Unlike the stock market, Forex trading does not happen at a physical location nor does it have a central exchange.
Hence, a Forex trader can trade wherever they are, 24 hours a day for 5.5 days a week! No wonder that Forex trading is so attractive to many new investors. To start Forex trading, you would first need to open an online trading account where all your currency transactions will take place.
Opening a Forex account involves three simple steps:
Choose an Appropriate Forex Trading Site. There are two things to consider when choosing the right Forex trading site for you. First is the leverage the site offers. Each site offers different leverage, which can range from 50:1 to as high as 250:1.
A leverage factor of 50:1 for instance, would allow a person with USD 1,000 in his account to trade USD 50,000 in the Forex market. While this could allow you to make large gains with small investments, it can also amplify your losses if a trade move against you.
It is important to understand the risks involved in determining your intended leverage. Also, the trading site should be commission-free, as you do not need to go through a third party, like brokers for stocks. Examine the site properly before you decide to make sure they offer features that you need.
Choose an Suitable Account Type
Forex trading accounts come in different sizes, ranging from USD 25 (micro / mini accounts) to USD 10,000 (standard accounts). Choose the account size according to the amount you want to invest in. Choose Forex trading spot account, which allows instantaneous trades and is more popular, instead of a futures account.
Register For a Forex Trading Account
Most of the registration is done online and would require your personal details as well as your credit card details for real cash trades. Make sure you enter your email address properly.
Activate Your Forex Trading Account
You would be asked to verify your details through several steps. Make sure you read through and understand the terms and conditions before you sign them online. Pay particular attention to the operating hours of the site, the availability of live technical support and any hidden commission / charges. Some sites also offer a limited-time demo account with no real cash involved. You can use it to familiarize yourself with Forex trading before you trade with real cash. Congratulations! You are now ready to hit the Forex market!
Understanding Forex Jargons
One of the major frustrations of Forex traders is the awful lots of jargons. Googling those terms does not seem to help either because the explanations are more often than not, contain other jargons. This chapter will explain five common technical terms used in Forex trading in layman language. Quote: Forex trading is always done in pairs and thus a currency is always quoted relative to another currency, e.g. USD/JPY, EUR/USD, AUD/GBP. A quote would look like this: USD/JPY = 100.00.
The currency on the left (in this case, US dollar) is known as the “base currency” and always equal to 1 unit, whereas the currency on the right (in this case, Japanese Yen) is called the quote or counter currency. A quote is how much worth one unit of the base currency, hence this particular quote means that USD 1 can purchase 100.00 Japanese’s Yen.
Pip: stands for “percentage in point” which is the smallest increment of trade in Forex. Prices in Forex market are always quoted to the fourth decimal place, except Japanese Yen; e.g. when EUR/USD rises from 1.5200 to 1.5201, it rises by 1pip. For Japanese Yen, 1 pip is equivalent to 0.01 (two decimal places). Most currency pairs trade between 100 – 150 pips daily. Bid / Ask: In Forex, to bid means “to buy” whereas “to ask” means “to sell”. The quote on the left is the bid (buy) price while the quote on the right is the ask (sell) price, and bidding price is always lower than the asking price. The base currency would be the one in which the transaction would be conducted.
Let’s look at the example, EUR/USD 1.2600/02. To sell this currency pair means to sell the base currency, i.e. the EURO. The market would buy your 1 EURO base currency with 1.2600 USD. On the contrary, to buy 1 EURO, you need 1.2602 Japanese Yen.
Spread: is the difference between the ask price and the bid price. Using the same example as above, the spread was 2 pips, which you automatically pay to your broker at every trade.
Margin: The minimum amount of money required to place a trade with a broker. You can trade as long as your account has this minimum amount, otherwise your accounts would be closed down. Understanding the terminologies would definitely boost your confidence in trading and discuss your trade with other traders without sounding like a total novice!
Success Strategies For Full Time Forex Traders
If you have just started your Internet home-based business as full time forex trader and little bit confused on how to earn good profits out of the forex market, then this chapter is for you. Starting Internet Home based business as forex trader is very easy. You just require PC with Internet connection, forex account and forex trading software. Earning regular profits from the forex market is your main object and you must plan your strategies accordingly to achieve your prime goal. Full time forex trader must know the forex market very well. It can’t possible to know and learn in a single day. It is the process and you have to enter into this process for success in forex market. First try to gather as much as information possible from different sources related to forex market.
Then search for the best forex trading course for you and learn about the different critical situations about forex market and what to do when. Once you are finished with the forex course then try your knowledge and make trade using forex dummy accounts. Forex dummy accounts are the best friends to forex beginners. Here you will find the real forex market situations to test your skills with no risk involvement as you are not playing with real money. Once you practice with the forex dummy accounts it is the time to get the right forex trading account and platform for your forex trade.
It can be done by getting the right forex brokers who will help you in all your forex trading activities.
You must take the help of forex alerts, but your source of forex alerts must be reliable and trustworthy. Forex alerts help you to take the right decision and times it helps you to check your predictions with the predictions of the forex market experts, which help you boost your confidence in the forex market. You must take the help of forex technical analysis for all your complex forex trades in the forex market.
Success Strategies For Part Time Forex Traders
Forex market is a money market. Millions and millions of people come daily to try their luck. Some of them get success in the market, whereas some get failure. Those who get success like the style of the business and make it their regular source of income and who get failure, left the forex market and never come again.
When I ask question to myself that what is the reason of success and failure in the forex market? I find only one answer – Strategy. Right strategy makes man successful whereas following the wrong strategy makes him failure in the forex market. Here we are going to discuss the success strategies for part time forex traders.
As we all know that the part time forex traders are those who can only provide some time of their day or week to the forex market and want to earn good profits in the forex market. So, they must plan their strategies accordingly and execute them rightly to get success in the market.
They must use automated forex platform instead of regular forex platform for their forex market trading activities. Automated forex platform saves the time of the trader by generating the trade at best possible trading conditions in the market automatically and it also earns steady money at regular basis for the trader in forex market. Most of the part time forex traders are taking the help of forex alerts for their trades in the forex market. Forex alert is the paid or free advice from the forex experts to the forex traders to perform trade in the forex market. You must get the forex alert and it must be from reliable and trusted source. You can make the best use of your automated forex platform by combining it with the trusted forex alerts for the better results in the forex market.