3 Steps to Starting to Trade Using an Account Forex Online Trading

The Forex trading market has grown quite a bit recently, and has become very popular in the investment community. People from all over the world and in just about every country can start investing, even though only professional traders used to be able to. Up until recently, only major banks and large institutions had access to Forex trading. The average trader of today now has the opportunity to take a stab at the largest volume of money being transferred on a daily basis, to the tune of $3 trillion a day.

The first step is signing up with a broker and start using a trading system. Our highest rated broker is Easy Forex, and they offer a free demo account and more. There are literally hundreds of trading systems out there, as well as hundreds of brokers. Be sure to do some research before blindly jumping in. Pick out a trustworthy broker that is synchronized with a major global institution and pick out a trading system that works with your trading personality and has been aggressively back tested.

With the multitude of firms competing for your business, it makes sense to shop around and find a firm that’s willing to give you free demo software, charts or other tools that help make your job easier as a trader.

Next, let’s break down how exactly you’ll be profiting from Forex. Forex is currency trading and is always done in pairs. As an example, you can trade the Dollar vs. the Euro, Dollar vs. Yen, Dollar vs. the British pound and hundreds of others. The most popular ones, in no particular order are the United States Dollar (USD), British Pound, Euro, Swiss Franc, and Japanese Yet. These make up the majority of all the currency trading.

You’ll see these pairs written with their abbreviations as a pair: EUR/USD (Euro and US dollar), GDP/USD (British pound and US dollar) and more. Since the vast majority of trades will be these five major currencies, your objective is to decide which currency will appreciate against the other. There are systems and signal services out there that help you decide which are most probably to make a profit. And you can setup these services to automatically trade on your behalf, so you can make profits on autopilot.

However, within your forex trading account, you’ll also be able to make manual trade, and stop-losses. Since the Forex market is global, you’re not limited by the time of day when the markets are open, therefore you can profit or lose very quickly, no matter what time of the day it is. For this reason, it’s highly suggested you always use stop-loss orders.

But, even though the markets are open 24 hours, this doesn’t mean you have to be awake and in front of your computer all day, and night to trade. By setting those stop orders with your broker, you’ll be able to buy and sell at pre-determined prices, even if you’re away from your computer or sleeping. Once your prices have been met, the order is placed and you are out of the market. This is how you can prevent big losses from happening. Most beginner traders don’t understand just exactly how volatile the forex market really is. If you choose not to use stop-losses, be prepared for losses.

Not only that, but the stress of trading is removed if you no longer have to react in real-time and make decisions whether you should sell or not. Placing them allows you to do other things, while keeping your losses to a minimum, and allowing you to go about your usual daily motions.

The Forex market is volatile and trading can be risky, however, it’s also very liquid, meaning you can get your money out at any time. If you’re the type of investor that’s willing to invest in your own education, are patient enough and willing to find a system that works, there’s no guarantees you can profit from trading forex, but your chances of success with trading are far greater than blindly rolling the dice.

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