10 Essential Steps Of Learning To Become A Forex Trader
With high volatility, the forex market is going to be a dangerous fight field full of risk and if you are determined to plunge straight into it without knowing very well the ins and outs of forex trading are related in detail. Instead of wanting to rake in a fortune from trading forex, you can just be prey to a market that is so cruel because of your ignorance about how the hell the way forex trading? The following are 10 important steps in learning forex is that you become the real forex traders:
1. Get to know the foreign currency trading/forex.
The forex market or Forex trading buy & sell is the type of currency of a country with the currency of other countries. Forex trading involves transactions in the forex market all over the world during the next 24 hours non stop and 5 days in a week.
Trade forex every day is always spinning, ranging from New Zealand and Australia market open from 05.00 PM to 14.00. Proceed to the Asia market covering Japan, Singapore and Hong Kong are open from 07.00 PM to 16.00 pm. Continued European markets namely Germany and the United Kingdom is open from 13.00 until 22.00 hours GMT. Then topped off the American market started clock 9.30 PM till 10.30 PM the following day.
Get to know this quite important trading hours you know because of how you will not know the transaction if the schedule is not it? It's an interesting schedule of hours, Forex trading, forex traders, some suggest making transactions at certain hours, for example, only make deals after the European open trading hours because of higher volatilitasnya.
2. Learn trading forex using a demo account.
In a forex demo account, you can learn a lot about how forex transactions. You can learn how to do the open position buy/sell, learn to use the forex indicators to analyze trading. So, using the demo account, you do not just learn to know the forex market directly but also can learn how to become a forex trader is actually before the later You plunge straight into the market.
Then the question that arises is how long you have to learn the forex demo account? Of course until you understand the correct way of forex trading. Some say, at least it took for 3 to 6 months to be ready to plunge directly into the forex market using real money. The most important is with demo accounts expected you train yourself to better regulate transactions, from the start how to use trading indicators for learning to analyze technical and fundamental basis, applying the good money management, to set up your trading psychology. After you are sure you have the hang of it, it means you're ready for the next step ketahap.
3. Choose a company brokers/broker.
Choose a broker or brokers cannot carelessly. You should choose a good broker and bona fide, you also need to find out which amenities are offered. For example; How to deposit, withdrawal, spread, margin leverage offered and also important is whether they provide demo accounts as simulation trading. In addition, the trading platform they should also fit your needs, such as the availability of chart/graph as you do your analysis and the platform should be easy to understand.
4. Recognize the movement of currency to be traded.
You need to know the characteristics of a pair or pairs. Because each of these pairs has different characteristics, for example, pair EUR/USD and GBP/USD, both have different characteristics. Both in terms of volatilitasnya as well as in terms of transactions. Recognise this currency pair can make it easier for You to determine which pair of comfortable for you tradingkan so that you focus more again to earn a profit.
5. Search for information and read market conditions.
In forex trading, you should not only focus on the chart on the screen of the monitor only. But you should also know all information relating to the money market. Because there are some economic news that could affect the currency movements. For that, prior to the open position, preferably looking for information in advance if there are any fundamental news to be released and is allegedly capable of moving the market. So that later on you are not wrong to make a transaction. You should also be able to read the market situation, whether the trend is bearish or bullish, was even going through sideways. Don't until you fight the trend as often emphasized professional forex traders with the term "follow the trend" and make Your best friend as a trend. Does it mean here, don't try taking a position sell while an uptrend and take buy position while downtrend. Unless you have a large capital so that it could affect the movement of the market in signikan.
6. Measure capital strength that you have.
You have to know how much power your capital. Do not just capital reckless!! You have to calculate the magnitude of profit and lose. You have to learn how to determine the stop loss and profit target. Your success doing money management is one key to success be reliable forex trader. As a trader, of course You want the advantage and wherever possible avoid losses instead? Be careful with the leverage given broker. Do not want big good thing because by using leverage, you instantly boosting fishing pole. There have been many articles in this blog that discusses the loss of profit and the use of leverage. Leverage like a double-edged sword, leverage can bring profit berkali folding, but it can also bring losses doubled as well.
7. Looking for a trading system that suits your character.
Specify how or trading system that suits your character. Such as the selection of the appropriate time frame for trading. Are you using a time frame of 5-15 minutes, hourly, daily or weekly to determine the open positions. Since each TF has a different level of risk. If you're a scalper who normally use the TF 5-15 minutes to do a scalping, will face higher price volatility and risks are certainly higher than those of a day trader who utilizes the TF daily.
You are looking for trading systems that fit with your personality. Do not force myself to always trading at any time when you are not able to cope with the pressures resulting from the volatile price movements. The most important is not the quantity of trading, but the quality of your trading. What does it mean frequently open position but the result is often a loss? Wouldn't it be good quality you trade even though the quantity of trading a bit, of course, the amount of the profit will be more right?
8. Master trading psychology.
Master trading psychology is something that is absolute for a forex trader. Many traders who failed because did not master the psychology of their own. With high volatility, the forex market will certainly give you emotional distress to traders. It was no surprise when the open position is wrong and loss, many affected and on the next open position is done not on the basis of analysis but rather because of the emotions want to recoup the advance. For that, it is very important your emotional rhythms set by way of learning psychology of forex trading.
9. Wake up trading plan.
Like a person trading course you must have a trading plan or trading plan. Certainly all traders looking to gain profit. But if you are not able to set your own trading plan, how benefits can you get? The one that you have to arrange is to determine the stop loss and profit target in each transaction. Do not be greedy and too arrogant. By specifying the stop loss means you will limit losses that you might encounter. By specifying a target profit, you will also avoid the possibility of losing the gains already in their grasp. For example, you specify the target profit 20 pips, after TP reached safely and surely you can focus into the next trading, imagine if you did not install the TP and sudden market movement reverses direction, whereas previously You've been lucky a few pips that are actually quite passable. Certainly a sense of remorse will come instead?
Not only limited to the stop loss and profit target, trading plan must include a self management when you are trading and when you don't have to trade. More clearly You can read article 5 of guideline in learning to Build Forex Trading Plan.
10. Trading Discipline.
After you determine the trading system, doing management psychology and makes trading plan, you just need to do it over and over again. Make a note of all that you think is good and the support to bring profit and fix less. In this way, then you will get used and will automatically know when you should be trading and when you should be out of the market. Discipline is one of the keys to successful forex trading. And with the discipline of a trader will do a quality forex trading fit with his character.
The ten steps above are important steps you must do in the learning process. With 10 stages are expected you will become a forex traders can take advantage of the situation volatile currency markets to gain profit. Any such step would have been you can do as long as you have a desire to learn. Become a forex trader is easy, anyone can. But being a successful trader and make a lot of profit that was slightly difficult. For that you need a lot of forex learning again. Hopefully this article useful
10 Essential Steps Of Learning To Become A Forex Trader
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