Forex trading, short for Foreign Exchange, is the trading of currencies from different countries with the aim of making a profit.Forex trading today can indeed be regarded as a promising income field. How not, forex trading does not require large enough capital. In addition, it is not too complicated to use. For information, it is often found that forex trading players are those who have been in the world of stock trading for a long time.
However, even though it is easy to do, in fact it is not easy for a forex trader to achieve real success. This is inseparable from the challenge of obtaining consistent profits in forex. Yes, consistency is the most important key in achieving trading success
Currently, maybe many people think they can get rich quick if they play forex trading. However, this does not necessarily happen if it is not accompanied by in-depth knowledge of forex itself, both in terms of characteristics, advantages, and risks. Consistently minimizing losses and getting profits in forex are two things that confirm your success. So, what are the forex tricks that can be done to get it? keep reading this article How to make money with Forex
The purpose of forex trading itself is none other than estimating the direction of price changes, so you can profit from the difference between buying and selling values. However, learning forex trading is not as easy as imagined. This is evident from most people who are just learning forex. They will quickly go bankrupt. Therefore, here are some tips for learning forex trading:
1. Understand Common Terms Used for Forex Trading
Before making any investment, you need to understand the various terms used in the trading process. Some general terms to know are:
- pip is the change in value between two currencies, referring to 4 decimal places behind the comma in the exchange rate. If EUR/USD is at 1.1205 and then moves to 1.1206, the difference of 0.0001 is 1 pip.
- Base currencyis the value of the base currency or the first currency in a currency pair. It is written to the left of the sign, for example Eur/(the opposite).
- Pair currency is the exchange rate of a currency pair in forex, for example Euro/USD.
- lot is the number of units of currency bought or sold, divided into mini, micro and nano sizes.
- Buy is a position to buy. Usually buy is done if the price is expected to rise.
- Sell is done if the price is expected to fall. You sell at a high price, then buy back when the price is low. The difference will be to your advantage.
- Leverage is a loan given by a broker to help a trader to trade in high volumes. Spread: the difference between buying and selling prices, usually for brokersCurrency pairs: Currencies are always traded in pairs, such as JPY/INR, USD/GBP, etc. There are three type of currency pairs.
2. Learn and Understand How Forex Trading Works
After we understand some terms in the forex world, the next step is to understand how forex works. Every serious forex trader who wants to get consistent profits must learn before opening a trading account at a forex broker.
Falling just like that without any preparation is tantamount to suicide. Starting from fundamental factors related to the economic sector to technical lessons, there is a lot of forex knowledge and tricks that are ready to be used
3. Be smart in choosing a broker
Given that the broker is the party that connects the trader with the forex market, choosing the best broker is one of the most important forex tricks here. Not only in terms of quality, but also from the variety of services that support trading needs.
Not a few cases of failure in forex comes from a broker's disability. Starting from specifications that are not supported, execution that is often problematic, to withdrawal problems that can have an impact on traders' finances.
4. Begin with a Demo/Practice Account
after we understand the terms and how forex works, and we have also registered with a forex broker, the next step is to start trading forex, but you should not rush to use a real account, start with a demo account to learn that the broker has provided and can run directly on the platform trading which is equipped with various order and analysis facilities. With these various advantages, you can certainly use a demo account as a place to practice and test trading strategies to see how consistent the results are.
5. Start with small investment
if we feel we are already proficient at using a Demo account, there is nothing wrong if we start trying to trade using a Real Account, we recommend starting with a small investment. We can use a cent account, Micro Account, or we can start with the Quick Start Bonus which is usually provided by brokers for new members.