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How to Start Forex Trading
Written by: PaxForex analytics dept - Tuesday, 27 October 2015 0 comments
The Forex Market is the biggest market with average daily turn-over that runs into billions. It is even bigger than the US stock markets. However, no one can really give the correct numbers as to the forex turnover. But nonetheless, forex is indeed a big market and thus allows many market participants. From your neighborhood bank to specialized investment companies, to your friend; the forex markets always offers a piece of the action whoever you are and wherever you are (even from your home).
As with any new venture, forex trading requires a certain amount of education before trying. Part of the education process involves learning about the world of forex trading, but an important part includes education about the kind of person you are. Trading, perhaps particularly forex trading requires character traits that are not present in everyone. Forex trading requires a particular mix of characteristics, including intelligence, courage and discipline, and insight into market or mass psychology, perhaps a particular intuitive insight into market forces, and drive, determination and patience.
In order to start trading forex, you will need to trade with the help of a forex broker. There are many forex brokers out there today who allow you to open a
forex trading account for as little as $5. The forex broker is the one which facilitates your buy and sell orders and also allows you to research into the markets (also known as technical or fundamental analysis), to help you make more informed decisions and of course allows you deposit more funds or withdraw your profits when you want to.
Once you have made your decision on which broker you like the best, it is time to open a demo account. Most brokers will offer at least a 30 day trial of their trading platform giving you a chance to trade on the platform using play money. Using a demo account is a good opportunity to make sure that you feel comfortable using the broker’s trading tools. You would not want to trade real money without being fully comfortable with the trading platform.
Forex trading is one of the most active and dynamic ways to trade the financial markets. At the heart of everything, it is the basic fluctuations in currency values which drive everything else. Learning to trade forex and understanding the forex markets can give a good foundation to trading other markets such as derivatives or equities. Once you educate yourself and have generated enough knowledge on the demo account you can open a live trading account and start trading.