Where to start forex?

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Introduction:

You need knowledge and training to enter forex, or to put it better, one of the largest financial markets in the world. Starting forex and participating in the activities of this prosperous and famous platform requires receiving the necessary training. In this diverse market, different currencies of the world are exchanged and many transactions take place every day. If you do not know the rules of the game, you will be deprived of the possibility of profit and income. On the other hand, by learning and knowing how to be active in such a market, you will achieve big profits and satisfactory financial results. Next, we want to tell you how and how to find your way to enter and succeed in this market.

How to start forex?

If you plan to expand your financial activities and enter a new world of opportunities, you must know forex well. The forex market is a platform for exchanging different currencies of the world with each other. The most important and significant activity that takes place in this market is currency exchange by traders. This path is full of colorful chances to achieve high income and profitability. Of course, if you are not familiar with the ways and means of work, there is a possibility of being harmed and causing huge damages to you.
Maybe at the beginning of the path, you may feel a little confused, but know that this feeling is wrong and temporary. In fact, once you get the right educational resources, that doesn’t last. The suggested roadmap for starting Forex trading is as follows:

• Correct understanding of the forex market and its recognition;
• Knowledge of literature and terms used in the market;
• Knowledge of types of analysis;
• Knowledge of market psychology;
• working with a forex test account or demo;
• Cautious initiation and risk management.

1. Correct understanding of the forex market and its recognition

As mentioned earlier, forex is a market for exchanging different currencies of the world with each other. In this market, you buy one currency and sell another; In fact, you exchange currencies with each other. This process is similar to changing Rial/Toman with other foreign currencies when you plan to travel abroad. In forex, it is possible to carry out such transactions by cooperating with different brokers. To succeed in this market, you must research it and get enough information from reliable and complete sources. Forex provides huge profit opportunities for its investors. A wide range of different companies, banks, natural and legal persons are engaged in buying and selling and trading in it. Therefore, as the first step of starting forex, you should be fully aware of the trends and processes in it.

2. Knowledge of literature and terms used in the market

Note that Forex, like any other financial market, can be pregnant with many challenges and impose various risks on you. But if you are familiar with the activity in it, the possibility of growth is undoubtedly high. This is a late but booming market. One of the first and most important measures in order to become an expert in forex is to be aware of the common terms and literature in it. For example, in order to work in forex, you need to familiarize yourself with various terms, including the following:

broker ( broker ); A broker or an institution that participates as an intermediary in the transaction process and connects the buyer and the seller.
buy ( buy ) ; Purchase orders for various currencies and market products.
sell ( sell ); Sales order of different currencies and market products.
Trader ( trader ); Trader of various products including currency, stocks or commodities.
meta trader ( meta trader ) ; A software program to make it possible to connect to Forex and start trading.
loss limit ( stop loss ) ; Closing the trading position or its position to avoid further losses in inappropriate situations.
Leverage ( leverage ); A tool to increase traders’ ability to trade (for example, placing a buy order with a budget lower than the trade amount).
base unit ( lot ); The basic unit of market transactions.

3. Knowledge of types of analysis

To make a decision about any issue, you must analyze the situation and examine the situation with conscious thought. To start forex, it is necessary to get acquainted with the types of analysis. In this way, you can make the right decisions to buy or sell in different transactions. There are several types of analysis methods in forex and different financial markets:

Fundamental analysis ; In this method of analysis, economic and financial criteria are used to measure the market situation. By evaluating the key and fundamental variables of the financial market and economy, it is possible to reach a conclusion about the future.
technical or technical analysis ; By looking at the previous data and information available in each market, it is possible to analyze future changes and trends. In this way, analysts get help from various charts and indicators.

4. Knowing market psychology

You should know that in any financial market, including Forex, different news and hype or fake and real atmospheres can lead to different decisions. In fact, many traders make wrong decisions under the influence of events and news surrounding the market. It is necessary to know yourself and know how you react to the news and market atmosphere. By managing this issue, your decisions will lead to much better results.

5. Working with a forex trial or demo account

To start forex, you need to get acquainted with the practical path and executive actions of the work. Getting to know, choosing and interacting with brokers is one of the most important parts of the work. You should know which broker to trust to create a platform for buying and selling transactions. Brokers also provide their users with the possibility of working with a test or demo account so that they can get to know a few things before entering the market officially and seriously. With a test account, you can virtually trade and get to know the market better. This method will help you gain the necessary experience to start forex without risk.

6. Cautious start and risk management

After getting familiar with forex literature, brokers, setting up a user account and gaining experience by working on the demo version, it is time to start the activity seriously. You must have strategies in mind to take steps on the path. You can’t just hit the water and get satisfactory results by chance. So be familiar with different trading strategies and see what approach you want to use in trading. It is very important to manage risk and move cautiously when starting forex. Make prudent decisions based on your knowledge of yourself, your investment budget, your market knowledge, and your personal needs.

at the end

By knowing how to start forex, the path and roadmap will be illustrated for you. By looking at it, planning for its different parts and considering the right strategies that suit your budget and personality, you will succeed in this big market.

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