Start Forex Trading

The Forex trader is a member of the largest financial market. The forex trader is a currency speculator, but do not be confused by this word. This profession has nothing to do with illegal earnings. "Speculation" is Latin for "observation", and the word most accurately describes the work of the trader.

Traders on Forex deal with buying and selling currencies. The basis of such deals is simply arithmetic: buy low and sell high. For example, if you buy 1,000 at the rate of 1.5342 for 1,534 dollars, with 1:100 leverage you can open position GBP/USD amounting for 0,01 lot (1,000 GBP), while your deposit is only 15.34 dollars.

Now, to complete the deal, you need to close the position by making the reverse transaction. Noticing the growth of GBP rate to 1.5392, you make another deal now selling GBP/USD. Your profit is $5. However, if the exchange rate went down, you would incur losses. To succeed at forex online, you must be patient. Continuous self-training is the key to success.

Successful traders advise that beginners should spend several months testing start forex trading strategies on demo accounts. The time spent learning the rules of trading will save you money and nerves, and help to avoid many future difficulties.

To succeed where others fail, follow the simple tips:

• strive to fill all the gaps in your knowledge about Forex;
• motivation, persistence and discipline should be your priorities;
• choose a reliable broker with an impeccable reputation;
• use a professional and convenient forex trading terminal;
• do not rush to immediately earn millions;
• be prepared for losses, think of them as an integral part of forex trading;
• do not risk big money until you learn how to manage risk;
• never open a position for your entire capital;
• do not let passion take over sense.
• Traders not knowing the basic principles of working on Forex must clearly understand that the financial market provides equal opportunities for both losing capital and increasing it.