Sponsored How to Start Trading on Forex in 3 Simple Steps

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Forex is an international exchange where banks trade money to keep the world economy running. However, it can also be a source of income — provided that you know your trading. And this article will teach you how to trade on Forex in 3 simple steps.

Step 1: Sign up with a Broker

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A broker is a company whose terminal you use to trade on Forex. You can also trade directly, but 6 000 USD downpayment and significant transaction fees will kill most of your profit. The broker allows you to distribute these expenses with other traders and increase everybody’s profits.

Brokers also come with all sorts of advantages. They make your trading more efficient with leverage, custom analytics, market events alerts, and other bonuses.

Generally, you should stick with the big-name brokers — or experienced smaller companies. JustForex is an excellent example of the latter and provides educational resources for the newcomers. You can Sign Up right now; it will only take a moment.

Step 2: Decide on a Strategy

There are a lot of ways to trade on Forex. It is generally recommended to have one strategy for high-risk/high reward trading on shorter timeframes (a.k.a. scalping) and another for more consistent, slower trading (a.k.a. Price Action).

Scalping

Timeframe

1M-5M

Number of orders

8-10 per day

Recommended leverage

1:10, 1:20

Starting deposit

5 USD

Scalpers take advantage of microeconomic movements on the market. Generally, this involves opening quite a lot of orders each day and taking a small amount of profit off each one.

A successful scalper can double their starting capital in a day. The best scalping strategy for newcomers is the Lazy River. It is built around 5-minute timeframes and has clear downtimes when you can go make yourself a cup of coffee. You are going to need it.

Professional scalpers use spread-free accounts, like JustForex’s ECN Zero. However, if you don’t want to shell out 500 USD, you can start with a Cent account instead.

Price Action

Timeframe

4H, 1D

Number of orders

1-2 per day

Recommended leverage

1:10

Starting deposit

1 USD

Unlike scalping, Price Action operates on large timescales. The idea is to make large orders on long timeframes and reap profits off the macroeconomic trends. The problem, of course, is predicting those trends — and this is where the patterns come in.

During the last decade, the combined efforts of traders on ForexFactory defined candlestick and trend patterns that cause the market to respond in a certain way. Now there are condensed guides to Price Action that will teach you the essential patterns in under an hour.

Price Action is less profitable than scalping and doesn’t play nice with leverage, but it is also safer and less exhausting. If you have only an hour a day for trading, Price Action is the best option.

If you intend to use Price Action, sign up for a JustForex Standard account to maximize your profits. Lower spreads and better trading opportunities are more than worth the initial expenses

Step 3: Start Trading

Once you have your broker and your strategy, you are set to start trading. The more familiar you are with the market — the better, so stick to the practice account for the first week. It will help you prevent obvious losses and will provide you with some experience.

Once you are sure that you can make a profit — deposit some money to your account and start trading for real. If you do it till the end of February, JustForex will double your deposit.

Conclusion

Trading on Forex is risky, but it is more than doable. As long as you can stick to the strategy and not panic — you are already halfway to your first profitable trading day. If you are willing to learn and want to make money — Sign Up right now.
 
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