Currency Trading For Dummies
First as a beginner you need to visit the Forex trading website on ‘www.Forex.com’ and sign up for a 30-day trial account.It is free to register. This 30-day trial account will enable you understand the Forex trading environment without risking your real money.On this trial period, register for the Forex webinar on the forex site.Webinar holds forum seminars every week for newcomers and provides them with information,demonstrations and also gives them a chance to have their questions answered by experts in the field.
Now look for some Forex trading videos and watch how the trading market works, watch the market fluctuations and the popular currency pairs.Try and understand the currency pairs, for example, If the currency quote for EUR/USD is 1.2500, it means that one Euro is exchanged for 1.25 US dollars, and if the currency quote moves to 1.2250, it means that the Euro is growing weaker against the US dollar.In addition, you can also play the free Online trading games. Here you get to buy and sell stock using fake money. This games will help you gauge your risk tolerance and also help you determine whether you are going to trade for long term or short term.
After learning how the Forex trading works, now you can decide whether you will need a broker or you will trade by yourself.The best way to make this decision is by consulting with experts in the field or chatting with other traders on the Forex Chat rooms and asking for advice.The Forex forums and chat site is a great place for a beginner and the traders at Forex are very welcoming to newcomers and they will offer quality answers to your questions.After gathering enough information to make an informed choice, now decide on how you will go about it. If you choose to use a broker, again ask around, consult with others with prior experience in the field. Know who are the credible brokers in the market for there are many bogus brokers out there, For example, Vanguard and Fidelity are two popularly known reputable and credible brokers.
Now choose the pair currency you will use to earn you the most money.The Popular pairs at Forex are USD/CHF, EUR/USD, EUR/JPY GBP/USD. As a beginner you also need to pay keen attention to Local and international news, both business and political, Watching business news networks is a plus for a beginner who wants to make it big in the Forex trading world, For example, A government cut on tax will cause the stock market to go up and vice versa
AS a beginner you need to understand that forex trading is a leap of faith and risks are involved, you should be ready to incur loses. By knowing this, you need to chose a currency of low spread for your initial investment or chose a broker who deals with a currency of low spreads so as to minimize your loses. A low spread currency means a currency that has a small margin between its buying price and its selling price.
Knowing the above, you can now go open a real forex account and fund it using a credit card, money order or Wire transfer and start trading.For more advice and information about Forex trading, you can visit the site ‘Www.investopedia.com’