There are plenty of reasons to get started as a forex trader, not least the fact that the market’s daily trading volumes have increased from $5.1 trillion in 2014 to an impressive $6.6 trillion at the end of last year.
While this market may be tempting to investment novices, however, the foreign exchange is also an incredibly volatile space and one that boasts increased leverage and the opportunity to lose (as well as earn) far more than your initial deposit.
With this in mind, here are some of the key steps to getting started as a forex trader in the real-time marketplace.
1). Choose the Right Device
Let’s start with the basics; as you’ll need you’re using a device type that suits your method of trading and the wider investment strategy that underpins it.
For example, if you want to operate as a scalper or day trader (who profit from regular price fluctuations during a 24-hour period), you should utilize a mobile trading platform that enables constant access to the market.
Conversely, those of you who adopt a longer-term outlook and want to undertake more detailed technical analysis should utilize a desktop device, which has far greater processing power and speeds. A desktop device is arguably more suitable for more advanced trading tools, such as autochartist.
Of course, you can use both types of devices to trade the forex market, but you should utilize either a smartphone, laptop or PC to complete the majority of your work.
2). Find a Broker and Open an Account
The next step is to identify a broker, so that you can access the market and execute orders in real-time.
While it’s always important to utilize a reputable and licensed brokerage site, you should also ensure that your chosen broker offers access to the relevant markets. Similarly, you may be able to open a trading account with a welcome bonus, which will afford you free capital with which to control positions.
We’d also recommend utilizing a demo account when first starting out, as this will enable you to trade in a real-time and simulated market environment without risking your hard-earned capital.
You can usually trade using a demo account for between three and six months, and it’s definitely something that can bridge the gap between theoretical knowledge and practical experience.
3). Pick a Platform and Start Trading
Last, but not least, you’ll have to identify a viable trading platform that can help to inform and execute your trades, with the MetaTrader 4 offering a relevant case in point.
This platform comes with an entire suite of technical indicators, which can help to identify some insightful trends with regards to price movements.
Similarly, platforms like the MT4 come with in-built customization options for charts, ensuring that information is presented in a way that’s easy to process quickly and with the minimum of fuss.
Most trading apps will also be compatible with either iOS or Android (or both), so you can execute orders while on the move and capitalise on real-time price movements.