Learning the investment process in 5 easy steps
The Forex market is the source of making money, and many want to make money in this market. Only a few traders focus on the preparation, and they emphasize becoming successful traders. But most beginners focus only on making money, and they forget that a thorough analysis of the steps of foreign currency exchange is also crucial.
At present, the Forex and stock market is much easier for traders because anyone can trade easily online. Still, many novice traders can’t progress in this market and lose money. Because they don’t put enough effort into learning the basics of trading before they enter the market. Once you think to start trading, you can prepare yourself by following these steps:
1. Connect a device to the internet
Forex trading requires a reliable interruptions-free internet connection. Once a trader decides to join the Forex or stock market, he needs reliable internet connection access with fewer interruptions if he wants to trade through the online broker. Moreover, to operate a transaction platform on the market, you need to obtain a tablet, smartphone, or computer. Dropping internet connection at trading times can bear undesirable losses if the market goes against the trader within a second.
2. Find a Suitable Forex Broker at Online
Irrespective of your living place, you can probably open an account with a broker online. Just look for an online broker who will accept you as a client and will meet your transaction requirements at a minimum. The brokers should segregate your money from its own, and they should operate in a well-regulated jurisdiction under reputable regulator’s oversight. Reputable regulators examples are CFTC (Commodity Futures Trading Commission) and FCA (UK’s Financial Conduct Authority). Feel free to check it out here and learn about the professional broker’s quality. This will definitely help you to find the high quality brokers.
3. Open an Account and Fund It
You should deposit into trading accounts funds once you fixed an online broker. Most foreign exchange brokers online accept funds on performance in several ways, including debit card payments, bank wire transfers, or electronic payment provider transfers like PayPal or Skrill. And, if you’re interested in how to become a payment processor, the journey begins with a strategic approach. Start by building a solid foundation in finance or technology through formal education or specialized courses. Seek internships or entry-level positions in financial institutions to gain hands-on experience. Stay current with payment systems, security, and compliance to excel in this profession.
4. Pick a trading platform
Your broker will support you by providing an online Forex platform, and you will need to get access or download the platform. Most foreign exchange traders offer either a popular 3rd-party platform or offer a proprietary dealing platform. The popular 3rd-party platform includes the SaxoTrader, Ninja Trader or Metatrader.
5. Start Trading
Once you go through the necessary steps mentioned above, now you may invest your money in the Forex market. However, if you want to test the Forex platform or the broker, then with virtual money, you can open and fund a demo account. For practicing the trade without risks and for testing strategies, the demo account is essential.
6. Example of Forex Trading
EUR/USD is the most traded and active currency pair in the foreign exchange market, and the pairs consist of the euro of EU quoted with the dollar of the US. If you thought the current level of 1.1700 EUR/USD would change, then today, at that rate of €100,000, you may purchase against the dollar. If the rate of EUR/USD then rose to 1.2000, then you calculate trade-off profit at computer
€100,000 × (1.2000 – 1.1700) = $3,000
After that conversion, the US dollar profit amounts into euros at the current exchange rate of 1.2000. Thus, you could use the calculation:
$3,000 ÷ 1.2000 = €2,500
Alternatively, you would face the transaction loss if the exchange rate of EUR/USD fell to 1.1400, and the calculated transaction loss would be:
€100,000 × (1.17000 – 1.1400) = -$3,000
And at the prevailing exchange rate of 1.1400, the converted loss in euros would be:
_- $3,000 ÷ 1.1400 = -€2,631.58
Foreign currency exchange market is the biggest one in the world and millions of people are joining the market in search of money. But most of their dreams nip in the bud for their negligence in learning the basics. To succeed, they should take it more seriously.