It is not so easy to get started with the forex trading business for a beginner especially when one is a retailer. But, there are several avenues that one can explore which introduce the beginner systematically to get started with forex trading. I will deal with this article with the beginner in the mind.
Look Around For Information First
Internet is replete with information on forex trading. There are dedicated websites for just information and educating the investors. One such website of repute is http://www.investopedia.com/. Apart from offering a flood of information and tutorial these websites let you work on their simulated mock trading sessions where you get a feel of real like situations. For this you will be required to open a free demo trading account with them. Another similar website is http://www.forex.com/.
But one can not discount the offline source of information. Books journals and workshops conducted by the industry associations all are more than useful to begin with. Workshops/seminars will be for both beginners and advanced investors. Look around for announcements before you enroll with them.
Studying the Pulse of Forex Market
Really the essence of learning in the seminars and workshops is to know the process of market prediction through fundamental and technical analysis. Fundamental analysis basically deals with the macro economic background of a currency and its liquidity so has more to do with the economic health and trading turnovers of that currency with a long term perspective. Technical analysis is although a reflection of fundamentals, deals more with the market behavior at large. The market behavior of currencies, just like equities, reacts to fundamentals but not as quickly as to the investor sentiments. Thus there are different sets of indicators for each of these. While technical analysis relies more on computerized statistical charts fundamentals depend on the economic milestones and policies of that economy.
Demo or mock trading experiences expose you to the heat of fast paced decision making process. This, you will appreciate before you actually put in your stake to risk. When you actually open an account with a forex broker, you will get access to their softwares, either standalone or internet based, through which you can analyze and trade in real time.
A Word of Advice
If you are a fresher, it would be prudent of you to have slower and smaller exposure till such times when you are comfortable with market predictions even for intraday calls. Another point is not to go for shorts unless you are truly confident of your decision. How long it takes to become a seasoned forex trader? It depends on the background and exposure of the individual and as such there is no standard.
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