3 steps to the first trade in Forex market
What is Forex market?
Let me define Forex with a simple example. Imagine that you plan to go abroad. You do know that it is important to change your money into the currency of the destination country. For example, if you are going to travel to Europe, you should change your money to euro and when you come back, you will need to change the euros that are left to your currency again to spend in the own country.
This is exactly what Forex market is like as the largest financial market in the world. Usually, you must physically go to a currency exchange to change your money into another currency but in Forex market, you do not need to be physically present in a specific place.
You can do this with just an internet line and a laptop from anywhere in the world.
Look at the above picture carefully.
The average daily trading volume in the Forex market is much more than London, Tokyo and New York stock markets.
One of the features of the Forex market that you may be interested in is that it is two-sided. That means you can benefit from both buying and selling.
Firstly, let’s speak about buying.
Suppose you know the dollar is going to increase in price within the next 30 days. Hence, you decide to buy, for example $1000, and you can sell them at a higher price if the dollar becomes more expensive; in the meantime, you will take advantage of the price difference between buying and selling.
Now consider the reverse situation.
Suppose you know that the dollar is going to decrease in price within the next 30 days. How good do you think it would be if you could sell $1000 now and buy them back 30 days later when the dollar gets cheaper?
This is possible in the Forex market and it is one of the attractive advantages of this market for traders.
Another advantage of the Forex market is access to leverage trading.
Leverage gives you enough resources to be able to trade in the market. For example, 1:200 leverage increases your dollar by 200 times. If you have $1,000, this leverage will turn your money into $200,000. This does not mean that the broker will charge your trading account $200,000, but means that you will be allowed to trade with as much as $200,000.
Suppose you want to buy a product that you know its price is going to rise in the future. Now if you can afford to buy only 100 units of this product, is it better to buy 100 or 1000? Undoubtedly, the more product you buy, the more profit you make, when you sell it. Leverage is exactly used for this purpose. It will increase your buying or selling power (Forex is a two-sided market). Therefore, you do not need a lot of investment to trade.
One of the unique aspects of the international Forex market is that it is not affiliated with any country, and interbank trades of the countries are done in this market.
When you are going to travel to a country for tourism, you must first change your money into the local currency of the destination country in a currency exchange.
While changing the currencies, there is an exchange rate between your local money, for example dollars, and the local currency of the destination country, for example pounds. Exchange rate means the amount you have to pay for each pound. This exchange rate is received by the Forex market where the currencies are exchanged.
Another feature of the Forex market is that it is open 24 hours a day and 5 days a week, and the currencies are traded worldwide in the financial centers of London, New York, Tokyo, Hong Kong, Singapore, Paris, and Sydney.
This market is open 24 hours a day, because the market in Tokyo and Hong Kong reopens as US trading day comes to an end. Hence, the market can be active at any time of the day.
What does currency pair mean? The list of major currency pairs + how to name them
When you go to a currency exchange and you want to change your money into some other currency, you are exchanging the currencies. Hence, in fact, two currencies are involved in trading: one is bought and the other is sold.
In the foreign exchange market, the value of one currency is opposite to that of another currency, for example, USD / JPY is the value of each dollar (base currency) against the Japanese yen (counter currency).
To understand it better, look at the following picture:
To name the currencies, the combination of letters of the country and the currency names has been used, for example USD.
The first two letters, “US” represent United States and the last letter, “D” indicates US Dollar.
Consider CAD: “CA” represents Canada and D indicates Canadian Dollar.
3 steps to the first trade in Forex market
Step 1: Choose a secure broker and open a trading account
Choosing a secure broker is your first step to trade in the market. Broker is an agent between you and the trading market and your trades are done by a broker in the market.
However, a large percentage of brokers are unfortunately fraudful and dishonest and they may not pay your profits.
If you are going to open a trading account in a secure broker, we recommend PCM Broker.
To register in this broker, follow the link below:
To register in PCM Broker, click here!
To open a trading account in PCM Broker and to get to know some of its benefits, watch the following video:
Step 2: Download, install and prepare trading platform
Trading platform is a software by which you can see price data and charts related to each market and trade in the live market.
After you charge your trading account with the broker, the amount you have credited to your broker account will be displayed on your trading platform.
The most famous trading platform is MetaTrader 4, which you can easily install and set up within a few minutes by watching the following video.
After doing this, you have just one more, but a very important step to your first trade in the Forex market.
Step 3: Learn Jabalameli Priceaction Trading and get a professional specialized support
Trading in financial markets strongly requires Jabalameli Price action Trading. Using this very simple science, you will find out if the price is going to rise or fall in the market, for example, EUR/USD market. Once you are able to do this, you will make a lot of money and profit from your dollar-based trades.
A person who trades in financial markets and makes money from his trades is called a Trader.
To specialize in this profession, you need to learn skills via practicing with coaches.
Watch the following video to learn completely how to accomplish the third step:
The Forex market, as the largest financial market in the world, has unique opportunities for earning money.
Having learnt the correct principles of Jabalameli Priceaction Trading, you can achieve your dreams and financial goals.
If you are planning to trade in the Forex market, be sure to study this article, it will help you to become a professional trader.
By observing the trading course, you can benefit from Mr. Jabalameli’s 17 years of experience.
Download free video training of Jabalameli Priceaction Trading