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getting-started-in-forex

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									Getting Started in Forex




Anyone interested in getting into the Forex market should be aware of certain things that could
make or break your bank. Before opening any kind of account, it is best to do as much
research as you can about the Forex industry in order to prepare yourself for trading. It is one
thing to assume that you know all about an industry, but it is quite another to be thrown into the
deep end and experience the shock that comes from realizing that you are not prepared for
such an environment. Therefore, the following is a basic guide to getting yourself started in
Forex.




Research and Learn!
   Learning as much as you can about the Forex market is crucial to understanding the basic
principals, getting used to the lingo employed and to grasping the nuances when it comes to
making trades. However, it is not enough to simply read about trading, it is necessary for you to
also practice what you learn, which means before using your own money or opening a margin
account to practice on, you should use paper money and build your confidence slowly. Find out
where you can open a demo Forex account and practice trading with play money before
committing to the real thing. Not only will you gain insight that will help you later on, but it will
prevent you from making some very basic, beginner mistakes.




Find the Right Forex Broker
   There are so many forex brokers from which to choose that you might wonder which one is
right for you. Before settling on any one broker, you should find out what kind of accounts they
offer. Some brokers offer mini-accounts that require minimal opening cash – some as low as
$250. However, such accounts rely heavily on leverage, as otherwise it would be impossible to
make any kind of money in Forex. The standard account generally requires an initial
investment of $2,000, but in exchange you get to trade using a wide range of leverages. The
premium account is for those who can invest a much larger initial sum of money. Premium
accounts give the account holder the ability to trade using different leverages and offers them a
number of different tools and services to help with their trading.




Use the Tools
   Once you have a Forex account, use the tools offered by your broker to learn the market and
the currency trends. Unless you are prepared to analysis the different trends, you will be
trading blind and run the risk of losing your capital – along with any money leveraged.
Therefore, learn the basics of analysis – both fundamental and technical and figure out which
method you prefer and then stick to it.




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Getting Started in Forex




Strategize
   Creating a trading strategy is one of the secrets to Forex trading success. Setting stop
orders and limit orders will help you to trade without your emotions. Instead of believing that
you have the will power to trade when the currency hits a certain point, put in a sell order so
that the trade is executed automatically – that will help you to avoid such common beginner
mistakes as over-staying your position and trading with your emotions.




Lastly, to make it as a Forex trader, you have to keep learning about the market, about new
tools and you have to keep track of currency trends. Only by taking the time to analyse the
market and to keep track of what is happening will you be able to make your Forex experience
a success.




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