How to Get Started in Forex Trading?
The key to trading in foreign currencies is staying calm. Foreign exchange or forex traders speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Even small exchange rate fluctuations can make a big difference to a forex trader. Market volatility is the place where traders make their money.
How to Trade FX
As a result of the unpredictability of currency markets, clever forex traders – who also call themselves investors – need to develop a plan. They have to set targets as to when they want to sell and buy their currency and, even more fundamentally, they need to adhere to it.
Forex trading has been gaining in popularity over the years, with forex brokers reporting a growth in clientele, especially over the past few years, as the Euro zone, the US and Chinese markets have slowed and governments have tried to spur growth by injecting cash into the economy.
Forex traders, who deal on their own personal accounts, follow the news closely. Their common warning is against playing with large sums of money. The uncertainty in the largest markets in the world enables forex traders the elbow room for playing around with global currencies.
There are indicators to keep a lookout for, such as the US Federal Reserve’s decisions, and trader reports from the European Central Bank. It is mainly at times of economic policy announcements that high volatility fluctuations – leading to high returns – happen.
Disasters, notably the Japanese earthquake and tsunami in 2011, also generate moneymaking opportunities by sparking market volatility.
What Platform to Trade on
To learn about forex there are companies providing access to the best trading software. One example is the Vantage FX MetaTrader 4 program which is also available on apple – and MT4 for Mac is becoming more and more popular by the day.
A web-based platform for forex, this provides the education, the low spreads, and other tools that traders need to come confidently into the market.
This sort of online forex trading platform offers customer care and attention as well as a choice of packages to suit the individual – seasoned trader or beginner.
At Vantage, for example, clients are provided with an account manager, meaning there’s just one point of contact for each trader, backed with support on hand 24/7.
Many people start out dabbling in forex trading in their spare time but the sort of success that can come with experience and an understanding of how the market works can lead many of these retail traders to give up their day jobs and concentrate on forex. Successful trading can give people the sort of cash flow, flexibility and even security that is difficult to find in the conventional world of work.
Plus, with the kind of software available today, forex traders no longer have to sit glued to their computers. If you would like learn digital trading read the binary options reviews. It’s possible for them to set stop limits, say at £1, $1.45 or €1, or a profit limit — say at £1.20, $1.65 or €1. But the most vigilant forex traders need to keep a very close watch on news, politics and even the weather.
Article by Robert Berkeley
Robert has successfully built Vantage FX UK Trading Limited, into one of the key players in the FX market across Europe with significant growth year on year.
Robert regularly blogs about forex trading and comments on major fx new events.