Actually how to play forex there are many ways that can be taken by beginners. Forex or Forex is an interesting topic as one way of making money and income on the Internet, because the turnover of transactions in the forex market is over 4 trillion US Dollars per day. And with such a turnaround, there are many ways to get a piece of the big cake one of which will be discussed below.
Before entering the method and how to play forex with more depth, then we must first be able to understand about what is Forex?
Forex is an abbreviation of Foreign Exchange which in its Indonesian language is called Foreign Currency or Foreign Currency, which is a trading transaction that utilizes the price of the currency against other currencies. For example: Euro currency is compared with US Dollar is called pair (pair) EUR / USD, Poundsterling compared with Japan Yen called GBP / JPY.
If the economy in Europe (Euro) is better than the United States (US Dollar) then the Euro currency will strengthen and the currency price movements will move upward than the US Dollar, so when you buy EURO and sell USD (Buy EUR Sell USD = Buy EUR / USD) then you can benefit from the difference in price increase from the point you bought it, and vice versa.
In addition to the ease of transacting and cake a large forex market, the forex movement is very fast, so the potential to generate profits or profits in a short time is not impossible, but so also when losers. These are the things that make trading in the forex market more attractive than other types of investment portfolios.
Now get into the basic topics and how to play forex right.
The term How to Play Forex can also be referred to as Forex Trading
Below is the way and step by step that you must prepare to be able to play forex well and correctly.
Trading tools to play forex
First of all that needs to be prepared before you can play in this forex is a set of computers or smartphones and a stable internet connection. That is the main device.
Besides that, a convenient and hassle free trading place is also needed, because playing forex also requires concentration and should not be wrong to push the button or human error, because if there is a human error then it could lead to a silly money loss.
Trading forex today can indeed be done anywhere, may be in the park, cafe, bedroom, even in the car though by using a laptop or smartphone device and a capable internet connection.
After setting up these hardware devices, it's time to set up trading software tools, such as software with the common Metatrader platform, and this software can be downloaded at each of the forex brokerage companies you use.
After all the devices and places are ready, then you are ready to play this forex, and just learn how to do it with more depth.
Introduction to basic calculation methods in forex play
Inside forex trading, it is known that the unit calculation is called the LOT volume unit. This unit is like 12 pieces = 1 dozen, 1000 kg = 1 ton, and the like.
1 Lot in the contract size of this forex trading means $ 100000 (one hundred thousand dollars), and the dollar used is USD as the base currency.
0.1 lot = $ 10000, and 0.01 lot = $ 1000
In the meaning with 1 lot means the same as you transact with the money of $ 100000, so the price movement that changed 1 point (or 1 pip) it will be worth $ 10
Example: the exchange rate of EUR / USD from 1.23450 move to 1.23482 then that means move as much as 3.2 point.
(the number in the last line is called the Cent number, so it goes inside the comma)
so if you use transaction volume of 1 lot then 3.2 point will be worth $ 10 x 3.2 = $ 32
1 lot = worth $ 10 per point
0.1 lot = $ 1 per point
0.01 lot = $ 0.1 per point
Does it cost $ 100000 (one hundred thousand dollars) in order to transact in the 1 lot volume?
NO, because in Forex there is Leverage factor, which is where it makes forex play is becoming more interesting again, because we can take advantage of the leverage factor in this forex play even with small capital money.
Leverage or general leverage in forex is 1: 100, 1: 200 to 1: 400, although some reach up to more than 1: 1000, but higher leverage will certainly be more risky, because your potential loss of money due to loss will get bigger.
Leverage 1: 100 then means with a capital of $ 1000 can already transact up to the value of the contract worth $ 100000 (1 lot)
And with the existence of this leverage factor then to transact in 1 lot lot volume then enough need $ 1000 can be done. Of course if the greater the capital it will be stronger against the resilience of the floating minus transaction position (floating minus)
Learn Forex more fully in this basic forex guidebook
Forex trading training in Demo Account before starting real trading
Once you understand the basics of forex calculation above, then you can start a step further to play forex in real, but still within limits using a demo account yes.
Because on this demo account you will not use real money, but using virtual money (money lies) that you can reset at any time if you want to repeat it, and at no charge. So this way is very safe for testing or learning forex first.
This demo method is perfect for beginners or used as test testing of a trading strategy before it is applied in real account.
In this account demo, it is advisable to practice and study at least within a period of at least 3 months, and if you have not been able to generate profits consistently in the period of 3 months then you are obliged to repeat again to be able to produce profits in a row in 3 months consistently. This is important to do so when plunged into a real account then you already have a mature strategy and ready to use real money.
Learn how to risk management to produce the right way of playing forex
Risk management or money management is an important thing for the key to a successful trader in survival. And without good risk management then certainly will not be successful, of course this also must be offset by the mastery of qualified trading techniques
If a good trading technique is not balanced with the correct risk management then the result will be bad to cause significant losses.
If good risk management, but bad trading techniques then your trading account will not grow to the maximum or just walk in place.
If risk management is good and balanced with good trading techniques then your trading account will definitely grow.
How to play the right forex is to be able to balance risk management and trading techniques well.
To train risk management to support how to play this forex, then you can apply the following sequence of steps:
Use a demo account with a virtual cash fund of $ 1000
Transactions with lots of lots maximum 0.02 in every transaction (or 0.01 + 0.01)
Apply the Stop Loss (SL) = setting between 20 to 50 points, with the Target Profit (TP) at the same point value as your SL
If successful to touch the target profit with the total overall trading position is positive, then you can make transactions back on the same day with the rules as above
If it turns a stop loss with a negative trading position all in the day, then stop trading on the day and wait until the next day you transact back in accordance with the above rules.
Continue to do continuously until the capital of $ 1000 is exhausted (may be with indiscriminate trading techniques or guesses may also)
By applying this way, you can see how hard it is to spend that $ 1000, and at the same time train your psychologist in playing this forex correctly.
The above method is very suitable to train the beginners in the world of trading in finding the pattern of how to play forex the right and best.
Once you are familiar with the risk management method, it is time to learn a trading technique for your trading account to grow.
Finding the right way to play forex is not as difficult as you imagine if you will be patient and diligent in training it. Indeed, some people think that forex is like gambling, but if we study it more deeply that forex is not gambling because it can be analyzed as well as business and commerce in general, it has even been confirmed in the Forex explanation based on MUI Fatwa that this forex trading is not included in the realm of gambling, because trading in forex is actually the same as forex exchange business in banking or money changer.
The ways of playing forex there are many ways, and highly developed variations, which of course everyone has a diverse thinking. But whatever the technique and how to play it then you should prioritize risk management factors, because it's the most important key to success become a reliable forex trader.
In addition to the ways of playing forex above this, the selection of a credible forex brokerage firm is also very important, considering to keep your funds safe from fraud risk.
article from: Valas Online
