Have you ever wondered what Forex trading is and how people manage to make money from it? Why is this type of business so popular in the last few years that even beginners are starting to take it seriously?
There is no doubt that an increasing number of enthusiastic individuals worldwide have a huge desire to start earning money from home and be their boss, and all that Forex trading implies.
They are interested in trading on the Forex market because it does not require a lot of money to invest, is not complicated, and is available to everyone in the world. But what exactly is Forex? Let’s start with the basics, shall we?
Forex trading – briefly explained to beginners.
Forex, above all, is a name that originated from two different terms, “foreign” and “exchange”. At the same time, forex trading is a term for selling one currency for another for reasons such as trading, commerce and tourism.
In other words, Forex trading is the act of selling one currency for another at the same time, such as EUR / USD, for example, to make a profit.
The exchange takes place in the Forex market, which is known as the largest and most liquid financial market at the moment. It is open 24 hours a day, five days a week for traders worldwide.
What is a Forex broker?
To open a trading account and have access to trading platforms, it is necessary to open an account in a brokerage firm. Therefore, Forex Broker is a financial service company that allows traders to access trading platforms for currency exchange.
To trade on platforms safely, we advise you to choose a relevant and regulated Forex broker. Broker checks are usually done by reading relevant brokerage reviews such as the PrimeMarketCap review from 2022 or checking brokerage forums for experiences of previous or current users of a particular broker.
Remember, the essential characteristic of a broker is its regulation by the financial regulatory body because most unregulated brokers are scammers.
How to start trading on the Forex market?
Considering that the Forex market, as we have already mentioned, is the largest decentralized financial market in the world, with a daily turnover of 6.6 trillion dollars, it is not surprising where the great desire to start Forex trading comes from.
If you are among the enthusiastic individuals who want to make a profit on the Forex market, here is the most basic guide on how you can achieve this:
- Inform yourself daily about the Forex in general, and global geopolitical events, since they impact price fluctuations. Learning as much as possible about trading Forex is essential to have a good understanding of it and a successful start in this business.
- Find a regulated and reliable Forex broker for your trading needs. Make sure you do a double check before finally deciding where you’ll open your trading account.
- Choose a good trading strategy based on your goals and expectations. If you are more of a short-term trader, pick one of the best day trading strategies. On the other hand, if you are a long-term trader, try positional trading.
- Practice and improve your trading skills whenever you can. Without constant practice and dedication to it, there’s not much you can do on the Forex market.
- Be persistent. Over 85% of beginner traders quit during the first trimester due to unrealistic expectations. Don’t be among them. Keep going until you reach your Forex trading goals! Do not let emotions restrain you from being a successful trader! Good luck!