Forex trading is a trading activity through which a person becomes richer. The trader has to play very safely in the Forex trading. Before trading in the Forex market, a trader should learn how to trade. If a trader knows how to trade, then the probability of loss in forex trading will be reduced.
HOW SHOULD WE TRADE?
Here are some steps which should be followed to learn to trade. They are listed below–>
- The trader must have a trading account
A trader must create a trading account. A trader can do this with the help of a stockbroker. There is no problem if a trader has already created his account. If the trader has so, then there is no problem as he/she can maintain a professional account as well. An account of a trader offers various online trading tools which have many advantages.
- A trader should read
A trader must have a habit of reading. A trader should read different articles on the stock market, financial status, etc. Different websites are also available on the internet which provides an ample amount of information about trading. Here are the names of five books which can be studied by the traders–>
- Stock market wizards by Jack D. Schwager
- Trading for a Living by Dr. Alexander Elder
- Technical analysis of the financial markets by john murphy
- Winning on wall street by Martin Zweig
- The nature of risk by Justin Mamus
- Should learn how to analyze
A trader should better go for technical analysis as compared to the fundamental analysis. A trader should keep reading the price charts, spreadsheets of the companies. This activity will help the traders in decision making in the future.
- Practice Trading
After learn to trade, a trader must practice for the trading. Beginners should start with paper trading.