need to follow a number of rules. Like any other business, trading requires your attention and commitment. Let’s take a look at four key elements for trading success below.

How to get started in Forex?

To learn how to trade currency, you need to be prepared to overcome difficulties. Most often, this is due to will and character. A professional forex trader is confident in himself and what he does.

Normally, to start trading on the stock exchange and forex, it is enough to read several books on subsequent traders or consult blogs and expert opinions. Such blogs are often found in the “Market News”, “Live Analytics” and “Premium Analytics” sections of the websites.
Understanding what the experts are talking about gives you confidence and allows you to take the next step: open a trading account.

How to choose the broker?

By law, an ordinary person can only trade on the stock exchange and foreign exchange market through a broker, such as Admiral Markets. The broker acts as an intermediary between the client and the exchange. It solves all problems and allows the client to focus on the essential: trading.

There are a large number of companies offering brokerage services. The main thing is to choose a reliable broker. Otherwise, you may fall into the trading scam. A broker’s reliability is usually confirmed by his license, which is issued to him by the regulatory body.
Major regulatory bodies include: the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the US Securities and Exchange Commission (SEC), the Australian Securities and Investment Commission (ASIC) and others.
Information on regulators can be found at the top or bottom of the broker’s website.

Here’s how to choose the right online broker:

Forex trading for dummies: how to analyze the financial markets?

After meeting successful traders and choosing a broker, the third step is to learn the basics of analysis. There are the following types of scans:

  1. Fundamental analysis. It is an analysis of supply and demand.
    In other words: what influences the attractiveness of a particular currency.
    For example, if a country’s GDP increases, investors consider it stable. Therefore, they buy household goods. And to buy them they need a national currency. Therefore, the demand for money increases;
  2. Technical analysis. This is an analysis of the technical indicators by type of those already present on the MetaTrader 4 and MetaTrader 5 trading platform. These include Moving Average, MACD, Average True Range, Stochastic Oscillator, Alligator and others.
    Technical indicators are generally created based on price changes. The historical values ​​of the forex trading course allow us to make predictions for the future. The indicators show the direction of the trend, the overbought and oversold areas, the pivotal points;
  3. Graphic analysis. It is an analysis of citations using graphic tools. They are also available in MetaTrader 4 and MetaTrader 5. These include Lines, Channels, Gann, Fibonacci, Elliott, Shapes. More in detail: Andrews Fork, Gann Grid, Gann Fan, Fibonacci Retracement, Elliott Pulse Wave, etc. ;
  4. Price action analysis. This is an analysis of the patterns formed by the Japanese candlestick patterns. A candlestick is a price change over a limited period of time. In other words, 1 minute, 5 minutes, 1 hour, etc.
    Candlestick shapes can suggest reversal patterns and indicate the continuation of the trend;
  5. Scanning of VSA volumes. It is an analysis of actual trading volumes and price changes. Volume refers to the amount of money that has been invested in a particular trade. For example: if the price has gone up for a long time, then stopped with significant volume, then someone is probably pushing it down.

How to create the trading strategy?

The final step in understanding how to trade Forex is to create your trading strategy. In other words, you need to create an action plan: when to open, change and close buy and sell orders.
This can be done using the analysis techniques described above. Choose the ones you like, try them and use them on a real account. Remember money management and believe in luck.

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