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How Do You Trade Forex?
Forex is becoming a very popular way to make money. This is because unlike other financial markets, the foreign exchange...
F
orex is becoming a very popular way to make money. This is because unlike other financial markets, the foreign exchange market has no central exchange, nor does it have a physical location. Not only that, but you can trade Forex all day every day. Here is how you can trade Forex.
Picking A Forex Broker/Platform
Different brokers or platforms come with different pros and cons. These include the daily spread, the number of clients etc. Therefore, you will want to search for the best platform suited to you. Some good ones include;
City Index
FXCM
IG Forex Trading
FxPro
GKFX
Picking A Currency Pair
There are currently over 65 currency pairs that you can choose from. Therefore, picking the right currency is important. There isn’t a right or wrong currency pair to pick, however, some may come out better than others.
Depending on how you plan on trading, there are tools out there that can help you pick the perfect currency pair. All they require is to know how you trade and some other details. Just remember, that there is always a risk involved.
Monitor Trades
So, you have opened a trade and are hoping for some profits. Once you have placed the trade, you will see the profit and loss graph fluctuating as the market price changes. Monitoring this will make you a better trader. You don’t want to let a trade run to come back and realise you have made no money or even lost money. Therefore, monitoring your trades is key.
Trading Forex is a risky move. Yes, there are many people out there that have made a lot of money. However, there are others who have lost a whole lot of money through poor decisions and not knowing enough about Forex. Therefore, read up, have a go on some demo sites and make sure you know what you are doing.