10 steps forex trading for beginner

Knowing forex basics step and learn how to trading before starting this business is important for beginner, (forex market) will certainly be a field that is very dangerous and risky for us that desperate plunge into it without knowing the ins and outs about forex in detail. We may as well desire to reap windfall from trading forex, but if we are just going to become prey for the market because we do not know at all about how to trade, Now, here are 10 very important step to go for beginner before becomes a real forex trader: 

1. Getting to Know What Is Forex Trading / Forex

The forex market or forex market is a type of trading that traded currency of a country with another country's currency. In the transaction process, involving all the forex markets around the world for 24 hours non-stop and for 5 days a week.
Forex trading every day is always spinning. Starting from the market in New Zealand and Australia who start open from 5:00 am and closes at 14:00 pm on the same day. Then went to the market in the Asian region which includes the foreign exchange market in Japan, Singapore, and Hong Kong are open from 07.00 am and closes at 16:00 pm. Then the European market in Germany and the UK, will be open from 13.00 am until 22.00 pm. And in the end by the opening of markets in the United States are starting from 20:30 pm until 10:30 pm the next day.
Knowing each step in forex trading is very important for us to do. Especially about when the currency market is open. How we want to trade if we do not know his schedule instead? It is of interest from a variety of schedule hour forex trading. There are some investors who advised us to follow or carry out transactions only during specific hours of opening the forex market. For example: they only did the open position only when the clock forex trading in Europe open. 

2. Know the Forex Market Using a Demo Account

Practice the make excellent trading - through demo account or simulated forex trading, we can learn more about forex trading. We can learn to open position buy / sell, learn to use forex indicators, to learn to analyze forex. That is, by using a demo account, we not only exposure to the forex market is like, but also learn how to be a forex trader real, before the next plunge into the market.
Well, how long we have to learn to use a demo account? of course, until we understand very well is not it? Some say, we at least need time for 3 months to get to know the market through a demo account. And it took 6 months to be ready to jump straight into the forex market using real money. The point is, as long as we learn with demo account, hopefully we can train ourselves to be better in managing the transaction, from start using trading indicators, learn to analyze technically and fundamentally, do money management, to manage our trading psychology. Once we are sure you have mastered all of them, then we are ready to move on to the next stage. 

3. Choosing a Broker

Choosing good broker or brokerage. Apart from having to choose the best broker, we also need to know about the advantage facilities offered to us. For example, how to deposit, withdrawal, spreed imposed, margin / leverage in the offer, and importantly, whether they provide a demo account that we can use as a trading simulation. In addition, the trading platform they provide must also be in accordance with what we need. That is, the trading platform they should be easy to understand. 

4. Recognize Currency

Furthermore, we need to know the characteristic pairs or currency pair. Because each pairs have characteristics and different characteristic. for example between pairs EUR / USD and GBP / USD, both are very different. Both in terms of its volatility and in terms of transaction volume. Advantages recognize the currency pair is that we can determine which pairs currency convenient for us to trade. So, if we've found a comfort trading in one currency, we would focus more to that and earn profit. 

5. Finding Information And Reading market situation

In trading, we are not only focused stare at the screen only. But we also have to know all the information relating to the financial markets. Because there is some news that could affect currency movements. For it, before we get into the market and open positions, you should find the info. Is there any fundamental news that could move the market? So that we are not wrong OP (open position). We also must be able to read the market situations. Is being bearish (the market trend is rising), or is bullish (market trend is down), or even going through sideways (price movement horizontally). And most of that is often emphasized by forex traders professional, do not ever fight the market trend. This means do not ever try to take short positions when looking up trend and long positions when the downtrend. Unless we have a large capital which could affect market movements significantly.

6. Measuring the Strength of Capital That We Have

We must know the strength of our capital for what. Do not be reckless!!! We have the details to calculate the amount of profit and loss. We also need to learn how to set a stop loss and profit target. The success we manage money, is one of the keys to success become forex trader. Because, every person want a profit and wherever possible we avoid losses. Be careful using the leverage provided by the broker. Just because we can benefit greatly by using it, we immediately follow it. It has been discussed in many articles about how the benefits and disadvantages of using leverage trading. Like a double-edged sword, leverage can be profitable with a profit level that many times, but could also bring losses doubled anyway. 

7. Looking for Trading Systems That Fit Your Character

The core of the most important in this stage is the way we can be comfortable doing transactions. We specify how to trade like what suits our character. An example is choosing the time frame is right for trading. Are we trading by using a time frame that narrow range between 5-15 minutes, hourly, daily, weekly or monthly to determine OP. Because each time frame has different risks. Scalper who did engineering scalping the time frame trading between 5-15 minutes will certainly face price volatility and higher risk higher also than a day trader who utilize daily time frame.
We are looking for trading systems to suit ourselves. Do not force yourself to always trading everytime as if we are not able to cope with the pressure caused by the movement of the market. The most important thing is the quality of our trading, not the quantity of trading. What does it mean if we are to open position but the result is often loss? Will others if we can trade in quality, although the quantity of trading a little, but when in the open position that we are doing the quality, of the profit will be more than the frequent trading but the frequency of loss.

8. Mastering the Psychology of Trading

It's important for us to be able to manage and master the psychology of trading. Many forex traders fail because they are not able to master the psychology of their own. With volatility high, the forex market will certainly provide emotional distress to the trader. So do not be surprised, if when doing an open position went wrong and simply loss, many traders affected this situation and to open next position was not based on the analysis but because of emotions like revenge to cover losses that were previously experienced. Therefore, it is important to set the rhythm of our emotions by learning trading psychology.  

9. Making Trading Plan

Surely every trader wants to make a profit. But if we are not able to set up a trading plan our own how benefits will we get? One of the ways that we can use is to set a stop loss and profit target in every transaction we do. Do not be greedy, and do not be too cocky. By determining the stop loss means we will limit the losses we will experience. By determining profit targets, we will also avoid the possibility of lost profits already in hand, for example, we set a Profit Target by 20 pips. After profit target is reached of course we are safe then we can focus on the next trading, well imagine if we did not determine target and then market moves down? Though had gone up a few pips are actually pretty good. Definitely regret going there instead?  

Not limited to set a stop loss and profit target, trading plan which we plan should include self-management when are we going to trade and when we are not trading.  

10. Have discipline

Once before we determine the trading system, do the management psychology, and create a trading plan, then we just need to do it over and over again. Record everything that we think is good and supports to produce profits, and improve the less. In this way, we will be used and will automatically know when we have to deal and when to get out of the market. Discipline is a key to successful forex trading. And to discipline a forex trader will be able to trade a quality that suits his character.
The ten steps above are important steps we have to do to become a forex trader. With 10 stages is expected we will be traders who can take advantage from market situation to gain profit. Each step is certainly do able, as long as we have the desire to learn. Being a trader is easy, anyone can do it. However, a successful trader and make a lot of profit that is a bit difficult.

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