This is a guest post by Alex Johnson
If like so many people you have become dis-illusioned with the financial system and you feel like you need to take charge of your own investments then forex trading might well be a good option for you.
If you are new to forex though, it can all seem very daunting. Figuring out where to start your education is key. So in this post I wanted to lay down the basic structure of a good trade, so that you have at least some idea what you need to learn.
The set up
Planning is critical in any online trade. You need a forex account, and you need to deposit some money into it. You will need to install a forex trading platform to actually facilitate the trade and you will need to get familiar with the interface…
And after all that you need to start doing your research and figure out what currency you want to buy or sell. You need to figure out a suitable signal to make the trade too.
This is the point where you actually want to make the trade. Are you buying or selling? Long or short? You need to decide on the stop loss – either a tight, low risk one or a bigger stop loss if you want to go for better profits.
That’s it for your part, everything now should be automatic. The software you use will make the trade and end the trade based upon the position you set in the previous phase. It’s that simple… in theory at least.
The exciting bit, or the dis-appointing bit depending on how the currency movements progressed. The result being either a profit or a loss, either way dictated by the parameters set.
Well as you can see, the hard parts are the first 2 bits. First you need your account and you need to learn to use the software, but after that you need to learn all the theory to be able to make good decisions…
Ultimately the position you choose will either make you a profit or a loss. But at least now you know where to start. Now you can get started and hopefully soon you’ll be raking in the profits and building for a better retirement pension.