As a forex writer living in Mumbai, the most common question I get at parties is usually “Is forex trading difficult?” The act of forex trading can be learned in a single day, but creating significant profits from the markets is a whole other question.
Getting access to the markets
Signing up for a trading account is relatively straightforward. The four steps at the bottom of this page can have you up and running in less than twenty minutes. But then what?
Forex trading in less than 200 words
Once you've got an active account, you can open the MT4 trading platform. Start by checking out the currency pairs from the list of tradable assets on the MT4 software. Open a few graphs. You’re looking for a persistent trend or a price reversal. Be sure to check the economic calendar to see if breaking news is going to affect the prices.
If you see a price line following the same direction for the day, week, and even month, then trend trading may be the right choice. Trend trading means buying when the price is rising, selling when the price is falling, with the expectation that it will continue.
You might see a price trend that is starting to change direction. If the rise has turned to a fall, it might be a signal to sell, if the downward trend is turning sunny, it could be time to buy.
Check the economic calendar for a hot news release. If a nation’s “job report” is expected to be bad news, the respective currency will suffer if the news release matches the forecast. Bad news for America is bad for the USD.
What else do you need to know?
The three above strategies are the most popular, and for good reason. There are many analytic tools that can aid in recognizing an opportunity, but trends, reversals, and economic influences are the backbone of trading. The rest depends on your personality, your financial goals, and your available funds. The most important thing is to dip your toe in the market before you jump in. If trading is a race, then it's a marathon, not a sprint. Start easy, enjoy yourself. Trading can be a fun and even exciting way to spend your free time.
What’s the first step?
Obviously, you need to get access to the MT4 trading platform. This is possible by opening an account with a broker who will execute your trades. Fortunately, it doesn't matter if you live in Newcastle or New Dehli, modern brokers do arrange everything online. Once you have an account, you can start targeting profits. Remember, the greater the profit opportunity, the higher the volatility, which means greater risk. Set up your account, get to the MT4 platform, then start making small trades. Built up your portfolio slowly and steadily. Increase your trades only as your equity grows and reduce trading sizes to compensate for losses. First, let’s get your account set up.
Your 4-step guide to opening a trading account
Step 1: getting registered
It's very easy to open an account with Exness. Click here to open the sign-up page in a new tab. If you want to get everything done in the next 10 minutes, be sure to have a credit card, ID, and, proof of address by your side. You can choose to open a demo account without these things. Either way, everything you need to know is here in this two-minute video. Pause the movie as you go through the first three steps.
Tip: Account type depends on the amount you wish to deposit. Leverage is effectively an interest-free loan that the broker offers. It allows you to make a large investment from a small deposit. If you are looking for high profit with high risk, a higher leverage might be right for you. If you prefer slow-burning safety with lower results, then keep your leverage low. You can never lose more than you have, but higher leverage means faster results... both good and bad.
Step 2: prove who you are
Exness takes security very seriously, and they check every client signing up. Just like opening a bank account, you'll need to prove who you are before getting access to the global markets. Watch this one-minute video to see how.
Tip: While you're waiting for your real account to be approved, open up a demo account and start getting to know the trading platform.
Step 3: how to get access to the market
Trades are made using the award-winning MT4 trading platform. Inside the box of the demo or real account you'll see a gear cog. Click the gear cog to make a deposit. Use the passwords provided in the email. Click the gear cog again and select SIGN IN TO MT4 WEBTERMINAL then follow this one-minute video. You're about to make your first virtual trade on the real markets.
Step 4: making a trade
As a default, the top currency pair on the list will have an open chart. Right click on the chart and select the “close” option.
As a professional trader, selecting the right pair requires some research. For a first-time test, any pair will be sufficient. Drag a pair from the list of currencies on the left side of the trading terminal. The old saying goes, “what goes up, must come down.” Obviously, this principle goes the other way too. Your mission is to find a moment when the price direction is going to swing or reverse. If you feel the price is about to go up (bullish), then BUY, if it looks like it’s been trading high and the price has started a downward (bearish) trend, then SELL.
There are many ways to open your trade. You can select from the buy and sell options on the top left of the chart. Preferably, double-click the currency pair on the list. Right click on the chart when you’re ready to make your first trade. Time to set the volume depending on how confident you are in the direction you are forecasting. This is the perfect time to set your stop loss and take profit. Click the arrow to the right of the stop loss and take profit prices.
Note how the blue and dark red lines in the popup graph sit above and below the buy(ask) and sell(bid) price. In the example, we traded long (buy) and got a message confirming the order was successful. If you get an error, your volume was too high for your balance, or your stop loss/take profit was too close to the spread. Remember, every order starts as a negative because of the spread. Be patient. Your take profit will activate when the time is right, and your stop loss is protecting you. To close an order, you have three options. Click the X on the right or right-click the order. If you double click the order, you can close or modify the order.
Congratulations! You now know how to make a trade. Forex trading can be an exciting way to spend your free time, and you'll actually learn some real-world skills that will serve you well throughout your lifetime. Be patient, learn, and who knows, you might one day be one of the lucky few full-time traders. How will you spend your day?
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This article is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience, or current financial situation. This article is not prepared in accordance with legal requirements promoting independent investment research, and Exness is not subject to any prohibition on dealing before the release of the article. Readers should consider the possibility that they may incur losses. Therefore, Exness is not liable for any losses incurred due to the use of its articles. Please note that past performance of an asset is not a reliable indicator of future results.