In this article I am going to outline what Forex, currency trading is, how to get started, what tools you need, how much it costs to start and where to look for training and support. Remember that Forex, currency trading is not for everyone and the points in this article should be carefully considered before trading for real money.
What is Forex Currency Trading?
Forex or currency trading is the buying and selling of foreign currency although this may sound tricky it is very simple and all done on the computer over the internet very quickly. Forex or currency trading is not like going down to your local travel agent and purchasing some currency and selling it back when the price changes. The trading that is done on the Forex market is on the last two decimal places of a currency or a tenth of a cent where the USD is concerned. Forex and currency trading is all done over a spread betting platform and bets are placed on fluctuation of a currency pairs last two decimal places.
How to Get Started in Forex, Currency Trading.
Thanks to the internet and the popularity of currency trading there is now a wealth of information available for free. Forex, currency trading is all done by the use of fundamental and technical data; it is the knowledge of such data that traders use to determine whether to buy or sell a currency. The data is interpreted on a chart and it is these charts that a potential trader must learn how to use to become successful in the currency markets. There are now plenty of spread betting platforms that offer a demo account, so you can trade with play money in a real market environment. I recommend opening one of these account first, using the charts provided to get you started. Together with the free information available on how to use the charts you should be able to get a general grasp of how the whole thing works.
What Tools You Need
The tools that you need to trade on the Forex, currency markets are simple. An internet connection and a computer and you can trade Forex from anywhere in the world 24 hours a day 6 days a week. What is more important is the spread betting platform that you use. You need a spread betting platform that has the lowest spread but can get you in and out of the trades quickly. The spread is what the spread betting company charge you for filling your trades. An example of this is; if you entered a trade at a certain price and the spread betting company had a spread of 2 pips for that currency pair then you would enter the trade 2 pips lower than originally initiated that is how the company make their money.
How Much It Costs To Start
It is a misconception that you need thousands of pounds or dollars to speculate on the Forex market. Since the explosion of popularity in trading Forex currency many spread betting platform offer beginners accounts with minimum trades of as little as 0.10p a pip. If you where to stick to the recommended money management plan of only risking 5% of your trading balance on any one trade, you would only need an initial investment of £100.
Where to Look for Training & Support
As I mentioned earlier there is plenty of free information available on the internet related to Forex and currency trading. Finding valuable and useful information cannot be so easy. One of the increasingly popular methods of training for the Forex market is to join a Forex club. A Forex club is a group of people that trade together over a webinar coordinated by a professional trader. It can be as simple as watching what he does and copying. One of the biggest hurdles in trading is getting over the emotions of when to enter and exit a trade, trading in a group can achieve the confidence needed to overcome these emotions and make correct decisions in your trading. These groups normally offer training and one to one support.