1 Get a good broker
A forex broker is an online finance company that provides buying and selling services to investors and traders of the forex market. It is a very crucial step in becoming a forex trader. The broker you choose when starting a forex trade has more to do with your forex growth. While some brokers may offer their clients a lower spread in terms of the price at which you enter a trade, either when buying or selling. Others may be higher in each trade spread. A broker can also help notify you of any development and provide information on the forex market pairs to trade. Most brokers only offer commodity pairs like stocks, indices, and crypto. Others offer forex currencies such as EUROUSD, NZDUSD, and gold (XAUUSD). I recommend you start with legal and licensed brokers such as FXTM, EXNESS, Hot Forex, Olympic trade, DERIV, and XM global.
2 Set up a trading app
The most trading apps for forex are the Meta-trader, either mt4 or mt5, BINANCE, and trading view. These trading apps depend on the broker’s license to trade on them. A trading app such as the meta-trader offers traders access to the forex market. By signing in with licensed broker information, you can set up an account and start your trading journey. Spend time knowing your trading app. You can use the instructions given by your mentor or follow some video tutorials online that explain the steps taken before taking a buy or sell trade and setting a stop loss. Also, know how to set up your indicators and other tools in your trading app. Indicators will tell you more information regarding your trade.
3 Understand Technical Analysis
Understanding data analysis is an essential aspect of the finance market. In forex trading, technical analysis is a step to knowing the market’s trends. It tells you if it is a buy or sell market before you dive into trading. There are a lot of videos, books, and online articles explaining technical analysis. A mentor can also put you through this.
4 Get a trading strategy
A trading strategy is an approach to either a buy or sell trade if certain conditions are met based on technical analysis and financial news of the world market. Making money on the forex market is hard, especially if you are a beginner. So take time to master technical analysis before executing your trades. A strategy may not always give the same result with different pairs. So take time to understand the type of trade commodity you are trading. You can also take time to master your indicators and timeframes and see the results made.
5 Set a trade target
Know that trading the market may not be good at all times. So set a target. If your target per day is 20 dollars depending on your trading accuracy and proficiency, get 20 dollars and leave. Do not be greedy. Set a stop loss, leave the market, study other pairs, and trade them if they meet your analysis.
6. Get a good trading mentor
You need to know the big players in the game whether you like it or not. Your level of achievement you make in forex will accelerate with the guidance of an expert or mentor. Most trade mentors have years of experience and expertise when making the right decision in trading. They have suffered losses. And I will tell you the best persons to advise you are those who share the dark sides of forex.
7 Understand market consolidation
Market consolidation is a period in the forex market when buyers or sellers avoid trading. It happens like that because the market tries to balance its momentum and regain its balance for a new trend. It is not a good time to trade for long-term traders since market momentum is not yet determined.