Before going into forex trading you should always remember that whenever you
dedicate money into trading, it is very important to take it seriously. For fresh traders
who are trying to get into the forex (FX) market, it fundamentally means that they
will be starting from square one. But this doesn’t necessarily mean that they have to
be in the dark when learning about trading is considered. Here are few methods that
a fresh trader can follow to make sure their investments will turn out to be fruitful.
1. Finding a good market maker
In order to safeguard the money that you are sending will be safe hands and you have
an authority to appeal to in the event of any economic failure, it is suggested that you
find a large market maker that is wide spread in at least one or more major countries.
This will assure that there will be no crash in the system when the market is highly
active; by making sure that the servers and the trading platforms are stable. A market
maker is as good as its employees. The larger the number of employees; the better
the market maker.
2. Checking the statistics of the market maker
You can always double check the market maker by checking its financial statements,
formal proceedings and whether it has any issues with the regulators or any of its
clients by checking out the Commodity Futures Trading Commission. This is a strict
procedure that the future commission merchants i.e. market makers give their details
to the Commodity Futures Trading Commission which is followed in the US. To get a
better idea about what Commodity Futures Trading Commission is click here.
3. Dry run the Software
Once the market maker is found, the succeeding step is that you have a clear idea
about which software is being used in the calculation of trading. So, it is suggested to
open a demo account. Virtual trading accounts are unique to the market. Exploiting
this would keep you on the safer side of the trade. In this process you will learn how
to use a trading platform, find out which trading platform suits you the best. The
demo accounts are practically same as the live accounts with almost similar
functionalities and only difference is that you will not be trading with real money. To
create your own demo account click here.
4. Research is important
Taking impulsive decisions in trading can be risky. So making sure your research is
strong and you will be able to justify your trades is important. Forex is a technically
driven market, so any book regarding the technical analysis will be really helpful. To
get the list of books that will help you in technical analysis click here.
5. Sorting out the trading Signals and Systems
They are three categories of signals and systems depending of the methodologies:
fundamental, range and trend. Fundamental systems are for long term purpose and
are mostly used by banks. They are very rare to find in the forex markets. Range and
trend systems are mostly used by individual traders.