How to Trade Forex

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Posted by on Friday July 15, 2011 9:9:11:

Forex Trading is one of the quickest ways of making money online as it allows you to make money from the very first day of getting into it. However, in order to start Trading Forex, there are a few things you need to do.

Things you will need to Start Forex trading:
- Training
- Trading account
- Funding

Training:
Forex trading requires certain skills in order to be successful at it. It basically involves buying and selling currencies at different prices in order to make a profit. You would need to be taught how to really do it and this would involve theoretical and practical training that can help you. You would need to know the basics and how to identify a rising or falling trend and what causes prices to fall or rise. You would need to know how to make an enty and exit and how to catch in on your profits. Forex trading can be fun but it can also be challenging and worrisome if you keep losing. One of the reasons why a lot of people fail in forex is probably because they have not received adequate training on Forex. You may choose to train yourself using internet resources and sites like babypips.com or you may choose to get trained by local trainers. You should also do virtual trading for some weeks after your tutorials in order get the feel of how to make a basic entry and exit.

Trading Account:
In order to get started with Forex trading, you also would need to have a Forex trading account. You get that from your online broker and there are a lot of them. One I would recommend however is Marketiva. Marketiva runs a simple platform that allows to do start doing virtual trading with up to $10,000. They also have some help resources that can help you get the details on how to get started. They also give you a free $5 in your forex account once you sign up and getting an account is free. Once you are signed up, just download streamster and login with your same username and password and you would see the trading platform. You can make buy and sell orders withing that window and it is relatively easy to use.

Funding:
Once you are ready to get started to do trading and want to start making real money, the next thing you need to do is fund you account. Your broker would offer you several means of funding your account such as Liberty reserve, bank to bank transfer, credit card, moneybookers or Paypal. With Marketiva you can fund your account with Liberty reserve or bank wire. Liberty reserve can save your time and will be faster and cheaper too. If you are transferring huge funds like $5000+, you may also use bank transfer to be on the safe side. If you are using liberty reserve, all it requires is for you to just open a liberty reserve account for free at Libertyreserve.com and buy LR funds from a local Liberty reserve exchanger in Nigeria. One of them is instantgoldng.com and another is epaymonster.com. After funding, you can then use the "deposit funds" withing you Marketiva account to transfer the funds finally.

Making profit with Forex:
So how do you really do it? Let's say that your currency pair is EUR/USD and the current price is 1.45 and you feel there is tendency for it to rise. You can then use a buy stop to buy it at a specific price while also setting your exit stop price exit target price. You can use a difference of 20 pips for both. If it rises, you gain 20 pips and if it hits your low point, you lose only 20 pips. If you lose, just accept your loss and try another time. If you win, it means you made a good decision. So it all boils down to getting in at the right price and getting out timely too. There are several factors you can use prior to arriving at your decision to buy or sell. You can make use of market reports or news about your currency such as GDP, unemployment level or debt issues.

Conclusion:
Forex trading can be profitable and you can even trade for only 1 hr a day before calling it a day There are a lot of people who make about $100 a day profit daily just by trading for a few minutes. It really depends on how dip your pocket is, how skilled you are and how much leverage you are trading with. If you don't really understand forex yet, don't waster your money.




Comments:
Re: How to Trade Forex Reply by Jones on Wednesday June 13, 2012 at 17:48:56:

@ Felix Okoli, thanks a lot for sharing. I've visited babypips.com as you have recommended, great website for beginners. I'm excited that i am learning. God bless you and thanks again for sharing.



Re: How to Trade Forex Reply by Felix Okoli on Wednesday June 13, 2012 at 17:48:56:

Happy to be of help.





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