247 Currency Trading Online Spot
Before Trading in the FOREX Marketů
The first time trader may be starting from ground zero but this does not always have to be the case. There are various tools, free online tutorials and reference materials for a newbie to browse or go through before actually testing the waters.
The first thing you must do is to find a broker. There may be a lot of brokers around but this is actually not an easy task at all. Be wary of brokers who guarantee profit, claims that there are no risks in the foreign exchange market or those who simply refuse to provide their track record. As you may be aware, the market is unpredictable and no one or no tools can predict how the market will go. Those who claim otherwise are just out to part your money from you.
Some brokers are larger than others and may have a 24 hour telephone support that can assist you when you want to trade. Brokers also have different spreads and offer various services. Shop around and choose a broker that fits the services you require. Also make sure that your broker is registered and a legitimate entity. This ensures that the broker complies with the strict standards set by the regulatory bodies.
Do your homework. So as not to stumble in the dark, research extensively on the ins and outs of trading, the market where you plan to trade, as well as the currencies you wish to trade in. There are books, online guides or simply interview or pick the brain of a friend or colleague who has been trading a long time. At the same time, keep yourself abreast of the news and trends in the market. The swings in the market are driven not just by economics but politics and current events.
Before wading into the market, you may also want to try your hand at virtual trading or demo accounts. This will give you hands on experience and understanding on using the tools so you need not click on the wrong button during actual trading. This will also allow you to practice your strategies, and check its effectiveness but without using real money. This way, you get a feel of what it is like before actually getting your feet wet.
Trading in the foreign exchange market may be daunting initially, but if you have an idea what to expect and be prepared for it, it will alleviate the fear and pave a new road for you to explore.