For all forex trading beginners in South Africa out there, we have decided to write a Forex Trading Tutorial for Beginners South Africa guide which will help you become a better forex trader. With the intensive research contacted by our experts, they made sure that they quote from the best forex trading websites that are legitimate and trustworthy.
In this Forex Trading Tutorial for Beginners guide, you will learn everything you need to know to get started with your trading career. Forex tutorial is here to help you understand how the system works, forex trading terms, forex trading platforms, how to create a forex trading account and the risks involved with trading forex.
Just like any forex guide in South Africa out there, this guide is not different from them. It also offers basic information on technical and fundamental analysis. This includes factors that affect the stock market, economic and political events.
Since forex market is big, almost every minute their forex pair fluctuates. Sometimes the forex pairs run so fast to a point where you have to open a trade and close it within minutes after making a profit. To trade successfully as a beginner, all you need is a fast internet connection and a forex trading account.
Here is how forex trading works with our Forex Trading Tutorial South Africa. You open a live forex account with a 100:1 leverage by putting in an amount of $200 and begin trading up to $100 000 with your account. All this is made possible by leveraged trading. If you bought USD/EUR, if the USD gains against the EURO, you will gain more when you close the position on the right time. However, if the USD loses, you might lose lots of money too.
Although forex trading can help you become a millionaire, it’s also risky. That is why you need to be cautious when trading. Start with small amounts before depositing big amounts. You might lose your investments in stock markets. But you can also utilise a method called “carry trade”. Use this method to play the interest rate variation among two currencies and gain profit from swapping currency differences.
Forex trading is often hyped up because it is so easy to get started, even with a small investment amount. All you really need to get started with Forex trading is a home computer and about $2000 (even less with some brokers). However, just because you can start Forex trading so easily, it doesn’t mean you are ready! Here are the basic steps you need to follow before you start Forex trading online.
It is not enough to simply read a handful of Forex Trading Tutorial for Beginners guide if you want to start trading and actually profit. You will need to sign up for classes and seminars about Forex trading which are held by industry professionals. If you cannot find a local class, there are plenty which are offered online. It is not a bad idea to start with a basic e-course to get yourself through the initial concepts. However, you will need to move on to a more advanced course which allows you to interact with a live instructor and also has workbooks with assignments (like calculating various situations). These classes are very useful for developing a Forex trading strategy for success.
Before you jump into Forex trading with real money, it is imperative that you first practice with a demo account. Don’t just use the paper Forex account for a week or two either! You should be actively trading on the demo account for at least a couple months. Make sure that you are always trading as though it were real money. Keep in mind that demo accounts do not always reflect the reality of Forex trading because the demos use real-time slippage and spikes. With real Forex trading, your trade may not happen in real time so you lose a few pips.
Even if you devote all of your time to analyzing the fundamental and technical aspects of Forex trading, you alone will not be able to predict market trends. That is why it is so important to have a wide array of Forex tools at your disposal. Most of the top Forex brokers will give you access to these tools for free. Spend some time looking at different brokers to see what they offer. Expect to some tools which your broker may not offer.
Don’t start Forex trading until you have carefully calculated the amount you are willing to risk on trades. For most traders, a safe risk is about 5% of the account amount. Traders must also determine their limit orders and stop orders.
There are a lot of different factors which go into choosing a Forex broker. You will want to look at:
Most Forex brokers online will have forums where traders can connect with each other and share tips and strategies. It is a good idea to spend some time in the forums, especially to get a feel for the mistakes which people have made. You will learn that it is unwise to put too much faith in those Forex tip websites and also about how to manage your risk.
Most forex trading beginners start trades with technical analysis. This refers to the knowledge of reading price charts. However, for traders who are more serious about forex trade, you need to do your research in order to understand how the global economy operates.
Comprehending basic fundamental indicators of an economy like interest rates, production level, employment rates and the role of central bank in regulating inflation and many more will help you trade more successfully. As you gain more experience in the forex trading market, you will realise that there are so many ways to gain an upper hand in the forex exchange.