Forex is an investment that is quite loved by many people today, but forex is an investment that has a very high risk and beginners must know.
Forex or also known as foreign exchange is an investment where investors trade two pairs of foreign currencies. The profit obtained by this forex trader, namely from the price difference that occurs between the two currencies.
For example USD/IDR, where traders will trade both types of currencies, and seek profit from forex trading.
The movement in the value of these currencies takes place every day, and forex traders call them fluctuations. Currency price movements are influenced by various external and internal factors of the two currency pairs. So the high and low value of a country’s currency depends on the factors that influence it.
Forex Trading Concept
It’s growing the more developed the world financial industry. Currently forex trading can even be done by people who live in rural areas though.
basically quite simple, namely buying when the price of the currency is cheap, and selling it when the price of the currency goes up. How to play forex trading is basically quite simple, namely buying when the price of the currency is cheap, and selling it when the price of the currency goes up.
However, in practice, it is certainly not that easy to make a decision to buy or sell forex or the desired currency pair.
This forex trading must involve 2 different types of currencies. And usually the most popular currency pairs that are often traded by traders, for example EUR / USD or AUD / USD.
Also Read: Are You a Beginner Trader? Here’s How To Be Safe When Trading Forex
Forex traders must be able to determine when is the right time to sell or buy the currency. Usually these traders refer to forex trading with the term forex.
Reasons for Trading Forex
It is undeniable that playing forex or forex trading can provide a lot of advantages, especially for professional traders, where their main income comes from forex trading.
However, not everyone can become a trader, because forex trading is not as easy as in theory. And not infrequently a lot of people actually experience a lot of losses from this forex trading.
There are two general reasons that underlie people to trade forex, namely to make a profit and the second is just to try it.
There is nothing wrong with trying forex trading, but for those of you who are beginners, you should try trading using a demo account. This is much safer when compared to trading using a real account.
Avoid forex trading because you just want to try without learning to trade first. This is very dangerous, you are not benefiting trading, there are actually suffering losses because they do not understand how to play forex trading correctly. Even a professional trader has experienced losses while trading, especially for those of you who just want to try.
Tips for Starting Forex Trading
For beginners, of course, they will wonder, how to start forex trading correctly so that the trades made can generate profits. Before trading forex, there are several steps that must be passed, namely:
1. Finding the Right Broker
Forex brokers will help you so that you can trade comfortably. Without the help of a broker you certainly cannot enter the market. Choose a broker that provides services according to what you need, for example a broker that accepts investors who want to trade but do not have large enough capital.
2. Create an Account
After finding a broker, don’t waste your time. Register online by visiting the broker’s website Forex brokers also usually provide online deposit and withdrawal services.
Once you have an account, you must make a deposit. Usually deposits can be made by simple bank transfer, using a credit card and can also use a digital wallet. And each broker will provide various payment methods. You can choose which payment method is most suitable for you.
4. It’s Trading Time
After making a deposit, it’s time for you to trade. Trade using the strategies you have, and don’t forget to stay committed to risk management to minimize the level of losses that may occur.
Knowledge of Trading
For beginners, trading knowledge is very important to learn and you can learn it here. Because in forex trading, we will find a lot of terms in trading better if you already understand the terms in the trade. Here are some steps in playing forex that you must know:
Start with small capital Understand trading terms Learn risk management and apply it Learn how to use indicators and read charts Use leverage very wisely
Considering forex trading is very risky, so never try trading without having the knowledge. Because if you just want to learn to trade, then take advantage of the demo account.
The demo account can be used to learn to trade well. However, if you are not confident in your trading skills, then don’t trade on a real account.
Although a demo account is just an account that can be used to learn to trade, the concept of forex trading using a demo account is exactly the same as trading using a real account. So using a demo account you can still feel the thrill of trading