Last Updated on
Trade Forex Easy
Have you ever thought about trading on Forex for a living?Trading can be a great occupation because it can provide you with the freedom and flexibility that you desire. So how to day trade Forex?
3 Step Process For Day Trading On Forex
If you are new to day trading on Forex, merely getting started can be a massive headache, because there’s so much to learn. However, eventually, it all boils down to these three easy, doable steps…
Step # 1 Open A Forex Account
In order to trade on Forex, you’ll need to open an account. Search for Forex brokers in your country, and see what comes up. Then, look for reviews online, and read them carefully. What do people say? Which company seems like the most trustworthy one? There are plenty of scams out there so make sure to do your research before making a choice.
Then, decide whether you want a personal account or a managed account. Do you want to do day trading yourself or do you want a broker to do it for you? Both options are legitimate ways to make money but you’ll have better profit margins if you do it yourself.
Then, apply for an account, and wait for them to open it.
Step # 2 Decide Which Currencies Do You Want To Trade
Next step is deciding on which currencies you want to bet on. For this, you will need quite a bit of knowledge of the global geopolitical situation and the current events. Which region and which countries are you most familiar with?
For example, if you are very familiar with the situation in North America and in Europe, and you think that the economy in USA is going to continue tanking while Europe is going to prosper, you might want to sell US dollars and buy Euros.
However, if you think that Europe is going down the drain, and that United States will remain the leading economy for the foreseeable future, you might want to sell Euros and buy US dollars.
You need to analyze the situation very carefully in order to make the right bet. How did the currency perform in the past? What is the current economic and political situation in the country?
Are there any events upcoming (elections, wars, natural disasters, etc.) that might affect the currency exchange rate? You need to take all these things into a consideration when you are analyzing the market. Make sure to do your homework before you part with your hard-earned cash!
Step # 3 Place Your Order
Once you have analysed the market and are confident in your conclusions, it’s time to place the order. Reach out to your broker and tell them that you are ready to invest.
Make the trade and calculate your profits (or losses!). Make sure to remember that trading is risky, especially day trading, and never invest money that you can’t afford to lose!
Day trading requires special dedication!
It’s important to understand that day trading requires more commitment than regular trading. You need to watch the market at all times and be ready to jump in once you see the opportunity. Do you have the amount of dedication that is required to succeed in this game? Yes? Then give it a go. And best of luck!