Thread: How to Start Forex trading

For those of you beginners -

The potential profit comes from the changes in currencies, most trades are done for this purpose, and it called speculative trading.
These trades involve currencies that are not physically traded, but there are contracts that performed. The sides in these contracts are the trader and the trading platform, one is buying and the other is selling in each deal. Since there is no physical delivery of currencies between the sides, the contract ends by offsetting it against an opposite position, and that results the profit or loss of both sides.
In each Forex deal there are currency pairs (for example EUR-USD), the amount of currency involved, and the rate agreed to exchange between the 2 currencies in the pair ypou chose. Lets see an example:
Pair to trade: EUR-USD
Exchange rate: 1.2000
If you bought 100€ in that deal, you should pay the amount of 120$ for that.
Now lets assume that a few days later, the exchange rats changes to 1.2200. The value of the Euro is higher when related to the USD. If you sell the Euro now, you will profit 2$.
You should trade only when you believe that the currency you are buying will increase in relation to the currency you are selling. Otherwise, you need to sell back the currency in order to lock in the profit. When a trader bought or sold a pair and didn’t sell or buy back the equivalent amount, it called open position.
For more information, tips and tools visit: http://forex-tips-and-more.info. Good luck!

The word 'Forex' is simply a shorter form for foreign exchange and many people think that it is something different. Understanding the give and take and the benefits and losses of this trade is very important. In Forex trading you simply exchange a particular country's currency with some other currency simultaneously. The key factor is to know the perfect timings to do the trading that in return gives you a healthy profit. You need to get familiar with the foreign market that does not stay the same and keeps on changing. Keeping yourself updated and continuously monitoring the market is a must thing that you must do all the time.

Start studying first what trading is all about. Learn the basics and open a demo account to practice. This are the beginner steps. You cannot start trading without learning.

Always demo trade before opening live account and investing real money.

Hello,

First of all try to learn the basics of forex trading from online sources. Then try to learn in detail about indicators used in forex trading from different websites online which you can get by searching on internet.Once you have a clear idea about how each indicator works, open a demo account and start trading in it with the help of those indicators.Then try to make your own strategy including the indicators which are the most comfortable for you.Once you are satisfied that you have learnt trading, then start trading on a real account.

Hello guys,
Warrent Buffett, one of the greatest men in stock market, won so many times 'cause he knew exactly what he was doing.*
I think we've better to know deeply before we invest to keep low risk. Then, start with a demo account to know Forex Trading well, chose broker.... Any way, I'm a newbie, playing demo at fxdialogue.com, so please forgive me if i say something wrong.
Here are some question we should pay attention, have a look. I hope it can help
1.*Choose a broker
Making a decision on which broker to use is personal for each trader. Some brokers offer certain options that some traders will thrive on, while other traders will hate the broker for those same options. It is important to review and compare the options of each broker closely and choose the one that makes you feel most comfortable.
• Review Forex Brokers
2.*Open a Demo Account
Once you have made your decision on which broker you like the best, it is time to open a demo account. Most brokers will offer at least a 30 day trial of their trading platform giving you a chance to trade on the platform using play money. Using a demo account is a good opportunity to make sure that you feel comfortable using the broker’s trading tools. You would not want to trade real money without being fully comfortable with the trading platform. A demo account will not only help you get a grip on how to use the broker’s trading platform, but also trading the market in real time.
• Learn to take risk seriously
• Practice sound money management
3.*Learn About Leverage
Forex trading is typically carried out using leverage, or trading on margin. Margin is a useful tool, but it can be very dangerous if it isn’t used correctly. Forex brokers typically offer anywhere from 50:1 leverage up to 400:1 leverage. The higher the number, the less money required to put on a large trade. The use of leverage is something that needs to be taken with a lot of care.
4.*Practice Reading Charts
Before you start making trades you should get familiar with charts and how they work. It is a good idea to get familiar with the different time frames and the different types of charts. The shorter time frames will give you an idea of how the market is moving minute to minute. The longer time frames can show you how the market moves over longer periods and will show the larger trends. Most charting software will offer charts as lines, candlesticks, or bars. Take plenty of time to try out different looks and time frames to find the style that you are comfortable with.
• Learn about candlesticks
• Learn to understand support and resistance
5.*Making the first live trade
The first trade is a nervous and exciting experience. The demo account prepares you for the technical aspects of trading, but when real money is on the line, emotions will come into play. It is important that you keep a level head and do your best to trade with the same methods that you practiced on the demo account. It may prove to be difficult, but if you master your emotions and use sound money management, anything is possible after this step. If your first trade loses money, do not give up, just piece together where you think you went wrong, and try again.
Forex trading is a constant learning experience. Trading mistakes can be expensive. If you learn from those mistakes and do your best to avoid them in the future, you can become a very successful forex trader.

Pasted from <http://forextrading.about.com/od/gettingstarted/a/Start_trading.htm>

FOREX is a short form of Foreign Exchange. Some people does not understand it and think about it different. Here, You posted some nice information about how to start Forex trading. It may be useful for many people who don't know about it. Thank you for sharing it.

Forex trading before you start, it's up your account, set up a foreign exchange broker is required. Foreign exchange is the best online brokers available to choose from. Fees should be included in your budget.

Originally Posted by Magera

The word 'Forex' is simply a shorter form for foreign exchange and many people think that it is something different. Understanding the give and take and the benefits and losses of this trade is very important. In Forex trading you simply exchange a particular country's currency with some other currency simultaneously. The key factor is to know the perfect timings to do the trading that in return gives you a healthy profit. You need to get familiar with the foreign market that does not stay the same and keeps on changing. Keeping yourself updated and continuously monitoring the market is a must thing that you must do all the time.

FX market is a balance system. someone win means someone loses. As a newbie in forex trading. I think start at a demo account might be the best choice to beginners. It can help you to get familar with the forex platform and information. you would get more knowledge and skills from that.

In my own opinion, you can start at a demo account. which can help you get familar with the forex market and trading platform. I started few-months ago... and I am "mainly" demo / paper trading. Here are a few notes from my experience:
* Get through all of UTP... doing the practice drills... but after six or so (I forget) you can download systems for your use and learning.
* There was a post the other day That I wanted to copy and send to you. It said, "Do everything you can do." After you do a few lessons, you should participate in the AOD sessions... learning all the time. As "face" said, Shawn's webinars are helpful. The Chief's mentorship sessions are great... for technical and emotional.
* At the same time you are learning, doing, and studying everything... you can also get lost in all of the information that is available. Focus is hard sometimes (all the time)... but you need to stay focused on the target... which is figuring out the best way for you to make PIPS... you will experience many different ways to trade... your challenge is to figure out which makes the most sense for you. (Short term trades - scalping; longer term trades - swing trading are two examples.)
* Sign up with a broker... I am using FXCM... as "face" said, there are many. However, there is only one "right now" that the charting systems "auto execution" software interfaces with; that is FXCM.
* When you start trading, paper money, focus on PIP success... NOT the money. Treat your paper money is real money... that way you will learn everytime you make PIPS and every time you lose PIPS. That is the key... sometimes, when you are on your demo account, you get sloppy saying "No worries... it is just paper money." DON'T DO THAT... you are practicing for experience... to develop good habits... using your trading worksheets / guides... figuring out "what happened right and what happened wrong" on each and every trade... NOT just the losing trades.
* Make yourself maintain a trading log... documenting what you did, why you did it, and the lessons learned from the trade.

I think this is enough for now... I hope you are still awake... Be well... Be strong... Believe...