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Free Forex Advice For Beginners

March 26, 2009 by  
Filed under Forex Market

There are many ways of making money in life, and one of them that has gained a massive following in the last few years is Forex trading. This involves the trading of currencies, and you are basically betting on whether the market will move up or down over a period of time. In its basic form, this is no more than a 50/50 coin toss, so a strike rate of 50% is the worst you should do. To make a profit you will need about a 60& to 65% success rate though, as you need to take into account the broker fees you pay on each trade, win or lose.

Software

There is so much software available to trade on Forex these days, a newbie can get confused before they have even started. The best advice is to use MT4, as it is free open source software that nearly all brokers use. It is well supported and is great for the beginner and experienced trader alike. Once you really get under the bonnet of MT4 it allows you to program your own bots, and that is not as difficult as it may sound. You can use the brokers own software, although if in the future you switch broker to take advantage of lower fees then you will have to learn new software from scratch, you will not have that problem with MT4.

Brokers

There are a lot of brokers around these days, but you are best sticking to the well-known ones that have been established for a few years. Do not be drawn in by the offer of low fees, a flashy looking web site, all may not be what it seems with smaller brokers. Always do your research first before registering for an account, and ask about the company you are interested in on Forex forums before giving them any of your money. The established brokers want you to win, and so will give you a lot of excellent free advice. This is because the more you win, the longer you will stay with them and trade higher amounts of money, as this equals more profit for them.

Money

If you have never traded on Forex before then you should never deposit more than $100, and use a micro account where you are only trading in cents. In fact, use the brokers demo account first. If you then find yourself making consistent profits, then switch to a real money micro account and see if you continue to make profits for at least a month. Only then should you increase your stakes. Beginners who go in and deposit $1000’s are just stupid, and more than often than not they will lose all of their money.

Trading on the Forex markets can be as easy or complex as you want it to be. The best thing it to keep it simple, ignore all of the graphs, and just watch the markets. Always go with the trend of a market that has been moving in one direction for a few days, as this will improve your strike rate.

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