2020 is the year when people started getting interested in trading more than ever. Why? Because trading has become another way of stable passive income if you know how to do it right, and not rush the process. While many used to be scammed in the past, and probably nowadays if they don’t do the proper research, that is proof you need guidance if you want to advance as a trader.
Learning to trade forex doesn’t have to be a daunting experience, and once you get the basics, you can easily continue learning about the things that interest you the most. It can be a company you like (their stocks), crypto or something else. What’s important is that you have some passion for it and realize that Forex trading can bring you real benefit. Let’s see where to start.
What’s excellent about Forex trading nowadays is that you don’t have lots of money to start. Opening an account usually takes around 150$ (although it still varies from company to company). Once you opened an account, that money is the same as the one you keep in your regular banking account, but it’s only for trading purposes. This means you can use 5$ for starting a trade, or add more and naturally, invest more. It is entirely up to you what you want to do with that money.
In most cases, when you are a beginner, you will get a demo account, which can be great to learn more about the market and slowly learn how to read charts. It’s crucial to mention this means you won’t be trading with “real money” until you decide you are ready. Still, pay attention not to stay in that lane for too long, because it can be counterproductive to stay in the “comfort zone” of playing traders. This is an equivalent to the trial mode in anything, and it’s the best way to see how the market responds to your “buys” or “sells”. You will have a set amount of currency in the demo account (50-1000 USD), which is more than enough to experiment and play around.
Forex trading platforms are great because traders can easily combine the theoretical knowledge they’ve gained with practising via a demo platform or instead of using books as a source of knowledge. You’d be surprised how many useful books on forex trade there are. They are considered classics among financial literature, and some of them are still highly useful even though they are more than eighty years old. Of course, this depends on how you like to learn things, but reading at least one book from the top ones would be highly beneficial.
There are various websites as well who teach Fibonacci retracement and how to use it, technical analysis and strategies as well, so the internet is an excellent source for beginners if you know where to search. You can learn everything you need to know how to make an informed buy or sell decision. You can find useful reviews, forums where people share their experiences, you can learn about different trading strategies and so on. Nowadays there are also free courses and webinars where you can be sure you’ve learned the basics properly before opening an account or starting forex trading.
With trusted resources, whether they are books or courses, it’s vital to find a licenced and certified company as well. This should be number one priority once you’ve decided to open a trading account. We want to avoid scams, and that is easy to find by googling up the company and checking the reviews. Websites act as regulators for brokerages, so you can be sure they are the real deal when you find them on their list. What’s important is to know how the system works in general to progress faster as a trader. Yes, your broker will be there for you, but it will make their job (and yours as well), much quicker if you already know what you are going into. Good luck!