10 Easy Steps to Get into Forex Trading

Forex trading has become more popular among investors worldwide over the last decade. It has attracted thousands of traders who want to improve their trading portfolios, and beginners have found it as a way to earn extra money and start their trading journey. Despite the risk factors and complexities of the forex market, there are chances of making huge profits in no time.

However, if you are looking forward to trading forex and taking advantage of the volatility of the global financial market, we have the most efficient steps for you to take and get started like a professional investor. So, before anything else, you should know what is forex trading and how does it work with the right strategies and guidance for all traders.

You can trade forex on the NAGA platform because of its unique features, promising customer support, government regulations and authorizations, its Autocopy feature, several account types, popular investment app, 360 educational materials on trading, and the best user experience for trading. NAGA is a great platform for users who are looking to start their trading career.

What is Forex Trading?

Forex trading is the exchange of foreign currencies or the process of buying and selling currencies for trading, tourism, and commerce within the forex market which is the largest financial market in the world. Investors can trade and invest in currencies through an online forex broker that offers several features, functionalities, and possibilities for trading.

Also, it is crucial to decide which broker to trade with and then research whether the broker holds legitimate regulations and government compliance to assure safety. The forex market is open 24/5 and investors can use currencies to conduct business and foreign trade.

10 easy steps to trade forex

1. Define your trading goals and style - Before setting out your trading journey, you must know what you are looking for and have clear goals in mind. Once your goals are set, you should know the methods for achieving those goals. Every investor has a trading style that defines certain approaches and strategies according to their personality and requirement for successful trading. You may be a day trader or a position trader, there are always risks associated and that is why you should choose the right broker based on your personality and trading habits. 
2. Choose the Right Broker - Choosing the right broker is of paramount importance while learning everything about the broker is also very useful. It can seem daunting for beginners but they should devote their time to learning about the broker’s policies, terms & conditions, and history with clients. You should also be sure that the broker is suitable for the analysis you are looking for and look for clear charts or Fibonacci numbers. All-in-all the online forex broker should offer you tools and features to help you perform trade successfully. 
3. Determine Entry and Exit Points - Traders may get confused with charts having different information on charts. Sometimes what you see as a buying opportunity might be a sell signal. Hence one should synchronize between weekly charts and daily charts for time entry. This means that if the weekly chart gives the buying signal, the daily chart should confirm it. The entry and exit point to keep track of your trades and perform better. 
4. Be consistent - To be consistent with your methods as a trader, you need to know the right information that will help make trade decisions. Whether you are entering or exiting the trade, you require the knowledge to get your timing right to prevent losses. Several traders monitor the various economic factors that can impact the market and others use technical analysis as well. No matter the implemented method, the prime factor is to be consistent and execute trades and make profits. 
5. Calculate Expectancy - To expect positive outcomes, you should have a reliable system that uses appropriate strategies and formulas. One must look at past trades and analyze both the winner's and the loser’s moves. Look at the last few trades and check how you would enter and exit the same trade and determine the profit/loss situation. There are ways to calculate the percentage profit but there are chances of market conditions changing. So, you can calculate your expectancy based on the formula - Expectancy- = (% Won * Average Win) – (%Loss * Average Loss) Also, one should analyze their risk and their comfort level of taking risks. For that, a risk-reward ratio can help you earn long-term profits. Traders also use stop-loss orders to exit a position at a specific exchange rate. This can help you manage your risk and prevent losses as well. Beyond these, a trade must have a unique strategy to win the trade. 
6. Positive feedback Loop - Follow the positive feedback loop and rely on your successful trading moves. The positive feedback loops can determine a successful trade that went according to your planning and strategy. The loop can help traders build their success rate and build confidence in future trades. Positive feedback loops are important in forex trading for beginners because they can show them their history of moves. Even if you face a small loss according to your planning of a trade, there will be positive feedback. 
7. Be focused and make small losses - you should beware of risk factors from the start because you have invested your money. Have the right attitude towards your investments and be stress-free with small losses as well. Small losses can help you learn and tend to your mistakes that you cannot afford to make with bigger trades and money involved. 
8. Perform Weekly analysis - On weekends, you can study weekly charts and the analysis that you made. This is a great time because the market is closed and you can get time to analyze patterns, if they are making double-top or whether the news suggests market reversal. You can easily make the best plans by being patient and waiting for your setups as well. Weekly analysis can put you ahead of the trade with fundamental and technical patterns and charts. 
9. Printed records are necessary - Every successful and unsuccessful trade can be documented as printed records. You can print out charts with your strategies and within that chart, you can mark the entry and exit points. Also, investors can make relevant comments that may include emotional reasons influencing the action. You can identify whether the decisions you made were hasty, out of anxiety or if you have panicked. Once you have made these important motes, you can keep a check on your mental control. Printed records of your trading tactics and important points may help you in the long run as you can get a chance to identify your mistakes and strengths. 
10. Read educational materials - Every broker has their own set of educational materials that cover a wide range of topics from which you can learn and execute trades successfully. They can cover fundamental topics that like what is forex trading and how it can benefit alongside other advanced subjects for professional traders. By reading educational materials on NAGA, you can get 360 exposures to e-books, articles, and webinars conducted by professional traders. Hence before you start practicing with real-time trades and demo accounts, you are well-versed with all trading and market-related topics and terms.

What are the benefits of Forex Trading

• Trade 24 hours - The forex market is open for 24 hours and 5 days a week and trading begin when the global financial centers across the globe are open. There are situations of multiple zones overlapping as well. 
• Liquidity - Forex trading is known for its superior liquidity, unlike other markets that attract thousands of investors and traders worldwide. The market turns $5 trillion daily when a large amount of money is converted without impacting the prices. 
• Leverage - Traders can trade forex with leverage which means they can pay an initial small percentage to open a large position. Trading forex with leverage can help investors with long-term trading possibilities and maximize their profits or losses. 
• Accessibility - Based on the comparison with other financial markets, forex trading requires lower amounts. However, forex trading can be practiced anytime using smartphones or desktops through software supported by Android or iOS. 
• Low-cost - The cost per forex transaction is much less than a cost of an average stock trade. With that said, you can save a lot of money and trade forex with low costs. 
• Transparency - The forex market is simply impossible to interfere with because of its deep liquidity and extreme security measures that keep all results fail and transparent to customers worldwide.

Final Word

Forex trading can take time because it requires experience to trade successfully. However, it is open to beginners who can explore and learn about the forex market from online materials and expert approaches from professionals. The abovementioned steps can help you become a better trader for rationally deciding trades. Trading is an art and it requires disciplined practice and consistency for success.

Therefore, taking time in learning is recommended. You can check out NAGA.com for its social trading feature that can enable users to learn from forex trading experts and professionals by interacting with them within a social environment. Users can also access both MetaTrader 4 and 5 and trade more than 1000 assets and various instruments.

Also, NAGA is an ideal online broker for beginners for its easy usability and navigation. The NAGA customer support is available through emails and lives chats 24/5. If you are looking for a safe trading environment, NAGA has you covered.