This blog is dedicated to all my friends who are new to this type of Currency trading.First of all I'll tell you advantages of forex trading over stock markets.
- It is 24 hour market
- No commission or middleman-no one can corner the market
- Instant execution of market orders
- Commercial banks, brokerage firms and other large investor are less likely to influence the market as it is the largest market in the world with a turnover of 4 TRILLION $!!!
STEP 1: CHOOSING A BROKER
This is very crucial step as there are many illegal brokers who are looking for the prey. Remember that broker should either be NFA or CFTC registered. I have an account on easyforex as they are the most trusted brokers I've ever seen. You can just go on the link below and open an account with them.
http://www.easy-forex.com/gtw/136360.aspx
STEP 2: OPEN A DEMO ACCOUNT
ALWAYS , ALWAYS AND ALWAYS open a demo account first.This allows trader to first invest virtual money and get profit from that. Every broker has an option of first letting their client to open a demo account. This helps their clients to get a hang of whole trading and their platform
STEP 3: DOWNLOAD PLATFORM
For currency trading you will need a platform where you can buy or sell currency. In my opinion MT4 platform is the best platform to trade. This platform has all indicator for every analysis you are required to do on your charts.
STEP 4: LEARN, LEARN AND LEARN
To be a successful forex trader you should have knowlegde about the charts. You should be thorough with the indicator, charting pattern and everything that is needed to trade you the currency. For that I recommend you interesting website where you can learn about trading without getting bored.The website link is given below. On this website go to "school" and start learning.
http://www.babypips.com
STEP 5: MAKE A TRADING STRATEGY
Now you have every tool to start trading but what you don't have is the strategy or how you would face the market. I am going to use chart indicators on my blog. You can follow it and trade the currency pair accordingly.
These are the steps you should follow before you think of trading currency.
