Forex basics: A guide to Forex trading online

But as a beginner to the wonderful and exciting world of forex, it may seem like you are swimming in a sea of information. What information is credible, and most importantly, what will get you results?

Learning to trade forex:

I cannot stress the importance of getting educated before you run out there and dabble in the market. There are several ways you can learn to trade forex, and I suggest you begin slowly by investing in a low-cost program or forex trading books, to see if the Forex market really is where you want to spend your time and money.

Forex trading courses:

Expect a good forex trading course to set you back a couple of thousand dollars, but believe me when I say this training is invaluable for forex basics. The company I learned to trade forex with back in 2005 still gives me free support and assistance whenever I need it.

Forex signals:

Forex signals depend on what trading philosophy you decide works for you. I prefer technical analysis, the old-fashioned way. I trade by candlestick charts, trade in the direction of the trend and wait for candlestick patterns to emerge in my area of interest.

Forex trading strategies:

It amazes me how many people expect to make a quick million, without any forex trading strategy in place. Or, their strategy is to take lots of risks in the hope that the rewards will be large. These are the people that fail. The main strategy I use is to adhere to my trading rules (not always as easy as it sounds!)

My rules are:
1. The candlestick pattern must agree on the 1-hour, 30 min and 15 min chart;
2. The market has to have reached a level of support or resistance and bounced;
3. My trade must agree with the trend;
4. And I will only ever risk a maximum of 30 pips per trade (no matter how rich I get).

Forex brokers:

Good online forex brokers will offer a wide variety of tools to assist new traders as well as traders who want to refine their technique or learn something new.

Avoiding forex scams:

The main rule of thumb when avoiding a forex scam is this: If it sounds too good to be true, it probably is! Anyone who promises you a million dollars overnight is best to be avoided. There is always risk involved when trading the forex market and anyone who tries to tell you otherwise needs to be avoided as well.But with the element of risk is the element of reward, and if you take notice of the points I’ve outlined above, your increasing knowledge of forex basics will soon pay off.

Leave Forex Basics and return to Day Trading Forex Currency

Return to Forex Trading Beginner Homepage