Foreign Exchange or Forex has so many steps to do if you just start your Forex Journey. Besides of the basics of Forex and the time frame of the forex itself, 3 steps that we want to share to you in this article can give the information about the steps for anyone want to start their own Forex.
The first step before you start your Forex journey is set up the account forex, second is you need to know first about virtual money, at least you try some experiment, and the last is how much money that you have to spend to start you own Forex account. Here is the detail explanation.
Set Up the Account
The first step of course you have to set up your account. Before you start trading, you have to choose the best forex broker that suits to you and to your trading style. There are 2 types of Broker, ECN (Electronic Communication Network) and Market Maker.
ECNs are electronic trading platforms that match buy and sell orders automatically at the particular prices. Traders tend to be more aware of their existence in stocks or futures markets. An ECN broker gets its currency pricing from several liquidity providers such as banks, market makers or other traders who are connected to the system.
Market Maker is another type of Broker besides the ECN. Market maker requires the traders to set the bid and the prices for themselves. For example, a trader wants to purchase amount of EUR/JPY from them the agreed rate, the market maker needs to sell the requested number to them at the ask price.
Try Some Experiment on Virtual Money
The next step to start your forex journey is trying some experiment with virtual money. The best way to learn Forex trading is have an experience on money transaction. First you can try some experiment like buy and sell something in real life. Then, you can try to make an account Forex with demo account. Some broker generally gives a demo account for new traders, and this type of account is not count as real money an can’t deposited in your real account.
You can try some experiment real-time like trading with different currency pairs using several trading strategies without losing any real money, it is a great way to build up some confidence for yourself. You can get a sense of how it feels to have a profit or a loss, even though the intensity of these emotions will be of a different level when trading with real money.
How Much Money You Need to Start
The number of trading stock needed is relative. After you try some experiment of Forex journey with a demo account, now you can start the trading with real money. The first type of account that you can open is a mini account which requires a minimum with a few hundred US dollars. Yet, don’t expect to get rich fast on such a small number. For standard accounts, the minimum numbers generally are around a few thousand US dollars.
Don’t think to put your life savings into a trading account. Make sure of you lose all of your trading stock, your lifestyle won’t be affected. Do not let you trading account affected with your real-life savings; you have to separate them all.
These are 3 steps if you want to start your Forex. In first explanation about set up account, it said that you have to choose best broker. DIDIMAX’s forex broker is the one of the best brokers right now, so if you new in Forex and want to start your Journey, let’s join DIDIDMAX.
