Forex for beginners. Trading basics.

Forex for beginners Forex market is like something strange and quite complicated for beginners. However, this impression is misleading, and in time, everyone can master the key trading basics. Forex activity is called ‘trading’ (or just ‘exchange’). What is FX trading is the execution of different exchange transactions in the financial markets – stock and exchange ones. Trading on Forex, the trader (professional and beginner) makes profit from the difference between purchase and selling price. The role of commodities is usually played by currency pairs, securities, resources assets (oil, gas) or precious metals (gold and silver in most cases). And a single trading station serves as a trading platform – the one that all traders use to make their transactions. Forex market (short for ‘foreign exchange’) is such kind of platform for securities trading. Different international exchange markets are involved in securities trading.

Present days, any beginner is able to learn how to trade of Forex. All he/she has to do is just to make some efforts and to spend some time learning a theory. It’s important to remember that all professionals had once been beginners, starting from scratch and facing different hurdles on their path, but they had managed to overcome those hurdles and to succeed in this area.

The way beginner can become a professional Forex trader

Forex market has a defined structure and its own trading rules. They might seem difficult to the beginner, but it’s actually much simpler than that – you need just to get to the bottom of it. Forex trading is carried out in accordance with the following rules:

  • The dealing center provides traders with a possibility to make different transactions.
  • The same dealing center opens a trading account in the name of customer in order to allow deposition.
  • The special trading terminal would provide trader with the information about behavior history and overall dynamics of the price.
  • According to the information provided, the customer creates the requests for new transactions execution and for currency purchase/selling.
  • Forex Company executes transactions and fixes them on the customer’s trading account.

The trading principle is pretty simple – if any currency exchange rate is suddenly increased, the trader can exchange it for another currency, thus having the profit. When the exchange rate begins to drop down, the trader should be fast and sell the currency to avoid any potential losses in future.

What is Forex nowadays – it is the most effective way to get some additional profit, so it really makes sense to learn about trading basics. The beginner shouldn’t be afraid of “terrible” diagrams overfilled with various curves, numbers and values. It’s totally unnecessary to be a financial analyst to understand them. For sure, it is true that experienced analysts can easily puzzle out any processes in the financial markets, however complicated they are. But still the beginning trader, gradually getting new knowledge, and – importantly – being able to test this knowledge, has the same chances to succeed in learning. The strong desire to earn money, serious approach to the learning process and sense of purpose will help you to discover all secrets of the currency exchange market. The majority of successful traders started with Forex knowing nothing about it, but, step by step, they polished their skills out and gained the invaluable experience. Present days, trading is their main activity.

If you made a solid choice and decided to start trading on Forex, the question should have come up in your head – where to start? To figure things out fast, you can study up some specialized literature and watch some video-lessons about Forex for beginners. If you want to proceed from Forex theory to the practical application of your knowledge as soon as possible, use Forex Tutorial database on our website. Our briefings and webinars will help the beginners not only to get at trading basics in the field of Forex, but also to meet some new friends.  Here  you can find the most diverse topics, useful for Forex trading beginners. Here they are:

  • Online webinars about creation of multifactorial technological pictures of the financial instruments.
  • Gold investment rules.
  • Methods to define the fundamental tendencies of oil and its influence in the financial market.
  • Interaction of stocks market and Forex market.
  • Trading CFD and futures contract.
  • Actual policy of central banks operation.

IAFT Forum is the place, where you can learn about the most important aspects of currency trading and join the discussion if you wish. Here any interested person can also find completely free-of-charge Forex Tutorials. The beginning Forex trader can join the discussion of such topics as extreme trading, risks statement, investments in the development of partners’ web-sites, transactions risks and leverage. In case the beginning Forex trader doesn’t find any answer to his/her question among existing topics, he/she can start his/her own discussion asking IAFT experts.

Moreover, on IAFT Forum you can often meet some announcements of the different events focused on informing Forex-society about changes in the market’s life. IAFT authors’ daily analytics, Forex analytics and many other useful advices are available for all interested visitors.

Trading basics and Forex trading for beginners

All trading participants purchase or sell world currencies at the most profitable exchange rates, and all trading transactions are executed via special electronic terminals. Forex for beginners – it is, first of all, the ability to analyze the situation, to use the effective strategy and not to give up in difficult situations.

If you want to get familiar with Forex principles, we recommend you to visit “Forex for Beginner - Crash Course” section. This section is developed by the leading specialists of International Association of Forex Traders (IAFT) and serves especially to train the beginning Forex traders. Here we are ready to help the beginners to understand and to master the basics of Forex market, to figure out all special aspects of trading forex and, in a short period of time, to learn them to see the way financial markets work. Forex Tutorials on the link above are pretty compact and clear, so all that the future trader needs – is to be attentive and persistent while learning the aforementioned materials. And it won’t be too long before such beginner becomes trader and investor on Forex market.

The following sections are included into this course:

  • Forex market fundamentals. The section centers around the history of Forex market, its creation and location. The trader will learn what exactly the currency trading is, who trade on Forex and what schedule this market works on.
  • Exchange rate. This section explains what the currency pairs are, what they are like. The section also shows the difference between base and quoted currency, explains the beginner what the quotation, spread and pip are.
  • How to start with Forex. This section tells the beginning trader what is required to start trading on Forex market, how much money it take and how much you can earn by trading.
  • Platform and demo-account opening. This section unpacks such notions as “trading platform” and “demo-account”. Forex beginner will know how to download and to install the trading platform on PC.
  • Trading platform structure. This section clarifies the trading platform structure. The beginner will know what the diagram chart is, what sorts of diagrams are applied, what the timeframe is. The newcomer will also learn about the difference between “Navigator Panel”, “Market Review Panel” and “Trading Terminal Panel”.
  • How to work with the trading platform. How to make the transaction? What is the meaning of lot? What is “stop loss” and what is “take profit”? The section answers all these questions.
  • Technical analysis. This section will help the beginner to know what the technical analysis is, what the main types of diagrams are, and what “trend” and “flat” means.
  • Special aspects of the technical analysis. The beginner can independently learn the analyzing principles of currency trading – to define and to understand the levels of resistance and support, zone of repurchases and returns, “Figures”, “channels” and “market correction”.
  • Special aspects of the fundamental analysis. The beginning Forex trader will know what the fundamental analysis is and will learn about the difference between top-priority, medium-priority and low-priority economical indicators for Forex trading.
  • Let’s get going with Forex. The beginning Forex trader can total it up, asses market risks and start currency fx trading.

I am a beginner! What is important to know about trading forex?

Before starting to study about Forex financial market and trading on it, the beginner should understand all trading details and aspects, which affect the process of profit generation:

  1. Market instruments

    The section includes helpful information about the market indicators – the signals, which allow precise definition of moments to enter the market. At the beginning of work on Forex, the beginner may lose the track among a wide range of trading indicators – they have similar type of structure using completely different approach to signals definition. IAFT rating will help you to find the most popular brokers, suitable for Forex beginners.

  2. Trading strategies

    The methods by which the beginner can easily make his/her first profit on Forex. The strategy is of great importance, especially for the beginner, who doesn’t yet have any experience and enough practical knowledge about trading. The pertinent strategy should first of all be comfortable for the beginner on Forex market. So, choosing his/her first strategy the following factors are important:

    • Time. The beginner must be able to define how many hours per day he/she is ready to spend trading on Forex.
    • Profit. How much money the future trader wishes to earn.
    • Acceptable risk size at trading.

    If the strategy is right, the beginner will be able to organize his/her trading activity the way he/she considers as convenient. Therefore, medium-term and short-term strategies seem to be quite suitable for those traders, who don’t have much time for this. But for those, who are ready to put a lot of time into trading, the intraday trading strategies are the excellent ones.

    Having chosen the right strategy, Forex beginner would be able to make the effective analysis of trading instruments and to close transactions at minimum risk.

  3. Trading tactics

    It is also important for Forex beginner to understand his/her own tactics. Actually, it is as important as to choose the right strategy. To choose the right trading tactics the beginner should learn how to analyze the market, to understand the direction of transaction and to know what part of funds he/she is ready to invest in this transaction. The tactics really matter, because importance and profitability of the executed transaction depends both on market entrance and exit. And if the strategy entails ground, global trading rules, then the tactics affect directly their implementation.

  4. Analysis methods

    The beginning Forex trader should be knowledgeable in the market analysis methods. The financial market should be analyzed constantly, because Forex is pretty unpredictable and changeable financial system. The leading analysts of Forex market continuously develop the new market analysis methods. They are aimed at forecasting the market changes: mainly regarding the future price movements. The beginner should learn how to use several methods at the same time – because having analyzed the market in that way, the trader gets double confirmation of the tendency and can make decision concerning his/her further actions at the time of transaction.

    There are following important and popular market analysis methods stand out from the other methods. In aid of the trader we have special Forex Tutorial called “Forex for beginners” course:

    • Technical analysis
    • Fundamental analysis
    • Japanese Candlestick
    • Fractal analysis
    • Elliott’s waves analysis

    All strategies, tactics and trading methods have the direct impact on the way the transaction close, and therefore – the trader’s profit. The beginner, who has just started to learn about Forex market, should clearly understand the significance of these details, because they are like the formula of success on Forex market.

Forex for beginners: how to choose the right broker?

First of all, you should pay attention to such criteria as slippage, speed of money deposition and withdrawal, deposit amount, broker’s competitors/bonuses and many other things. These factors have a direct impact on profit. Another equally important factor is such trading conditions as spread volume, swaps and commissions for transactions, speed and competence of the support service. Availability of the mobile platforms will give you the possibility to stay informed about the latest events in the market. Another relevant factor is the security system. It may include the system that serves to withdraw money or to make a deposit on your bank account. It also may use the feature that sends a password to your mobile phone.

Forex for beginners – is the necessary selection of the best trading broker. Our special sections named “Best Forex Brokers” and “Forex Brokers Rating” will help you to make this selection. The provided rating may serve as a useful addition in work both of professional traders and beginners on Forex market. The useful instruments allows users to get the most helpful and detailed information about all companies-brokers that may be interested for traders, which deliver their services to Forex market. IAFT rating of Forex-brokers makes it possible for Forex beginner to study the whole working activity of brokers and to perform complete evaluation of services that these brokers provide. IAFT rating of brokers is based on user reviews, trading volumes of each of these brokerage companies, which makes this brokers list one of the most objective on Forex market. The only thing beginner should do on Forex market– is to define his/her demands to broker, to study the list and to read the reviews about the companies.

Do you want Forex for beginners to be the most profitable?

“Forex for beginners” section will give beginners the possibility to understand the working principles of the market, will help to save your deposit from unnecessary expenses, will teach you to perform competent control of the risks level and many other things. To make your trading activity more productive and to avoid many mistake traders make at the start, you should practice on a demo-account. Such account simulates the real one – the same “trading” is carried on, but with a single difference – the real cash is not involved in the trading process, and therefore, the client risks nothing, since he/she cannot lose money by trading on this demo-account. This is the method you can use to polish your skills out, to understand the way the market works and what factors affects the dynamics of price. After studying trading and practicing on virtual accounts – getting some experience – you can try your hands on accounts of those brokers, which will allow you to do it with minimum deposits.

Forex beginner can select a good broker in “Choose Your Broker” section. Here you can find the widest list of proved and reliable Forex brokers. Each of them has the detailed description that will help the beginning Forex trader to choose the broker that meets his/her personal requirements and demands. Our clients can find such full-scale data about every company as:

  • Trading terminals that broker provides
  • Working accounts (useful for those beginning Forex traders, who search for information about the possibility to trade on demo-account)
  • Currencies available to make a deposit
  • Means of deposition and withdrawal of earned money (be careful, different brokers provide different means of deposition/withdrawal)
  • Minimum deposit volume
  • Leverage volume (if available with particular broker)
  • Orders and spreads
  • Trading instruments (usually – currency pairs, resources and investments assets)
  • Orders execution type
  • Availability or lack of commissions, bonuses, compaings

For more information about Forex for beginners, please, visit the section of our web-site called “Trader’s Library”, where you can find all sorts of information about Forex. Here, the beginners can read analytical and informative articles about Forex market, Forex Tutorials, various books about Forex for beginners and for experts, as well as traders’ vocabulary that Forex beginners can use to clarify and to study some new meanings and concepts.

Forex for beginners — the easiest way to study with IAFT

On IAFT website you can find an extensive collection of the training materials that clearly explain Forex market trading basic. Together with IAFT Forex market for beginners will become more available, and will open up new possibilities for traders to make maximum profits.

It should be noted that this section offers you to download some examples of the real profitable strategies, ready trading advisors and technical indicators. At trader’s disposal – methods of technical and fundamental analysis, market’s behavior forecasts made by the leading analysts, recommendations about saving your deposit from losses and many other useful information about Forex trading for beginners.

In “Forex Tutorial” section you can download some popular books about trading and to watch some IAFT video lessons that demonstrate main details of work via the trading platform and key operations.

The web-site of International Association of Forex Trader also provides Forex beginners with the list of frequently asked question (FAQ), hot line with ‘callback’ function and with assistance of the personal trading coach. In any difficult situation Forex beginner may ask IAFT management for assistance, and we will be happy to help.

IAFT video lessons – make Forex easy for beginners

In the beginning of Forex trading, the newcomer can find it difficult to find one’s bearings among a great variety of aspect he/she faces in the financial exchange market. The amount of necessary information can really perplex you at first. IAFT suggest the beginner to watch the video lessons provided on our website. The use of video materials while learning about Forex trading is quite useful. The trader gets the following benefits:

  • Short running time of the video lesson allows the beginner not to get tired of the huge amounts of difficult information in the process of training.
  • Video lesson contain only information that the beginning trader can absorb in a single session, but still enough to get familiar with the main Forex trading basics.
  • Structure of such lessons allows demonstrating all trading aspect – e.g., working principles of diagrams and indicators in video format will be more comprehensible than in books or in Internet article.
  • Moreover, the video perfectly suits to compare different occurrences, description of controversial or difficult issues.
  • Information perceptual speed is a bit slower on video than while reading – but it is optimal for the beginner, who has not yet figured it out to absorb this information faster.
  • Video lessons inspire – the beginning trader see how fast and effectively the professional works, so he/she seeks to achieve the same level as soon as possible.

On the website of International Associations of Forex Traders the beginners can find video lessons about different fields of work. Among them: Forex trading basics, features of work and transactions via MetaTrader 4 trading platform, groups of currency pairs and trading aspects.

Video lessons

Achieve your success on Forex market together with IAFT – we help the beginner to know more about financial markets in the shortest possible time using only the most effective methods. You will learn how to work on stock and securities markets, and it won’t take you to long to multiply your earnings by trading on Forex.