As we all look for ways to boost our income, with one in four UK adults admitting to a secondary income stream to help combat the rising cost of living, forex trading is fast becoming a favorite way for individuals to bolster their earnings.
As the largest market in the world, where over $6 trillion is traded daily, it’s easy to see why so many people are choosing to get started in forex. But starting and being successful are two very different things.
If you’re looking to become a successful trader, there’s a few things you need to do.
Understand the basics
Forex trading allows forex traders to trade on the foreign exchange market and make money from the changing price differences in the market between currencies. You will need to research what forex trading is, and make sure you understand how forex trading works before you look to start trading.
Because of the volatility of the forex market and the complexities of trading currency pairs, it’s best if you find a forex expert to help teach you the basics before going live with your own money.
Find the right platform
When trading from a device such as a laptop or smartphone you will need to find a platform to use. Different forex trading platforms are suited to different traders. Some allow access to more currency pairs, whilst others have higher or lower buy-ins. Finding the right platform will help give you the best chance to start and grow your forex trading venture.
Set up a demo account
You can utilise and take advantage of demo accounts to get started in forex. Demo trading accounts allow you to practice trading without using real money. This can help you get a feel for how trading works, how to use the platform, and how different currency pairs trade.
You should spend a number of weeks trading on a demo account so you fully understand which pairs to trade, what the numbers mean, when to buy and when to sell, and most importantly when to carry out the trades.
Using a demo account will help you identify the strategies you want to use. Whether this is utilising predictable major pairs such as USD/GBP to get used to trading with low risk or using copybook trading to look at trades made by successful traders, you should take the time to look into different strategies and find which best suits you by trialling them in your demo account.