If you are looking to liquidate your savings or investments, the foreign exchange market is the best pick! Each week for 5 days, 24 hours, Forex exchange is active from Sunday night to Friday night, North American time.
Foreign exchange market may seem daunting, but once you have honed your skills and tested the waters, there is nothing too heavy duty about it. Start by keeping a close eye on the Forex exchange and start hunting for a currency trading platform in your own country, in our case, India. While one can trade independently too, having a known and trusted foreign exchange trading platform eases the process out and with an advisory wing, it helps the novices and the beginners a lot more!
Here are a few pointers that a beginner should keep in mind to make money in the Forex money exchange
Educate yourself with the details
The Forex market is forever dynamic and it is so because many reasons play a role in its volatility. For example, the COVID-19 situation has affected both the global market as well as individual currencies, as each country recovers at its own pace.
Each investor is looking for the perfect window to enter the market as well as an exit, to maximize their benefits. The COVID market has provided a good opportunity for entry into the Forex money exchange.
Along with this, a beginner should also do their research of other markets, like gold, commodities, indices, and contemplate whether the share market is something they want to start off with. This typically makes the shift to investing in volatile markets much smoother. In addition, look for the most convenient foreign exchange trading platforms in your country and see what they have to offer, such as analysis, brokerage fees, previous client portfolios, and other background checks.
Do your analysis
Now, while you can and should find a currency trading platform or broker, you should also do your own research and analysis for the foreign exchange market. There are two types of analysis in the Forex world: Fundamental and Technical.
Fundamental Analysis refers to studying and observing macro events, like the COVID situation closely, to understand how it will affect the currency pair you are looking to invest in.
Technical Analysis, like the name suggests, is more jargon based and refers to studying the historical prices of a currency, its current momentum, reversal patterns, etc.
As a beginner, you should have a fair understanding of the technical part to at least season yourself well with the history of Forex and currencies, and know a fair bit about the jargon so that you and your broker are always on the same page. The fundamental analysis is something you should get a grip on as it will determine your Forex trading journey from the point you decide to invest until you decide to exit. As much as having a broker and a trading platform helps, it is important to do your own research to get a good understanding of the nitty-gritties.
Start with a demo account
Before you start your journey with real money and capital, ask your broker for a demonstration account. Why is that? Because in those accounts, you will trade faux currency or paper money and not real capital.
This ensures that one understands the details of trading and can operate independently too, as and when needed. In most demo accounts, you will get real-time prices as well as most products that the currency trading platform has to offer. Prepare yourself with the demo account and once you feel confident enough trading, you can switch to real capital.
Find the Forex trading platform for you
There are a lot of Forex trading platforms out there. You should make a list of priorities as to what offers are the most attractive to you, and what is not so high on the priority list. We recommend you go to an online platform and brokers who also work remotely or online too. That stems from the current pandemic situation as well as the ease of access that can be enjoyed from any corner of the world.
Another very important pointer is to be on the lookout for frauds as there are many quacks in this field. You need to check the quality of customer service by calling the organization, speaking to them at different points in time to ensure the consistency and how they handle your queries.
While the list of making money from the Forex trading market is endless, as a beginner these are the points that you should keep in check, and you are good to start off your Forex trading journey!
Also Read: Five Factors Which Make Currency Trading Attractive!