A Beginner's Guide To Getting Started With Forex In 2019

The beginnings are always the hardest while Forex trading. One of the most lucrative financial markets, Forex requires a lot of knowledge to get started with. As a beginner, this might get overwhelming in no time. 

Though foreign exchange today is easily accessible and immensely profitable, only 20% of the traders participating in exchanges see profits! This imbalanced ratio is often hard to believe, but not all of those who trade currencies see profitable outcomes.

Forex Trading Strategies

With huge hurdles lying ahead and risks ever-present, getting started as a Forex trader will definitely be tough, but not impossible. 

Here Are Some Tips

1) Know Your Currencies: 

There are a number of currency pairs to work with, and Forex trading will be easy when you know your choices. The three types of currency pairs are major, minor and exotic. Major pairs all are one currency paired against the USD. These are known to be the most volatile and are also the most traded. The minor and exotic pairs see healthy action as well. However, since those currencies are from countries with a relatively weaker economy, they aren't in the same league as the major pairs. 

2) Learn How To Analyze: 

The better your analysis of the market, the better the end results are. Forex exchange, since it deals with currencies, sees a lot of volatility. One day the USD/EUR pair is skyrocketing, the next day it's taking a huge fall! Predicting these trend shifts requires in-depth analysis of a country's economy and the financial markets, and the backing of strong Forex Trading Strategies.

3) Leverage Within A Limit: 

Once you understand how leverage works, you will be very tempted to keep leveraging trades. While it does give you a hefty capital boost, losing a leveraged trade will completely burn your account out! So to be on the safer side, leverage minimally and grow your account organically. 

4) Cut Your Losses: 

To thrive in the field of Forex trading, cutting bad trades is a must. Every now and then, a bad trade will appear disguised as a profitable exchange, and have you holding on to it while you incur losses in the background! Don't make that novice mistake; once you see a bad trade and lose some money, cut them off. 

To ensure that you have a steady start, practice on a Forex demo account before trading live. Lastly, having the right broker by your side will help you scale all the way up! Reach out to WesternFX, one of the leading Forex brokers today, and get everything from trade platforms to Forex trading strategies. Our experts will be by your side through your many trades, and provide you with top-notch guidance. Call us today to get started!