Forex is the ideal market for trading: simpler than the equity and derivative markets, it is also incredibly accessible. To begin trading, you need a brokerage service such as CTL Markets. Take a look at CTL Markets Review and see what their offer is.
To succeed in the Forex market, seasoned traders apply known recipes. The importance of demo account learning is central. However, other tips like keeping a trading journal and limiting technical analysis may come as a surprise. Before exploring these tips in detail, let us see what the Forex is.
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What is Forex?
Forex (contraction of Foreign Exchange) is the market where currencies are exchanged, with a daily total of transactions exceeding 6,600 billion dollars per day. Currency trading in Forex is not consolidated on a centralized platform like stock trading is. Instead, currencies are exchanged between players over the telephone or through electronic communication networks (ECN). Also, the Forex is open 24 hours a day from Sunday evening to Friday evening.
How to succeed on the Forex market
1. Accumulate experience on a demo account
A demo account enables you to test a platform from start to finish and test your skills. When performance and your trading style are on point on demo, it is usually a sign that you can move on to a live account, especially since you can always keep your demo account to test new strategies.
2. Keep a trading journal.
Keeping a trading journal is imperative for the trader, whether beginner or seasoned. A journal is a powerful tool for easily identifying strengths and weaknesses. It also allows you to decide if the trading strategy used is good.
3. Trade with non-essential funds
Only trade with money you can afford to lose. It is strongly advised not to trade funds essential to the life of your household. Forex Trading is indeed an investment. As such, the funds used may be lost! Start with reduced capital and do not think too big.
4. Apply a trading strategy
Having a trading strategy is essential because it forms the guideline for your positions. So take the time to develop a strategy, test it on a demo account and constantly refine it over the days.
5. Apply money management rules
Money management aims to preserve capital while not limiting potential gains. Clear rules on protective stops, the share of capital invested in each trade, etc., allow you to preserve your capital by reducing your exposure on leveraged trades.
6. Train continuously
Training and learning are imperative, whatever your level. First, the beginner must invest a lot of time to get the basics right and quickly become profitable. Then for the experienced trader who wishes to obtain more precision and not misses the evolutions. Countless YouTube videos, training packs, forums are dedicated to this market.
7. Avoid over-analysis
Technical analysis is a time-consuming exercise, which should not take up too much of the time you devote to trading. Too much time spent on one chart misses out on interesting opportunities on trading other currency pairs.
