Making money through Forex is not a big point the big point is to understand the proper market situation. Because some traders after spending one month on forex education come into the market very quickly and set back after lost full of amount into market So there are few points I would like to introduce you which are important before investing in FX.
- Analysis = Before start the trade Trader must understand the way of market analysis. They must know about Fundamental, technical, Chart Reading, Previous failed & successful trades data so that they can’t repeat the same mistake in the future.
- Coin/Currency pairs = As I told you in my other article “Buying and Selling Currency Pairs” https://superbullsforex.com/buying-and-selling-currency-pairs/ about currency pairs. Most new traders have to trade on Forex’s major seven pairs so that they can learn through that about the market. Those pairs are quoted in US dollars. Also, they must know about Base/Quote currency.
- Demo Accounts= Most brokers providing the demo account so that the trader must go through with the chart and know about the market and understand the given platform tolls. Traders can trade with some demo amount which is provided by the broker so that traders can have the actual feel about how the market and trades work on the platform without using your real money ( We will come up with a detailed approach in our coming posts ).
- Buy/Sell = Simply traders have to buy & sell any pair to open a trade. So basically in case you need to open trade to sell a pair so you are essentially selling the base money and buy the quoted cash. Some traders call BID & Long Trade. On the other hand, Short Trade & ASK calls to Sell trades.
- Spread = The Difference between Bid & Ask price called Spread
For Example the price of Bid = 1830 &
The price of Ask = 1832
So the Spread is 2 points.
- PIP(Price In Points) = Pip is the perfection in the estimates of the currency pair. If a price move from 1.2345 to 1.2347 So the PIP movement is 2 points.
- Lot Size = Lot is the unit with the traders open the traders. According to market fluctuation and the invested amount you can trade with any Lot Size. Their’s three types of Lot Size that are used by Traders.
- MiCRO = Micro Lot 0.01 -> 1000 Units
- Mini = Mini Lot 0.1 -> 10,000 Units
- Stander Lot = 1 Lot Size -> 100,000 Units
You can trade based on the Equity. High Equity is always good for good trades and gains a good amount of profit.
- Start with Little Ventures = Toward the start of forex exchanging you should know about the speculation sum that could be very little higher or not be a lot low because a specific sum is useful for exchanging and make sure you can carry the loss if the amount can be lost because of the market situation.
- last but not least our most Important point is to ”Find the Right Broker ‘
Finding the right broker is the most important point before starting because without any broker you can’t enter the market for the trading. The broker must register and regulate. Must be given the registration number on the broker’s website. Just be aware of the white label broker who starts without any registration and they always manipulate the market opposite your open trades. Just check the broker reviews on social media interact with those clients who already using the service & Who was traded through that broker service.
