What is forex?

Forex is the short form for what one calls foreign exchange.

It is the process of changing one currency into another. This happens for various reasons like travel and tourism, commerce, and trading.

The place where forex is traded is called the forex market. The forex trading market is open for trading 24 hours 5 days a week.

The forex market is one of the largest markets. Average global turnover is estimated to about more than $6.5 trillion.

It is one of the most profitable, convenient, and safe markets.

Is forex trading the right career?

As rewarding as forex trading is, it possibly is not the right career for everyone, speaking about full-time, it might not at all be the right decision for some.

The following list of qualities is important for one to see themselves in a forex career:

1. Ability to read charts and analyze them properly.
2. Mathematical skills and abilities are very crucial and essential for one to be successful in a forex career.
3. Problem-solving skills are very important.
4. Technical and fundamental analysis.
5. Making strategies and thinking strategically at all times would be very essential.
6. Showing great attention to detail and knowing how to keep and save records properly is a need.
7. Self-learning and patience are a must.

One should have a high appetite for risk-taking. It is important to stay calm in all situations as it is possible to see high peaks and even the depths of failure. It is very possible you may lose everything and not have even a single penny, this situation may arise at least once in your lifetime.

You should keep yourself ready for all such situations.

How to start trading in forex?

So, to start a forex trading journey, here are a few steps to follow.

Spend time learning about the market. If necessary take up a course, but do not jump into trading big amounts till you spend enough time educating yourself in forex trading. It is very important to understand how to read the charts and analytics before going all in.

At the start, it is better to trade small amounts till you get a hang of it.

It is very important to have a road map and a trading strategy, it is not always possible to keep on keenly observing the charts and analytics so, it is always important to know your limit. The upper limit of money you can put in and where to stop, having a detailed understanding of your financial situation saves you from all the negative situations.

After you start trading, keep checking your position at the end of the day, most sites provide your accounting to make sure you are never out of cash and you have enough cash to make future trades. Take care of burnout.

Trading is like getting into a rollercoaster of mixed emotions, obsessing over what cannot be determined is something that will affect your mental health to a large extent, and with such issues, you would never be able to give in the required productivity. 

Forex trading strategies:

Scalp trade: 

This is held for seconds or minutes at most. The number of pips is the term by which profit amounts are restricted.

Small profits should be made here in each trade a good amount will be added up at the end. Much volatility cannot be handled here.

Traders usually restrict this trade to the busiest times of the trading period. It is very important to keep reading and understanding every aspect of the chart and have an intuition of every move in the market to be successful here.

Day trades:

The trades that are held for a day are called day trades. They are held for a couple of hours or minutes here, technical analysis skills and knowledge of technical indicators are very important here.

Swing trades:

The trade is held for longer than a day in swing trade. The trade is held for either a few days or weeks over here. Since the swing trade is held for a pretty long time there is no need to constantly keep checking on the trade, charts, and technical analytics. Monitoring them once in a while would be enough, they will grow in their own time.

Position trade:

The position trade is held for a very long period of time. They are held for several months or even years.

This type of trade requires fundamental analysis and skills. 

Scams:

The forex trading industry has been growing more day after day, with a plethora of scams and frauds, there is no defined way to prevent them, it just becomes very important to educate yourself about these scams and save yourself from them.

One very popular scam here is where the scammer sends emails or messages which consist of links or buttons, clicking which take you to a fraud website where the scammer can get hold of your personal details or other important information.

So, it gets very important to not click on any shady links or buttons you get as a message or an email.

There are courses that promise to make you rich and get a number of fake success testimonials, but once you pay and get into the course you never get knowledge worth your money, some even disappear after you pay the money.

It is very important to check everything about something before paying an amount, and research a good course before paying the money to join.

Pros:

1. Forex trading happens 24 hours a day.
2. The Forex market has the potential to make you very wealthy.
3. Requires very less initial capital
4. Offers the highest liquidity.

Cons:

1. Extreme leverage.
2. The growing scams and frauds.

Conclusion:

The forex market is one of the most rewarding markets. It is very important to understand that spending time and learning about the market patiently can make you very wealthy. Taking up proper courses and saving yourself from the increasing scams and frauds is very important to go forward in the market.