Every trader knows that economic data have a great impact on the Forex market.
Learning how to trade: a guideline for newbies
You opened an account at FBS, but don’t know what to do next? You are wondering what you need to learn to become a trader? Here we have gathered the hints that will allow you to become a Forex professional in no time!
The elements of trading
To trade Forex, means to buy or sell currency pairs and profit on the changes in their exchange rates. This business consists of several important tasks.
As a process trading involves opening and closing orders in the trading terminal called MetaTrader. An order is a command to buy or sell a currency pair. The basic knowledge you should obtain is how to open, modify and close orders in MT, how to use different functions and features of the software and customize the charts. You can find detailed instructions on how to acquire these skills from our series of videos devoted to MetaTrader.
To make a trade, you need to know what to do. Analysis helps to decide which currency pair to trade and how to trade it. Moreover, it allows you to find the best moment to enter the market.
There are 2 main types of analysis. Firstly, you need to learn how to analyze charts – distinguish trends, find important levels where a price may reverse or accelerate. Secondly, you will have to understand how important economic events influence the Forex market. You will need to explore the economic calendar – a schedule of economic releases of the world’s major countries. With its help, you will be able to trade on the beneficial news as well as avoid the unwelcome events that may affect your trade.
Risk management helps to ensure yourself against negative outcomes and organize your finances in a way that will let you stay in the market for a long time and have multiple opportunities to trade. This is an essential element of your trading. Get to know the main rules of risk management that will help you to limit your losses and maximize your gains.
Soon after you make your first trade, you will understand that this process is stressful and you need to get into the right mindset for successful trading. This may turn out to be more complicated than it sounds, but don’t worry: we have gathered psychological tips from experienced traders in this article.
The useful materials
FBS offers a great number of educational materials that will make your learning process fast, easy and enjoyable.
For further learning, we recommend such books as Daily Trading & Swing Trading the Currency Market by Kathy Lien and Trading for a Living: Psychology, Trading Tactics, Money Management by Alexander Elder.
FBS also offers free live educational and analytical webinars both for Forex beginners and for those who already have some experience. At these lessons, you will be able to ask all your questions to professional analysts and trading experts. Check the webinar schedule to see which webinars are coming soon.
Good luck with your trading and may the profit be with you!