So, at his point you have heard a thing or two about trading and you want to get involved, but everything is up and the air and you can't get a clue where to start. Do not worry. I am here to help. I will quickly summarize the important aspects of forex trading and help you get on the right track.
What is forex trading？
Forex trading refers to the buying and selling, or better yet exchange of currencies. As a forex trader you buy or sell currencies with the hope to make a profit from the increase or decrease of a currencies value. Lets use an example to better relate this idea.
Lets us say you are going on holiday to China. You are going to need Yens in order to be able to purchase anything in China. You will use say 5 of your currency to buy 6 yen. Now you go to China and come back but you do not use the yen you bought. You have to exchange it back to your currency but you then learn that since your visit to China the Yen increased in value so instead of 5 of your currency you get 7 back. You have made a profit of 2. That is essentially what you do with forex trading. You are buying or selling a currency at its current price with the hope that it will rise or fall and earn you a profit from the difference in price change.
How do I trade forex as beginner？
Trading of currencies is usually done by big banks in the billions of dollars. You can either go to the bank and buy currencies, but that is time consuming and you will not get a good price or an instant transaction. And the price entry for trading forex is pretty high so you with a hundred dollars cannot hope to enter the forex market. Your best bet is using a broker. We will get deep into brokers in the next blog post but the gist is brokers are the intermediaries between you and the banks. They allow you to buy or sell which ever currencies you are interested in and they will also leverage your funds meaning with that 100 dollars you could buy a 1000 dollars worth of the currency you are interested in.
There is a lot more to get into when it comes to brokers, but when looking for one you need to make sure that your broker is regulated. There is a lot that can go wrong when choosing a broker, so it is best you choose a broker which adheres to high standards. The best way to find such a broker is to use WikiFx. This app helps you find the best rated and regulated brokers in your country. It is free to use and it will save you a hell of a lot of time watching videos and reading blogs on how to find a good broker. So before you go far give this app a try, it will save you a lot of time and grief. But we will go even deeper into brokers as it will be the sole focus of the next article.
How long will a beginner to learn trading.
Truth is trading and learning how to trade profitably are two different things. You can open an account with a broker today and start trading. The broker will happily take your money and you can be actively buying and selling currencies by today. I can almost guarantee you that you will not be profitable in the long run because there are aspects about trading that you are going to need to master before you become profitable. A good time frame to dedicate to trading would be 6 months to a year. And still after that you will be constantly learning as time goes. Do not be impatient though. It takes time so put in the work. We will go into other things you are going to have to master in order to make it in the industry but for now let us keep it short for sake of this article.
Conclusion
We just touching the tip of the iceberg here. We want you to understand the basis of trading and how to get involved. Remember there is still a lot to get into and we look forward to going through it all with you so stay tuned. But for today, go ahead and watch a few YouTube videos about trading in general. Dont get lost into looking at people making money, that will get you impatient and you do not want to get into trading just yet if you only found out about trading today.
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