How to trade on "Forex": nine steps

If you study all the existing materials on the Forex market, then trade will seem easy. But this will take many years. And the main goal of a trader is to make a profit, and not to endlessly study the theory. In order to learn how to start trading on "Forex", you need to make only nine steps.

1. Choosing a Broker

Given the excess of proposals, it is rather difficult to do this. Select several companies that have successfully proven themselves in this field, and choose the one that provides the most favorable conditions.

2. Opening an account

Choosing a broker, we open an account for him, which is of two kinds: a demo and a real one. The first one is created for acquaintance with the market and gives the opportunity to practice and adapt. If you know how to trade on the exchange, you can immediately open the real one. Since there are many different types of real accounts, before the opening procedure, familiarize yourself with such aspects as spread, commission, leverage , etc.

3. Installation of the trading platform

This is a necessary step in order to understand how to trade on "Forex". After all through the platform all transactions are made. It also provides an opportunity to monitor the current market situation and conduct technical analysis. At present four types of platforms are created. The most popular and convenient is Metatrader.

4. Selection of currency pairs

Beginners are usually advised to start with a pair of euro / dollar, as there, on the one hand, there is no high volatility, and on the other, the most transactions are conducted. And it is for this pair that a lot of tools (indicators, strategies, etc.) are written, with which you will learn more about how to trade on "Forex".

5. Mastering technical analysis

Before opening a transaction, it is not superfluous to do this kind of analysis. This is a very painstaking process, so to optimize and speed it up, it's better to use special programs or read off the reports of analysts.

6. Developing a strategy

The most popular answer to the question of how to trade on Forex with profit is to develop your own strategy. If you do not want to do this, you can use the existing ones. Sometimes even freely available strategies bring in good money.

7. Opening of an order

After the completion of the preparatory actions, you must open the position. To do this, in the established trading platform choose "Open order" and specify the amount of currency and other parameters. After clicking "Buy" or "Sell", and our first transaction is open.

8. Taking Profit

Now your main task is to decide on the closing price of the order. It can be prescribed in advance, well, or wait and close the deal manually. The profit margin of each trader is different and depends on the degree of his greed and the situation on the market.

9. Fixing losses

If the price moves in the direction we do not need, then we must have time to close the position with minimal losses. As in the case of taking profits, this can be done either manually or by prescribing a stop-loss in advance.

The question of how to trade on Forex is inherently very capacious, and it is difficult to answer it within one article. In general, a full answer to it can be given solely by you yourself after many years of hard work in the foreign exchange market.

Happy trading!