The Forex market can be an excellent way for investors to trade profitably, and millions of investors participate daily. However, before getting into the currency markets, traders should learn Forex trading, the terminology used, and how they can participate.
Here is the third part of our Ultimate Forex Guide for Beginners to get you started on your way to investing in Forex.
- Winning Strategies for New Investors
- Practice Makes Perfect
- Trading Forex on Olymp Trade
- Synopsis - Keys to Success
Interact with the underlined words and green dots to get additional details and explanations.
Explanations and definitions of terms.
Winning Strategies for New Investors
Creating a sizable investment portfolio rarely happens by accident. Successful traders adopt or develop strategies that meet their investment goals. They can customize these strategies given their unique individual situations and resources.
It's not just about understanding how the market works. It is also knowing when and where to open positions to maximize your gains. Therefore, it is important that the experienced investors and Forex beginners have a clear plan of attack to open the market.
Here is an example of the EUR/USD currency pair from February 2022. As you can see from the graph, there are many opportunities to trade profitably. The price changes provide openings for investors to take quick profits on market fluctuations regardless of which way the market moves.
The question here is how does a new investor take advantage of this volatility without making mistakes that can cost them their capital.
Olymp Trade provides great lessons on how to use their tools in developing and implementing a solid strategy. These educational materials on trading strategies are available in the Help Center. Also, the Olymp Trade platform provides several dozen ready-to-use strategies accessible through the Market and as a part of statuses.
In the above illustration, the investor is using a Simple Moving Average (SMA) strategy to decide when and where to open positions. In this case, when the green SMA line crosses the blue SMA line in one direction or another, the investor will buy or sell.
The SMA strategy illustrated is taught in one of Olymp Trade’s tutorials. Utilizing this strategy, an investor would have profited significantly several times over the course of a few days. The level of profit would have only been limited to the amount of capital invested.
This is one of dozens of strategies that OlympTrade investors learn about from online videos, blogs and expert advice available to clients. The best forex brokers for beginners like OlympTrade are committed to making their clients successful in trading. New content and support also contribute to this.
Practice Makes Perfect
As mentioned earlier, success doesn’t happen by accident, and for every unique story of accomplishment, there are hidden hours of work practicing and learning forex trading. We see the athlete win gold at the Olympics, but we don’t see the tough hours of practice, failure, and practice some more that is needed to be truly successful.
It will not take an investor the years of labor and hard work that an Olympic athlete requires. However, it will take some diligent work on perfecting your craft in trading. Fortunately, Olymp Trade provides the training ground and the tools to get prepared in creating your own success story.
Olymp Trade’s Demo Account gives users access to 10,000 demo currency units to start honing their trading skills on the Olymp Trade platform.
Use those funds to open positions based on your current understanding of the market or try out new strategies and techniques that you learn from the various educational tools discussed previously.
Trading is a learning experience best done in a real environment so the markets you’ll trade on are live and real time. Don’t worry though. If you lose your Demo Account funds, you can replenish them back up to 10,000 units and practice some more. Once you’re comfortable with your skills and the platform, you can deposit funds into your real account and begin your journey.
Trading Forex on Olymp Trade
Getting started with one of the best Forex platforms for beginners, Olymp Trade, is as easy as visiting www.olymptrade.com and opening an account. You can start with a demo account or continue to fund your account using various bank and money transfers. You can even deposit in bitcoins.
You can choose to trade using Olymp Trade’s incredibly user friendly interface with tons of tools for clients. These tools will provide you with all the functionality necessary to open and close trades quickly and reliably.
What Forex Assets Can You Trade on Olymp Trade?
Olymp Trade offers dozens of currency pairs for clients to choose from including the most widely sought after currency markets. Here is a list of some of the pairs offered, but there are many more.
Gold and silver paired with USD.
Several funds are available to trade on the Olymp Trade platform including the U.S. Real Estate Fund or the Brazilian MSCI Fund.
With so many options, traders can easily choose which markets they want to participate in. Many traders focus solely on one market and become experts in it. On the other hand, with all the tools available it is possible to track multiple markets searching for the best opportunities to open positions. The choice is yours.
Tracking Your Progress
How can you know how far you’ve come, if you don’t know where you started?
One of the most overlooked resources in Forex trading is the trade tracking tool. Olymp Trade automatically records all your trades so that you can use them as a resource in making future decisions.
Want to see how you made a profitable trade last month? Take a look at your trade history and repeat the techniques that work. Additionally, research your bad trades to identify strategy or execution errors so you don’t make them again. Trading, like most endeavors in life, requires building on our successes and correcting our failures.
Synopsis - Keys to Success
There is a wealth of information and more to come as you learn Forex trading. Here are some of the key takeaways for getting started in the Forex market.
- Take advantage of free resources online and get educated.
- Open a Demo Account.
- Use your Demo Account to practice techniques and analysis learned.
- Develop a strategy for trading that includes when you plan to enter AND exit your trades.
- Track your progress with a critical eye and make adjustments as needed.
Remember that the people who work the hardest tend to be the “luckiest”. So study hard, practice even harder, and enjoy the results 😎Go Trade Forex
Risk warning: The contents of this article do not constitute investment advice, and you bear sole responsibility for your trading activity and/or trading results.
Roughly speaking, your Forex investment portfolio is a list of your trading instruments which you chose to invest funds in, and the total value of your funds if you closed all your positions.
Simple Moving Average is one of the most commonly used moving average indicators available on the Olymp Trade platform. It is a trend indicator.