Forex trading is like exchanging money when you travel. You buy one currency and sell another. The exchange rate changes based on how much people want each currency. Currencies are traded in pairs, like EUR/USD (Euro versus US Dollar). The goal is to buy a currency pair when you believe its value will rise and sell it later for a profit.

Read this – How should a beginner invest in stock market in india – 2024 guide

Steps to start forex trading as a beginner:

Forex trading is the way to turn your small investment into big money. To trade in the forex market as a beginner, follow these steps.

• Educate Yourself

Before you start trading in the forex market, you have to educate yourself about forex trading and how it works. Without education, you can’t trade in the forex market, and if you do, you will lose all your money. So, the No. 1 thing is to educate yourself about the Forex market and how it works. Learn how pairs of currencies work and learn about charts, indicators, zones, or other important things before doing trade. You have to understand the basic concepts of the Forex market. There are so many books available about the Forex market or courses available online. You can educate yourself by reading and watching them all.

After educating yourself about the forex market, your second step is to choose a broker.

• Choose Broker

After educating yourself, choose the perfect broker. You need to choose a broker to start trading (choose the right app to trade in the forex market). There are so many brokers available in the market, but you have to choose one that gives you good services and leverage.

There are so many brokers available in the forex market. For example:

• IG – Best overall broker, most trusted
• Saxo – Best web-based trading platform
• CMC Markets – Excellent overall, best platform technology
• Interactive Brokers – Great overall, best for professionals
• FOREX.com – Excellent all-round offering
• City Index – Excellent all-round offering
• TD Ameritrade – Best desktop platform, U.S. only

And if you are from India, then you can trade on these forex trading platforms:

There are so many brokers available, but in India, people most probably trade with these brokers:

• Exness
• XM
• OCTA FX
• Vantage

• Open Trading account

After choosing your favorite broker, open your trading account by submitting your documents, like your bank account and more. There are different brokers on the market that provide different services. So choose the broker that provides you with a with a demo account where you can trade with fake money and learn more. It means there are so many brokers that provide virtual money to trade and learn. So, choose your broker and create your account.

• Create/Make your strategy

After practicing with virtual money, develop or create your own strategy. Work on your own strategy that helps you tolerate your risk. And be disciplined with your strategy that you develop and trade with your own risk and strategy.

Note: Sometimes your strategy can fail, but be consistent with it.

• Keep Practicing

Keep practicing with your strategy. It will help you understand the market and whether your strategy works properly or not. If you fail, then try to understand your mistakes and make them better. Be professional with your strategy.

• Trade with Real Money

Then the next step is to trade with real money. After creating an account and practicing your own strategy, it’s time to trade with your own real money. You have to first understand that your strategy helps you generate more profit before you can start trading with real money.

• Risk Management

Risk management is the biggest part of trading. But how? Let me tell you:

If you are a beginner, then you can lose your money. Probably you can lose all your money or you can make more profit. But you have to trade with risk management; you have to trade with low capital, then increase your amount to trade. Manage your risk by taking more profit, taking small losses, or trading with a low amount. At least start trading with a small amount, then increase your amount.

• Get Profit and don’t hold losses

After these, earn your profit with your trade. Trading is not easy, but it is also not hard. You have to understand the market, then trade with your strategy. It will help you increase profit. One more thing is to don’t hold your losses and never convert them into big losses.

(Conclusion: Forex trading is the biggest trading market in the world where you can trade in pair of currencies 24/7 day. So, here is the summery to start trading in forex market as a beginner. Follow your strategy and trade with small amount.)