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.
Not sure how to get started? No problem. Follow this step-by-step guide.