Trading foreign exchange (forex) is indeed known as an activity to support financially carried out actively. Trading is different from investing in which activities tend to be passive. Even so, both forex trading and forex investment are considered capable of delivering the promised benefits. Many people have started to be interested in learning forex trading in order to increase their financial strength in the future. However, you need to know that forex is one type of investment that has a high risk. Even if you have started to learn forex trading, without experience and in-depth investment knowledge, forex trading can boomerang against you and weaken your financial strength.
|photo : pixels.com/Dominika Roseclay, edited|
6 steps to learn forex trading for beginners
Even though it has a high risk, learning forex trading from an early age can be a good alternative to increase knowledge and strategies in carrying out good and wise investments. One of the important skills that you must have when learning forex trading is a high level of concentration. These skills require remembering forex movements that continue to change every second, so you must be really observant and thorough in learning forex trading in order to be able to do the right analysis. Beyond that, there are several steps that might help you in learning forex trading, such as the following.
1. Create a demo account
|Demo account forex MT4|
Keep in mind that this demo account is a tool for learning forex trading, it would be better if you learn about the forex transaction process rather than see the dynamics of the money market. Usually a demo account to learn forex trading has an overview of the real foreign exchange market conditions. So, you can also use the demo account to practice the intuition and analysis needed as a trader. In creating a demo account, you can contact a trusted broker.
2. Know the types of trading platforms
|Types of trading platforms|
3. Understand the right time to trade forex
Time is an essential element that you need to pay attention to when learning forex trading. As you know, the money market continues to run 24 hours a day, 5 days a week. However, as a human being to work continuously in that period of time is impossible. Therefore, you must be able to manage the right and right time for you to trade forex. For the time element, there are basically 4 time sessions that you need to pay attention to when learning forex trading, namely the Sydney, Tokyo, London and New York sessions.
By understanding these four sessions while learning to trade, you can determine a time scheme that suits your personality to carry out forex transactions. If you're trying to try to become a full-time trader, you might get each session faster. However, in applying the time or session you must have high concentration. If you feel that the activity is too risky, you can start studying trading in your spare time, such as during office hours.
4. Get to know the mechanics of technical indicators
|Example of Technical indicators|
5. Study the fundamental indicators
|Fundamental indicators forex|
6. Understand the risks before trading
|Understand the risks before trading, TradingView Chart|
After you get a good knowledge and understanding when learning forex trading, the next step you can take is to start doing real-time forex transactions.