Introduction To Foreign Exchange Trading For Beginners – Guest Post
There’s no question that the economy isn’t doing very well at the moment, and you would be hard pressed to find good investment opportunities in the traditional areas of stocks and properties. So if you’re looking to grow your capital faster than it loses value due to inflation, where do you go?
Well the smart money these days are in commodities and currencies, with all the major banks and hedge funds enjoying well above market rates in these two areas. As a savvy investor yourself, you would do well to investigate potential profit opportunities within these two areas, especially with Forex (foreign exchange) trading as it is the most accessible to retail investors. Here’s how you can get yourself set up as a Forex trader and start taking advantage of the many opportunities in the currency markets.
Opening A Forex Account And Learning The Trade
If you’re serious about getting into the Forex market, then the first thing you should do is to set yourself up with a Forex trading account with a major broker. There is no shortage of brokers online at the moment offering you the opportunity to trade with them, so here are a few tips to select the best broker.
Firstly, you should check that they offer competitive spreads on all the major currency pairs. Spreads are the difference between the buying and selling price of the currency pair, and is how brokers make money in the Forex market seeing as they don’t charge you a fixed commission.
Secondly, you should always check out Forex broker review sites to find out which brokers are reputable and which will simply make off with your money. Finally, you should always test them out on a mini or a micro account first to see how good their executions and spreads really are in an actual trading environment.
Once you’ve got your account set up, you should start off slowly and risk small amounts while you get used to the speed and the nuances of the Forex market. It’s certainly different from any other market you’ve probably encountered before, so approach it with caution and spend as much time as you can learning the art of Forex trading from the many good websites and courses out there. It often takes a beginner a good number of months to a year to achieve a level of skill that will allow them to survive in the market. If you are still around the breakeven point at the end of your first year, you are doing much better than many other traders.
How Much Can You Expect To Earn From Trading Forex?
As with any other skill and profession, it takes time and experience in the markets to hone your skills to a level where you can expect to get paid. The Forex market is no different, so don’t get too excited about profits for now. Focus on learning, improving and keeping your head above water. Once you have mastered the basics, you will see that your profits will grow and your consistency will improve as well.
All in all, trading Forex is no easy task, but with the right broker selection for your Forex account, the right strategies for trading and a commitment to learn, nothing can stop you from achieving the profits you desire.
This article was provided to us by Adam, who’s an experienced financial trader and run his own site at ForexAccounts.net.