Did you know that about 72% of Forex traders have no experience in trading other markets at all? But the number of new traders is growing every day; today, it is at about 10 million people. So why is the Forex market so attractive?
Simply put, forex is a market where currencies are exchanged. For example, for travel, international trade, or commerce. You, as a trader, earn on the difference between the funds in the purchased currency and their sale in another. The most convenient thing is that you are not tied to a place, and, what is more, you do not actually buy currency.
Then how do you start trading as a LiteFinance (Liteforex) broker? Try to follow these simple steps:
Dive into the Forex Market
As in any endeavor, before trading, you need to familiarize yourself with the market and learn everything you need to know. Despite the scale and integrity of forex, with enough effort, you can begin to understand the mechanisms and models of trading yourself. Now, you can even find training courses from experienced traders on the Internet. They will not only talk about their trading methods but also share the pitfalls they encountered along the way.
Open a Brokerage Account
The next step is to create your own forex trading account before starting any operations. It is advisable to use a demo account before using your real capital. The reason for that is the mobility and volatility of the Forex market, where you can face various risks and difficulties. So, being a novice trader, you should take a closer look at trading platforms that provide such an opportunity.
Another option would be to create a micro-Forex account. This format requires minimal capital investment and allows the broker to set a limit on trading operations. For a newbie, this will help to understand Forex trading in practice, determine their trading methods and, of course, form their trading strategy. To know more, this type of account allows you to trade up to $1,000 worth of currencies in one lot.
If you already feel more confident, there are two more types of accounts: mini and standard. They allow you to trade up to $10,000 and $100,000 worth of currencies in one lot.
Create Your Working Strategy
Even though the market can be very unpredictable sometimes, traders of different levels form their own effective strategies. When developing one, you should understand that it will guide you throughout your trading journey with established principles, goals and development paths. Each strategy is unique because it was created specifically for your reality and your capital.
Your trading strategy should take into account the amount of money you can put into the trade, as well as the amount of risk that can be tolerated without the possibility of burnout in your position.
As an example, some investors prefer day trades. This is a kind of trade in which positions are bought and sold on the same day. The duration one currency pair is held can be anything from a couple of minutes to several hours. In order to carry out such rapid transactions, you need to have technical analysis skills and an understanding of technical indicators to get the most profit.
For those who do not want to monitor the market constantly, position trading may be more suitable, where the currency is held for a longer period of time, for example, for several months or even years. When trading in this way, a trader should have fundamental analysis skills.
Check Your Numbers
Be sure to follow up on your positions daily after you start trading. Choose a convenient trading platform that will independently analyze and record your transactions on a daily basis. Also, do not forget to check your account for any pending positions that need to be closed, as well as for sufficient funds to create new transactions.
Prepare Yourself Mentally
At the beginning of the journey, trading can be full of excitement, emotional rollercoasters, and high expectations. Therefore, it is important to mentally prepare yourself not only for profit but also for possible losses. Along the way, you should maintain emotional balance and discipline and avoid temper and thoughtlessness in your decisions. It is essential to feel and clearly understand when it is really necessary to close your positions and not wait for something grandiose.
Summing Up
The Forex market can be risky, complex, and unpredictable. However, if you are really into understanding the basics, Forex trading can become a source of income. All in your hands!
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