Forex Trading for Beginners written by: codec90 

 
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Whenever you devote your money to Forex (FX) trading, it's important that you take it seriously. Unlike other markets, the Forex market offers beginners many free learning books and resources to light up the way.



Find a good broker

In order to ensure that the money you're sending will be safe, you should get a good broker. This also gives you the jurisdiction to appeal to them in the event of a bankruptcy. Try to find a broker regulated in at least 2 major countries. If they have a large market area and adequate resources (platform and servers) you don't have to worry about busy signals during peak trading hours.

Check your broker's stats

Brokers (also referred to as futures commission agents - FCMs) are registered and must meet stringent financial standards, They provide monthly financial reports to a regulator. To ensure that your Forex broker is registered contact the regulatory board. This way, you save yourself from being duped by fakes.

Identify the best Forex Traiding strategy

There are many Forex trading strategies. Your broker should be able to help you identify the ideal one. Use that strategy and practice using it on a demo account for the feel of it. Using demo accounts prepares you for the exploits of a dynamic Forex market. They have the same features as that of a live account and some even use real-time market prices.

Do some research

The biggest mistake new Forex traders do is trading on impulse. Any established trader will tell you that you should be able to justify your trade with facts (or rather figures since we are dealing with money here). Technical analysis is quintessential here. In fact, a look at major world dailies should give you a heads up on international news. Don't speculate.

Trading systems & signals

Many FX traders find their emails spammed with emails on Forex trading systems and signals. This can be confusing because you are made to choose between buying a system or a signal package. These generally fall into 3 main categories; trend, fundamental and range. A fundamental system is rarely used because it doesn't give trading signals. Banks and 'hedgers' use them because of their long-term results.

The range and fundamental systems are commonly used in FX trading. They are easy to implement and may provide you with a signal on a perfect trade. You'll rarely find a system that exploits both markets and if you do then you'd have found the Holy Grail of Forex Trading.

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