Forex Trading generally or often abbreviated as FX is synonym for Foreign Exchange Foreign currency exchange aliases. In our language known as forex or foreign exchange. Forex trading, thus, is a currency trading between the two countries whose values differ from time to time.
Currencies are usually traded in the Forex is the currency in the developed countries like the U.S. dollar (USD), Japanese Yen (JPY), Swiss Franc (CHF), British Pound (GBP), Australian Dollar (AUD) and Euros (EUR) . All currencies were typically exchanged or traded in pairs or called pair. For example, EUR / GBP, CHF, GBP / USD, EUR / USD, AUD / USD, GBP / JPY and others.
Please note that Forex Market is the most liquid market and the biggest in the world. There are trillions of dollars of money that rotates in the forex market every day. The amount often exceeds the BNP (Gross National Product) of developed countries. Incredible. Neither party can control the price in the market for a long time but the market itself is moving.
Forex is an investment product that are liquid and is international. The difference of the currency of a country that went from time to time which is influenced by many kinds of factor that is the basis of financial transactions called Forex Trading.
If you’re new to understand Forex trading, you need to understand that Forex trading has risks that can spend your capital. So before you start your Forex transactions, it helps if you understand all the risks that exist.
When you are trading forex, you need the forex market in this case the broker or market maker. So it is important to do your research on the broker before the release of your fund as a fund margin account (which is required for trading). Without serious attention to this broker problem, you could lose the funds in your account. Yes, your broker is a scam …! Then choose a trusted broker and have high accountability.
Here are some tips you can make consideration in forex transactions :
1. Understand Forex Risk.
Each investment must contain a risk. You have to understand well all the risk. We focus not only on the lucrative profits from this trade, but also note the following:
– If you lack knowledge of the character of a currency market movements, then you will be faced with the risk of losing your money. Try to identify and learn first character of the movement of the currency you want traded. My advice to beginners is to try first learned the character of the USD / JPY. Why? because of my experience, the USD / JPY that has character a smooth, slowly but surely, where daily movements can be measured between 50-100 pips (points), and when there are extraordinary movement at least about 200-300 pips. For the movement of more than 300 pips is to be very rare. When that happens, it can be ascertained due to the fundamental factors (news) is very meaningful, such as interest rates rise, natural disasters, inflation rate.
– If you are in a position of market entry, then you will be dealing with your own psychological. It also can cause your money float. This can be caused because you are less careful and observant when you enter the Forex market. Thorough and jelly is the moment you enter the Forex market. Understand exactly how to use your Forex software properly. Set Number of LOT and Forex currency that you want traded. Take a BUY position when the market at the lowest price and SELL when the market at highest price (this is you can learn to use some indicators that there chart.)
– If you are in a position against the Forex market. Well, you should follow the trend is happening, but quite the opposite. Remember! You just take the opportunity with huge potential in the Forex market, is not we who determine the Forex market. So, do not ever blame the forex market is not friendly with you, but you have to adjust the market.
2. Accept Responsibility.
You must be prepared to accept any liability from your actions in Forex transactions. If you encounter an error transaction, you must be prepared to anticipate quickly for errors that could be improved to become an opportunity that generate return / profit.
3. Work Smart not Hard Work
All you need is to multiply all the information on Forex transactions. You can continue to learn all the basic techniques and advanced on the internet or from the experiences of seniors Forex Trader that you trust. In Forex there is no ‘cum laude’, but that is how you can ‘survive’ in a Forex transaction until your life could be better for it.
4. KISS (Keep It Simple Stupid).
Set your system is simple in Forex transactions. Lots of Forex indicators that exist, you just select the line with ‘force’ your trading. Simple systems sometimes provide a better than systems with a level of complexity that can make you confused.
5. Be Patient.
Be patient and do not rush in to take your Forex trading decisions. Forex Market Movement Up and Down, in which case you just waiting for the right time for the achievement of entry-level price targets you can reach the maximum.
6. Use Leverage more realistic.
If you have capital that is not too large, it’s good when you start trade with best and honest forex broker that have a higher leverage up to 1:1000. Several good forex brokers to start trade for beginner or even professional forex trader are choose in the list below at the end of this article.
7. Must be Realistic!
Well, it is sometimes hard done by Forex traders. Do not be afraid to make mistakes or take losses. Forget your ego and Make Money! If you are able to generate profit of 50% -100% for one year from your capital, it has become an extraordinary thing is not it? From that experience, you can slowly increase your own profit target. Learn by Process! Learning from the process of your own experience because of all the risks and responsibilities is not on anyone else.
8. Do not invest more than you are able to accept the risk!.
Funding your margin account should only be done with those funds, if lost, will not have a significant impact on your finances. That is, the funds used for trading in forex is really fresh funds. Trading in Forex involves a number of risks such as investing in the stock market. Do not invest your life with a form of savings in Forex, especially if you are a beginner to currency trading. A good rule for beginners is to simply invest the amount you can afford and then build a ‘property’ when you have made your trading success .. You should not invest all the money you have to live well in the stock market or forex. Especially if you have to borrow funds from banks or borrow here and there for this purpose. Based on my experience, you will not be successful. In fact, I dare say you’re digging the grave for your financial destiny. Trust me …! So, be wise in any investment opportunity.
I’ve hope this eight currency trading tips can give our vision how to trading forex with wisely. And lastl, the most important thing is practice our skill first before take action in forex. My suggestion is learnig about candlestick basics and strong support resistance levels to get consistent making money from forex market.