So you have discovered the wonderful, vibrant world of Forex trading. Now you want to know how all this happens. Do you move to New York or Hong Kong to stay up close to market information or is there an online trading platform I can use from home?
Well, truth be told, you can go to one of those places, but that doesn't make you a better trader. This can make you the best "local" trader. Ans is an online trading platform and they all differ in features and "user-friendliness". Before you dive in head first, look at these aspects and features:
o Does the company offer a free trial period? Most reputable Trade Forex will allow you to download the platform software at no charge and fund your account with "virtual money" to practice. You shouldn't be pressured to go live right away.
o What types of equipment are offered? The root of forex trading lies in the tools used. There are a variety of tools available to the trader. These are all based on the tick of the currency pairing being evaluated.
Terminology is also the key to success and any good online trading platform will define the terms used in plain English (or whatever language you prefer). To make smart, positive trades one needs to understand terms like Stochastics, PIP, IRS Points, and Key Indicators.
o Does the forex company provide any strategy or tactics to its users? A strategy is just as important as knowing what you are getting into. Better, more reliable online trading platforms will guide users in this area. A good strategy can make your forex experience more enjoyable and profitable. Some examples would be swing trading, trending, or futures forecasting.
Finally, when it is time to flip to a live account and trade for real, is the move a smooth one? This transition should be as seamless as possible so that you don't have a lot of downloading, installing, and tweaking to do. All that should have been done during the free trial. In other words, the lessons learned in practice should be able to be applied to your new live account.