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A Definitive Forex Trading Guide For 2020 (Basic Aspects)

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  • A Definitive Forex Trading Guide For 2020 (Basic Aspects)

    Welcome everyone to the topic “A Definitive Forex Trading Guide For 2020 (Basic Aspects)”

    Although sophisticated, the basic fact about Forex trading is that it deals with the buying and selling of currencies for profit. While the prices for everyday commodities are constant in a month, two months, a year, or even more, the values of currencies are not stable.

    Values of currencies fluctuate several times in a minute, and probably a thousand times in an hour.

    This fluctuation is known as volatility. The volatility of currencies makes it very risky to trade, but also profitable.

    How Does Forex Work?

    You are expected to trade two currencies in exchange of one for another. Based on price, people make predictions of the appreciation or the depreciation of the currencies you trading, and they earn or lose according to what the market turns out to be.

    Once you have made your predictions, move on to place your order by choosing the “buy” button. With time, you can see your prediction materialize or dwindle. Once you make a fair profit from your speculation, then you can close your trade.

    What to Do

    Get a Forex Trading Platform

    It is true that where you trade at can determine the success of your trade. You should carefully choose your trading platform because it determines your success level, the regulation determines how much trade you can make and under certain circumstances and the platform charges.

    Now, if you want to choose a Forex trading platform, the first thing to consider is if it is regulated by appropriate authorities. It is safe to choose a broker with FCA and CySEC regulations.

    You should also make sure to select a broker whose payment/funding option is the same as your payment mode.

    Investigate the trading fees and commissions charged by trade on the platform you are speculating to be a part of. While many Forex trading platforms would usually charge a commission of you trades in percentage, some others are commission-free. It is best if you went for such.

    As a beginner, you would need answers and helps. So, it is advisable to choose a platform with excellent customer support and relations services.

    Understanding Forex Charts

    Forex charts are essential tools for Forex trading. They help you to understand the dynamics of the market and to be able to identify specific indicators of rising or falling currency values at given times. Forex charts provide insights into what goes on in the market.

    Price charts should be your friend as they indicate the performance of currency pairs in a given time. The price chart shows the performance of a trading pair, exchange rate, and length of time of the exchange rate.

    While trying to trade as a newbie, there are things to put to mind.

    Set your stop loss. Stop-loss is a level you set for your trade just below the support level. It is advisable to set the stop loss at a level where support break is at. Setting this limits your potential loss.

    Find your profit point. Predictions are not to be made blindly, use the available tools, including price charts, to make informed decisions about where to place your bid.

    Don’t rush your trade. Be intentional with your trades; don’t be in a hurry to withdraw. Set your entry and exit points on the chart and stick to it.

    Trade with little amounts. Since you are just starting, it is advisable to trade with small amounts until you are familiar with the market and can go solo and big.

    Another way to trade currency nowadays is with cryptocurrency trading and automatic trading software. Both the Forex cryptocurrency market are separate. The Forex exchange is protected by a centralized government while the cryptocurrency market is hosted online and backed by a peer-to-peer authentication process.


  • #2
    Hi! This topic looks interesting and useful enough to me. I can also give some tips for beginners:
    -Don't trade on a schedule, the solution must grow to itself;
    -Define a scenario of actions in advance - many traders make a trading system for this purpose, in which they write down their future actions and plans;
    -Trade in a disciplined way - a trader's journal can be very helpful in developing discipline. It can be either public or private. In it, traders note down all information on past trades and their actions.
    -Limit the amount of information - there is no need to google everything. Pick yourself a few reliable sources, and take the information from there. The more information you have, the more problems you will have with understanding it.
    -Don't read much, read useful - everything is clear here, you have to choose information carefully, because not all sources can be trusted.
    -Don't mix trading with academic views - sometimes theory is very different from practice. Therefore, in trading your experience and intuition can be even better guides than a lot of theory.
    Everyone, however, needs to stay cool and calm. The more emotional you're gonna be, the worse you're gonna trade. As a result, in a rush, you can be left without profit.


    • #3
      I think that Forex topic is very large and there is no simple way to explain its basics. If somebody is interested in trading, he or she should take time to study learning material and also gain initial practice on demo account. It might take several months until they reach real account.


      • #4
        Hi, thank you so much for sharing this useful post here. I have been working in the trading area for the last many years and now I have started my new job at trade bitcoin where you can get the best suggestions to start your trading business. Thanks again.


        • #5
          There are a lot of individuals that ended this gude because i have realise that there have been a lot of newbies lately who have considered forex t eba a solution since they are ntoa belt ot do anything with the state the economy is in.


          • #6
            As a beginner you need to understand that what matter most in forex is what you think and because of that i should never let anyone else decide for you just because they are also a trader and they have been doing to for a while. You can never be sure who has it and who doesn't have it.


            • #7
              The other years forex trading has been a very good business but in this ear t has not been the best place for most people. Most trader have not been able to make profit as they want to and I have to say that it is not the best experience. There have been beginners who thought that since they were stuck at home they could do online business of which forex trading was widely mentioned then they joined and most of them or nothing out of it. As the year ends and with the vaccine related I say that next year the market will be at a much better state and then we can start thinking about making profit.


              • #8
                That is a great introduction to forex for newbies. I would also add: indicate and tame your emotions while trading small amounts of money. It is really helpful to track down the psychological pressure of the market and prepare for it in the future.


                • #9
                  That is a great guide for the newcomers to forex. I would also add the tip of back testing. If you come across some new trading strategies, see how it works on the historical data. There is so much scam online, that you need to doublecheck every piece of information you get. Don't take anything for granted!


                  • #10
                    Trading forex is a really huge topic to talk about and a simple guide will be of no use.
                    Forex is such a sphere where details matter. We can say that people may earn fortunes on trading without working on someone else, but the detail is that the trader should learn a lot and experience many losses before his/her trading becomes more or less profitable.
                    The guide that you have wrote is good, but it can be expanded greatly for the ones who are absolutely new to trading and to any financial operations. You mentioned that the first step would be to choose the trading platform, but it takes months for people to understand how to choose the most appropriate broker and platform.
                    Understanding forex charts is great advice but it may take long to understand the candlestick charts and get as much information from there as it is needed for a successful trading.
                    So, when we talk about newbies, a single guide will do no difference. I believe that the first guide should contain lots of motivation and positive thoughts and links to the really useful resources.


                    • #11
                      these are helpful writeups, i gained from it