Forex Trading for Beginners Guide
Today i want to share you how to start forex trading online for beginners. This simple article will guide you step by step to know about forex trading from the basic.
What is Forex?
Forex (foreign exchange) is a global decentralized market for the currencies trading. This includes all aspects of buying, selling and exchanging currencies at current or determined prices.
Ok, let’s start!
The main basic of Forex is Buying, Selling, and Exchanging currencies, understand?
You have £10 of money and your friend have $10, today £10 equal $12.55. Would you trade your £10 with $10? No, absolutely no. If you trade it, you will loss $2.55, get it?
If you have understand it, now i will bring you to the MetaTrader.
What is MetaTrader?
MetaTrader is a trading platform developed by MetaQuotes Software for online trading in the forex, contract for differences (CFDs) and futures markets.
At the top left side, below the menu and toolbar you can see many currencies on the table (Look at the Image 1.0). You only need to choose one or you can trade more than one if you want, but i recommend you to choose only one for beginning.
If you want to trade GBP with USD choose GBP/USD, right click and click Chart Window (Look at the Image 1.1).
On the right side, you will see the Chart Window of GBP/USD will open. Now, to start forex trading you only need to click on Buy or Sell at the top left side of the chart or you can start forex trading by right clicking on the Currencies and select New Order.
After you select New Order or clicking on the Buy or Sell, you will see the dialogue box will open. You only need to choose the volume/ lot between 0.01 – 10.0. Higher Volume/ Lot you choose, higher Profit and Loss you will got.
If you want to Sell, fill Take Profit lower than the price while you take the Sell position. Look at the Image 1.2, price for Buy is 1.25431 and for Sell is 1.25391. Because you want to Sell, so fill Stop Loss higher than the price while you take the Sell position.
What is Take Profit?
Take Profit is a feature to help you take profit automatically when the chart touch the value/ price you set.
What is Stop Loss?
Stop Loss is a feature to help you to avoid more loss automatically when your prediction are wrong and the chart touch the value/ price you set.
Set price value for Take Profit by 1.25330, it’s -61 points/ pips higher than the value price when you start take position (1.25391). If you choose 1.0 Volume/ Lot, and the chart going under 1.25391 to 1.25330 you will get profit $61 or £61 if you trade with Pound Sterling currency.
Set price value for Stop Loss by 1.25450, it’s +59 points/ pips higher than the value price when you start take position (1.25391). You will loss $59 if the chart is going up from 1.25391 to 1.25450.
Click on Sell button because we want to sell it and believe the price will go down.
After you click on Sell, the trade will begin and you must watch it and as much as possible to avoid losses and had to wait until the chart began to fall and give you a profit.
Start Forex Trading Without Money
If you are a beginner, i recommend you to start trading forex using forex demo account. Don’t be afraid of losing your money while trading, because in forex demo account you only trade with virtual money but in real life forex trading situation.
You can learn much more in forex demo account, here i only give you a basic and now you should start learning by doing. Start today and make new forex demo account to learn trading by practice, and you also need a tips to choose right forex broker.