The foreign exchange market appeals to a lot of us, as we know that if you work it well, you can earn a lot of money. However, not many of us actually venture into the field. It seems complicated and perhaps too much effort for those of us with little time on our hands.
We’ve compiled a few tips that can help you start your forex career and make those first few steps a little easier for you.
We all know that practice makes perfect. So the more practice you get trading currencies and understanding how it works, the better you will be at it. Online there are plenty of places where you can open up a demo account to practice forex trading. You can practice for as long as you like before heading into the real game.
Read up on the Lingo
As with any new field you want to break into, you’ll find that there are a lot of words specific to this one. They get used a lot, and if you don’t know what they mean, you could get left behind and not get very far.
A few of the more common phrases or words you need to study are base and quote currency, bid and ask prices, spread, and pip. Once you know the basics, it’ll be easy to learn as you go.
There are so many brokers out there it can be tough deciding which is for you. You don’t want to be scammed, so check out as many firms as possible before starting. For example, if you want a South African broker, you should search for a complete list of regulated South African forex brokers online, and you’ll find a whole host of options come up.
Open an Account
Once you are ready to start trading with real money, you will need an account. Again there are a lot of options out there so it’s a good idea to shop around and see which would be the best option for you and fits all your requirements.
Make Your First Trade
With the account set up, research done, and practice over; it’s time to make your first trade. Hopefully, the firm you chose to work with has an online software already set up that you can use. Each one is slightly different, but they should let you know how to use it.
So, as you can see, it’s not as difficult as you probably thought. It’s a good idea to be reading about forex news daily so that you can keep up on what’s happening in the market. And be smart. Things can always go downhill fast if you don’t trade well. Good luck.