5 Essential Steps For New Forex Traders

5 Essential Steps For New Forex Traders

Are you just getting started as a forex trader? If so, make sure to cover all the bases before making your first trade. That means attending to important cornerstones of the practice like having a trade-ready device, finding a reputable broker, funding your account, and making your first few trades.

After that, you’ll begin to build confidence, gain real world experience, and gain deep insights into the way the amazing world of foreign exchange currency markets operate. Ask any seasoned forex pro and they’ll tell you that those first few weeks of buying and selling were the most exciting phase of the learning process, which continues as long as you are willing to absorb new information. Consider checking off a box after you complete each of the following steps, each one of which is an integral piece of the puzzle that makes up the world of every forex enthusiast.

Get Connected

You need to have a computer, phone, laptop, tablet, or other device that has the proper amount of memory to handle on the go trading. This is not as big of a factor as it was just a few years ago, but be sure to check older desktop computers to see that they have the capacity to get the job done. Your brokerage site will give you all the details you need to do a test-run. If you intend to use MT4, for example, there’s a 30-second test that will tell you whether your old machine is up to snuff. If it is, visit your broker’s MT4 download page to get set up quickly. If your PC is not capable, you could either add memory to it or use a smartphone or other device.

Fund Your Account

Expect to spend about a half hour setting up the parameters of your account and funding it. Depending where you live and the broker you use, it could take anywhere from a few minutes or several business days to get funds into your trading account. Check your broker’s guidelines are for account creation, setup, and funding. Also be ready to provide a few key pieces of personal data like social security numbers and similar identity verification components.

Download MT4

There are many platforms for trading forex but MT4, also known as Metatrader 4 is the choice of people who want the chance to add sophisticated techniques to their buying and selling as their skills progress. MT4 is amazingly adaptable, easy for beginners to use, and can handle not just forex but pretty much any financial instrument out there. It’s not the newest platform in existence but can be endlessly customized and is a direct-connect to the forex markets.

Learn Trading Fundamentals

Use a demo account with fictitious funds to practice getting into and out of positions. Demo trading is not a substitute for the real thing, but it’s a great way to learn the basic mechanics of buying and selling all the foreign exchange pairs you’ll be dealing with as your skill progress.

Make a Trade

Place your first trade after deciding on the pair you are most interested in, the amount of funds you want to risk, and have decided on a specific entry and exit strategy. From this point onward, each time you buy or sell foreign currency, you’ll learn something