In recent years, trading investment instruments has become one of the most popular ways for many people. The reason is because in the long run, the benefits are quite large. Like forex, you should know how to trade forex for beginners.
Forex or foreign exchange is an investment instrument that can be traded because the instrument is a foreign currency exchange (exchange rate).
Trading is carried out in the forex market, which can be through online sites, both applications and websites.
How to Trade Forex for Beginners
For traders, they prefer forex because the profits to be obtained are greater than investing in stocks. Even then, there is a risk of loss that can occur if you make the wrong trading strategy in the forex market.
Most of the people who fail to trade in the forex market are novice traders. They do not understand how to trade forex carefully. Therefore, you need to learn the tips and tricks through the following forex trading methods for beginners.
Understanding the Right Trading Time
Trading in the forex market should be done carefully and with care. Where all forex transactions that you do must go through the analysis stage and pay attention to the right time. There is no time limit for forex trading because you can access it 24 hours a day.
However, what you need to understand is the time of the forex trading session which is divided into several parts. Starting from the Sydney session from Australia, the Tokyo session from Asia, the London session from Europe, and also the New York session from America.
Trading with Technical Analysis
Before making sure you make a buy & sell transaction, you have to analyze it first. Where the first analysis you use is from the technical aspect.
The technical aspect is useful for calculating market prices, volumes and also market interest.
As for how to trade forex for beginners in the technical aspect that you can use, there are two types, namely the type of chart or overlay and also the type of oscillation or oscillator. Each type of graph has its own advantages and disadvantages.
Analyzing Trading from Fundamental Aspects
In addition to using analysis from the technical aspect, you also need to analyze the fundamental aspect. The fundamental aspect is useful for analyzing price movements from the record of economic events that are happening in a country.
Analyze Candlestick Movement
Candlestick is one of the elements used to display the up and down movement of forex prices. Where you can analyze price movements through the candlestick itself. The candlestick moves according to the chart provided by the forex site.
To analyze it, you must know the parts of a candlestick chart. Where you will find the main part of the candlestick in the form of a rectangle and a thin line.
To distinguish them, you can see a rectangular candlestick with two different colors, namely red (bearish) and green (bullish).
Start trading with a definite profit
After you have started to understand some of the points of how to trade forex for beginners as above, you can immediately start trading forex. This is where you start to implement technical, fundamental and candlestick analysis.
Make sure if you buy / sell, you have estimated the profit you will get. In addition to profits, you also need to take into account the possible losses. The trick is to implement risk management properly and correctly.
That’s a discussion of how to trade forex for beginners. Some of the above methods you need to apply properly in the forex trading process.
The main goal is to make a profit when buying and selling and minimizing the risk of loss when trading forex.