Most advisable not to do it theoretically, downloading course “free Forex training”, and in conditions close to reality. We need to open DEMO-account (can be done in 10 minutes) in one of the major dealing centers and start trading activities very similar to the real one.
In decent Dealing Center (these are the selected and recommended for real trading activity) without being distracted by other sources can take place in parallel and free Forex training, but not all in a row, but only exactly what unclear or questions for which there are specific complexity.
More from currency trading to be thrown clear of illusion and realize that any paid or free Forex training does not teach conducting profitable trading activities. First, significantly nobody knows if people would know in advance all the movements of currency pairs, it is already a few days they would have destroyed all other market participants and the Forex market would cease to exist on the uselessness.
Second, if someone is in a certain state of the currency market has formed a very profitable trading strategy; he will never sell, and especially do not give it to anyone.
It is generally accepted that the Forex trend displayed on timeline clear lines. Forex trend line is usually performed between the reference points on the chart of the currency pair and visually displays the direction of change in prices. Forex trends is the oldest and most weighty tools in technical analysis, it clearly indicates the optimal time of entry and exit a trade.
Lines depicting FX trend can be of various sizes and their size is formed depending on the time schedule, where they are displayed. Naturally, the trend line can be formed for any period of time. Line showing Forex trend, not only represent the direction of change of currency rates, but the momentum with which they occur.
It is necessary to clearly comprehend what Forex video tutorials can be viewed over the years and it is absolutely not understand what is happening in the foreign exchange market. While viewing the Forex video tutorials in excessive amounts you just upgraded their knowledge and be able to analyze among amateurs, but I become a professional only at the expense of Forex video lessons is simply unrealistic.
In the currency market (as indeed in all other aspects of human activity), it is desirable to develop only those items that are needed in real life, so we need to trade in order to understand what to study. After trading for real money (cents are real) in contrast to the DEMO-account, there is a completely different psychology, in real life are completely different actions of traders in the market.
Do not become a professional trader in one day (usually the formation of a successful trading strategy takes a few months), so the new currency market make very little profit, but many do lose your entire deposit. To increase the profits gained and reduce the risks and help many traders earn too little (much smaller than we would like), and some even suffer losses.
Not using the best Forex indicators trader is almost impossible to successfully trade in the foreign exchange market and hope for a regular income, as anticipate future changes of currency rates is difficult, but perhaps especially in the use of the best Forex indicators.
However, Forex video tutorials – is usually someone else’s opinion by accepting or rejecting that you form your own trading strategy, further honing and perfecting their professionalism.
Yet we must remember that the Forex market is very unstable and the strategies that have been effective are yesterday, today may not work tomorrow and even be unprofitable. Therefore, video tutorials and Forex trading is not a dogma, which are looking for many new traders, but merely a guide to action.
Stock trading via the Internet is quite different for some people. Typically, the capital for such transactions is small, but the deals are short term in nature. Therefore, the long term bull market is practically not working. In addition, most beginners often know only examples of the successful treatment of the shares and cases when people buy the securities before the strong drop in the market and as a result lose a lot of money, almost unknown. And many try to believe the best, boxing common sense into the far corner. In financial markets, the illusion – is a recipe for failure.
The second misconception is that online stock trading – it is a simple exercise that is available to everyone. On the one hand, yes, it is available. On the other hand, the question remains – what will be the result of such a trade? To the beginner in this case, he or she was able to get a steady income, even the smallest; he has to make a difficult path of becoming a professional. It is impossible to trade at random, as on the rates at the casino. Random success will be temporary, and that is not always successful. For the stability of a positive result, you must first learn the basics of the stock market, the theory of its operation.
Next, you should be familiar with the options market analysis, to explore the mechanisms of interaction between the economy and its various agencies. Fundamental analysis, as a rule is the basis of trade in the stock market. But nevertheless, the technical analysis can significantly improve results, especially if one is planning to make short-term transactions.
To know all these details are needed months of hard work, and only then will we become a professional and rely on a steady income.
There are some harsh reality puts most newcomers to the place to tell them that things are not so simple. But on the other hand, if the lead showgirl, it shows that the chance to become a professional trader is sometimes even more than a successful businessman. Just a business is not so difficult, and 98% of businesses are going bankrupt. Despite this business is profitable occupation, but in Forex those who made more money, especially not in sight. Many of them hide from prying real income. But every day hear the complaints of those who fail in the currency market. As a result, instead of a charming picture, easy and profitable work, each year despite of gaining credibility, forex scam keep coming into view. But that does not stop the professional work, especially against the background of increasing every year exciting features.
Is on the Internet, there is another concept such as “forex investor.” And of course, if someone is able to earn on the movement of currencies, there is someone who decides to invest in such a craftsman certain amount.
Investing in Forex carried out by two main options. First – this is self-management, and the second – control with a trader or organization. The first option is somewhat similar to the normal trading activity. The only difference is that this type of investor has been extremely conservative in Forex trading such as a large amount, a little leverage and long-term deals. In principle, in fact traders work. But because of its characteristics, they still like more investing.
As for the second option, it looks like it so much. The investor gives money to trader managing an entire organization. Or, as it is now accepted, it transmits not the money, and the key, the password to your account to manage it at Forex. Client trades, receives financial results and according to pre-specified period, shall report to the investor, and further there is profit sharing.
Leverage allows larger operations which could be performed only with our capital. In a single operation that should not risk more than 1-2% of the capital and to maintain this rule, we must take into account the leverage we use in our trading.
If we open an account with 1000 USD and we have a 100:1 leverage, we can use $100,000 (1 Lot) in one operation. Obviously this greatly increases the potential benefits but also potential losses. To maintain the rule of not risk more than 1-2% of the capital, we must put a stop loss at a level that should be reached to assume no more than 10-20 USD. With the volatility we see in the currency market, the stop loss is too small and will be reached very often if you use high leverage. Fortunately there are forex brokers that offer the possibility of trading with micro lots and this will allow us to keep the stop loss at this level as small $10 and have enough flexibility.
Of course, it may happen that we convert our 1000 USD in 2000 very quickly but in the long run, for sure, we can not keep this up and be out of the market by a margin call. It makes more sense to grow our account slower but more stable with adequate risk control. Thus, the gains will be more consistent and stable, and if we want to live the trading that can not be consistently at a high level of risk. For example, if we get an average of 5 pips profit, operating with a micro lot and performed five operations a day, we get approx. 2.5 dollars for beneficial (depending on the pair operated).
In absolute terms this may seem ridiculous but it is not! This gain of 2.5 USD in one day represents a profit of 0.25% on our trading capital in a single day, a really good number. As we continue to operate and be continuing our trading capital will increase and we can increase the amount of each transaction until we can make a profit even be able to afford to live trading.