Unlike any other financial market, the Forex market doesn’t have a fixed location and the trade goes on for 24 hours through a global network of businessman, banks and individual. To put into perspective, forex market trade about $5 trillion per day. It says for itself how big a market it is. Well to your amusement, it is actually not at all difficult to enter the market. Yes! You heard it right. It’s very easy to start trading. In this article, we will tell you how you can make your first trade in this vast market filled with opportunity. Well, buckle up and get ready for the steps required to make your first trade in Forex Market.
- Start the Trading Platform: The very first step towards making your first trade is to create a trading platform where you will be conducting your trade. . When you have an option to choose the best then why settle for average.
- Open the chart: Once you’re set with your trading platform, it is time to open the chart.
After opening the chart, we have to decide which currency pairs we want to trade-in. With over 65 currency pairs to choose from, picking a trading opportunity that’s right for you is important. Once done with the selection of currency pairs, it’s time to select timeframe. In this case, we can use a 15-minute time frame. Each candlestick on the chart represents 15-minute timeframe.
- Add Indicators: Since our goal is to identify the trends as quickly as possible so we should add indicators to accomplish this. Moving averages are one of the most popular indicators that traders use to help them identify a trend. Moreover, we can use two moving averages, and wait till the faster one crosses the slower one. This is called a moving average crossover. It is one of the fastest ways to identify a trend.
- Place the order: An order is an instruction to automatically trade at a point in the future when prices reach a specific level predetermined by you. You can utilise stop and limit orders to help ensure that you lock in any profits and minimise your risk when your respective profit or loss risk targets are reached.
- A stop-loss order: It means to close out a trade when prices reach worse than the current market level. It helps in minimizing the losses.
- A standard stop-loss order: Once triggered closes the trade at best available price.
- A guaranteed stop-loss order: It charges small premium upon the trigger and close your trade at stop level you determined regardless of any market gapping.
- A limit order: It is used to close a trade at a price better than the current market level.
- Order confirmation: Submit your order and wait for the confirmation screen. The confirmation is important as it acts as a ticket number which you can refer when you contact your broker.
- Waiting period: Just like school days when we would eagerly wait for our exam results, this is pretty much the same. At times considered as the toughest period. But it’s a time when you can get away from the market and not fret over the market moves.
- Trade completion: Once the waiting period is over, it means that the trade was complete. Not always the trade ends with a profit. But you should stick to your plan and try to minimize your losses.
With the above steps being discussed, it should have been made clear as to how to get started with your trading career. Well, definitely it not as easy as it sounds to make a profit, but surely with the right guidance, you can generate a lot for yourself. Contact The Best Young Asian Forex Trader – Mr Siby Varghese and get the right guidance for your trading career.