Watch out for incorrect information !
Beginning of the trading is hard in the beginning because of tons of incorrect information, wrong courses or misleading materials. After the Forex market became available also for private people, huge amount of traders started to offer online courses, webinars or sell strategies. Even though, most of the times the strategies end up on a break even or even in loss, information are just general and do not really tell the truth about the trading, and people buy this information because of huge marketing. It works like this because people, in general, are willing to pay for vision to become quickly rich. However, this is not how the Forex market works.
Forex as a business
If we place our financial resources into anything, that should bring us that money back, potentially with some interest, we talk about investment. Into business, we can invest our time, money or labour. Most of the times we invest all of these factors, but it is not necessary in all cases. This is the same as in Forex or any other market.
Therefore the trading should be taken as a kind of business and all risks and possible rewards should be understood before the start. Nevertheless, the money we invest into trading, should not be a majority of our savings, so after loosing the money we do not destroy lives of ourselves or our families.
That is the reason why we use money management and a plan, how much we would like to invest and a vision, how much we would like to get back.
Broker – how to choose ?
There is a huge amount of brokers nowadays and it can be a struggle to choose. We leave this part on you, so you can choose base on you preferences, however, there are few points you should know before.
We advice to choose a broker, that has good references and that is regulated by proper institution.
We advice to choose a broker, that has good charting software and you can trade directly (real time) on the chart, offers drawing tools and indicators.
We advice to find out, what leverage the broker offers and what leverage you would like to use.
Leverage is an economical concept that offers you to use also broker’s money, instead of using just your own funds. It means that if you have a leverage of 1:50, you can open a trade that is fifty times larger than your capital. So if you open a trade of 3000$ with 1:50 leverage, you need only 60$ to maintain the trade. However, you need to be very careful, because as fast as you can earn money, you can loose as well.
After choosing a broker, you will need to send required documents to the broker. It is usually very simple and you need to send only a copy of your ID and a proof of your residence.
It usually depends on the broker, however, you do not need to be scared, this process is very simple and usually without any problems.
Tradingview is a great platform, where you can see ideas of other traders and you can see their activity. Tradingview offers also online charting software, that is in our opinion the best, because there is a lot of charting tools and almost unlimited amount of indicators. You can save your charts and open them on any device later on.