Fx trading-Steps to invest in Forex

Fx trading-Steps to invest in Forex

 

FX trading activities can be carried out in an intelligent manner to avoid fatal errors that with carries so leave it out of this business.
The caution Fx trading is the best friend to have the opportunity of winning much money by Lake time.

The Fx trading this kind of investment can be a very exciting pastime for many investors with experience and for newbies, it can become a second important income. This market can be compared to anything, the stock market of shares that its activity moves more than 22 billion of you dorares days, compared to the Fx trading that moves 5 trillion dollars is impressive.

fx-trading
fx-trading

In this activity you can earn much money with an investment initial small. Have a skill of business to know towards where goes the economy world is something very interesting and passionate. This activity of business is can perform from internet of how easy and practical. FX trading in market there are courses for this new wood to make money on the internet.

1 Learn the vocabulary basic of the forex.

The currency that you spend in forex, is which is the currency, is called “currency of base”. The currency you are going to buy is called “target currency”. In the forex market, you use a type of currency to buy another.

“Exchange rate” tells you how much you have to pay in the currency objective to buy the base currency. For example, if you want to buy American dollars (USD) using pounds sterling (GBP), you’ll see a resemblance to this exchange rate: GBP/USD = 1.5895. This means that you will have to spend 1.5895 USD to buy a GBP.

fx-trading
fx-trading

A “long” position means that you like to buy the base currency and sell the target currency. In the example before, you’d be selling dollars to buy pounds sterling.
A “short” position means that you like to buy the target currency and sell the base currency. In the example, sell them pounds to buy dollars with them.

The price “offer” (“IDB” in English), is the price to which your broker would like to buy the currency of base in Exchange for the currency objective. He price of offer is the price to which you can “sell” the currency objective to the market.

The price “Demand” (“Ask” in English), is the price that your broker sell you the base currency in Exchange for the currency objective. Similarly, the demand price is the price that you can buy the currency from market.
The “spread” is the difference between the offer price and demand.Fx trading

2.Learn to read a forex exchange rate. You will see two numbers in each currency exchange rate: offer price, left, and the price of demand, right.

 

3  Decide which currency pair like to buy and sell.

Learn how to make predictions of the economy of these two currencies. If you think about the United States economy will weaken, that will be bad for the U.S. dollar, then you will want to sell dollars and buy them a currency that will be strengthened.

 

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fx-trading02

It investigates the balance of exports and imports of each country. If a country has many products that export, the country will want to earn money by exporting. This fact produces an improvement in the country’s economy, and will have a positive effect on the value of its currency.
Keep in mind the political events. If a country has elections soon, its currency may strengthen or weaken according to the political leader who wins them, due to the economic orientation of the different parties. In addition, if the Government of some country generates measures that stimulate the growth economic, its currency will increase its value.
Read the economic analysis. The analysis of economic growth and the State of industrial production, as well as data on unemployment and inflation, have little effect on the value of the currency.

 

4 Learn to calculate the benefits.

The value between the two currencies is measured in “pips”. Normally, a pip is a change of 0.0001 in the value of certain currency with respect to another. For example, if the Euro on the dollar change to 1.5468 1.5467, the value of the currency EUR/USD increased 1 pair pip.
Look at the number of pips that the currency pair has changed since you bought it until it was sold, or vice versa. So you know if you won money with the operation or not. [1]

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2.1Abre a currency trading in an Internet Broker account

1
Researches on different Brokers. You must have in has some factors before deciding what Broker you use:
Seeks to a Broker that has been in the business by more than 10 years. If has experience, that indicates that knows what makes and that know take care of their customers.

Check that the broker in question is regulated by a body international. If your broker is has welcomed voluntarily to the supervision of a body international, this you shows the degree of transparency and honesty of the company. Some of these services of monitoring are:
In the United States: National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC)
In the United Kingdom: Financial Services Authority (FSA)
In Australia: Australian Securities and Investment Commission (ASIC)
In Switzerland: Swiss Federal Banking Commission (SFBC)
In Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN)
In France: Autorité des Marchés Financiers (AMF)

Check out the many products offered by the Broker. If the broker offers business actions and raw materials, for example, it means offering more comprehensive services and a wider clientele.

Read the opinions with respect to the broker. Anyway, you have to be prudent. Even if you read some good opinion, find a bit more to read the general opinion of the users. Although the user can give you a general idea of the broker, you must take them as a guide, not as absolute truths.

Visit the website of the broker. Should be professional, and all should work well. If the web page is incomplete, or not seems very well made, is better that not you trust of that broker.

Check the cost per operation. Also, should check how much you van to cost them transfers to your account Bank.
Focus you on the main. You will need a good service to the customer, ease of use and transparency with the operations Bank. In addition, should concentrate you on brokers that have a good reputation.

2.2

She requested information on how to open an account. You can open a personal account or choose a managed account. With a personal account, you can make your own operations. With a managed account, your broker, or someone else, it will negotiate for you.

2.3

Fill in the corresponding documents. You can ask to send you the documents by postal mail, or you can download them and print them.Fx trading. Make sure you check the costs of transferring money from your bank to the broker in question. Sometimes, the commissions may be exaggerated.
2.4
It activates your account. Normally, your broker you will ask some documentation to activate your account. Others times, you sent a link that you must follow to perform the activation.

3 start to negotiate

3.1

Analyzes the market. You can use different methods
Analysis technical: the analysis technical consists in predict the movement of the price checking the behavior above of them badges in a graphic. Normally, the own broker you will supply graphics official, perhaps through platforms standard as Metatrader 4.

fx-trading
fx-trading

Analysis fundamental: this type of analysis is in check them conditions of the economy real of each country to see how will influence in the value of its currency.
Analysis of trend: this is the type of analysis more subjective and imprecise. In essence, is is of analyze what it most of stockists are doing to know if the market it will dominate them “bulls” (expression that is used when the price rises) or them “bears” (when the price low). Although not can define clearly which is the trend, could give you a good track that you help in your way of negotiating.

3.2

Know what your margin. Depending on the rules of your broker, you can invest a small part of your money, but open operations large, still with all.
For example, if you want to open an operation of 100,000 units, with a margin of 1:100, your broker will need $1000 account you use to perform the operation.
Your profit or loss will be added, or subtract the total of your account. For this reason, a general rule is to invest no more than 2% of the total of your money in a single operation.

3.3

Create your orders. You can use different types of orders:

Market orders: with a market order, ask you your broker to execute the order to buy/sell at the current market price.
Limit order: this type of order request to your broker that perform an operation at a price that you specify. For example, you can buy some currency when the price drops to a certain level, or sell if the price drops to the price you specify.

fx-trading
fx-trading

Orders stop: a stop order instructs your broker that you want to buy some currency when this rise to the level you want, or you want to sell it if low too, in order to limit your losses.
4
It monitors your winnings and your losses. Above all, don’t let yourself be carried away by emotions. The Forex market is very volatile, so you’ll see many ascents and descents. The most important is that you keep investigating well and that you use a well-defined strategy. Finally you will see earnings.

Tips
Starts negotiating in a count of demonstration before investing money real. Of that mode, can get you to the process and decide if you could win something of money or not. When you are doing good operations with regularity, then you could think in open a has real.

Try to not use more than the 2% of your money in each operation. For example, if searched decided invest $1000, not should use more than $20 on each purchase or sale. Also, as them prices can several much, must ensure you of that have enough money to keep the operation open case the price goes in the address opposite.

Remember that the losses only is accounted as such to the close the operation. If your operation still remains open, the loss only will be definitive if close the purchase or sale.

Put you limit to those losses. If, for example, has invested $20 in EUR / USD, and today lost $5, just have lost nothing concerning the total of your money. Is important that, for that, use only the 2% of your money in each operation and that make use of the orders of “stop loss” or limit of losses.Fx trading.

If have enough money in it has, can keep them operations open until the price reaches to the level that your want to close them in profit.

If the price goes in direction contrary, and not have enough money to endure the operation, this is will close automatically. Take care of not commit this error.

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