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The Best Way to Learn Forex Trading

The Best Way to Learn Forex Trading
The Siliconreview
03 November, 2020

The currency exchange is the largest financial market in the world. Every day, it sees spectacular transaction volumes that exceed 6 trillion US dollars. Thanks to online technologies, anyone can access the marketplace from an internet-connected device. Trading terminals can be installed on computers, tablets, or smartphones. But how is one to learn the basics?

All the residents of South Africa have access to a wealth of educational material. Now, international brokers recognize the importance of the continent and tailor their content to local needs. Entry to the market is increasingly affordable. Forex education is more accessible than ever. Importantly, it can be free.

Best Sources of Forex Education

To trade Forex, one needs a registered account from a trusted broker. These companies act as intermediaries. They connect clients to the global marketplace, provide them with software, and offer guidance. Check the official website of your brokerage - reliable firms publish plenty of educational material. This may include articles, video tutorials, podcasts, etc. 

Why Demo Trading Is Vital

One of the key aspects of Forex trading is the demo. This is a simulation mode of the trading platform. It unlocks all features of the terminal, allowing users to practice without risk. No profit or loss is made. A demo trading account is easy to create - usually, the broker will only require your basic contact details. 

Trading this way gives you an idea of what Forex is all about. You can analyze charts at your own pace and get used to management tools. The platform should become a familiar environment before you put any real money at stake. In addition, you can test out different trading styles to see which suits you best. Learn more about Forex trading for beginners in Africa, and monetize your skills.

Opening a Forex Account

Both demo and live accounts are registered through a broker’s website. Accounts for training purposes are the easiest to set up. Once you fill in a simple form, login and password will land in your inbox. 

Live trading involves real money. This is why the procedure is more complex. Brokers will ask for personal and financial details in order to verify your identity. This is perfectly legit.

Importantly, account registration is free. Recommended software (e.g., MetaTrader 4) can also be downloaded and installed for free. Trusted brokerage brands like Forextime do not charge you for using their platforms and they encourage demo trading as the initial step. 

Take Your Time

The practice is irreplaceable. Therefore, do not rush into live trading. Study articles, tutorials, and other materials to understand how the market works. Next, apply theoretical knowledge to practical tasks in the demo mode. Like any form of investment, Forex is not risk-free. It is vital to understand what the risks are, and how they can be managed. 

For instance, traders must learn to set Stop Loss and Take Profit values for every position. These are primary tools that limit potential losses. Trades can be executed automatically once the price reaches a pre-set level. This protects against adverse market trends.

Another crucial aspect is the rules of leverage. This arrangement allows you to open positions for more than you deposit. However, higher potential returns never come without higher risks. Thus, learning to use leverage is essential. 

When to Switch to Live Mode

Trading with real money requires a live account. The demo mode shows you how the system works. However, it is important to remember that professional experience is still different. When actual funds are involved, human behavior can become irrational. 

Therefore, it is recommended you start small. Begin with modest deposits and avoid leverage at first. Special live accounts allow trading with as little as $10. Known as the cent accounts, they are offered to traders from South Africa and others. 

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Specialized YouTube Channels

The largest video sharing site has dozens of Forex channels. Choose sources with the largest numbers of subscribers. These are usually created by professional traders of currencies and stocks. YouTube channels cover different aspects of the job, from technical tools and strategies to psychology. 

Different Educational Sources

Today, Forex education is accessible for free. As long as you pick trusted sources, you have a wealth of material to learn from. Experts provide trading insights in articles, videos, and podcasts. Register a demo account and apply their tips in practice.