Forex trading basics.
In order to trade on the currency exchange, you need to know some practical and theoretical basics
of forex trading. This is the minimum without which you simply cannot trade and will quickly lose your funds. Therefore, spending a few minutes reading this article will not be in vain and will save you from some mistakes.
The basics of forex trading include such points as general concepts, technical aspects of transactions, fundamental and technical analysis and basic strategies for trading.
In the classical concept, Forex is currency trading, but thanks to the expanded capabilities of the trading terminal, you can now trade precious metals, stocks, contracts and other instruments.
Trading is carried out through Forex dealing centers which act as intermediaries in carrying out transactions. In order to enter the market directly, you need to have not only huge funds, but also a special license.
Technical points.
Quite often the question is asked, how to trade on Forex? To carry out trading you should follow a few simple steps.
• Register on his website.
• Install a trading terminal on your computer.
• Top up your account.
• Learn to open and close transactions.
• Select a trading instrument (currency pair) and timeframe (time interval).
But successful trading requires not only the ability to trade technically, but also the correct application of fundamental and technical analysis.
And then, based on the data obtained, you can make a forecast of the future movement of the exchange rate of the currency pair; otherwise, your first experience may quickly end in failure.
Trading strategies.
This is one of the most important aspects of the basics of forex trading is that a forex strategy should include everything from signals to enter trades to means of reducing losses and insuring risks.
The main trading strategies include:
1. Trading with the trend , transactions are carried out only in the direction of price movement.
2. Trading in price channels built on the basis of support and resistance levels.
3. News trading , which is based only on fundamental factors.
4. Scalping , opening short trades and making profits through a large number of transactions.
5. Automatic trading using advisors or special robots that independently open and close orders.
Once you have chosen a strategy that is right for you, you should bring it to perfection by correcting existing shortcomings.
Forex fundamentals are the basis on which you will build your trading, so try to teach yourself to do several things from the very beginning - always analyze the market, place stop orders, analyze the results of work and identify errors.