3 Tips to Start Your Forex Trading Career Today

The dream start is always something a trader wants to achieve in Forex. When you take into account the risky nature of currency trading, it is natural for a trader to want good profits right off the bat! To a beginner, foreign exchange can be overwhelming, be it on a conceptual, or theoretic basis. From picking currencies to deciding timeframes, to implementing strategies and analytic indicators - there are one too many aspects in Forex trading that require precision in execution, to succeed.
 

For a starter, take baby steps to climb up the ladder of foreign exchange. 

Here are 3 tips that will help you grow tremendously:

Tips to Start Your Online Trading Career

1) Know Your Currency: Foreign exchange houses a number of currency pairs for traders to choose from. Like seasons, their profitability keeps changing. The common mentality is that predominant pairs will always birth profits. This is a huge misconception! Anything can happen in Forex, and any pair can rise or fall, knowing each bracket is of significant importance. The major currencies are USD paired with any other. The minors, or crosses, are currencies without USD. Exotic pairs are currencies that are in the bottom bracket, but profitable all the same!
 

2) Forex Isn't Like Stocks: Stocks are severely influenced by the market and factors like the global economy, politics, etc. Depending on these, a company's stocks may rise or fall, making it a very fluid environment. In Forex trading, however, prices aren't impacted as easy as shares. The foreign exchange market has an enormous value of over $5 trillion, leaving prices unaffected by minor market shifts. Secondly, currencies can be traded at any time and almost every day of a week. Stocks, on the other hand, are traded in a fixed timeframe and a rigid environment.
 

3) Understand Market Liquidity: While profits can be made through all currencies in Forex trading, usually, the more liquid ones do better in trades. Major pairs like USD-EUR, USD-JPY, don't see monumental hikes or drops; whereas, exotic pairs may be dominating one day, and falling deep another! Knowing currency volatility is necessary before entering Forex markets. Your trading success depends hugely on the pair you wish to work with.
 

The field of Forex trading is one of the most lucrative platforms, but it is risky all the same. Entering without prior practice and research can result in drastic outcomes. It is best to pair up with an established broker, to make the most out of foreign exchange. Call WesternFX today and hire the services of our Forex brokers in Sri Lanka. With our trading accounts, and stellar brokerage, you will become an adept trader in no time!