Starting in FOREX trading can feel overwhelming with so many terms, strategies, and markets. This post is your straightforward guide to getting started the right way. Whether you want to trade part-time or build a full-time income, these foundational steps will set you up for success.
FOREX (Foreign Exchange) trading is the buying and selling of currencies with the goal of profiting from changes in exchange rates. It’s the largest financial market in the world, open 24 hours a day, five days a week.
Currency Pairs: How currencies are quoted and traded
Pips and Lots: Understanding price movement and trade size
Leverage and Margin: Using borrowed funds responsibly
Bid and Ask Price: The price to buy and sell
Spread and Commission: Trading costs you should be aware of
Look for regulation, low spreads, and good customer support.
Practice without risking real money to learn how the platform works.
Start with charts, trends, support/resistance, and news impact.
Set rules for entries, exits, risk management, and position sizing.
Trading without a plan or strategy
Over-leveraging and risking too much per trade
Chasing losses or trading emotionally
Ignoring risk management rules
Start small, stay patient, and focus on continuous learning. The best traders are those who manage risks well and adapt to changing markets.
