How to learn the basics of forex trading? The currency trading market is a huge market available to everyone, and you can easily start trading currencies by opening a real trading account with a forex brokerage company, and these companies provide facilities for individuals, or what is called leverage or margin trading, which enables you to trade in large amounts compared to the capital depositor.
Learn the basics of forex trading
Despite the ease of forex trading and the advantages of the currency market that provides the possibility of trading within 24 hours in a decentralized manner or what is known as the OTC system, in addition to the ease of following the forex market and news and the possibility of making profits by trading in small amounts.
However, Forex remains a world that has its foundations and rules, and the trading process requires knowledge and knowledge that must be known by new traders before starting to speculate on currency prices.
The importance of Learn the basics of forex trading lies in laying the foundation on which to build a trading plan and strategy later, in addition to ensuring sufficient awareness of all trading mechanisms and choosing the best among them to achieve the best results and the highest profits at the lowest costs and the simplest ways.
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Determine the volume of investments and calculate the return
After learning the basics of forex trading, the trader must determine the amount of money that can be saved to enter the market and the amount of risk that he can take. Here, we must pay attention to the possibility of losing this money completely, as the forex trading process using leverage is a very risky process.
Therefore, it is preferable that the funds that will be speculated or risked are surplus funds or part of the secondary income or a surplus over it, and it is not recommended that the risk be done with the primary income or funds that you need.
In order to ensure a successful trading strategy later, a trader in the currency or forex market must determine the expected return on investment. Logically, away from exaggeration. For example, if you had $1,000 in your account, and you were able to make a profit of about 5% per month.
Of course, this is only a rough estimate, as this means that you can achieve approximately 80% annual return and this is considered a competitive rate compared to many types of investment, bearing in mind that in forex trading the amount of profit you can achieve depends on your decisions.
Almost all forex traders have taken at least a few years to get enough experience to reach this level, so you must be patient from the time you start trading and entering the market.
Develop a money management strategy and plan
Learn the basics of forex trading is one of the most important elements necessary for success in the financial markets in general and forex trading in particular, especially if you are a beginner. Having a trading plan will help you remove your feelings or emotional influences from the decision-making process, and it will also provide you with the data needed to determine the opening and closing levels of the deal.
Once you have chosen a specific strategy for foreign exchange trading, or forex trading, learn the basics of forex trading it is time to apply it, just use your favorite technical analysis tools that you are fully aware of in how to employ and use them, in addition to determining the currency pairs that you follow and will trade on them, and even the best times that are suitable for you And for the market to achieve the best possible profit.
After Learn the basics of forex trading, your adherence to the trading strategy will allow you to stay focused amidst the huge influx of news and economic data that may make your analysis difficult. So, keep your trading plan simple and let it evolve over time.