A Basic Guide to Starting Your Trading Journey
Trading Platform Software for backtesting & auto trading, for stock, futures and forex trading systems › Forums › Example Trading Systems › A Basic Guide to Starting Your Trading Journey
May 9, 2017 at 7:47 am #4830
Trading in commodities or in the forex market can be an uphill task fraught with dangers. Especially in the case of novice traders, most of the financial pitfalls faced are due to unrealistic expectations that are common among them. Trading, whether in the forex market or in other markets, is by no means an easy and quick process. Experienced traders achieve success after months or even long years of trading.
These days, top brokers or brokerage websites all offer educational tools and informative documents to help such novice traders understand the basics and to prevent them from making ill-fated decisions. Popular tools include “Live Currency Rates”, “Economic Calendar” ,“Trade Simulator” and even a detailed FAQ page, all of which help in educating the trader in the fundamentals. (Information credit: easyMarkets)
These are discussed in brief below:-
• Live Currency Rates :- The currency market, more popularly known as forex contains listings of currency pairs that can fluctuate every minute. The values of the various currency denominations change constantly, owing to various geo-political factors. Thus, in order to trade efficiently, traders need up to date information at every moment to extract the maximum profits. So a good broker always provides a live currency rating system which is a pivotal part of any trading decision. They include live rates, spreads and also information relating to previous market trends of the specified currency.
• Economic Calendar :- As the current economy is centred around various news events of political interest, it is necessary to stay updated on all of the major financial events of the world. Often, even geo-political events play a part. An economic calendar can help traders, shareholders and media alike to track and take notice of all the events around the globe. Data released are categorized as low, medium and high. All of these three categories have different impacts on the economy.
• Trade Simulator :- As discussed earlier, it takes loads of practise, experience and skill to perfect the art of trading. As such, adapting a “trial and error” approach for novice traders can be disastrous. Good brokerage companies provide traders with trading simulators. Trading simulators are essentially a program that allows traders to practise trading on a virtual market with virtual money, using real world market fundamentals. Because it uses virtual currency, the risk faced by novice traders is eliminated, since no real money will be lost. Trading simulators also give traders an opportunity to conduct research. They offer a range of tools, like historical price data, performance charts and price-earning ratios, which can be a great learning experience for a beginner.December 11, 2017 at 5:45 am #4856
You must be logged in to reply to this topic.