You have read in the news, went to a seminar or a video got you interested in trading the Forex market, but there is one problem, you don’t know how to trade Forex, not to even talk about making money through Forex to bring to life your dreams and ambitions. If you are this person, This article is just what you need to get you started.
Forex Trading is the best Job in the world, on the days you make money, nothing beats the feeling, that good feeling, that great feeling, the feeling that you can become the next billionaire through Forex trading, however on the day’s you lose, the emotional torment can make you question the decisions you have made in life.
These Emotions are perfectly normal for a Forex Trader, and any good trader must first learn to overcome these emotions both the good and the bad, before having the chance of becoming profitable through the Forex Market.
Brief History of Forex Trading
The Forex Market is a decentralized market for the buying and selling of currency’s, on a global decentralized market place. When you Buy a Pair (For Example, GBP USD) you are selling your USD to buy the British Pound in the anticipation that the British Pound would rise against the United States Dollar for you to make monetary gains on your position.
The kind people at Investopedia have a very detailed article on this, read more here.
The Mechanics of Forex Trading
The actually act of trading Forex is very easy;
- Select a Currency Pair
- Analyze the Currency Pair
- Read the quote
- Decide on Buying or Selling
- Set a Stop Loss
- Set a Take Profit
- Close Your Trade for a Loss or a Gain.
There is a lengthy blog post on this here. There are different types of Buy Order’s such as Buy Limits or Sell Limits, Buy Stops or Sell Stops which can be used in Forex. These types of Orders are essentially an order telling your broker to buy or sell a given currency at a future price. Curious? Read More about it here.
The Basics of Forex Trading
However, before you can do any of the above, you need to understand the very basis of the Forex market.
You learn key terms in Forex Trading to guide your understanding of the market. Some basics terms you would come across while learning how to trade Forex are;
The Base Currency; As you would have come to notice, In Forex Trading, Currency’s are almost always paired to each other. You would have major pairs like EUR/USD , GBP/USD USD/CAD etc. with all these pairs, the very first currency that you see is what we call the base currency. In the case of EUR/USD, the base currency is the EUR.
What does this mean? Essentially, when you BUY EUR/USD, you are telling your broker to sell an amount of USD to purchase EUR, and when you SELL EUR/USD you are asking your broker to Sell EUR and buy USD back.
This means that when you buy EUR/USD, you make money when the value of EUR rise against the USD, however you lose out should the value of EUR drop against the USD, makes sense right? Now Answer this, what happens when you sell EUR/USD and the value of the EUR drop against the USD? Let us know in the comments.
If you want to know more about the basics of Forex trading, click here.
How to Trade Forex Profitably
Having learnt the basis of Forex Trading, You would soon come to the realization that Forex Trading is extremely profitable and yet extremely risky. Without the necessary skill set you are bound to fail. Most people who learn how to trade Forex are unable to reach profitability because they are not properly educated to have the right skill set to trade Forex.
The Best Forex Mentor would not only give you the material you require but would also coach you to become extremely successful trading the Forex market. Granted there are Free materials out there on the internet, unfortunately most of these materials are not put up by professional traders with years of experience.
The worse part of trying to learn how to trade Forex online is the problem of learning one strategy today, practicing it for a few days and looking for another strategy.
You need consistency, and only a a Professional Mentor can provide you with that.
Benefits of Having a Forex Mentor
At Slytedge.com we trade Forex full time, and also teach you how to trade the Forex market profitably. suffice to say we are extremely confident with our the Forex Mentorship we have provided over the years to thousands of Forex trader’s across the globe. If you are learning how to trade Forex, we believe getting a One on One Mentor is the way to go, but not just any mentor.
A mentor should be someone who has spent years trading the market, and still actively trading and making money from the market. The Forex market is filled with a lot of such false folks, but a good mentor, would teach you how to trade Forex by;
- Providing a foundation material
- Providing access to questions and answers
- One on One sections in person or via zoom
- Weekly audit of your trade history etc.
What has your journey while learning how to trade Forex been? Let us know in the comments. If you have undertaken our one one one Mentorship program, what has been your experience, let us know.