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Right Way to Start Trading Forex
Written by: PaxForex analytics dept - Wednesday, 12 July 2017 0 comments
Trading foreign exchange on the currency market, also called trading forex, can be a thrilling hobby and a great source of income. To put it into perspective, the securities market trades about $22.4 billion per day and the forex market trades about $5 trillion per day. If you have looked into trading forex online and you have seen all the opportunity to make money, you are probably wondering what is the right way to start forex trading.
Because the forex market is highly leveraged, it can have the same appeal as buying a lottery ticket: some small chance of making a killing. This however, is not trading, it is gambling with the odds long against you. A better way of entering the forex market is to carefully prepare. Beginning with a practice account is helpful and risk-free. While you are trading in your practice account, do your research and find the best materials you can, read the most frequently recommended forex trading books, among them.
Trading forex is like any other work: you must learn the basics and practice before engaging in real time. Additionally, forex is a market with both universal implications (insiders profit at the expense of outsiders, the jargon of professionals, and more.) and specifics (national banking holidays, sticky price points, statistical relationships, and more). Unfortunately, a few hours of simulated trading on your computer
and attention to a few self-help Youtube videos will not secure a steady income. The path to learn forex trading is no less arduous than any other professional endeavor.
While the forex market is largely efficient, in that prices reflect all available information at any moment in time, in many cases you need to be only slightly faster or smarter than the average market participant to initiate a winning trade position. But behind that position initiation is a set of assumptions and a disciplined coherent understanding earned by studying the market and practicing trade execution. No less important is understanding how to profitably use the platform offered by your forex broker.
Taking a good forex education course may be the best investment you'd ever make in your trading career. Take your time to study the basics of trading and practice it in a demo account before you start trading with real money. Always be sure to follow the rule - never trade with money that you cannot afford to lose. Practice, prepare, and plan for all eventualities. Even with outsourcing and systematizing of your activities, putting all of the pieces together always involves reviewing and engaging in efforts beyond (and beneath) what you expected. But finally, when you learn forex trading, the hopeful sense of accomplishment and financial reward are earned for a job well done.