As an aspirant trader, and especially a completely new trader, initially trading Forex does not look that complex. But when you begin to realise the scope of what you need to know to become a proficient or professional trader, then it suddenly seems overwhelming. The bad news is that learning to trade Forex is just the beginning, and as a trader it is essential to keep learning about Forex and new systems, strategies and approaches to keep improving your trading ability. The good news however is that there are certain places all novice or new traders can start to learn about Forex, without getting lost in the volume of information out there.
The Best Forex Brokers in UK
|Forex Brokers||Minimum Deposit||Support||Rating||Visit Site|
|Start Trading Markets.com|
|Markets.com the Trusted Broker in UK|
$ 200CLAIM $100 BONUS
|Start Trading Vantage FX|
|Rated the Best Broker in UK|
|Start Trading xm.com|
|xm.com is rated the Best Broker in UK|
|Start Trading ironFX|
|Iron FX the Top Broker in UK|
|Start Trading HYCM|
|One of the Best Forex Brokers in UK|
As a total new trader, to learn about Forex, you need to understand the markets first. What is the Forex market, who trades the Forex, where Forex is traded and how it is traded. Most good courses will cover these aspects in enough detail to understand what trading Forex is all about and why it is such a lucrative form of investment and also why it is such a risky form of investment.
Once you know what the Forex market is you need to find out more about the actual instruments that are traded. What currencies you can trade, what a currency pair is, how the pairs work on the markets, what a pip is. Most courses also cover this information (if the course is aimed at and is suitable for beginners). At this stage it is also probably important to understand what spread means and what margin and leverage entail, since this will help you choose the right broker to trade with.
Once you have a good idea of spread, pips, margin, leverage, currency pairs etc. are you can start to look at the ways you can trade the Forex market. There are various platforms and applications which allow you as a trader to trade the Forex market. Some platforms allow you trade on your internet browser directly. This means that there is no special software to download and you can access the markets straight from programs like internet explorer. There are platforms which you can download for free which allow you to trade the markets through certain brokers. These platforms run as stand alone programs. And finally there are certain platforms which you can purchase as a trader which allow you to trade Forex through that platform. The platform you work on will generally depend on the broker you choose but it’s good to have an idea of the options available to you.
learn about Forex brokers
Once you know a little about Forex, it’s time to learn about Forex brokers. Brokers can make or break a trader and it’s important to realise that not all brokers are good brokers and not all good brokers are necessarily good for you as a trader. Looking for the right broker can take some time but it’s time well spent. Before you invest your money at a broker, make sure you research the company. It is important to find out what spreads they offer, are they fixed spreads or do spreads depend on the volumes being traded. It is important to know what leverage options you will have with a particular broker and what trading platforms they offer. And before you make a final choice of broker, you should download some demo applications to see whether you like the platform, and also to discover if you are cut out to be a trader.
Once you have chosen a few brokers and downloaded some demo programs, it is time to find out what kind of trader you really are. Do you thrive on the pressure of trading the five minute graphs, or do you have nerves of steel it takes to trade the one and four hour graphs? Now is the time to start looking at the different types of trading strategies available and learning about the true nuts and bolts of trading.
Choosing a trading course is probably one of the most difficult aspects of learning to trade Forex. Until you know what the strategy is or entails, it is really hard to tell whether a particular strategy will suit your trading style and personality.
There are however some things you can do to help you root out strategies which you will not enjoy, but the only way to do that is to learn the basics of Forex first.
First you need to decide whether you are interested in fundamental or technical trading. If you enjoy economics and have a good knowledge of world affairs and macro economics, then fundamental trading may be for you. On the other hand, if you are more mathematically inclined and enjoy using maths and indicators and charts, then technical trading may be a better fit.
Once you know which type of trading you prefer you can begin to look at the strategies which focus on fundamental or technical indicators. Good fundamental trading courses include Henry Lui’s trading the news strategy amongst others.
If you prefer technical trading, then you need to learn about the indictors available to you and how they work. Once you have some experience with the various indicators, you will know which indicators work for you and which don’t, and this will also help you to choose a strategy which is suited to you and your trading personality.
Finally, once of the best ways to learn Forex is to find a good mentor. One-on-one training, and having a professional to answer your questions is in my opinion, one of the best and fastest ways to learn to trade Forex. But make sure you do you homework on the mentor you choose. Just because someone calls themselves a professional trader or Forex mentor, doesn’t mean they really are one. An excellent mentorship program is The Trading Coach which offers various forms of Forex mentoring.