Top Six Steps That Will Get You Started In Trading Forex
When I started trading in 2018, they where a few traders in Zimbabwe. Currently in 2022 forex trading has gained popularity and the number of traders continue to increase daily due to various reasons but mostly its due to the unemployment in Zim and the easy access to US dollars that trading brings. Here I will take a closer look on the key steps you need to follow in order to start your trading journey:
I learned trading from a friend I mate in Victoria falls when I was on attachment . He made me realize that forex trading requires specialized knowledge so I had to start the journey by learning the basic concepts. Before investing my funds, I had to master how the forex markets operate which makes me remember his popular statement “lean first then remove the l on learn, you earn after learning” . This enables me to understand the risk involved and how to become profitable in the industry. Also taking into consideration that Forex trading has unique terminology which you must know and understand. Thus there is no replacement for education.
Choose a reliable broker
The first time I had the word broker I had in mind local Zimbabwe Sock Exchange brokers such as Old Mutual Securities, FBC securities and ABC stock brokers. However these are local brokers for Zim Stocks not for online forex trading. There are many brokers to choose from online. In 2018 I used Ironfx because they had local payment agents and one of the Agent was located in Harare, Joina city thus it was easy to make deposits and withdrawals. A trustworthy broker will help you to execute transactions and will offer additional financial services. Working with a reputable broker can help you to stay protected and avoid losing money in the future. Thoroughly research and read reviews of various brokers then make an informed decision.
Open an Account
You open your account with your broker. Visit your brokers’ official website and create an account. An account enables one to store funds and make trading activities. Make sure that you enter correct information, use a strong password and don’t forget your account details. I advice that you open a demo account first, so that you can test you trading strategy if it is consistently profitable then for training or a real account.
Choose a forex trading platform
Trading platforms can provide you with a smart and faster way to trade forex. I started trading using a mobile device, after joining a trading club at Zimpost I realized that using a desktop was good for me since I could see the charts clearly. So you can trade via your web browser, on mobile apps and advanced third-party platforms like MT4/5. I usually customize my trading platform to suit my trading style with personalized charts, risk management tools and interactive charts.
From 2018 I have been trading fulltime and as a fulltime trader l realized that successful forex trading is partly due to, how you analyze the markets. This stage involves applying the the techniques you use to forecast future price movements of financial markets. Other popularly used techniques are fundamental, technical and sentimental analysis. On technical analysis the most popular strategies in Zimbabwe are BTMM by Steve Mauro, ICT, Elliot Wave and Smart Money.
Open, monitor and close your first position.
This is the trade management stage. After analyzing the markets the success of the trade is now based on the entry type, goo trade management techniques which encompass the stop loss, the art of taking profit, and scaling in of position inorder to maximize profits as the market moves in your favor. Once your analysis is done you can open your position, apply your risk management parameters and monitor your trades.
One can ask can you really make a career from trading? Absolutely yes. I have been trading full time and its working for me so it can also work for you if you are dedicated.