In this discussion, we will share information about the Best Way to Start Forex Trading for New Beginners 2022.
What is the Best Way to Start Trading Forex?
You must have learned a lot of useful information about forex trading from some of the long descriptions above. You already know how profits are made.
You also understand the dangers and benefits of this company. So, to explain how to get started trading forex. We’re going to simplify everything into a few short and solid principles.
The Best Way to Start Forex Trading for New Beginners 2022
Best Way to Start Forex Trading for Beginners Newest 2022, Choosing a Trusted Forex Broker for New Traders Please see our list of Forex Brokers for Beginners for more information.
Open a demo trading account with the broker, then download the broker’s trading program. Practice trading on a simulated account while learning the many aspects of Forex trading.
After mastering the trial account, open a real trading account to start real FX trading.
Deposit trading capital in accordance with the provisions of the broker. Conduct market analysis and forecast exchange rate fluctuations.
Trades are executed according to analysis findings and projections. Isn’t that simple!? But don’t be fooled by this fairly short and straightforward overview. Each stage requires a long and time-consuming procedure.
To be truly effective in the forex market, you must first master trading simulations on a demo account before switching to a real account.
Many newcomers believe that imitating a demo account is pointless because no money is made.
In reality, sample accounts can provide many invaluable experiences. Traders who only practice on a demo account may be surprised when they enter the market on a live account.
Furthermore, traders who do not initially practice on a demo account are highly guaranteed to lose. Start forex trading with a simple goal.
The profit from the demo account must be at least 100% of the initial virtual funds amount. Create a trading method that is reliable and able to generate sustainable profits.
As long as you can achieve both goals on a trial account, you are ready to enter the real Forex market.
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How Do You Analyze the Forex Market?
Market analysis is an important component of the forex trading method. Trading income is possible only if you understand what is happening in the market.
And then make appropriate judgments based on that information. But how do we check the currency market?
As said earlier, traders are familiar with two types of analysis: fundamental and technical analysis.
Both analyzes include so much information that they cannot be studied quickly. Fortunately, there are many physical books, internet articles, and YouTube videos that offer learning resources for basic and technical analysis.
For example, here’s a hands-on, practical way of assessing the forex market:
Open the price chart after downloading and installing the FX trading program on your mobile or laptop.
Select the currency pair (pair) you want to study. Let’s look at the EUR/USD pair as an example.
Set a timeframe on the chart based on our profit goals. Open a 5 minute or 10 minute window if you want to get profit as soon as possible.
However, for effective study material, a period of one day is recommended (Daily). Analysis of the daily period and trading positions will be valid for the next several days.
Watch the latest price movements. Is EUR/USD going up (bullish) or down (bearish)?
Easy way to assess forex market
Based on the image above, the EUR/USD candlestick is black and rising. This indicates that EUR/USD was bullish yesterday.
The euro rose, while the US dollar fell. Since the candlestick is very large compared to the previous candlestick, its movement has a lot of momentum.
Once we understand the current state of EUR/USD, we must predict how it will move in the future. Technical analysis tools are required for this.
The Relative Strength Index (RSI) indicator and the Regression Channel object will be used in this example.
Install the RSI indicator in Metatrader by going to the “Insert” menu, then selecting “Oscillator”, then “Relative Strength Index”. Below the price chart, a new line will appear.
How to set up technical indicators for forex trading
The guidelines for interpreting the RSI are straightforward. If the RSI line is more than 70, it indicates that the market is overbought.
The price will then start to fall. On the other hand, if the RSI line falls below the 30 level, this indicates that the action has been oversold, and the price will next go up.
According to this hypothesis, the trend of EUR/USD is bullish, although almost overbought. In this case, you CANNOT BUY.
The final word
Thus a brief discussion about the Best Way to Start Forex Trading for New Beginners 2022 that we can share.