Five Steps to Become a Forex Trader
Being a forex trader can be the desire of everyone who already knows forex. Whenever you want to jump into the forex business, you should take it seriously. For newbie traders, who go into the forex market (FX) for the first time, it means he started from the very beginning.
Newbie traders do not have to be in the dark side when having to learn forex trading. Unlike some other markets, there are many free tools and learning resources available to illuminate the path to forex business, becoming a professional retail trader. Here are five steps to becoming a forex trader.
Find a Good Forex Broker
To ensure that the money you send will be safe and you have jurisdiction to file a suit / appeal in the event of bankruptcy. You want to get a large regulated forex broker, at least under one or two major countries.
Furthermore, the bigger the forex broker, the more resources it can use to ensure that its trading platform and server remain stable and not stalled when the market becomes very active. Finally, you want the broker to have a sufficient number of employees so you can trade over the phone without having to worry about getting busy signals.
Check your Broker Statistics
In Indonesia, all registered futures brokers (under the authority of BAPPEBTI) are required to meet strict financial standards, and submit monthly financial statements to regulators. You can visit the website of the Futures and Commodity Trade Supervisory Agency (bappebgti.go.id) to access the latest reports from all listed futures brokers in Indonesia. Also through BAPPEBTI, you can find out whether the futures brokerage company has serious problems with clients or regulators online.
Another advantage in using Indonesian forex brokers is because it can transparently know your trading position. All your trades are listed at the Clearing House. All that transparency you can access online. If there is a dispute or an oversight that your trading is not listed in the Clearing House, then you can ask directly to your broker.
Testing Software Broker
After finding the right forex broker, the next step is to test the software provided by the forex broker. Usually forex brokers use MT4 (Metatrader 4) by opening a demo account.
The availability of demo accounts or virtual trading accounts is something unique for this forex market and the market you want to use to your advantage. Your goal is to learn how to use the trading platform and when you do, find the trading platform that works best for you.
Most demo accounts have exactly the same functionality as live accounts, with real-time market prices. The only difference, of course, is that you are not trading with real money and the results will have no effect.
You should not be trading impulsively (relying on feeling), so you should be able to justify your trading through research. Because the forex market is primarily a technically driven market. The best thing you can learn as a newbie trader is technical analysis. Experienced forex traders also refer to major news or international news.
Once you have a solid foundation in forex trading, you should keep abreast of fundamental and technical developments every day in the forex market. Various special forex research sites are provided free of charge, such as our website http://forexsignal88.com which can be found easily on the internet.
Creating Trading And Forex Signal Systems
Many traders wonder whether it is worthwhile buying a system or following a signal packet. Trading and signal systems fall into three general categories, depending on the methodology: trend, ranging and or fundamental.
Fundamental systems are very rare in the Forex market; They are mostly used by hedge funds or big banks because they are long term trading and do not give a lot of trading signals. The systems available to retail traders or individuals are usually trend systems or ranging systems. Very rarely you will get one system that is able to exploit both, because if you get it, then you have found holy grail system.
These five steps must be passed and steps 1 to 3 are very easy to do. You need to focus a lot on steps 4 and 5, as this will affect your trading in real.