Before you start trading in the forex market, are you sure you’re ready? Check out these reminders to see if you’re up for the battle.
Find a Broker
The first step toward forex trading is finding a Wibest FSMsmart Review market maker with which you will trade. Some are bigger than the others, and some have tighter spreads and others offer additional features.
- To ensure that the money you are spending will be safe, choose a large market maker that is regulated in at least one or two major countries.
- Find exactly how large the market maker is and how much excess capital it has. If possible, check on the number of employees under its wings.
- Though it should be a given, check if the market maker’s 24-hour customer support works.
Check the Broker’s History
In the United States, all registered futures commission merchants (FCM) are required to meet strict financial standards including Wibest Broker News capital adequacy requirements and are required to submit monthly financial reports to regulators.
You can try and visit the website of the Commodity Futures Trading Commission, which is an independent agency of the US government, to access the latest financial statements of all registered FCMs in the United States.
Test a Demo Account
After you have found a reputable and trusted broker, your next step is to test its software by opening a demo account. The availability of demo or virtual trading account is unique to this market and you should definitely take advantage of this feature.
Learn how to use the trading platform and compare the platforms to each other in order to find the one that best suits your goals. Most demo accounts have exactly the same functionalities as live accounts with real-time market prices. The only difference is that you’re not trading with real money.
Perform Some Research
When you trade, you should never trade impulsively. You should be able to justify your trades. And one perfect way to find justification is by doing research. There are many resources such as books and newspapers with information in forex market trading. When you try to choose a source to consult, make sure that it covers:
- The basics of the forex market
- Technical analysis
- Key fundamental news and events
Do you Need Education and Trading Programs?
The benefit of online or live courses compared to books, newspapers, and magazines is that you can see frequently asked questions that people have posted as well as the responses to those questions. Meanwhile, in a classroom setting, either online or live, you can learn from the experiences as well as the frustrations of others. A mentor or a teacher can draw on personal experience and help you avoid the mistakes that they have made, therefore saving you time and money.
Finding the Best Trading Setup
Every trader is different. However, the best trading style is most probably a combination of both technical and fundamental analysis.
Fundamentals can easily throw off technicals while technicals can explain certain movements that the fundamentals cannot. Smart traders will always be aware of the broader fundamental picture while using their technicals to pinpoint good entry and exit levels. Combining both will help you avoid as many bad trades as possible, and it works for both day traders and swing traders.