There is a huge variety of business ideas that can be found on almost any economic site on the internet. Most of them promise you a fast, safe, and stable income. But for some reason, people do not pay attention to the already rather old and familiar business idea, which, in turn, has long helped many to solve their material problems.
This is Forex trading. Quite a lot has already been saying about the possibilities of this type of business. But unlike various other types of income, for success here you need to be not only a good practitioner but also perfectly know the theory since Forex is not the kind of income in which you can count on luck and luck.
From English, the word Forex means “foreign currency exchange”. It turns out that trading on Forex (Forex) is a relatively long-formed international currency market, where world currencies are exchanged daily. The price of these currencies changes every minute, and a lot of money can be made from this difference.
Now let's try to figure out the advisability of exchanging one currency for another. Historically, each country has specialized in a particular type of product or service. For this reason, any country in the world is an importer of any product or an exporter. From school, many know that exporters export products to other countries, while importers, on the contrary, import, and in most cases, imported goods are bought for the currency of the seller's country. Therefore, it is logical to assume that before buying a product abroad, you need to buy the currency of this country. It turns out that the first reason for the need arising in international currency exchange is precisely international trade relations between different countries. And trading on Forex (Forex) makes it possible not only to exchange currency,
Nowadays Forex trading is available to everyone without any special education.
How to start trading Forex from scratch
Forex is a decentralized world market for foreign exchange trading. It is the largest and most liquid market on the planet with an average daily trading volume of over $ 5 trillion! In terms of profitability, even all world stock exchanges cannot compare with it.
Therefore, it is not surprising that many investors sooner or later begin to look closely at Forex.
But people often come to the market who do not know anything about trading at all. The result is almost always predictable – draining one deposit after another (zeroing the funds on the account), but all that had to be done was to spend a few minutes to figure out how to start trading on Forex correctly, avoiding many mistakes at once.
We offer detailed instructions, following which will significantly increase the chances of a newly-minted trader (a person who trades in financial markets) to a successful start
How much can you start trading on Forex?
Novice investors are primarily interested in how much to start trading on Forex. And here it is important to immediately clarify one misconception, the essence of which is that the lower the broker's minimum deposit, the better. Many “dug” the Internet in search of a broker offering to start with $ 10 or $ 5, and sometimes even with one, and are very happy when they find him.
The more money is on the deposit, the less the risk, so everyone who takes their first steps in the financial markets should not start with $ 5, unless, of course, we are talking about cent accounts, where $ 5-10 corresponds to $ 500-1000 on an ordinary one …
Experienced traders advise not to trust too much the stories about how to start trading in Forex from scratch, but to open an account for $ 500 and more. For example, having $ 3000 and risking no more than 2% of the account amount on each trade, you can already earn about $ 60 + per day.
With deposits of $ 250-500, if you risk no more than 1% on each transaction, on average, you can earn $ 5-10 per day. At this rate, within a year, you can increase your income to several thousand dollars and start working in earnest.
As you can see from these examples, it will not work at all to start trading on Forex without investments, but even with minimal costs, you can make more or less good money.
Now it remains to decide – which currency pair to work with and determine whether to buy or sell?
The choice of a currency pair may depend on the chosen strategy or analysis, but we recommend staying on one or two pairs and conducting deep and thorough analysis, rather than scattering your strengths on dozens of assets and not really understanding their pricing.
Based on the study of charts, analyzes the past course behavior for predictions. Different methods are used, for example:
- Japanese candlestick analysis
- Price action
Based on the economic and political situation in countries and the use of this information to inform trade decisions. Used by the economic calendar, new laws affecting the development of the economy, etc., for example, Britain's exit from the EU is a fundamental basis for the fall of the pound when making this decision, technical analysis is simply powerless here.