Testing The Foreign Exchange Trading Market
The one most important factor when you commence foreign exchange trading is not to trade impulsively. You have to be able to justify the trades you make and that means doing adequate research. There are several books and newspapers that you can access that will offer you adequate information regarding the forex market. You can go online and find several websites that offer you in-depth information about this financial market. When you choose a source you wish to consult, you should ensure that it offers you information on the basics of the forex market, along with technical analysis, and key fundamental events and news about the market.
Foreign Exchange Trading Technical Analysis
The forex market is driven by many technical indicators, so it is important that you become knowledgeable regarding technical analysis. The more you know about technical analysis and the better you become at it, the higher your chances of making your forex career profitable.
When it comes to publications, you should opt for publications which offer you a large helping of global news. You should look at the bigger picture, past only economic news. Geopolitical risks and politics can affect the trading trend of a currency. To stay on top of this, you should not only keep up with forex news, but also non-financial news globally. You have to keep up to date with key technical and fundamental developments within the foreign exchange market.
Testing the Waters
Once you have made the decision on a forex broker, your next step is to test the forex world. The best way to test your forex broker’s trading platform is to open a demo account. The availability of trial accounts is unique to this financial market and you should exploit that. The aim is for you to learn how to use every aspect of the trading platform. You need to ascertain if the trading platform suits your style of trading and personality. Most demo accounts offer you exactly the same functions as a live account would, including real-time currency prices. The one difference is that you will be trading with virtual currency, not your own real money.
You should make good use of a demo account. You not only want to test it to ensure that you fully understand its functions, you also want to use it to practice some of your trading strategies and see if you can make virtual money before you start trading live using your own money. A demo account will give you a feel for the forex market.
If you are not satisfied with the offerings of the trading platform, you should consider obtaining a demo account from an alternate broker and continue to test it in the same manner. It is important that you feel comfortable with the trading platform you are going to use. You also need to find out if it provides you with suitable reporting structures, news releases and signals.
There are a few questions you need answered when you use a trading platform. You need to find out how to place different orders, how to set stops and if you are able to mix and match lot sizes. All this can be answered once you have access to a demo account.