Forex trading is one way to grow your money without investing in stocks and shares. Forex trading also suits you if you are a keen global investor who wants access to the markets anywhere in the world or wants to diversify your investments by owning international shares. Telegram Forex copy trading is a great way for novice traders with limited funds and experienced traders to buy and sell currencies worldwide.
Understanding the various types of forex market analysis
There are three basic types of forex market analysis, they include;
1. Fundamental analysis
Forex fundamentals revolve around the currency’s interest rate. This is because interest rates impact the forex market. Other fundamental aspects include economic growth, manufacturing, inflation, gross domestic product, etc. However, whether those releases impact the country’s interest rate.
Traders reviewing the fundamental analysis should consider how they might impact the future movement of interest rates.
2. Technical analysis
Forex technical analysis involves examing patterns in the price history to determine the best time and position to start and stop a trade. As a result, technical analysis is one of the most employed in forex.
Since FX is one of the most liquid and largest markets, the chart movements on price give clues about hidden supply and demand levels.
3. Sentimental analysis
Forex sentiment happens to be a popular form of forex analysis. Most traders are already committed to that position if you find sentiment overwhelmingly placed in one direction.
Some best online forex brokers to start trading
We have successfully listed some of the best online forex brokers you can select when starting forex trading. They include;
Ava Trade – Minimum deposit of $100
Exness – Minimum deposit of $100
XM – Minimum deposit of $100
IC markets – Minimum deposit of $100
FXTM – Minimum deposit of $100
Hot forex – Minimum deposit of $100
Pepperstone – Minimum deposit of $100
Olymp trade – Minimum deposit of $100
IQ Option – Minimum deposit of $100
IFC Markets – Minimum deposit of $100
Forex trading step-by-step guide
1. Choose a reliable forex broker
The first step to becoming a professional Forex trader is finding the right broker. The broker refers to an organization that allows traders to trade on forex (Foreign Exchange Market). A broker acts as the intermediary between traders and the interbank market. They provide traders with terminals, trading instruments, and other necessary conditions.
When selecting a broker, ensure that they are licensed and regulated in your country, offer low commissions, and have favorable trading conditions. Additionally, different brokers are suitable for particular regions.
2. Open a real account
After researching and settling on a broker, your next step is opening an account with them.
For example, opening an account with eToro in the US. First, you must fill out their application form with your name, user name, email address, and password. Finish the application by uploading your passport or ID card.
You can only trade on the Forex market if you open an account with a broker because it stores your funds, allowing you to conduct trading activities.
3. Test your trading strategy
It’s advisable to test your trading strategies first before embarking on the real deal. Luckily, most Forex brokers offer demo accounts where investors (traders) can learn how to trade, try different strategies, and grow their confidence.
Of course, even experienced traders can benefit from demo accounts by using them to try out new strategies without losing money.
Demo accounts work similarly to real ones by simulating trading conditions, allowing users to stake virtual money and realize the outcome later. They also give access to quote charts, open and close orders, and select timeframes.
4. Make your first deposit
After finding and knowing your way around a demo trading platform, it’s time to move to the real thing. Therefore, make your first deposit and start trading. However, your deposit amount depends on several factors, which you must consider carefully.
One critical principle to follow is to deposit what you are willing to lose. Forex trading is lucrative due to its high liquidity. However, you can also make severe losses. You don’t want to give up before realizing Forex trading’s full potential and benefits.
5. Explore passive income options
Mastering Forex trading takes time and energy. Therefore, exploring the available passive income options as you gain experience is advisable when looking for gains. These passive income options include PAMM, Forex signals, copy trading, and managed funds.
Final words
An important thing you should learn about forex trading is that when you first start, do not go in too big – start small and build your way up. This will give you time to understand the market before investing too much of your money.
