Easy and simple starter pack guide for trading Forex: Trading Forex isn’t as complicated as it sounds when you come across the term for the first time. It can become a great source of passive income, or side cash if you start with the right people and accurate information.
We will present to you some necessary information about foreign exchange, and what you should focus on at the beginning of your trading journey.
Finding the right place to start
Yes, it’s the internet! Where you currently are and reading this. That’s where Forex operates as well. As a decentralized market, it runs on the internet 24/7, and it’s not limited to any authority or institution. That’s how many people got a chance to become a trader, and it’s not a thing “only rich people do” anymore. You can and should invest a minimal amount of money to get into trading, more specifically, to open a trading account. It is much needed to trade, since this will be solely for trading, and being connected with a third-party (a broker), gives you a better chance of understanding the world of trading.
This isn’t as hard as some people might tell you. It’s a couple of clicks away, and it depends on reviews online, whether it’s a company or a broker you’re researching on. They should all have a license and a certificate, and you should check that yourself, even if they tell you over the phone or via email that they do. Brokers usually have LinkedIn and other platforms where you can see whether they are trustworthy or not.
Deciding what to trade on
This can be a tricky part, but if you are a beginner, you can focus on trading major currency pairs first. It should be easy to start with the help of your broker, and you will discover that you are already familiar with most of the major currency pairs (or at least you’ve heard of them). In the beginning, don’t get your hands on too many things at once. Start with one currency pair you are interested in since you will have to follow the politics and economic events of both countries’ currencies. This can be interesting and exciting, especially if you build a good trading plan around that.
How do you make a trading plan?
First, you should check your money organizing skills in general (or commonly known as “money management”). Sort out how much you can put into your trading account without hurting your lifestyle or what you bring to the table in general. After you’ve done the math and decided how much you can realistically put into a trading account, once you start talking to your broker you should be transparent as much as you can about your goals and financial situation. That way, he can also come up with concrete ideas about what can be the best plan for you and how you should start.
Take your time
Just because some flashy ad pops up and says you should invest everything you have right now, because it’s the right time, doesn’t mean they’re right. After all, these types of ads are most often scams, and your broker will be the first to tell you to start slow, and even try out a demo account first, which let you get used to the way forex functions and observe the changes.
The crypto hype
Suppose you are the type who is interested in cryptocurrencies such as Bitcoin or Ethereum. In that case, you should ask for a crypto broker (if you’re not planning to deal with other currencies), and see which one would work best for you, in terms of how much time you have, if you want to trade, or apply the holding strategy actively. It will change your opinion about crypto after you see how they work and how much they fluctuate on the market. After all, trading shouldn’t be something stressful, since you might easily fall into the trap of trading impulsively, which you want to avoid for the sake of your mind, and pocket.
Trading Forex is another to get information about the world, how it functions while improving your financial situation. It is natural to take some time until you start generating income that you are looking forward to, but it will undoubtedly pay off. Listen to the advice of experienced traders, listen to what your broker has to say, but in the end, listen to your gut after you accumulate enough knowledge.