Forex guide for beginners successfully

Entering the world of Forex is not easy. Especially when you are just starting, with vague trading knowledge and skills. Below is a  forex guide for beginners from Learn Forex Trading, from basic to advanced steps. Helps you gain a deeper understanding of this market approach.

What is Forex investment?

In the context of constantly fluctuating and unpredictable market developments, mastering investment strategies and methods is essential. First, let’s talk about what forex investment is as well as related terms to have the most general overview of the forex market.

What is Forex investment?

Forex investment is also known as foreign exchange investment. Represents currency transactions between parties in the global market. Where buyers and sellers operate without a particular focus. This market is where currencies of countries around the world are bought and sold. Every day, trillions of US dollars are traded on the Forex market. It is the place with the largest liquidity globally.

Forex is short for Foreign Exchange, where foreign currency exchange takes place. Forex investment takes many different forms. Including currency exchange between countries, and investment through futures contracts. Or buy and sell contracts for difference and many other forms.

However, currently, forex investment is often done through buying and selling currency pairs on foreign exchange exchanges. Participants rely on price fluctuations to seek profits. This is a form of investment that many investors are interested in and participate in every day in the market.

See more: How to play forex to trade successfully

Forex trading terminology

In Forex trading, understanding and mastering terminology is extremely important to perform transactions effectively. Lack of understanding of terminology can lead to incorrect investment decisions. Here are some common terms investors need to know:

• Long or Short: Equivalent to Buy or Sell, referring to long and short positions.
• Pending: Waiting order. An order is placed to wait for the price to reach a desired level before opening a position.
• Entry: Entry point, the time a transaction is made.
• Currency pairs: For example, EUR/USD, USD/JPY, and USD/CHF are currency pairs traded on the market.
• Cross currency pairs: These are pairs that do not contain USD but are still commonly traded, such as Euro.
• Spread: The difference between the bid and ask prices.
• Pip: The smallest unit of measurement in Forex trading, equivalent to 1/100 cent.
• Lot: Unit of measurement for transaction size, 1 lot is equivalent to 100,000 currency units.
• Bid: Buying price on the exchange.
• Ask for the selling price on the exchange.
• Commission: A commission fee is charged for transactions.
• Pump and Dump: Terms referring to price trends, the bull market, and the bear market.
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Forex guide for beginners when just starting out

When entering the Forex market, the first thing everyone needs to do is build an effective how to start forex trading for beginners. A reputable trading platform not only makes the trading process more convenient but also minimizes risks related to fraud in this field. Especially when the UK market is opening up to brokerage exchanges that are not recognized and licensed by law.

Choose a reputable Forex exchange

To choose a reliable Forex exchange, people need to rely on the following criteria:

• The exchange is licensed by reputable organizations globally. However, newbies also need to check the authenticity of the license provided by the platform. Because many exchanges fake licenses from reputable organizations.
• A Forex broker that has been operating for a long time without encountering major problems from traders can be considered trustworthy.
• A broker with an attitude of prioritizing quick withdrawals for traders can be considered as having no intention to defraud.
• Resolving problems and providing customer support quickly is an important factor in evaluating Forex brokers.
• Low fees: The platform offers reasonable fees, especially spread fees as low as possible. The platform also needs to provide demo accounts or cent accounts. So that users can experience it without spending too much money.

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In short, when participating in the Forex market, people should take the time to consider the origin of the transaction and feedback from previous traders. Check the broker’s license to ensure its credibility.

Open a Forex trading account

Participating in Forex trading has become extremely simple in today’s era. Users only need to follow these steps to open a trading account on the exchange and access the necessary information:

Access the Forex website via the link provided.

Register basic information such as phone number, email address, and other necessary personal information.

Conduct account authentication through the eKYC process to be able to make transactions.

Download the Forex market investment application

After accessing the Forex exchange website and downloading the application from there, users continue to perform the following steps to install the application on their trading device. Forex brokers often provide software and applications compatible with a variety of devices such as laptops, PCs, mobile phones, and tablets.

On personal computers, users can set up MT4/MT5 computer version software to perform the installation.

For mobile phones, iOS or Android operating systems support downloading and installing applications such as MT4, MT5, or Xstation5 (for XTB) to conduct transactions.

Deposit money for forex trading

Next, to deposit funds into the trading account, users can use the following methods:

• Online payment gateway.
• Internet banking.
• Visa/Mastercard.
• Popular e-wallets.

However, deposit/withdrawal transaction fees may vary at each exchange, so it is impossible to determine the specific fee amount that users will have to pay when making deposit/withdrawal transactions to the exchange.

Forex guide for beginners to place trading orders

The final step in the Forex investment process is placing a trading order. After successfully depositing money into the account, users can begin placing orders to buy or sell currency pairs on the exchange.

If the price is in an uptrend, users can place a sell order. However, placing buy and sell orders also depends on many other factors such as stop-loss and take-profit tools on the trading application that users also need to master. Trading on the Forex market is simply buying and selling exchange rates, relying on price differences to earn profits. However, to achieve high efficiency, it is necessary to accumulate trading experience.

When placing orders, users need to pay attention to the following points:

• Prioritize using pending orders to avoid future risks.
• Choose the exact time to place an order.
• Pay attention to reversal signals of exchange rate pairs on the market.
• By observing and understanding these factors, users can optimize the order placement process and increase their chances of success in Forex trading.

Strategy for new Forex traders

Let’s take a look at the safe, effective strategies most trusted by investors today:

Forex guide for beginners in surfing style

In scalping Forex investing, investors focus on using many short time frames. Open orders continuously and profit from short-term fluctuations in the market. This is a strategy that focuses on candle time frames such as M3, M5, and M15. Scalping investors will open orders when there is a chance to gain about 5-7 pips. Then close the order to take profit.

Even though it’s a short-term strategy. But continuously opening and closing orders with this small number of pips adds up to a large amount. Brings significant profits and is not inferior to any other form of investment.

Short-term Forex trading

Short-term investing and trading, similar to surfing. But here traders use the daily timeframe to execute orders. Even though each time you get a higher number of pips. But the frequency of opening orders is lower than surfing. Although they aim to make profits in the short term, to be effective in short-term trading, traders need to know how to take profits at the right time and avoid losing the opportunity to win just because of a few small pips.

Invest in the long-term forex market

Long-term investing is holding positions for a long period, from a few weeks to a few months. Requires understanding and experience from investors to set reasonable stop-loss points. Instead of letting orders suffer losses through trading cycles.

In addition to setting long-term goals and contingency plans for profit-taking and cutting losses. Long-term investing also requires detailed strategies and analysis of the future direction of currency pairs.

However, long-term investing is not a suitable choice for beginners or inexperienced people. Especially when it requires a well-prepared long-term plan and thorough analysis of future market trends.

Therefore, those new to the Forex market, choose short-term investment with a flexible strategy. The ability to profit quickly often brings greater efficiency. Instead of holding orders for a long time without a backup plan, encountering unwanted risks.

See more: Opening and verifying an ICMarkets account

Forex method guide for beginners

• Technical Analysis: Includes:

– Market price chart

– The price fluctuation trend has been happening

– Wavelengths are shown in the chart

– Technical analysis can be applied independently or combined with fundamental analysis to achieve the best results.

• Capital Management:

– Understand costs and calculate margin and leverage

– Only invest idle capital and do not borrow

– Determine how many lots to buy and their prices

– Reasonable capital allocation for currency pairs

– Follow discipline in trading and do not be greedy

-Do not stuff orders when the market is unstable

– Do not try to recover losses when trading ineffectively

• Copy Trading

One of how to trade gold in forex in the forex trading world is to use the Copy Trading method. This simplifies the trading process, especially for those who have not accumulated much experience.

By becoming a partner of professional traders, you can copy orders from them automatically without having to take any other action. Orders will be automatically synchronized to your account and adjusted by the exchange to reduce the risk of capital loss, helping you maintain account stability.

Epilogue

Whether there are textbooks, books, or forex guides for beginners courses, participating in the forex market requires patience, knowledge, and risk management skills. By continuing to learn and apply the fundamentals with Learn Forex Trading, investors can create opportunities and achieve positive results in forex trading.

Questions related to the Forex guide for beginners

Which forex guide for beginners books can I read?

On the market, there are many quality works to help you research and approach forex trading effectively. You can refer to some books such as Forex 100%, Forex 101, Currency Trading for Dummies, and Technical Analysis from A to Z,…

Are forex investment courses effective?

When starting in the forex market, learning is inevitable. However, the quality of the course is very important. Here are some tips:

• Find a reputable course: Before joining, carefully research the courses and reviews from previous participants.
• Avoid scam courses: The market has many unreliable courses. Be careful and do not believe in unrealistic commitments.

Is the legality of forex investment guaranteed?

UK law currently does not officially allow forex trading activities. Despite this, many people still participate, and the law has not directly intervened in these activities.

However, it should be noted that:

• Financial risks: Forex investments are not legally protected, and you are responsible for your risks.
• Illegal activities: Building an exchange or calling for investment may be considered illegal and may be subject to criminal prosecution.

Although participating in forex may be popular, you need to understand the risks and consider them carefully before participating.