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.
The position
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.
The motion
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 exit
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.
What next?
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.
Related Reading
- How to Trade Out of a Bad Losing Position in Forex Back into Profit (Part I)
- Scaling In and Out of a Position Gives You the Needed Flexibility to Manage a Forex Trade
- How to Trade Out of a Bad Losing Position in Forex Back into Profit (Part II)
- Risk Management Basics – Risk to Award Ratio
- Why the Amount of Pips Made in a Day May Not Matter At All
The best trading is indeed done using either an exclusively manual trading system or a manual trading system such as Forex G6 and Forex Trade Sitter which requires the trader to enter the trade manually and then allowing the expert advisor to manage exiting of trades based on internal algorithms.