When it comes to Forex training, there’s a lot of hype as well as, unfortunately, disinformation. I can’t address them all, but I can share a few general tips that you should always keep in mind when considering jumping into the Forex market.
1. Currencies and Volatility
Some currency pairs, such as the EUR/JPY and GBP/USD, are much more volatile than others, and as a result, trading with these pairs provides both enormous profits and an increased level of risk.
Currency pairs that have low volatility and trends that are very predictable are the EUR/USD and the NZD/USD.
2. Customer Service
Excellent brokers allow traders to chat with customer service representatives on their websites and call the broker directly 24/7 in order to liquidate a position.
Most Forex brokers will give you a bonus that is equal to 50 percent of your first deposit, and some brokers, such as FXCM, will provide a bonus of $25 that doesn’t even require a deposit.
The majority of brokers do not accept traders from the United States because of the strict regulations of the Federal Trade Commission, which is also known as the FTC.
5. Political News
Most people analyze each fresh headline that refers to a country’s economy; however, numerous studies have recently shown that political news has a much more significant impact on the fluctuation of most currency pairs than economic news.
6. A Practice Account
An online Forex training course will help you to set up a practice account that will allow you to trade with $50,000 in virtual money.
7. Trading On Margin
Few people realize that <a href =”http://www.ifcmarkets.com/en/introduction/margin-trading”>trading on margin</a> technically involves borrowing large sums from the broker, and if a trade generates a loss, the trader will likely owe the broker the amount of the loss.
8. Providing Proof of a System’s Profits
Most companies that sell automated trading systems provide proof of each software program’s profits by posting an account statement that is only predictive in nature and based on recent trends.
Instead, you should find a trading system that the developer utilized to earn actual profits in an account with real money.
9. Trading Signals
Investors can receive trading signals in SMS text messages, within emails, in pop-ups that are generated by a software program that the trader installs and even on the social media profiles of some brokers.
Scalping involves earning fractions of a pip from each trade, but most brokers do not allow scalping because it is not profitable for the brokers.
11. Customizing A System
You should be able to alter the level of risk that your trading system provides, choose the currency pairs that it trades and even develop a long-term strategy that the software program can automatically implement.
12. Following Other Traders
Some brokers, such as Etoro and Zulutrade, will now allow you to follow and copy the trades of other investors, and you can view the percentage of each investor’s trades that are profitable and the total amount of pips that every trader has earned during a certain period of time.