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November 28, 2016

Bcapital: Forex Tips For The Beginner Trader

Bcapital Forex TipsConsistently profitable trading is a craft that requires time and continued effort. The talent is neither innate nor honed overnight. If you are serious about leaping into the trading industry, here are five things you'll need to bring with you.

Broker and Trading Platform


Having a good trading platform puts you at a better position to make informed investment decisions. It lends a clearer perspective of the general market as well as different angles from which to interpret price action. A good trading platform, such as MetaTrader 4 or WebTrader, can be found offered by established brokerage firms like Bcapital. See to it that your prospected broker has either of these two trading platforms offered to their account holders.

Fundamental analysis


Knowledge of Fundamentals is and should be a key component of every trader's strategy. In the case of Forex, traders will do well in keeping track of macroeconomic events transpiring around the world. This includes changes in a country's currency interest rate, turmoils or partnerships established by two massive economies or countries, and other events of homogeneous nature. Staying tuned in on a comprehensive economic calendar informs you of upcoming events including what currencies they will impact, the level of importance these events have to the market, and time zones they will be released in.

Technical analysis


Knowledge of Technicals pertains to using historical price data and data points to predict future market direction. Forex traders have an abundance of reports to peruse free of charge, ranging from meeting minutes to market analysis. The latter is a robust tool for judging the strength and weakness of specific pairs for a given time frame. You can find such information provided by legitimate brokers, such as Bcapital.

Knowledge of Risk Management


Out of all the sections you'll have to learn and master, risk management is unarguably the most important component. Managing risk is a skill that will have the highest impact towards your performance and bottomline. If you can minimize risk per trade and maximize profit per trade, your account can grow immensely over a relatively short period of time. Of course, this is all theoretical and applying actual risk management measures will be more difficult than what a trader expects.


Capital

A well-funded account seems like an obvious requirement before you start to trade the foreign exchange market. A vast majority of traders, however, fail to recognize the value of a well-funded account. They dive into the markets with a few pages worth of knowledge plus some money saved up over the summer break. As a general rule of thumb, you should start with no less than $1,000 in your account. This will let you open a micro account for most brokers but is still below the minimum capital requirement for a standard account, which usually ranges around $5,000.

Going into trading as a viable career path requires sheer discipline and unbreakable focus. Individually, the five tools above will have minimal impact towards your trading success. But when combined, these tools can give you a higher probability of winning consistently. 

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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Item Reviewed: Bcapital: Forex Tips For The Beginner Trader Rating: 5 Reviewed By: EconMatters