Forex trading (FOReign EXchange) is an activity that is of interest to a growing number of people. Before entering an exciting world, but one that involves real risks, it is important not to start at random. Here are some tips to follow.The
importance of trading trainingTo
optimize the chances of success by engaging in Forex trading, it is essential not to neglect training, even if it means investing a little money. It is, indeed, very important to acquire the basics of this practice before starting. There are many tools available today that allow budding traders to get to know this world better. These include books (in physical or digital form) and webinars. Or, future traders can register with an online broker who provides a free demo or training account like eToro. Thanks to this type of account, they can familiarize themselves with Forex trading and how it works. They even have the ability to simulate trades and develop and test strategies.
Remuneration of Forex BrokersAnother
thing to know before you start: how is a Forex broker remunerated? A priori, we think that this remuneration only takes the form of spreads that are deducted from each trade. Nevertheless, a distinction must be made between no dealing desk brokers and market makers. The former only collect spreads. This is not the case for market makers who live on traders’ losses. The latter’s earnings do not benefit them. It is better to stay away from this type of broker.
Mastering money managementEnd
, before getting to the heart of the matter, it is important to understand and master money management, which consists quite simply in knowing how to manage your capital. More precisely, the trader must decide how much of his capital (or how much) he is willing to lose on a single transaction. From there, he can define a strategy for managing his money and ensure that he does not exceed the limits set. At the same time, it is better to avoid always speculating on the same pairs and staying away from exotic pairs