How to Get Started in forex
"How to get started in Forex?" - It is normal to be one of the main questions of those who know the Forex (also known as forex market) for the first time. Many of those who are looking for information about this market on this or other site like 24Option ask this.
Before you start in forex you have to keep in mind that:
- Any investment has risks.
- The higher the potential profit, the greater the potential risk.
- No one gets rich overnight or in a few weeks or even months. If you saw this somewhere on a website or video, it's a lie, it's just advertising to sell you something.
- This market is regulated worldwide, but in several countries there is no regulation. It does not mean that you can not trade or invest in Forex, you just can not do it in a broker who is physically in your country, you have to open an account with a broker that is abroad. Brazil does not regulate the Forex, so it will have to choose a foreign broker and operate on it. It is not illegal, so much so, that about the gains you get paid taxes, as with any other investment.
How to start in Forex? - 1st Step
The first step is to get to know the market. Knowing what it is, how it works. What is it that operates in this market and how does it operate. Where do these negotiations take place? How do you make money? What influences this market? When it is open and closed. Learn more about the market HERE.
How to start in Forex? - 2nd Step
Choose a broker. The brokerages are the companies that offer us the tools to negotiate in this market. They are companies that are legally qualified to have an account with them, where we deposit our money and can use this money to work in this market. They have platforms where we can do the operations. Basically the brokerages are the middlemen between the global market, where all the foreign exchange market operations are processed and us.
We use the tools (the trading platforms and other tools) that they offer us to negotiate with the world.
These platforms and brokers online, appeared in force in the beginning of the century with the development of the internet, before only the banks had access to the forex market (Forex). In addition to the brokerage firms, there was also Metatrader4 or MT4, which was the platform that revolutionized the market. Nowadays, this platform is used by more than 90% of forex brokers and dealers worldwide.
Which brokerage to choose?
A) It must be a brokerage house that is regulated. Ideally it should have regulation in Europe (FCA, CySEC, etc.) or in Australia. All brokerages that do not have regulation or regulation in a tax haven should be avoided.
B) A brokerage that uses the Metatrader platform, the one that is the best and most used. So you have a better chance of finding strategies or robots that can be used on your platform, making your search for tools that will help you succeed more simply.
C) A brokerage firm that offers commissions, fees, spreads and swaps low so that its costs are not high. The more operations you have, the lower your profit.
How to start in Forex? - 3rd Step
To be able to earn money in this market you must choose between:
1 - Learn - It is not as easy and as simple as many say. There are many courses that cost money and are worthless. A good forex course that allows the person really able to operate in this market and making money consistently costs money, a lot. Otherwise, learning for yourself, it will take months, many months and a lot of dedication to watching videos, reading ebooks and looking at graphics.
If you do not have the patience and do not want to wait so long, there are markets that are simpler and learning becomes faster and simpler, such as Binary Options.
The option to learn is best, it takes more time, but a person with knowledge and experience can have greater consistency of results than a Robot. But it requires dedication, effort, work and investment of time.
2 - Robots - A robot is a software, it is a program that is placed on the platform of the brokerage (the Metatrader) that does the work that would be you to do. This program or Robot, or simply EA (Expert Advisor) as it is known among Forex traders, does all the analysis and calculations necessary to find potential winning trades and thus make money in your account.
The option to choose a Robot is the simplest but the one that offers the most risk, because although there are huge, few are the ones that really work. If you want to choose one, always choose one that has real history that you can see and see. Any person or company that wants to pass a Robot with no history with real account is because it does not lend or is new and has not proved that it works. Unless you want your money to be a guinea pig, you must choose another one.
3 - Social Trading - This system is based on copying the operations of experienced and experienced traders. So, let's take advantage of their knowledge and the operations they do on their accounts, copying to our account. In theory it is an excellent format, in practice it is dangerous because many companies have been popping up offering such services but in fact only earn commissions from brokers and so-called experienced traders are not real, nor are their results real, so you get To copy the signs of them and ends up losing.
How to start in Forex? - 4th Step
Open account and invest. Once you know the broker where you want to open an account and know how you will trade, you must open the account and deposit it.
Remember that you have chosen a regulated brokerage firm, you will soon have to submit documentation and fill out the forms with true data. If you do not complete this process you will not be able to negotiate, and even if some leave, then the time to withdraw your profits will have problems.
When I talk about depositing, I say I put real money into the account I opened at the brokerage house. That is why it is important to talk about risk again. Every investment has a risk and as such, one of the most important rules is not to invest more than it should.
All the funds that we must invest must obey this rule: we do not need to live in our daily lives.
How to start in Forex? - Conclusion
Sometimes when we hear about something new, we look like a child when you see a new game or a new toy. We want to use it without knowing it first, without even reading the instructions for use. And just as the child breaks the game or the toy because he did not use it correctly, because he did not learn to use it before, here too it can happen. But what we break here is our money.
So, before thinking about how to start in forex is important to know the market first, then ponder carefully make the right decisions. Knowing what we want to do, how and where.
