Foreign exchange trading or foreign exchange trading is a type of activity in which the currency of one country is traded with another country. The principle is actually the same as in other markets, the difference is the merchandise. Although it sounds simple, you need to know how to trade forex right for beginners.
Why should we know how to trade forex?
Forex trading is undeniably complicated because the risks are very high. There are many cases where beginners go bankrupt quickly if they do so without proper knowledge.
Are you interested in participating in this forex market? If so, take your time and read the following article to the end so that you know how to trade forex right for beginners to avoid the risk of bankruptcy.
How to Trade Forex for Beginners – Safe and Profitable
Create a demo account
As a beginner, we recommend that you practice forex trading in real market conditions through a demo account. What are the advantages of using a demo account?
First, you don't have to worry about losing a lot of capital at the start if you experience a loss. Second, you can simultaneously test the trading system used. You can get a demo account from a forex broker that offers this facility.
Make sure you do a little research first to choose a broker forex which one is right for your learning and trading process. You can take advantage of FxScouts who has tested more than 160 Forex brokers serving Indonesian clients, including forex brokers under the supervision of local BAPPEBTI.
trading hours Unlike the exchange which is open from morning to night plus a lunch break, the Foreign Exchange Market is open 24 hours, 5 days a week. Thus, you can trade forex more freely because it is more flexible. You can do it outside of your main business hours and without disturbing your family.
Basically the trading session consists of several sessions, namely the New York session (America), the London session (Europe), the Tokyo session (Asia) and the Sydney session (Australia). How to determine the right time to trade forex?
There are three ways:
- If you have a high profit target, the most suitable trading time for you is the European and American overlap. With high volatility and liquidity, these sessions increase your chances of making profits faster. However, remember that this also means an increased potential risk.
- If you want to play it safe to facilitate risk management, then the Asian session is more suitable because the level of volatility and liquidity is usually light.
- Adjustment to daily conditions, namely outside working hours. It can be in the morning before starting work or in the evening after work.
However, if you really intend to become a full-time trader, of course you can trade all day like a normal worker.
Study, more intense
Three important things that you must study carefully if you really want to enter the world of forex trading, namely understanding candlesticks, technical indicators and fundamental indicators.
Candlesticks are one of the most common chart types found in market analysis, and the Forex market is no exception. The shape resembles a candle because it is called a candlestick.
The body of the candlestick consists of a line (shadow) and a rectangle (body), the length or length of which symbolizes a condition in the forex market. Each pattern or pattern consisting of several candlesticks describes its movement, so you need to recognize the various shapes and patterns of candlesticks to analyze the next market movement.
Just study it carefully because the accuracy of your analysis will determine how much potential profit you can generate.
Technical indicators are instruments that allow you to analyze price movements, volumes and trends in the foreign exchange market. While fundamental indicators are tools that can be used to analyze forex market movements based on economic, political and news conditions that have the potential to move the market.
You can usually find these two indicators in the forex broker application you are using. You can also combine one detector with another and configure it manually in addition to following the default settings.
Don't use this indicator for real accounts if you don't manage them well. Experiment with demo accounts and save all the effects that occur.
Trade only if you are absolutely sure that
Forex trading is quite a risky activity. Even a small mistake can cost a lot of money. Therefore, trade only if you are absolutely sure that you will make a profit after careful analysis.
Manage your mental state well so you don't rush into making decisions, especially when you're in a state of euphoria or when you're nervous. Volatile emotions affect decision making, so bias and this can be fatal to victory.
Understand and manage risk well
In addition to managing psychological conditions well, you also need to know how to manage risk well. As explained above, this activity is quite risky, but on the other hand it also promises a fairly high profit. Therefore, risk management will play a very important role.
You can take into account not only your profits, but also possible losses. That way, you can take proactive steps to save yourself from a fatal margin or draw.
The best advice is not to spend more than 2% of funds on forex trading. It is also safe to invest in other instruments with lower risk, for example in the stock or bond market. Don't forget that you must also have an emergency fund and adequate insurance as a financial safety net.
Well, hopefully these forex trading tips and tricks for beginners can be useful for you. Hopefully profit can be obtained soon and you can be successful as a forex trader.
Trusted Forex Trading App for Beginners
IPOT stands for Indo Premier Online Technology or also known as IndoPremier. It has been downloaded by more than one million people, you know! No wonder this application is equipped with supporting features that make it easier for traders to do business.
The benefits of the IPOT application itself are very diverse, including: trading system , report how much victory (profit) and loss that occurred since joining, and a chart of the stock's performance. In addition, the IPOT application can be used not only in cell phone, but also in computer.
Meanwhile, in terms of weaknesses, IPOT has some drawbacks, such as a rather complicated screen, so beginners need more time to learn trading app .
Stockbit Trading is one of the trading suitable for beginners, has a very practical user interface, a forum for stock trading and price prediction tool which used Stockbit .
In addition, Stockbit also has trading money demo training virtualYou can start to understand trading and trading methods without feeling lost.
Stockbit transaction fees can also be said to be cheap because they charge 0.10% for each purchase transaction and 0.20% for each sale. Unfortunately, Stockbit's weakness lies in some of its best features, which can only be used with premiums or payments.
commercial app well-known among the people, commercial logo and background simple with , so it is not difficult for beginners to use it.
The Magic application also has a variety of investment products other than stocks, such as mutual funds and time deposits. The new user registration process is also very easy. Simple interface user For
they are new trading, Magic also has a great investment language dictionary so you can identify new terms and understand how to use them. Another advantage of the Magic application is the detailed information of the publisher and information in real time.
On the other hand, this app left behind and loaded due to busy user traffic. Of course, the development team is constantly improving the quality of the app.
4. ForexTime FXTM Judging by its name
, ForexTime FXTM is commercial focus on foreign exchange. With the launch of the official website, ForexTime- used in 180 different countries around the world starting from .
For those of you who want to try Forex but have no experience, ForexTime app offers a demo feature for you to try. This demo allows you to explore and practice forex without fear of losing money.
You don't have to worry if you don't understand the language used in the application because ForexTime is available in several languages and one of them is Indonesian. In addition, the ForexTime application can also be downloaded at mobile device or a computer with Windows and Mac OS.
Talking about the transaction system, the withdrawal process at ForexTime is also quite fast and easy. Leverage quite flexible and flexible, even for professional traders leverage valuecould be higher.
The drawback is that the ForexTime application is still limited to products that can be sold, as well as customer serviceThis company is only available on weekdays, ie from Monday to Friday.
5. TD Ameritrade
TD Ameritrade is one of the trading suitable for beginners. Not only focus on forex , but the TD Ameritrade instrument range is quite diverse.
This application development company also provides fairly complete information for beginners to read guides and tips so as not to lose too much and lose a lot.
As a global application, TD Ameritrade unfortunately has disadvantages, namely transaction fees and fees e-wallet transfer of money
That's guys about how to trade forex for beginners that I can tell you, hopefully it's useful.