Forex Trading Advice For Beginners
If you want to start trading currencies, you need to understand how the market works. There are a variety of variables at play, such as demand, supply, interest rates, and geopolitics. But most importantly, you need to understand that it’s not for the faint of heart.
The key to successful currency trading is preserving capital. You can do this by setting a stop loss and using leverage. While the exchange rate can wipe out any gains you may have, you can avoid it by managing your risk carefully.
Forex traders typically enter and exit trades during the same trading day. This means that you need to be able to access the trading platform for the whole day. If you aren’t, you could miss important price information.
A pip is a small, but important, move in a currency. For example, a pips-per-second (PS/second) move would be a change of 10 pips in a currency’s price.
IG offers a wide range of platforms for its clients. From interactive charts and news feeds to risk management tools, these tools can help you improve your trades.
Getting started with a forex brokerage account is easy. You can open an account online, and fund it with an electronic transfer or physical check. Traders can also borrow against their deposit.
A good rule of thumb is to never risk more than 2% of their total capital on a single trade. This is because high leverage can lead to greater losses. However, a smaller account size may be sufficient for beginners.