Many questions arise when starting something new, including Forex trade, and one of main questions is where to start from? The key to success of any business is the correct and effective organization; this is where one should start from in a career of a Forex trader.
How to Start Forex Trading?
You should create your own trading system, which will make a profit consistently and properly organize the working day. Organization of Forex trading includes the following major components:
- Currency pair: It is your instruments of the trade. Beginners should preferably start from popular currency pairs with the US Dollar as one of the components and Euro, Japanese Yen, British Pound, Australian Dollar and Canadian Dollar as the second currency.
- Trading time: It should be determined the time of trade after choosing the trading currency pair. It should be comfortable for you and appropriate for the chosen currency pair. There is a common principle to be observed: every currency pair is more active during its own trading session, i.e. if you have chosen EURUSD, then trade during European trading session. In case it is more convenient to trade in the evening then choose such pairs as USDCAD or USDJPY.
- Timeframes: The size of a bar chart on the time axis of the currency pair. Timeframes generally determine the trading style. While trading on small timeframes, traders usually use high leverage and conduct risky trading. In contrast, proponents of safer trading choose large timeframes. Here, everything depends on your character, goals and deposit size.
- Deposit: You should determine how much money you will trade. There is no need to transfer all your funds to your trading account. It is preferable to split the amount into several parts in order to have a reserve for emergency situations.
- Volumes: What is important about volumes is that they should comply with the size of your capital and trading strategies. Ideally, the deal volume should not exceed the deposit more than 10 times, i.e. in case of 10 000 USD deposit the trading volume should not exceed 100 000 USD. However, sometimes trading strategy and lack of resources alter this principle.
Forex trade involves creation of accurate system where one does not have to constantly change trading volumes and instruments, which, as a rule, decrease trading effectiveness.
Forex Trade: the Role of the Broker
The above mentioned ingredients are very important when starting trading. However, the role of the right broker cannot be neglected, because it plays a vital role during trading. It can be assuredly said, that the good broker is half of success. So, how one should choose a broker?
- Trustworthiness: This is the most important thing that one should take into consideration when choosing a broker. Surely, it is important to pay attention to registration, fund insurance, years of experience, the way managers of the company are dealing with clients and providing technical support so as to be sure that you are not investing your money in a company which is going to leave you with nothing.
- Trading platform: Different companies suggest various trading platform. MetaTrader 4 Terminal is a popular trading platform, which is offered by almost all Forex brokers. Anyway, there are companies offering their own platforms, which is a big advantage over other companies. IFC Markets provides its clients with Forex and CFD trading through its own-generated Trading Platform NetTradeX, which is available on PC, iOS, Android and Mobile.
- Trading instruments: The more the instruments provided, the more opportunities are granted to trader. Some investors prefer currency pairs, while others may like to trade CFDs. Surely, large number of instruments makes trading much more interesting and attractive.
- Deposit methods: A company should offer different payment systems, because different traders prefer different methods for investing their money. The transfers of money should be fast enough not to wait for them for days.
- Trading conditions: This involves leverage conditions, account types, the procedure of opening an account, initial deposit amount, which should not be high, so as to make trading available for each and every one, swap conditions, and many more.
While initiating Forex trade, one should study the market and the companies and not to be in a hurry so as not to make big mistakes. Only after careful consideration, it is necessary to start the business.
