Forex trading and investments has been on the rise lately, so i am sharing my knowledge about forex trades below in this article.
What is Forex Trading?
Forex Trading, One can simply define forex as foreign exchange in a decentralizable global market where all the world’s currencies trade. Statistics have it that the Foreign Exchange Market also known as Forex market is the largest market in the world with an average daily trading volume exceeding $5 trillion.
Primarily, Before Forex trading was exclusively for banks where the banks make a huge amount of dollars by just exchanging the currencies of different countries. Thanks to the internet, we have seen spike in search of forex trading knowledge no doubt 21st Century has evolved so well that you can trade Forex at the comfort of your room and you can start trading with as little as $100 startup.
It is Possible to Start Trading Forex with $100 but it’s not recommendable for Profit sake, Everyone probably starts up business for profit’s sake, I wouldn’t want to see you at the losing end, I will explain why it is not profitable to start Forex trading with $100 so read along
PS: make sure you have practiced trade with demo accounts before trading with live account
What are the risks involved in Forex trading? Is Forex trading still profitable for Average individual? How much money can you earn trading Forex on part-time or as full-time FOREX trader? Is it possible for a middle-class person to start Forex trading business with little knowledge about the money market and financial management?
QUICK FACT Forex trading involves the disparities in foreign exchange rates, as the economic state of different countries usually determines profit or loss in Forex trading at a time.
Considering the fact that the economy of different countries differs and is not stable compared to one another at any point in time, the Forex market is never fixed or stagnant at any point in time. It is constantly changing and not fixed so its never accurately predicted. This is where the profit or loss comes to play. So if the currency rises in your favor, you make profits, and if it goes down against you, your loss.
Understand How Forex Market Works
Here, you need to apply some sense of reasoning and to fully understand how the forex market works you have to do a lot of research and self-teach yourself Forex trading! This is not limited to a Demo Trading Account you must also acquire the skills required in Forex trading. Simply put, to succeed in Forex Trading you must be willing to research and study the twisted Forex market over a period of time and try as much as you can to be updated with the local and foreign news as global trends tend to determine the rise and fall of the currency.
Before you go live and start trading forex with your real money
Before You start trading Forex with your Real Money it is highly recommended to start practicing with a demo account, 95% of all the Forex trading platforms have demo accounts where you will be able to practice Forex trading in what looks like real-time trading. The demo accounts are funded with virtual money and in real time mode with a demo account you will earn more experience of how Forex Trading looks like, the profits and the losses
Its okay to experiment Forex Trading with virtual account till you understand how the Forex market works, please make sure you are good with the virtual trading before you ever venture into Forex Trading with real money because once you are up with the real money, there is no going back, so Trading Forex with Real Money is not something to joke with as its already an investment that needs to be handled properly you need to be updated with knowledge and skills.
Steps to Start Forex Trade
Ready to start trading Forex? Before you proceed to open an account with any Forex Broker it is very important to understand that
Just like some genuine sites have fake versions, understand that not all Forex Brokers are genuine
So before proceeding, you’re advised to make a thorough research before settling to invest your money with any trading platform so we advise you use the reputable and established Forex trading platforms only.
Who is a Forex Broker
Forex Broker is the medium or platform that allows Forex Traders to buy and sell foreign currencies online
How To Open Account With Forex Brokers
After making research and you finally found a genuine broker, Go to there website and open account
Open A Domiciliary Account
Dom account also known as Domiciliary account otherwise dollar account is widely used for cashing out foreign funds or depositing funds into your Forex trading account. Before you start Trading Forex, Domiciliary Account is very important for smooth transactions and easy withdrawal of your profit.
How to Fund Your Forex Account
Before you start real Forex trade, you must fund your trading account and this can be done through your credit/debit cards you can also use direct deposit to fund your account
5G or 4G Fast Internet Connection to Trade Forex
If really you want to succeed with Forex Trading, the strength of your internet connection matters, so I recommend trading Forex in a 4G network available area, even if you are trading with 3G network, just make sure its fast. Please its not advisable to trade Forex in a Rural area where network connectivity is poor unless you want to risk losing your profits. Your internet connection should be reliable especially if you are trading from Tier 3 Countries. Without a reliable internet connection, it will be difficult for you to make profits because your internet has to be fast and reliable to enable you to take actions quickly.
High Processing and Bug-Free Laptop
Note that you can trade Forex with just any device but for constant profit sake, don’t trade with low-end device, so we are highlighting the key factors for a long term successful trades in the Foreign Market, If you are serious and determined in making good profits from trading forex, you should get a high performing and reliable laptop to enable you perform well in the Foreign market. Don’t be deceived by anyone telling you how you can make good profit with low-end device or laptop because most of the time, the losses people make is as a result of unreliable trading devices.
People make a good amount of profit from Forex trading even from Tier 3 countries and you too can do the same, but trading Forex with little funds is not a good idea.