If you are fascinated by trading forex, you must have read about pips, leverage, and other things that are crucial for trading. Let us go through a forex trading guide for beginners –
Select a Proper Forex Broker
In the beginning, if you are new to forex trading, you have to select a proper forex broker. You may come across many professional forex brokers; so it may be hard to choose the right one for a novice trader.
Remember that most of them offer a demo account where you can test your skills or practice forex trading without any fear of losing your assets. You can begin by checking out the reviews of the forex platforms and their previous track records.
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Install trading software
Once you choose a broker, you have to install trading software next. It can be the MT4 or MT5, or any other custom platforms. Some brokers prefer using their own platform like eToro.
You may also come across brokers who do not offer the MetaTrader platform, instead, they prefer using only their own platform.
However, MetaTrader can be said as one of the best forex trading platforms because individuals can utilize a wide variety of custom indicators and get professional advisors on the platform. If you are a novice in this industry, then this platform is the right one for you.
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The Need for a Trading Account
Get started with your trading as soon as you can. To begin, you need to register and open a new account on the trading platform.
If you are a new trader, then it would be good to start with an account where you can execute trades with lower sizes; such as nano or micro. Usually, registration is quick and easy.
You just have to give personal information like name and email address. For identity verification, you may need to submit any kind of photo ID; and any kind of bill to prove that the address is valid.
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Fund your account
After registering an account, you have to add funds. It is very easy to do. A new trader can begin with a few hundred dollars on a mini account. Keep in mind that you have to deposit an initial amount of money to your account in order to begin trading. This initial amount is determined by the broker; so make sure to check it beforehand.
Learn to trade from Mac
MetaTrader is an application used for the Windows platform. If you own a Mac computer with a Mac OS system, then you need to use a software named Wine to run MetaTrader. The setup is also very quick. It is all the same as on Windows machines.
Test platform on demo
You should always test your trading on demo platforms before you go ahead and open a real account.
Based on the broker, you can use a certain amount of virtual cash to test your trading skills on the demo platform.
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Through virtual cash, you can test how to place profit, how to place a stop loss, and more. Instead of using real cash, it’s better to first practice these steps via the demo account.
Keep Practicing Until You Become Expert
If you plan to master your skills in the forex industry, practice is a must. If you practice properly, you will get to know whether you require a trading simulator or not. Begin practicing regularly on your broker’s demo platform.
This is where you can trade without any fear of losing money and you can assess your skills and strategies without even losing any real money as you will be using the virtual cash that the demo account will provide.
So, practice hard on the demo account so that as you begin real trading you have nothing to worry about.