Forex (Foreign Exchange) is a market which allows currency trading from anybody ranging from retail investors to the government. There must be a buyer and a seller to make the Forex market complete. One important thing about Forex trading is that there is no tangible product per se, and one currency is pitched against the other. Additionally, the market itself is not a physical one, and is merely set up through services placed across the world. Until quite recently, it was not possible to trade forex on a small level. You had to depend upon various brokers to do the job.
Thankfully, the emergence of internet trading has made it possible for you to trade in micro lots wherein a deposit of only $10-$20 would be enough to get you started. As a matter of fact, Forex is now considered to be the easiest online trading market which provides people with the opportunity of trading in Futures, Options and Stocks, and other commodities.
Here's some great forex advice for beginners: Beginners in Forex trading need to increase their knowledge about the market to advance to higher levels. They must be willing learn something new every day. Nowadays, it's even easier because you can learn forex online.
To begin with, beginners are required to get familiar with the terminology used in Forex trading, such as RSI, stochastic/candlestick charts, averages, volume, technical analysis and fundamental analysis. This information provides traders with a certain amount of clarity with regard to what specifically they need to do in Forex Trading. They can browse the web, seek advice from experts, or even read books to enhance their knowledge base.
Beginners are also recommended to start with a demo account as opposed to a real one. This is because they would be learning via trial-and-error method and could make huge mistakes in the process. Once you get enough experience and start feeling confident about your ability, you can open a real account and trade in currency pairs like GBP/USD and USD/EURO. New traders are also advised to put stop-loss order in all their trades. Stop loss safeguards your investment when the market becomes volatile and trades against your expectation. It puts a limit on the maximum amount of loss you can sustain. However, you must read the Forex calendar carefully before doing that.
Beginners can also take advantage of automated Forex trading software or forex robots to carry out the deals. However, it would prudent not to depend totally on such software/robots. Remember, success in Forex trading is all about five qualities - hard work, patience, persistence, intelligence and discretion. Also, refrain from building unrealistic expectations since only 1% of the traders make a fortune by trading in Forex.
