When you enter the Forex trading several problems to be solved. First, traders must become familiar with the specifics of the currency market. Second, simple yet promising forex trading strategies for beginners are required. Third, it needs a technical and regulatory sufficiently powerful broker with reliable customer service and fair trade conditions.
Forex Trading learn — these are the advantages
Before a trader decides to take Forex for beginners in attack and to learn trading, it may not be amiss to obtain information once on the benefits of this type of trade. An overview of the benefits helps to get an overview and then to decide whether it actually makes for a self-sense, currency trading for beginners to learn step by step.
The advantages of Forex trading
Forex trading is also known as currency trading. In principle, the goal here is to exchange currencies in exchange for money. Who actually has once grasped the basics and takes the time to monitor the market look that has a good chance to obtain relatively high returns.
1.Use rising or falling prices
Unlike stocks, where the fall of the courses brings a distinct disadvantage, this is not the case with forex trading. In the forex strategy for beginners is already stated that it is possible to set both on falling as well as rising prices. So if you want to learn forex trading, who needs a fine nose for the development of courses. This can be explained well by an example. Has the trader Dollar and notes that its price falls, he sold the dollar and enters into a short position. Simultaneously, the money invested in a currencywhich is strong and so is a long position established. The result is a calculated risk — unlike in the stock market.
2. Trading is always possible
When trading in the stock market you need to consider market hours, which does not always make it easy to come here also to train. Especially traders who are not full-time engaged in the trading, here have their problems. One of the advantages forex trading is that almost here is traded around the clock can be. This depends, among other things, of course, to the fact that traders can act in the major commercial centers of the world.
3. Liquid market for the Trader
Every day makes the forex market an average turnover of around two billion dollars. He is one of the most liquid markets in the world. The advantage for the traders lies in the fact that just getting someone finds for buying or selling here. As a trading partner also operates the respective broker. Manipulations are almost impossible to find. Important point: here has no special advantages, because the forex market is affected by the interest rate decisions of the banks and they can always be consulted. Thanks to the high volume is the cost for trading are low, spreads remain clear.
4.Trading with the Margin
In trading for beginners is directly on the margin noted. This is to provide a guarantee, which will be deposited to the broker. In fact it is the forex trading so that can be traded with much more money than is available. It may, depending on the lever, be that of Trader deposited 500 euros, 5,000 euros can act however. Importantly to know that if the trades below the margin, then must be injected fresh because the positions are otherwise closed. For traders, this would bring a high loss. In general, the trade is a margin more for experienced traders. In the forex strategy for beginners should it first be refrained. GKFX offers a leverage of 1: 400
5. Low and transparent charges
As already mentioned, which are costs in Forex trading is very low, thus naturally increase the profits. Fees usually not covered at that broker life of the spread that has to be paid. The customer is the market user and acts on the courses offered. Spreads are indicated by the broker as a constant. This has the advantage that the trader can therefore expect the costs. He knows in advance already, what fees are coming towards him.
6. A sufficient access for trade
One of the advantages Forex for beginners is that traders here do not have to worry about big different approaches. It is sufficient, when an account is opened at a broker. Already, the trading start worldwide.
Tip: Although there are in the world many currencies, so is still mainly on the currency trading set seven major currencies. We are talking here of Euro and US Dollar, British Pound and Japanese Yen, Canadian and Australian dollars and the Swiss Franken. Especially with the forex strategy for beginners is recommended to orient itself once the Big Seven.
Forex for beginners — so can begin
The decision has been made, the trading in the forex market is to begin and now only lacks the right start. Trading for beginners is of course only once a challenge and also quite connected to the one or other small dues. Nevertheless, the trading for beginners is an excellent way to lay the foundation for a successful trading career. The following points help to find the entry.
1. Forex trading for beginners: The basics
Currencies are traded in so-called forex pairs such as EUR / USD up to today. The appreciation of a currency is congruent with the devaluation of the other. Which is listed on the left in the currency pair currency is in the jargon as base currency referred. With a long position in EUR / USD put traders on an appreciation of the EUR against the USD, taking a short position on the opposite. Technically corresponds to a long position in EUR / USD borrowing in USD and a simultaneous investment of the loan amount in EUR. The training program also conveys the basics of Forex tradin.
Currencies are in standardized forex contracts traded, called Lots: A standard lot equivalent to 100,000, a mini lot of 10,000 units of base currency. Many entry-level brokers and micro-lots (1,000 units of base currency) are tradable. Characteristic of the off-exchange forex trading is a high leverage (1: 100 and greater). This results from the margin principle, which also comes in the classic futures trading apply: traders must only hold a fraction of the position value as equity in their trading account. This entry into the Forex trading is often with very little capital (eg a few hundred Euros).
2. Forex Strategy: With comprehensible trading signals to success
Due to the high leverage — leverage of 1: 500 and more are available at many forex brokers are not uncommon — and often short time horizons in currency trading the continuing positive performance is a Forex strategy possible, the concrete trading signals tested based and verifiable criteria generated. Expanding a completely systematic strategy, this can often be even automated trading software like Metatrader. In forex trading for beginners especially strategies with a high hit rate and relatively short losing streaks are relevant, also to avoid high psychological stress, which often lead to irrational decisions. The properties of strategies can be measured using historical data and — at least in theory — basically transferred in the future. However, also produce losses each strategy. Commercially about widespread trading platform MT4 Numerous peripheral scripts (Expert Advisors) as «common property» ready available. These can be easily imported and used: Can be used as a simple indicator or as a fully automated strategy.
3. Trading Platforms: Learn Trading with MT4
If you want to learn forex trading must first observe the principle par excellence. Losses are to limit consistently in Margin Trading. The stop loss can be realized by Stop Loss and Trailing Stops (profit-locking stops).
The most popular trading platform MetaTrader4, followed by the next version MetaTrader5. Both platforms require no programming knowledge for easy trading. The programming of Expert Advisors (EAs) is made with the relatively simple programming language MQL. In addition to the broker’s own platform GKFX also offers trading with the MT4.
In addition, there are several MetaTrader trading software alternatives in terms Chartingtools, interfaces to news and other properties inferior in nothing. The biggest selling point especially of MT4 is the large number of outstanding scripts. This results from the fact that Forex Broker MT4 additional charge.
4. Forex Tips and Tricks: Tips for Broker comparison
Especially beginners do with finding a suitable Forex Broker is often difficult and can be lured to easily optically high deposit bonuses. A qualified Forex broker comparison , however, is almost a necessary condition for a successful development of the company «Trading». With a few tips and tricks even inexperienced traders can look behind the commercial surface and in advance make an image of a broker.
If you want to learn forex trading while using initially only Bagatellbeträge can with a clear conscience have an account with a broker in overseas open. At the latest when larger amounts are to be paid, however, is to look at the regulatory framework essential: Advantageously broker headquartered (no branch) at least in the EU, even better in core Europe. The same applies for deposit insurance. GKFX explains the interaction between the rules of the broker
Forex tutorial and Co .: How can benefit beginners
Another important criterion is the market model. Beginners prefer regular market makers because they advertise with high deposit bonuses, low minimum deposits and commission free trading. Intermediate and advanced based on STP / ECN brokers because the usual commissions there are outweighed by narrower spreads. A big plus for market makers: Almost any of these broker provides beginners one tutorial or other training and learning opportunities available, where issues such as trading platform,technical analysis and risk management are indeed mediated not entirely altruistic, but tailored to beginners.
5. The important information for successful trading
Who wants to be successful in the long term, which should be some taking tips and tricks to heart. Sometimes it’s the little things that can help to successfully implement a strategy. One of the key points is the demo account. Who does not want to put at the very beginning his capital in the sand, which should take the opportunity and use a demo account to get started. Here it is possible, without risk to test different strategies and once to get an overview of how the trade and also the trading platform. More tips and tricks are also helpful:
- Tools for risk management
A risk is always there, even if it is like being told of currency trading brings little risk. In principle, it is therefore advisable to definitely put on tools for risk management. The tools are often sold directly with the broker. Particularly helpful is the stop-loss order. Of course, this reasoning can not decimate all risks. Nevertheless, it can be well used. However Tools principle can prevent it comes to greater losses.
- use analysis
A strategy is only really good if it was checked on all of their weaknesses. Backtests are special tools that perform an analysis of the strategy and then provide clues to potential problems. In this way, weak points can better find and correct. A free demo account can help risk trade to learning
- Majors as trades
It is definitely recommended to stay just a beginner in the major currencies. Of course it is tempting to go looking for the one or other special currency and to act here. In fact, the major currencies are the safest use and should be used just for the beginners.
- writing a diary
This is a rather unconventional to do, which is not so often given but fully justified. It never hurts to keep a trading journal. In such a diary is noted that gains and losses which have been made. This makes it easy to identify which trades really worthwhile in Forex trading and are used by which trades better left fingers.
6. The trader as a weak point in the forex strategy for beginners
Probably one of the greatest weaknesses in the forex trading is the trader himself. Emotions, fears and greed are bad counselors, but can be difficult to keep in check.Therefore, it is very important to reflect themselves and to ensure that the trader does not stand in the way. The following points can be of great help:
- not heranlassen emotions se
The own emotions are a bad counselor. Greed is the trigger for most people underestimate the risk and at the end retract higher losses than they can ever make profits. Fear, however, is the trigger for too little risk taking and a reason that the gains are hardly worth mentioning.
- have consequences in view
Working with a lever on the currency trading is not to be underestimated. If a trader uses 100 euros and a broker with a leverage of 1: 200 has, then he acts with a sum of 20,000 euros. Under very bad circumstances, it is quite possible that this entire amount is lost. This consequence traders should always be aware.
- use modesty
The opposite of greed is modesty. Those who learn to be satisfied with what is feasible, which is on the right track. Not every trade can bring the desired result, losses are in addition. No one can always be on the winning side. However, anyone who is willing to be satisfied with the gains that can be retracted, which is on the right track.
- Dedication to the Forex Trading
Even when Forex trading success does not come overnight. Therefore it is absolutely necessary to apply persistence and patience and to believe in their own strategies. Even successful forex traders have some many months or even taken years to get to where they are now. That one should make them aware again.
- to use Simple Strategies
A strategy is not better just because it is more complicated. Quite the contrary — who wants to be successful, the decision is best for simple strategies that are not very complex as possible.
- Always remain realistic
Millionaire overnight? Who wants that which is not canceled properly in Forex trading. Of course it is possible to retract gains and this may well also have impressive heights. However, this is something of a rarity. Who sets realistic goals, which is not much more still pushed disappointed but, for the achievement of goals is also in Forex trading is an important factor that brings more confidence with himself and the trader can thereby be safer.