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How to become a Forex trader

How to become a Forex trader

If you want to start trading Forex, you have to acquire a lot of knowledge and learn Forex trading in the first few  steps. Trading is a craft like any other that needs to be learned first. Even if trading seems very simple at first glance, it is actually a complex area riddled with pitfalls. how to become a Forex trader? Start with the basics, absorb  the technical terms and practice to implement what you have learned on a first demo account.

Forex Trading Tips

For long-term success in Forex trading, one must also pay attention to several things and pay attention to various aspects. In any case, it is highly advisable to be flexible and to react quickly to market changes that can sometimes make a strategy unprofitable.

 Only if this is the case can one react professionally and correctly to changes in one’s own positions and achieve profits or avert losses. It would be negligent to invest money if one does not understand the market and its instruments.

Demo Account             

You can always simulate scenarios with the demo accounts. The use of these is definitely recommended to learn Forex trading and you get a first insight into the market. This can offer significant advantages when trading Forex.

Use Of Risk Management Tools

Without doubt, the use of risk management tools is worthwhile. These tools work either directly in the browser or on the computer.  They are also available as an app for the smartphone. While the stop-Loss Order is helpful here- even then there may be losses. If the trading risk has been incorrectly defined or stops are not used in a disciplined manner, this can trigger a margin call.  Then a lot of money is lost and new capital must be added to stay on the market. Analysis Tools For Finding Strategies

Anyone who has the opportunity or ability to have strategies automatically tested and optimized should definitely resort to these resources. In this way, the optimal stops and exits can be determined in back tests, or recurring errors can be eliminated in the future.

Control emotions

In any case, you should be able to control your own emotions directly when trading.Otherwise you are much more willing to take risks and deviate from the developed trading plan.

Have the foresight to keep out of difficulties

As a trader, you should also always be aware of the amounts traded. If you only use 100 euros, this already corresponds to an effective capital investment of 40,000 euros with a leverage of 1:400. This amount can also be lost under certain circumstances, provided there is a margin obligation. Therefore, one should consider possible consequences and not trade in the Forex business beyond one’s own financial means. 

Trading  journal

For beginners as well as professionals, keeping a trading diary is absolutely mandatory. This allows you to document successes and failures and in many cases also record processes. So you know what you did well, and in which areas it went less well. Especially for the first months and years, such documentation is essential to find your own strategy, eliminate errors and optimize small and large features of your trading techniques.

Where do trading costs in Forex come from?

When trading Forex instruments, there may be costs in various places. This is also true of the  spread, i.e. the difference between the purchase price and the sale price. The  spread may typically fluctuate between 1 and 1.6 pip for most brokers, but no further direct trading costs are added. this contrasts with   those brokers who transfer customer orders directly to the affiliated banks and earn only on commission. The spread is then much lower.


Common to all are holding costs when holding positions overnight until the next trading day, also known as financing costs or swaps. These differ in part significantly, and should be included in the research of the right broker depending on the strategy.

Example of a winning trade with different lot sizes

Assuming that the latest unemployment figures are published in Germany and that this could result in a negative change in the currency, one must assume a devaluation of the euro against the US dollar, for instance.


If you want to profit from it, for example, you sell 10,000 euros (equivalent to a mini-lot) and buy the equivalent in dollars. At an exchange rate of 1.10 that would be 11,000 dollars. With a margin of one percent, a security deposit of 100 euros is enough for the position to be opened. For overnight trades, holding costs are then calculated.


If the euro exchange rate changes as expected against the US dollar to e.g. 1.05, you may buy back the euro position and thus secure the profit.


In this case, you would get 10,476.19 euros for 11,000 dollars, a profit of 476.19 euros. With a price loss of a few pip, high yields are already possible due to the leverage. This is true since high sums can already be moved with a low margin.
Read More article go with link: https://www.postingpoint.com/


Forex trading is not difficult to learn. There are a lot of free resources on the web (https://fxreviews.best), free yet sophisticated. Make the time to devote yourself to studies. Then it might be time for a good broker like ABInvesting. From the demo account to your first executed trade, when real-world market pressures become a tad bit too hot to handle – the broker will step in to lend you a hand. It is god to have deep pockets. However, even a small account can take you places. All you need is enthusiasm and discipline. 

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