Would you like to start making your way in the Forex market, but have no idea where to begin? They say that a good start is half the battle, and to start off on the right foot and avoid all the mistakes that beginners make, it's very important to have a clear idea of how to start, what forex trading is, and above all, to know the various characteristics of the market.
Let's take a look at what you need to be able to do forex trading:
- First, you need to open a Forex Trading account through the use of a regulated Broker;
- Study technical analysis/fundamental analysis, which if you don't know how to do, you can take advantage of some tricks that beginners use.
- It would be useful, almost essential, to have the opportunity to practice trading using a demo trading account. Even more so if the latter is accompanied by the knowledge gained from a well-structured Forex course.
- Put into practice the knowledge acquired on the real account, respecting Money Management.
Making money online using the currency market is much simpler than outsiders think. To earn, you need to put in a lot of commitment, study, and perseverance.
It is advisable for beginners with little experience who want to start, to do so with a minimum capital to limit all possible risks to the maximum.
Once you have accumulated a bit of experience, it is possible to increase the level of investments to obtain higher profits.
What is Forex Trading
To start Forex Trading, logically you need to have a clear idea first of all what Forex Trading is.
When we talk about Forex Trading we mean that speculative activity on the Forex market aimed at obtaining a profit from the variation of the relative quotes of the currency pairs. But there is not always this profit, we can say in general that it is obtained when one manages to predict with small or large advance the trend of the cross currency quotes, while a loss is suffered if the prediction is not correct.
It's easy to convince yourself that the risk we face makes us see forex as also a possible loss, if you're not good. But beginners will have to start somewhere, so it's important to open your account with a good broker.
But let's get to the main question: What is Forex Trading?
In the Forex market, as in all others, currencies are bought and sold.
The peculiarity of the Forex market is that it is not possible to buy a currency without selling another. In practice, if I want to buy Bitcoin I have to use another currency, for example euros: so if I wanted to invest in Bitcoin I have to sell euros.
This means that on Forex, currency pairs are quoted (in our example, Euro/Bitcoin) rather than single currencies. To earn on Forex you need to correctly predict which currency will strengthen and which will weaken.
The Forex market is highly leveraged, and you can invest small funds to obtain high gains. Plus it is an over-the-counter (OTC) decentralized market that allows you to invest in currencies.
The really advantageous thing is the minimum initial capital required which allows us to start with little to gain experience and maybe earn within the currency market.
Forex allows investors in the currency market, both beginners and professional investors, to take a market "position" on the future trend of a currency pair by selling or buying at the market price of one currency against another.
Problems Starting Trading
Many wonder if Forex is the right market to start a trading career, questioning how difficult the market is and the doubt of what capital is needed to start.
Assuming that risk cannot be put aside when it comes to trading, the Forex market offers the possibility to gain experience with low volatility currencies, so as to minimize loss (but by doing so also the gain) and take advantage to better understand how to move when instead more unstable and therefore more profitable currencies will be used.
As for capital, on the other hand, starting trading is possible even without having too much funds.
It's not enough for a Broker to be just secure and honest to suit you: it's important that it is also convenient.
Some Forex Brokers also offer extremely interesting services such as social trading or Forex signals. Let's not forget, then, that Brokers to start Forex Trading must be particularly simple and intuitive to use, even for a beginner.
Why It's Worth Opening an Account on Key To Markets
Now that you have an idea of how to start Forex Trading, do you want to start doing it for real?
Previously we saw how important the figure of the broker is when you want to do anything related to trading. Choosing the right one is easy, since the structure of the offer is the same for many Brokers, and they have advantages and disadvantages when approaching as a market maker.
Many, except Key To Markets, which differs from all for its honesty (transparency is what characterizes it), economic conditions (commissions are equal to zero when trading with MetaTrader 4 with a "standard account", and equal to 0.006% when trading with MetaTrader 4 with a "Pro account"), security (it is licensed by the FCA, one of the strictest regulatory bodies in the world), and for its wide offer (it allows you to trade Forex and CFDs and the assets include 19 currencies).
It is one of the only Brokers that can call itself an ECN (a Broker that acts as an intermediary between the market and the trader).
What are you waiting for? Click below to open your account on Key to Markets and finally start Forex Trading by putting into practice what you have read.
