All Forex trading boils down to finding answers to questions such as: “When will the price start to rise or fall?”, “When is it more profitable to buy or sell a currency?” etc. This part of the job is considered the most difficult. Typically, one or more methods are used to find solutions. All of them are combined into a whole science — this is technical analysis. The developed methods are reduced to the analysis of the quotes chart by calculating the values of individual indicators. Experienced bidders combine technical and fundamental analysis (macroeconomic indicators) to get the most accurate forecast results.
Forex Lessons for Beginners
Every potential trader can follow two paths:
- The first is to use free Forex lessons for beginners.
- The second is to purchase a paid course from a popular coach.
Each of the options has its own advantages and disadvantages. The information required for the first successful steps as a currency trader is guaranteed to be freely available.
It makes sense to invest in training after gaining some experience and developing practical skills. By this time, you will have a clear understanding of which course is worth paying for. You will also understand why you should do it right now, and not in a year.
Forex: How to Start Making Money
How to start making money on Forex if you haven’t dealt with currency before? The main thing is to grasp the essence of what is happening so that new knowledge is combined with the proper basis. Imagine you have a box of chocolate. Now it costs $1,000. There are two ways to make money on this product. Option one is to wait until the price rises to $1,200 and sell the chocolate. The difference between the buy and sell price ($200) is the trader’s profit.
The second option is to sell a box of chocolate at $1,000. In this case, you must be sure that the goods will drop in price, say, up to $800. If the forecast comes true, it will be possible to buy the box out at a lower price. Profit is also generated by the difference in the selling and buying prices.
Forex Basics
Forex is based on the principle of price formation for a specific currency. The very concept of currency price for the selected pair, for example, euro/dollar, means the number of dollars for which one euro will be sold. For example, a price of 2 means that for one euro they give 2 dollars. In a Forex currency pair (euro/dollar or any other), the first currency is always valued. In fact, if the price dropped to 1.5, for our pair it means that the euro has fallen in price, and now they are giving one and a half dollars for it. If the price rises to the value of 2.5, it means that the euro has risen in price, and now they give two and a half dollars for it. Remember: when working with currency pairs on Forex, all operations are carried out with the first currency.
Forex Trading Psychology
The psychology of Forex trading helps the trader to fight the main enemies. They all live in our head, and greed is danger #1. Everything is good when moderately. If a trader is not greedy enough, they are missing out on many opportunities to make money. Profitable deals remain, but their number and volumes are gradually decreasing. When greed takes over, the number of unnecessarily risky trades increases dramatically. The result of uncontrolled behaviour is a partial drain of the deposit or complete loss. The best way to defeat greed and other emotions is to learn how to control and suppress them on the FXTM site.
Plan and Statistics
A trading plan and statistics help market participants to improve the process of working on the exchange, whether it is India or another country. Many traders do not analyse what is happening in the market and do it totally in vain. Write down the emotions that overwhelmed you at the close of each trade and draw conclusions. Why did the situation develop in one way or another? Only this approach will allow you to give an objective assessment of the market situation and your actions. Write down everything that happens in great detail. It will help you to improve and achieve impressive results.
The First Practical Steps
They start with responsibility for the result. Only you are responsible for the profits and losses incurred. The market, friends, family, relatives, and even an experienced trader-mentor from Forextime have nothing to do with it. Define the main strategic goals and start moving towards them. Divide your mission into intermediate tasks. Set adequate deadlines for their implementation. Move towards the goal and constantly analyze what is happening. Do not rush to make a million or open more positions. It is better to make one deal a day but understand the true reasons for what is happening.
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