The basic forex trading is actually the same as other types of markets, the difference is the commodity. Although it looks simple, but you must know the right way of forex trading for beginners.

Forex trading is arguably tricky because the risk is very high. There have been many cases when beginners quickly went bankrupt if they did so without adequate knowledge.

Are you interested in getting involved in this currency market? If so, take your time to read the following article to the end so that you know the correct way of forex trading for beginners, so that you can avoid the risk of bankruptcy.

As a beginner, you should first practice forex trading in real market conditions through a demo account. With a demo account, you don't have to worry about losing a large amount of capital at the beginning if you do.

You can also test the trading system that is used at the same time. You can get a demo account at a forex broker that provides the facilities. Make sure, you have done a small survey first to choose which is the best forex broker for your learning and trading process.

You can take advantage of FxScouts' list, which has tested 160+ Forex brokers serving Indonesian clients, including forex brokers under the supervision of locally-based BAPPEBTI such as Didimax forex broker.

Learn Basic Forex Trading by Determining Transaction Time

Unlike the stock exchange, which has opening hours from morning to evening, plus lunch breaks, the forex market is open 24 hours, 5 days a week. 

Thus, you can trade forex more freely, because it is more flexible. You can do it outside of your main work office hours, and without disturbing your family together.

Basically, trading time consists of several sessions, namely the New York session (America), the Tokyo session (Asia), the London session (Europe), and the Sydney session (Australia). There are 3 ways to determine the right time:

1. If you have a high-profit target, then the most suitable trading time for you is the overlap of Europe and America. With high volatility and liquidity, this session will increase your chances of making a profit faster.

2. If you like to play it safe to make it easier to manage risk, then the Asian session will be more suitable, because the level of volatility and liquidity tends to be gentle.

3. Adjusting to your daily conditions, namely outside working hours. It could be in the morning, before starting work, or it could be in the evening, after work.

Understanding Forex Indicators

There are three important things that you must study in the basic forex trading carefully if you want to really enter the world of forex trading, namely learning to understand candlesticks, technical indicators, and fundamental indicators.

Candlesticks are one of the most common types of charts found in market analyses, and the forex market is no exception. The shape resembles a candle, because it is called a candlestick.

Each pattern or pattern formed by several candlesticks will explain a movement, so you need to recognize several types of candlestick shapes and patterns, so that you can then analyze the next market movement.

Just study this basic forex trading carefully, because the accuracy of your analysis will determine how much potential profit you can get. Technical indicators are instruments that can help you analyze price movements, volumes and trends in the forex market.

While fundamental indicators are instruments that can be used to analyze forex market movements based on economic, political, and news conditions out there that have the potential to move the market.

You can usually find these two indicators in the forex broker application that you use. You are also possible to combine one indicator with another and set it manually, in addition to following the default settings.

Do not apply these indicators to real accounts if you have not mastered them well. In learning the basic forex trading, do a trial on a demo account, and record every effect that occurs.