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Forex beginners. Your first steps to successful trading in the foreign exchange market
Hello! In the last article, I briefly told you about what the Forex market is. You should already know where the money comes from, and how we will earn it ... In this article, I will describe in detail the plan of action for each new trader - which will help you get started, and start making money on FOREX. If you haven't changed your mind, let's get started.
Before you begin to study the foreign exchange market, you need to determine your goals. Why do you need all this? In most cases, people follow money, everyone wants to earn money without leaving home (this is a very powerful factor in order to start) ... But, the main thing to remember at the very beginning is one thing that will protect you from losses in the market in the future - “There is no easy money!” ... and FOREX is no exception.
Decide on goals, if you think that you need it, then feel free to start exploring the materials on this blog. In cases where you have come to the market for a “freebie,” then, unfortunately, the doors to “successful trading” will be closed for you FOREVER! The market does not like gambling players - the market, first of all, it is discipline, and then analysis and trading experience...
Forex beginners. Step 1: Getting to know the market
In order to start your journey as a trader in the foreign exchange market, you should familiarize yourself with the principles of operation of the exchange in general. No matter what this exchange, currency, commodity or stock, the trick is to feel its atmosphere, to breathe all the delights of trading on it. This step will be a barrier for you that will definitely give you the answer: “Leave or continue your path to professional trading” ... For this, you should read two books that fully convey the entire atmosphere of trading on the stock exchange.
- Edwin Lefevre “Memoirs of a Stock Exchange Speculator”
- Alexander Elder "How to play and win at the stock exchange"
- Download them, and carefully read, and you will understand the essence of trading on the exchange.
Forex beginners. Step 2: Introduction to technical and mendasar analysis
After you get acquainted with the general principles of the exchange, you should proceed to the study of the concepts of technical and mendasar analysis. With their help, you will determine when to enter and exit the market. Those in other words it is very important!!! The first thing that I recommend you to read is a book: Eric Naiman's “Small Trader's Encyclopedia”. Also, in this book, you will learn about risk management in the Forex market, the psychology of the trader.
Forex beginners. Step 3: Introduction to the MetaTrader 4 Terminal (MT4)
Having studied the basics of analyzing the currency market, you can proceed to the technical aspects of trading. If you have already chosen a Dealing Center (DC) for yourself, then download the MetaTrader 4 terminal from their website, open a demo account, and start exploring the technical side of trading.
A dealing center is a non-banking organization that provides customers with small amounts of trading capital on the terms of margin trading to enter into speculative transactions in the international foreign exchange market (Forex), as well as in CFD markets (contracts for difference). Transactions through the dealing center are purely speculative in nature (for example, it is usually not possible to purchase currency through them for payment on foreign currency accounts, only for its subsequent sale).
Dealing centers conduct operations with clients on their own behalf and at their own expense. In this, they are similar to stock market dealers. Dealing centers receive quotes from information systems (Reuters, Tenfore, Bloomberg, etc.), usually using several sources of quotations to form a consolidated flow. On their basis, form their own quotes and transmit them to their customers. Unlike commercial banks, they do not transfer their quotes to global information systems.
Trading through dealing centers is usually conducted using the Internet as a communication system. Direct actions are performed using specialized software (MetaTrader 4, Dealing Desk, Rumus, iTrader, Trade Desk) or by telephone.
If you have not yet decided on the choice of DC, then there is a separate section on the blog dedicated to the analysis of dealing centers. After examining all the options, choose the most suitable for yourself ... and begin to act...
Forex beginners. Step 4: Formation of the trading system (TS)
This can be said the most important step that will continue to bring you monthly, weekly and daily steady income. Choosing a vehicle for yourself or creating it yourself, you must perfectly observe it in your trade. Believe my experience, this is a very IMPORTANT item in your forex training. Not observing the vehicle, you risk being left with nothing ... I already wrote that forex is not a gamble, but hard work.
A little later, on the blog, I will publish my work on trading systems Also, the most successful vehicles that can be used in their trade will be disassembled. In general, all the fun lies ahead.
After you complete all four steps mentioned above, you can assume that you are ready to start trading in the FOREX currency market ... It took me two months of daily work on myself to study these 4 steps. How long it will take you, I do not know ... Particular attention, I want to draw on the book by Eric Naiman "Small Trader Encyclopedia". Read it as many times as necessary, but you have to grasp its essence!
Your task is to carefully examine all that I write for you ... All your mistakes, I have already made in my trade, so use my experience and knowledge...
Successes in work on yourself and the Forex market.
