This is a forex trading beginner's guide. This article will quickly take you through the basics, and have a look at the pitfalls that may await, and how to deal with, or avoid them. This article assumes that you know very little about trading the forex currency market. Therefore let us start with a warning.
It pays to be very cautious in your dealings in the market at all times. Start with a demo account at one of the many trading platforms, and when you feel happy that you know your way around the currency market, and you feel you can profit from it, then you can open a live account, and I would suggest you trade with the smallest amounts allowable to start with.
So once you have registered and got your account up and running, you will see that you can buy or sell currency pairs, or go long or short respectively. Major currency pairs include the Euro/USD, the GBP/USD, and the USD/JPY, but there are many others. Now if you go long, for instance, on the Euro/USD, you are buying as you believe the Euro will strengthen against the USD. When you place a trade you can place a stop-loss at the same time, and I strongly suggest you do this, for if the market moves quickly against you, you may find yourself to be with serious losses. Sometimes the market moves very slowly, but it can suddenly burst into life due to some economic news, and so you need to be prepared. You can also pick a price where you will take the profits from the market too. It is worth checking a forex calendar before you trade to see if there are any major announcements that could affect the currency market.
When you are trading there should be a chart that you can use on your trading platform. Use this when you trade as it will give you an idea of chart trends and how the market is likely to proceed. On the charts you will find candlesticks to denote which way the market went in various trading periods, and you can also use moving averages, momentum, RSI, stochastics etc, which will aid you greatly in your trading decisions. For instance stochastics can show you if a currency is becoming overbought or oversold, so that it could be ripe to change direction. It is important to use all the tools at your disposal.
If you want to trade without having to do all the calculations and trades yourself you can use one of the many trading robots that are so popular. The best of this breed is the Fap Turbo. This has a great track record and reputation, and the software will basically trade for you and should make you very healthy profits.
For more information on trading the financial markets, and to get your hands on a brand new trading system absolutely free of charge please go to [http://www.tradingstrategiessite.co.uk].
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