How to start trading
To start trading on FOREX you should choose a FOREX brokerage firm, open a margin account and deposit some collateral money. Potential client exposure to losses includes more than just the margin.
The broker will set and enforce suitable trading limits for each client in light of the client's financial position, investment objectives, and comprehension of risks.
Client margin or free credit for all margin accounts must be held by the counter party in trust and apart from any other funds held for clients other than those of the applicant. If the counter party fails, the client's money may be at risk.
Choose the broker which is properly licensed in his jurisdiction.
Make sure you will receive the Daily Report of your transactions and open positions, as well as the Monthly Summary Report.
You should ask the firm with which you deal about the terms and conditions of the specific FOREX lots (contracts) which you are trading and associated obligations (e.g., the cost of rolling the open position over to the next day; the circumstances under which you may become obliged to make or take delivery of a FOREX contract; and, in respect of options, expiration dates and restrictions on the time for exercise).
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Forex Trading - What do You have to know and do to trade in Forex?
To become a successful Forex Trader we recommend the following:
Maximize Your Tools
It is of the utmost importance to know your tools. The varius brokers offers an array of tools that are used for trading the Forex markets. Be sure to test any demo accounts offered and use the opportunity to "learn" the tool.
Every successful trader should know how much risk he is willing to take, and what profits should result from the trade. This is the basis of every realistic trading strategy.
Two Ways to Trade
There are two types of traders, technical and fundamental. Both have a radically different approach to making trading decisions.
The Basics of Technical Analysis
All technical analysis starts with a few basic building blocks. With these as a foundation, you can start to make sound trading decisions.
Fundamentals Everyone Should Know
All Traders should understand why economic releases, interest rates, and international trade are important to movements in the currency market.
Psychology of Trading
The biggest enemy to most traders is not the market, but themselves. Study and learn all you can about Forex trading.