To start trading in the Forex market can be a daunting experience for anyone because there is so much to learn from automated trading software to charts to trends and pips and currency pairs, so what should beginners look out for?
The Foreign Exchange market is an extremely liquid market that is open to trade 24 hours a day and trades $1.5 trillion daily. Once only an option for big companies and banks the Forex market has now become widely available to individual traders such as you and I, owing to access to the internet.
Attraction to trading Forex has increased with the increasing number of automated trading platforms providing training and valuable guidance on trading, making trading an easy and automated process that can be adjusted to ones circumstances. As well as online services, there are seminars and training classes widely available if an off line approach is preferred.
The five major currencies that dominate the market are the UD Dollar, British Pound, Japanese Yen, Euro and Swiss Franc, although other currencies are available but for beginners trading with the major currencies is recommended.
So what should new starters look out for?
1) Never start trading until you have had some basic training, for example Forex Automoney is a trading platform that provides training and a demo account for you to practise on BEFORE you actually put any money on the markets. An estimated 90% of new starters fail to make a success of trading as they do not practise and learn the basics.
2) Do not use more than 1-2% of the capital in your trading account, big trades can mean big profits but also can mean big losses. Money management is the key to long term success in forex trading.
3) Choose a time frame for trading, the popular time frames are 1 day, 1 hour and 5 minutes but to get a clear picture as to what is happening in the market always look at a longer time frame than the one you will using to trade.
4) Trading can be very exciting however it is necessary to keep calm and have a disciplined approach rather than get carried away with emotion.
5) Get some help! Learning from a successful trader can only help make you a better trader.
Although the starting period for new traders will not yield life changing profits instantly, many new traders have built a steady and successful income from forex trading.