Want to Learn Forex Trading? Follow these 6 steps

Trading foreign exchange (forex) is indeed known as an activity to support financially carried out actively. Trading is different from investing in which activities tend to be passive. Even so, both forex trading and forex investment are considered capable of delivering the promised benefits. Many people have started to be interested in learning forex trading in order to increase their financial strength in the future. However, you need to know that forex is one type of investment that has a high risk. Even if you have started to learn forex trading, without experience and in-depth investment knowledge, forex trading can boomerang against you and weaken your financial strength.

photo : pixels.com/Dominika Roseclay, edited

6 steps to learn forex trading for beginners

Even though it has a high risk, learning forex trading from an early age can be a good alternative to increase knowledge and strategies in carrying out good and wise investments. One of the important skills that you must have when learning forex trading is a high level of concentration. These skills require remembering forex movements that continue to change every second, so you must be really observant and thorough in learning forex trading in order to be able to do the right analysis. Beyond that, there are several steps that might help you in learning forex trading, such as the following.

1. Create a demo account

Demo account forex MT4

In learning forex trading, it's a good idea to immediately apply the theory you get. However, do not immediately make forex trading transactions. Therefore, you can start creating a demo account that projects a forex trading activity as your first step in learning the investment activity. You don't have to worry about losing capital when learning to trade forex using a demo account. The reason is, you can do trading activities without having to spend a dime.

Keep in mind that this demo account is a tool for learning forex trading, it would be better if you learn about the forex transaction process rather than see the dynamics of the money market. Usually a demo account to learn forex trading has an overview of the real foreign exchange market conditions. So, you can also use the demo account to practice the intuition and analysis needed as a trader. In creating a demo account, you can contact a trusted broker.

2. Know the types of trading platforms

Types of trading platforms

Once you have a demo account, you can immediately start continuing your forex trading steps with real market situations. However, there is one thing that is needed to continue that step. You must first log in or register yourself on a trading platform. The demo account that you create through the broker is indeed your identity as a trader, but you must also register the account with the trading platform to continue the process of learning forex trading. Currently, there are many trading platforms available online that can be used to learn forex trading. To gain access to this trading platform, you can contact the broker who managed your demo account before. If you are good at trading forex, you can easily and quickly transact using OCTO Mobile.

3. Understand the right time to trade forex

Time is an essential element that you need to pay attention to when learning forex trading. As you know, the money market continues to run 24 hours a day, 5 days a week. However, as a human being to work continuously in that period of time is impossible. Therefore, you must be able to manage the right and right time for you to trade forex. For the time element, there are basically 4 time sessions that you need to pay attention to when learning forex trading, namely the Sydney, Tokyo, London and New York sessions.

Related Articles

By understanding these four sessions while learning to trade, you can determine a time scheme that suits your personality to carry out forex transactions. If you're trying to try to become a full-time trader, you might get each session faster. However, in applying the time or session you must have high concentration. If you feel that the activity is too risky, you can start studying trading in your spare time, such as during office hours.

4. Get to know the mechanics of technical indicators

Example of Technical indicators

Technical indicators are one of the important instruments for you to understand when learning forex trading. With an in-depth understanding of technical indicators, it will be easier for you to perform calculations or analyzes related to prices, volumes, and market interest related to foreign exchange. Technical indicators are also one of the ways used by traders to be able to map market conditions as well as predict the direction of foreign exchange price movements in the future. Trading indicators also usually already exist as a tool in various trading platforms. Even so, you still need to understand how to analyze technical indicators in depth as an important step in learning forex trading

5. Study the fundamental indicators

Fundamental indicators forex

In addition to technical indicators, there are other terms that you need to understand. That is a fundamental indicator. Fundamental indicators are also one of the references you need to conduct analysis as a means of learning forex trading. These fundamental indicators usually come from economic data, as well as socio-political issues that are developing in a country and can affect the movement of foreign exchange values. In studying fundamental indicators, you will do more research on the economic and social data that affect a country's currency. The economic data that you will research will usually be strong around a country's economic prospects, inflation, and unemployment. Basically, if a country has good economic prospects, the analysis you do will tend to lead to a strengthening of the value of a currency. However, the opposite is also true.

6. Understand the risks before trading

Understand the risks before trading, TradingView Chart

Even though you have understood all kinds of knowledge and good steps from learning forex trading, you also need to understand what risks can come your way when you start trading forex seriously. Understanding the risks of forex trading is not just based on instinct. There are many factors that can be analyzed to present a variety of risk projections that will be present. Risk will always exist in every trading activity, but with a deep understanding and good management, you can determine the loss tolerance limit so that you can launch a wise strategy to divert large potential losses.

After you get a good knowledge and understanding when learning forex trading, the next step you can take is to start doing real-time forex transactions.

Mira Sandra I am Mira Sandra. A blogger, YouTuber, trader, Smart cooker, and Likes to review various products written on the blog. Starting to know the online business in 2014 and continue to learn about internet business and review various products until now.