Is it possible to know everything about forex ? Most likely no. Do you need to know everything about Forex in order to earn currency trading? The same answer is not at all necessary. There is a basic knowledge of the currency exchange, on which new ones will be layered, allowing to make a profit on fluctuations of currency pairs.
Today we will consider the question “What kind of knowledge is needed in order to get a stable profit from the Forex market?” Is this knowledge enough? What is the best way to begin your journey of a currency speculator to a newbie? Where to look for the right information, and what to avoid? About all this – read below.
Myths and Forex Truth
So, imagine that you have decided and want to make money on Forex. It doesn’t matter where you learned about the currency exchange – you saw an advertisement on a minibus, clicked on a banner on the site or invited your friend to a free presentation. It is important that you received information that interested you. We collected additional info online or asked a practicing trader. You know that you can make money on Forex. You like the idea of working for yourself, making money with your own mind, not depending on superiors, etc.
And now we dare to disappoint you a little. Based on our own experience, dispel several myths about Forex and believe me, this is the case:
1. Forex is not fast money.
You can earn on Forex. But in order to earn steadily, you will have to work hard. Theory, practice, mistakes, deposit recovery – every newcomer is faced with all this. Many give up. If you are ready to invest your time in trading training and learn from your own mistakes – congratulations, you will achieve success! If not, continue to work “on uncle”.
2. To make a profit on Forex, we need not only knowledge and experience, but also money.
Even if you are a supertrader, you need a good deposit for profit. After all, you need to trade on something! We recommend starting with a demo account, then switching to a cent account, and only in case of a stable profit, at least for 2 months, to switch to a dollar one. Although many successful traders continue to trade on cent accounts – due to the minimum lot and trading conditions (for example, the lack of swaps). A good broker for trading on centovik – Forex4you .
3. Earn on Forex, doing nothing, will not work! At least for the first time.
In the future, you can use the efforts of other traders for profit. In other words, you become an investor. Now you need to learn how to trade yourself. An investor is distinguished from a trader by the ability to correctly assess the profitability (profitability) of investments, risks, and proper capital management. The investor must have capital and be able to properly distribute it (invest). An investor can use several ways to make a profit. The trader trades manually or uses advisors.
The development of investment and brokerage activities has led to the fact that today everyone can become an investor, even without possessing large capital. For many deposits the minimum amount of investment is from $ 10 to $ 100, which is. agree available to everyone. PAMM accounts, copying strategies or transactions ( Share4you and InstaCopy services ) and others can be distinguished among investment tools on Forex . We should also mention Forex advisors (trading robots), but this is rather a separate type of trading than an attachment.
Thus, it is safe to say that even at the start you can combine your activities as a trader and an investor.
All about Forex – starting knowledge
How to start your way of a currency trader? Basic trading knowledge is required. Read 1-2 books (classics like Elder is fine), while opening a demo account and practicing on it. Try to practice everything that you learned in theory. Only in this way will you be able to learn new knowledge effectively.
Having learned the basics of technical and fundamental analysis, go to trading strategies. At first, use other people’s work, later, you may be able to come up with something different.
Be sure to learn how to work with trading advisors. You should be able to install an adviser, test it on history, evaluate its trading.
What to avoid? Avoid the psvedoguru, which are many on the forums. Listen to everyone (and better – knowledgeable people), but have your informed opinion. At the same time do not be categorical. Plasticity and adaptability are particularly relevant today, including Forex.
Do not stop there. Time and experience work for you, and there will be positive results. Do not retreat before failures, which also will be.
Here is a simple but useful parting. We repeat that it is impossible to know everything about Forex, but correctly applying this knowledge, it is possible to create an additional source of profit immediately or over time. It is nice for the mind and good for the wallet.
We wish you stable results in trading and remember that the profitability of trading depends very much on the broker you have chosen !