By Ezra Ivy
Forex is the global market where currencies are traded. It stands for Foreign Exchange and is sometimes called FX trading. Forex traders make money from fluctuations in exchange rates by buying a coin when it’s undervalued or selling it short when it’s overpriced.
Much of this volatility can be attributed to politics; we could see headlines about Turkish inflation spooking investors and causing them to sell their lira holdings en masse, driving down the value of that currency relative to other ones like the USD.
Politicians have less control over Forex markets than they do with more localized economies because people worldwide trade these things concurrently!
The Forex market in South Africa is a very popular trading environment. Therefore, it’s important to know how the market works before you start trading.
Steps:
The first step, and one of the most important steps, is to find out what type of account suits your needs best. This is because there are two types of reports available: a managed account or an un-managed account.
A managed account means that someone else handles all aspects of your trading for you; this might not be beneficial if you want complete control over your investments and trades.
An un-managed account means that you have full control over everything related to your investment decisions; however, it also requires more responsibility on your part, which may include higher risk levels.
The next step is finding a Forex broker who has the type of account you want and suits your trading needs. There are two types of brokers: one for beginners, which includes MetaQuotes Software Company with its easy-to-use MTConnect API, or one for more advanced traders, such as FXCM’s Active Trader Pro platform.
Once you have found an option that works well for you, it’s time to decide on how much money you’ll be investing in every trade. For most people, this will depend on their risk tolerance level. For example, a person with a higher risk tolerance might invest $500 per trade whereas someone else might only want to spend less than $200 at any given time.
It’s important to remember that the more money you invest per trade, the bigger your potential profits and losses will be.
The next step is deciding on a trading strategy. There are two different strategies: technical analysis or fundamental analysis.
Technical Analysis (TA) involves analyzing price charts in order to understand where markets might head next.
Fundamental Analysis (FA), also known as “the study of economic factors that influence supply and demand for an asset,” can help investors determine how much they should pay for a particular security by looking at underlying trends such as inflation rates, unemployment levels, interest rates, and other key indicators.
In the final step, you will need to choose when and where you want your trades executed. There are two default options for time frames: a 15-minute or five-minute interval.
The location of the trade execution is also an important decision because it can be done electronically on a trading platform like MetaTrader; by phone via Skype with another trader (often in different time zones); or even through email exchanges.
I hope this was helpful, for more visit Forex Trading SA at their official website!
