Getting Started with Forex Trading
By Webb Ward
Posted: 11th July 2014 09:29
A growing number of people are looking to foreign currency trading as a way to improve their finances. The world of forex is interesting and dynamic, and it offers unprecedented potential for returns. Many analysts are concerned that the FTSE 100 is close to topping out. They think that while the index may break through to an all-time high at some point this year, once that high is reached we will see a period of market correction. Investors are looking for alternatives to shares, and two appealing options are commodities and currencies.
Safe Trading Online
In the UK, there are a lot of rules governing how brokers should be run, protecting consumers and making it easy and safe to trade (https://www.gov.uk/government/publications/bis-guidance-for-foreign-exchange-providers-compliance-with-consumer-protection-legislation). These rules are there to ensure that your investment is protected from unethical brokers or brokers that are financially unstable. The foreign currency market is not regulated by one central organization, and this means that investors have to be careful when dealing with foreign firms. However, firms that operate in the UK and that are registered with the FCA should be safe to deal with.
Learning forex trading is not easy. It is easy to open an account and start buying and selling, but if you want to maximise your returns, then you will need to take some time to learn how the markets work http://www.wikihow.com/Trade-Forex-Online . It is essential that you familiarize yourself with the concepts of margins and leverage, because failure to understand these concepts and how to manage stop-losses could lead to you ending up out of pocket if the markets turn against you.
When you start trading with a company such as iforex promotions, you will have the option of using a demo account to get used to the trading platform. Take advantage of this. While most companies use similar platforms, there will always be some quirks that you will need to get used to. In forex, seconds count. Markets move quickly, and the faster you can action your trades the better. If you want to use a signals provider, watch them for a while before you start trading to make sure that you really are happy with their performance and willing to trust them with your hard-earned cash.
The Importance of Discipline
It is easier than ever to get started with currency trading, but that does not mean that you should dive straight in. Take a moment or two to learn about technical analysis, fundamental analysis and bankroll management. The more you know about the theory behind trading, the better the position you will be in to protect yourself from losses and take advantage of positive movements in the market. Foreign currency trading is both an art and a science, and it is important that you are disciplined in your trading. Letting fear or greed creep in to your trading can easily wipe out any profit that you make. Make firm decisions about how you will handle each trade and stick to them. Don’t try to recoup losses or wait out a trade to make more money. It is better to live to trade another day than to throw your bankroll away on a gamble.