Five Steps on Making Your First Trade in Forex, How to start trading in forex market, How to Trade Forex, Understand How to Make your First Trade.. The good Steps to win in Forex Markets.
Five Steps on Making Your First Trade in Forex
Five Steps on Making Your First Trade in Forex: The foreign exchange market (forex, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market sets the foreign exchange rates for each currency. It includes all aspects of buying, selling and exchanging currencies at current or specified prices. In terms of trading volume, it is by far the largest market in the world, followed by the credit market. Five Steps on Making Your First Trade in Forex
Before you Trade you need to follow the few Steps as elaborated bellow:
1. Select a currency pair
When trading forex, you exchange the value of one currency for another. In other words, you will always buy one currency while simultaneously selling another. For this reason, you will always trade currencies in a pair.
Most new traders will start by trading the most popular major currency pairs, but you can trade any currency pair we have available as long as you have enough money in your account. In this walkthrough, we’ll take a look at EUR/USD (Euro/US Dollar).
2. Market analysis
Research and analysis should be the basis of your commercial endeavors. Without it, you are running on emotion. This does not usually end well.
When you first start your search, you will find a whole wealth of forex resources – which may seem confusing at first. But as you search for a particular currency pair, you will find valuable resources that stand out from the rest. You should regularly look at the current and historical charts, monitor the news for economic announcements, check indicators and perform other technical and fundamental analyzes. We’ll talk more about specific types of research later.
3. Read the quote
You will notice that two prices for currency pairs appear.
For example, a quote for EUR/USD might look like this.
The first price (1.07173) is the price at which you can sell the currency pair. The second price (1.07191) is the price at which you can buy the currency pair. The difference between the first and second price is called the spread. This is the amount the merchant charges to make the transaction. Five Steps on Making Your First Trade in Forex
The differences vary between traders. FOREX.com offers competitive spreads on a wide range of currency pairs on offer. View our live spreads.
4. Choose your Position
If you trade stocks, bonds, or other financial products, you know that you can usually only speculate in one direction of the market: the up.
Forex trading is a little different. Because you are buying one currency, while simultaneously selling another, you can speculate on the rise and fall of the market.
Also See: Binance: How to Create a Binance Account | Step-by-step Guide
With the buy position, you believe that the value of the base currency will rise compared to the quote currency. If you are buying the EUR/USD pair, you think that the price of the euro will rise against the dollar. In other words, you think the Euro is bullish (and the US dollar is bearish).
With a sell position, you believe that the value of the base currency will decrease compared to the quote currency. If you sell the EUR/USD, you think that the price of the euro will weaken against the dollar. In other words, you think the Euro is bearish (and the US Dollar is bullish).
Let’s see how this will work. Imagine that you did some research and decided to enter into a deal.
Entering into a buy position
The current price of the EUR/USD is 1.33820/840. You think that the Euro is bullish, so you decide to enter into a buy position of 1 lot of the EUR/USD pair. Because you are buying, your trade is entered at 1.33840.
Now, let’s say that later in the day, I looked at your situation. The EUR/USD is now at 1.34160 / 180. Your trade has gained 32 pips. You decide to close your position at the current sell price of 1.34160 and take profit.
Entering a selling site
Let’s imagine that you think the Euro is in a downtrend. You decide to enter into a short position of 1 lot of EUR/USD. Because you are selling, your trade is entered at 1.33820.
You look at your position later in the day and discover that the EUR/USD is now at 1.34160 / 180. Your trade lost 36 pips. You decide to close your position at the current buy price 1.34180 and accept your losses. Five Steps on Making Your First Trade in Forex
5. Entering and Leaving the Market
Here you will have to be very careful when entering and exiting.
Many people have been losing their capital because they do not know the best place to go in and out.
For more details on different tips on how to trade forex do not hesitate to visit this page daily or you can visit HERE to get more information. Five Steps on Making Your First Trade in Forex
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Five Steps on Making Your First Trade in Forex