Trading Forex

Understand the Basics

​

• What is Forex? It’s the global market for trading currencies. Currencies are traded in pairs (e.g., EUR/USD).

• How Does It Work? You buy one currency while selling another, aiming to profit from price changes.

• Market Hours: The forex market runs 24/5, with sessions in Sydney, Tokyo, London, and New York.

​

Learn the Key Concepts

​

• Currency Pairs: Major pairs (EUR/USD, GBP/USD), minors, and exotic pairs.

• Pips & Lots: A pip is the smallest price movement. A lot is the trade size.

• Leverage & Margin: Leverage lets you control larger trades with less capital but increases risk.

• Technical & Fundamental Analysis: Using charts vs. news/events to predict price movements.

​

Buy your Signals

​

• Trading signals serve as data-driven alerts or recommendations indicating potential buy or sell opportunities in the forex market​

• Not all signals offer the same level of accuracy and reliability, making it essential to assess sources carefully or develop data-backed strategies tailored to specific market conditions.

​

​Choose a Broker

​

• Look for a regulated broker (e.g., FCA, ASIC, or CFTC regulated).

• Consider trading fees, spreads, leverage, and the platform they offer.

• Popular brokers include OANDA, IG, Forex.com, and IC Markets.

​

Practice with a Demo Account

​

• Open a demo account with a broker to practice trading without risking real money.

• Get familiar with platforms like MetaTrader 4 (MT4) or MetaTrader 5 (MT5).

​

Develop a Trading Strategy

​

• Decide if you want to day trade, swing trade, or position trade.

• Use indicators like Moving Averages, RSI, and Bollinger Bands.

• Set risk management rules (e.g., risking only 1-2% per trade).

​

Start Small with a Live Account

​

• Once comfortable with demo trading, deposit a small amount and start trading.

• Keep risk management in mind: use stop-loss and take-profit orders.

​