Day: December 3, 2020

Finance

How to Trade Forex For Beginners

Forex trading for beginnersWhat exactly is Forex trading anyway? Forex is short for Foreign Exchange and it basically means trading one particular currency for the other. For instance: when you visit Malaysia for a holiday, generally you will exchange Singapore Dollars for Malaysian Ringgits. But what happens if you want to buy or sell currencies other than Singapore Dollars? This is where things get interesting as if you decide to trade the Euro for the US dollar, for example, and you have some Euros as your local currency, then you can buy and sell the Euro and the US dollar simultaneously.

forex trading for beginners

How to Trade Forex For Beginners

So, how can you start trading if you have no experience at all? Simple, the best way to go long is to open an account with a brokerage firm that specializes in foreign exchange trading. Once you have an account set up, then the next step is to make a trading plan. The trading plan consists of knowing which currencies you want to trade, which market you want to trade them in, and when you want to make the trades.

One thing to keep in mind when trading currencies is that you will want to go long when the market is bullish, and short when the market is bearish. You should also only trade a small portion of your entire trading account on each currency pair. The reason for this is because you do not want to risk more money than you can afford to lose, so you can’t afford to sit around and let your trades sit idle. Also, make sure that whichever broker you use has a good reputation within the industry as well as plenty of leverage.

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