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 How to trade forex for beginners


How to trade forex for beginners, If you are thinking of starting to invest your money in the forex or forex trading market, you may be wondering about the pros and cons of investing in this field.


Now everywhere you go, you see ads of online forex brokers saying how you can start trading with them even with a small capital, up to $100, how you can make huge profits, and all that talk.


Before you jump straight into this perilous world, you should think about your situation very carefully.


Forex Trading

Forex trading is not for everyone.

What some are saying is true, you can start investing with very low capital and maybe earn up to 10% a day, but if you don't know what you are doing.

The chances of burning or losing all your money on your first trade in this field will be very, very high.

Forex trading, like most trading activities, can have both favorable and unsuitable characteristics for traders.

Therefore, individuals seeking to enter the currency/forex trading market should weigh the advantages and disadvantages of forex in order to decide whether this market is attractive and suitable for them.


Pros of investing in forex or forex trading

Although there are some risks in the field of currency trading “Forex”, there are many advantages that can make trading in this field a profitable and attractive activity. These pluses include:


Liquidity

The forex market is the world's largest by volume. This means that there is usually enough liquidity to trade in this market, especially in the major currency pairs.

Traders who work for “currency brokerage” firms are usually given enough liquidity to trade.

As the brokerages themselves will usually take the opposite position of trading when liquidity is scarce in other parts of the market.


Quick Selling Possibility

Selling in general in some markets (such as the stock market) may require borrowing assets and taking risks that the lender can exchange for a short position. But selling currencies quickly is relatively easier than other investments.

Currencies are bought and sold in pairs, meaning that whenever a trader buys one currency, they sell another at the same time.

For example, if you bought pounds/dollars, this means that you bought pounds and sold dollars and vice versa.

So traders who expect a currency to fall in value need to sell only that currency and buy another currency paired with it, without any borrowing in the process.

Noting that we do not always recommend borrowing assets or working in a “leverage” method, neither in the forex nor even in the stock market, for several reasons that we will mention later.


There is a possibility that you will make a profit quickly

The forex market is very fast-moving and has great liquidity.

These characteristics, combined with the high liquidity typically available to forex traders, meaning that there are faster returns in the forex market than in some other markets.

For example, in the stock markets, traders may need to wait for the long-term growth of the value of the assets “stocks” to reap the returns, which is what happens in the stock market most of the time.

But this does not happen in the currency market, where you can sell currencies quickly, which means taking profits quickly as well.


Ease of access

The forex market is one of the most accessible markets for individual traders.

Traders can set up a forex account within a period of one to three days and start trading with $50 or more (sometimes more, sometimes less).

Trading can also be done via most of the online brokerages and traders can access real-time market prices, news, price charts, tools, and strategies through online trading platforms as well.

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