Start in Forex Trading Tools
If you decided to trade forex, there are some things you have to take care of before diving into the currency trading business.
First of all, do not ever put all your money or capital that you have earned into the real forex account. You must have probably heard that you could earn a fortune in just one day in currency trading. Well, that is true, but only partial. You can really earn a lot in forex trading in a very short time, but you could also loose everything you have in the same time limit or even faster. Be wise – if everybody was winning here, we would be surrounded by millionaires. However, the reality is that more than half of traders either stay on zero balance, without any losses or profits or loose all their funds and leave forex trading as failed business.
Just promise me, you will not put everything you have into the trading account and I will be more than happy to assist you in your new investment venture.
So, in order to begin trading, you must have a trading account at some broker, some money to trade with, forex trading platform and some analysis tools: currency pairs charts, news release source and forex indicators.
It’s rather easy to open forex account. Just type forex account or forex broker in Google and you will find lots of them. Be sure to check their credibility and the starting capital that you will have to transfer. Some require at least 5000 dollars, others are happy with 100. It’s up to you to decide, though I suggest trading with virtual money in forex demo account – this way you will gain some valuable experience and save your money. After some time when you have developed your own trading strategy and techniques and proved it to be profitable in the long time – you can switch to real account.
I must also remind to get acquainted with a trading platform – those can be installed like Metatrader or java application based, only requiring a web browser with flash installed. When you have traded in demo version, made some pending orders or instant executions, applied some indicators etc. – then you can think of trading live.
After you have chosen a broker, and transferred your money you will be given your account number and password, which you will have to change. After logging in to your trading platform check how much money do you have and what’s the allowed maximum and minimum leverage. If everything is OK, switch to another forex tool – charts.
Charts sometimes are implemented in a trading platform, so if you’re trading in Metatrader or Oanda – you will not have to look elsewhere, unless you are exceptionally demanding and particular. I find those two platforms (especially Metatrader) to have sufficient and comprehensive charts. Besides you will not have to look for any news release source – both platforms employ decent real time news release fields, which are updated instantly.
Finally forex indicators – those are also found on the same two platforms, and there are quite a number of them. Be it Fibonacci numbers, medium averages, RSI, MACD or Equidistant channel – you will everything and more using Metatrader platform. Oanda platform lacks some rare indicators – in that case you could use additional sources. Forex indicators are a must in trading forex, because they filter out some possible false forex market moves and provide decent future trading insight.
Above all – analyze a lot, risk little, use stop losses and profit taking and put your emotions aside – and you might succeed.