Forex trading has gained significant attention worldwide since 1990s when individuals and small investors get access to trade forex; while before 1990s, only big enterprise, banks, organizations or people invest a huge amount at a time are able to operate forex trading. As more and more people are anxious to rush into the forex market, there comes the question: What forex traders should know before starting forex trading? To get started in forex trading is not a difficult thing. All imperative things forex traders need to know or to prepare for forex trading are listed below
A laptop or a desktop with high speed internet connection is essential
Without any doubt, a laptop or a desktop is the basic device forex traders need in order to get started in forex trading. Moreover, computer with high speed internet connection is a must in order to get quick access to forex market and carry out online forex trading as quickly as possible. Furthermore, with the help of computer, traders can look through the internet and search for forex related information to improve their fundamental understanding of forex exchange rate, terms, strategies, skills and tips and so on, all of which are instrumental to becoming an excellent forex trader.
A reliable broker will help yield twice the result with half the effort
While the laptop is an imperative thing in forex trading, as I mentioned above; a respectable broker will aid forex traders to get what they want to know, for example forex strategies, analysis etc. because most top brokers as IKONprovides reliable forex platform for forex traders. Forex traders are able to open forex demo account to practice with and gain experience without opening their wallet.
Trading right currency pairs and trading in proper time is beneficial
After practicing with forex demo account, traders get skilled in forex trading and then can choose to trade forex for real. But there are many types of currencies at forex traders’ choice. So how to choose the best currency pairs for forex beginners? In general, most traders trade the most liquid seven currency pairs in the world, which are four “majors” and three commodity pairs.
Four majors: EUR/USD (euro/dollar), USD/JPY (dollar/Japanese yen), GBP/USD (British pound/dollar) and USD/CHF (dollar/Swiss franc)
Three commodity pairs: AUD/USD (Australian dollar/dollar), USD/CAD (dollar/Canadian dollar) and NZD/USD (New Zealand dollar/dollar)
Forex traders trade the seven currency pairs because they account for 95% of the total turnover of forex trading and are most active and liquid currency pairs in forex trading.
Then comes to the question of choosing the proper trade time after forex traders make decision on what currency pairs to trade. Generally speaking, the best trading time is up to the currency pair traded, for example, forex traders trade EUR/USD, GBP/USD and USD/CHF currency pairs had better trade between 8:00 am and 12:00 noon EST when markets for those currencies are active.
Starting small and taking no risk is imperative
Forex trading takes place in a big market where various forex are exchanged for many reasons. Some multinational companies exchange forex for payroll, merger etc, which only accounts for 20% of forex trading volume. Then forex traders may ask where the other 80% turnover in forex trading is from? The answer might be astonishing because the 80% forex trading volume is from forex speculation. Thus, Forex market is never a risk-free market; most market trend may go beyond traders’ expectation time to time, so as forex beginners who are not acquainted with the volatile market well, they should start small and play safe in forex trading
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