To try your hand at trading in India, first of all, you need to know Forex and learn it from scratch. There are many pitfalls in trading, and claiming that it’s easy money is entirely wrong. But if you are ready to learn how to trade the currency market and are looking for something other than a new game, then a chart with quotes will bring you profit. The main thing is to take this kind of earnings seriously, and learning to work on Forex will definitely give a positive result.
Forex is the largest financial market – now, the daily volume of currency trading is trillions of dollars. This figure is growing every year. There is no way to take all of them, but you can try to take your bit, but you have to learn how to earn on Forex.
What do you need to trade on Forex in India?
Do not set unrealistic goals from the beginning of your trading career. Many ads on the Internet say that in Forex, you can make $10 000 a month from $100. It is possible, but only at a time. Learning forex trading will take more time. If you can keep your deposit with minimal deviations in any direction in the process of learning, this is very good.
Of course, be prepared for the fact that there may be losses. That’s okay! There are no traders in the world who trade without losses. The main thing is to learn to draw certain conclusions.
Trading is risky, and that is why every professional Indian trader will never take a loan for trading. No experienced and adequate trader will sell his apartment to fund his account with a broker. Successful traders withdraw their profits and invest in real estate and other projects, creating a financial cushion and passive income sources.
When funding your account, it’s best to refuse the bonus interest the broker offers you. It’s not a gift. Each platform has its own nuances for bonuses that you should familiarize yourself with.
There is no need to linger on the virtual training accounts. It will become a toy for you and won’t bring you any real money. Beginner traders need to realize that they treat a real account and a demo account differently. When a demo deposit is played with ten times your actual money, you will make real money, but the result is unlikely to be repeated.
Take learning to trade Forex as seriously as possible. It is not a game, but a serious kind of earning, which you must study. Here in India, we all understand that to get higher education, you need to learn long and hard, but everyone wants everything at once.
It is essential to understand that learning to trade on Forex is not only understanding how the terminal works – the technical part, where everything is reduced to opening a currency pair, specifying the volume, and pushing Buy or Sell.
Learning Forex is conditional because knowing when and what to buy is a daily workflow – analytics and market forecasting. That’s why it is considered that learning to trade on Forex lasts a lifetime. It would be more correct to call it not learning but research because market situations are often not repeated, and there are always new facets.
Where to start learning how to trade Forex?
To systematize, you need to learn how to analyze the market. There are two types of exchange rate analysis – technical and fundamental.
You will frequently meet the phrase “technical analysis”. It can also be referred to as “graphical analysis”. This type of analysis only examines the price chart itself and uses past prices to predict future ones. It includes tools such as:
- Candlestick patterns
- Chart patterns.
- Most often, these methods overlap and combine.
Most often, these methods intersect and combine.
Education in Forex trading is mainly focused on technical analysis, but there is also a fundamental analysis. It is often forgotten, but it is better not to do it. Fundamental analysis means working not with the chart itself but with the factors that can influence its behavior. The main one of these factors is economic news.
Changes in the direction of trends are constantly occurring in the market, and the trader’s main task is to “jump” into this trend at the earliest stage of its formation.
Indicators are special algorithms and show auxiliary lines. They help the trader analyze the chart changes in currency pairs quotes most effectively.
The trading terminal is already built in several dozen indicators, allowing you to start working immediately.
Everything is simple – in the trading terminal, you choose the indicator displayed on the chart. Each indicator works differently, but the essence is the same – to show the critical moments when the price changes its trend.
The shapes formed by the price movement on the chart are the basis of technical analysis of the Forex market. Studying the history of price behavior, experts have noticed how it regularly repeats the direction of its movement after forming certain shapes on the chart.
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How to choose a currency pair for the first trading?
Experts advise starting work on the currency exchange with one maximum of two major currency pairs. Major currency pairs are those in which the U.S. dollar participates.
The trader must refrain from working with high volatility and exotic pairs.
Learning Forex trading in India will take a lot of time, but it will be exciting. You will be able to penetrate the very depth of the currency market and understand how amazing it is.