People are introduced to the exciting world of FOREX in many ways: friends, current events, newspapers, television, and many others. For those of you who are new to FOREX, the following guidelines cover the basics of currency trading.
Step 1. Study, Study, Study. FOREX traders use Fundamental Analysis, Technical Analysis, Quantitative Analysis and sometimes a combination of all three to make their trading decisions. Fundamental analysis involves the use of economic, financial and political news to determine trading decisions. Technical analysis involves the study of Charts to predict future price movements based on past price patterns and trends. Quantitative analysis consists of the use of present statistical models and properties in quantifying price formations. In order to help novice and experienced traders alike, we are developed our site on FOREX Analysis.
Step 2. «Practice makes perfect» Demo trade. The Demo Account was designed to help traders gain familiarity with the speed and movements of the market. When you are demo trading, you should learn how to: 1) place market orders to enter a trade, 2) place stop-loss orders to protect your positions, and limit orders to take profits.
Step 3: Manage your money wisely. You should always be aware of the amount of money in your account before placing a trade. If you think a long-term trend is developing, then you should consider whether you have enough funds to maintain your margin and withstand any movements against your position that may occur. We encourage everyone who opens an account with us to ask themselves the following questions prior to entering each trade:
* How much am I willing to risk?
* What is my upside and downside potential?
* What are the market conditions? (Is the market volatile or calm?)
* What is the logic behind entering this trade?
* When can I conclude if the assumptions/logic behind the trade are/is correct or wrong?
Before entering an order, you should consider both your entry and exit points. One of the mistakes most commonly made by traders, especially new traders, is letting emotions get in the way of their strategy.
Step 4: Open a Live Account. If you feel ready to trade this market, fill out our application forms and submit them today. Since the emotional factor may be higher than it was when you were Demo-trading (as you are now committing real money), it is essential that you develop an effective strategy while Demo-trading and plan to abide by it when trading your live account.
We hope you enjoy trading with us and wish you the best of luck!