You must know the safe forex trading tips before starting your trading. How to trade forex is by exchanging two currencies. For example, buy USD or sell EUR. This means that the Euro (EUR) is exchanged for US Dollars (USD) using the rate or price prevailing at the time of the transaction.

The price will change depends on various factors, such as the economic and political conditions of each country, interest rates, and others. The thing you need to know again about forex, is not an investment.

Forex promises very big money. But it is directly proportional to the risk. If you are profitable, it can be up to 10 times the capital. But if you lose, the capital is immediately sold out.

Its nature is also uncertain, very volatile. Although not a banking or money market product, forex is included in futures trading which is supervised by the Commodity Futures Trading Supervisory Agency (CoFTRA) of the Ministry of Trade.

Safe Forex Trading Tips You Should Know

There are many considerations that you should do before doing forex trading. Some of the tips below can help you to trade safely:

1. Choose the best forex broker

Forex brokers not only provide a forex trading platform or online application for buying and selling activities, but also provide education.

In the beginning, you will be guided and given digital or virtual money that can be used to transact in real-time in the forex market. A good forex broker should provide traders with 24-hour service.

This is important to ensure that traders can carry out transactions smoothly, safely and without the problems of the broker system. Forex brokers such as Didimax forex broker will provide you with complete services and responsive customer service.

2. Learn forex and how it works

The next safe forex trading tips for beginners is learning the basic. Take the time to learn the ins and outs of forex, including how it works, observe market trends, how to analyze it, and manage risk.

Learn all this from various sources. Explore as much knowledge as possible from people who have succeeded in buying and selling foreign exchange, such as George Soros, and others.

Continue to learn from mistakes and find ways to improve them, never give up if you want to be a successful trader.

3. Do research and analysis

Before buying or selling, you should research and analyze the factors that influence forex market movements such as technical analysis, market sentiment analysis and fundamentals,.

The next safe forex trading tips is it's best if you use all three analyzes before trading. But for beginners, just one is okay. For example, fundamental analysis based on economic data and news trends in the media.

Or technical analysis by looking at price movements using charts or formulas as calculations. Meanwhile, market sentiment analysis examines the attitudes of market participants, so that it has an impact on price movements.

4. Trade with a plan

Beginners usually just go along or rely on instinct when playing forex. As a result, once the price rises a little, immediately sell it for a profit. Or instead of waiting for the price to go up in order to make a big profit, the price keeps going down and making you lose.

To avoid this, you can plan at what number you will sell. The number that you think is already quite profitable in the midst of the current economic uncertainty. Once it reached that number, you may sell it immediately without hesitation.

Because this is based on your calculations. However, if according to your analysis, the price will reverse down, you should sell it to avoid the risk of losing too much.

Those are some tips that you can apply before starting forex trading. Safe forex trading tips are very important for you to know so that you don't get caught up in fraudulent brokers.