UNITED STATES—You want to start trading and you heard about forex as a possible asset? But you aren’t sure what forex actually is and how you can start trading? If this is you, this is the right article for you!
What is forex?
Forex is the short form of “foreign currency”, this basically means different currencies like the US Dollar (short USD) or the euro (short EUR). The goal of a trader is to buy a currency at a lower price and sell it at a higher price. Similar to stocks, currencies also vary. Depending on the economical and political situation in a country the value of a currency can change drastically. Especially since the corona pandemic, countries like Mexico or Argentina have lost a lot of power when it comes to their currency. The price is low. The trader has to decide if they want to buy this currency or not. By analyzing the market and the different situations in this country the trader can predict if the value of a currency will rise or drop after a while and therefore can earn money by making profits.
Start trading forex in 5 easy steps!
Do you want to start trading forex? We will show you how to make that happen in only 5 easy steps! Let’s start your trading journey!
Find the right broker
The first and some might argue the most crucial step is to find the right broker. This broker is the platform for your trades. Here you get all the information you need and can make trades whenever you want. Unfortunately, not every broker is a good one! Some take high fees, some are scams, and some just don’t offer good navigation. If you don’t have a broker yet and want to find suitable options for you, we recommend looking at the forex broker overview. Here you can find good opportunities. Just click through the wide variety!
Decide on a currency
Forex is all about trading foreign currencies. We recommend that you decide on a currency that you are familiar with and that you’re willing to learn more about. You constantly need to be up-to-date to see potential situations where you can buy a currency cheaply.
Get to know the market
You have to be familiar with the market to get a good feeling for it and to be able to be a successful trader long-term. Yes, it takes a while to gain experience, but you can also use a demo account. This is a good option if you are a beginner and don’t want to risk losing your money. With a demo account, you can trade, make the experience, and learn more about trading forex without the risk of losing your money!
Decide on your first trade
Do you feel comfortable enough to invest your first money? If so, now is the time to look at the market and the potential currencies. Use your experience and knowledge to make a decision. What should it be? We recommend not investing too much money in your first trades. Instead, go step by step!
You found the right forex broker, decided on a currency, analyzed the market, got more experience through a demo account, and now you are ready to make your first trade? After analyzing the current market situation, you decided on an investment? If so, go to the last step and make your first trade!