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Learn Forex Trading Easier with These 6 Steps

JENTIKA.IDForeign exchange (forex) trading is known as an active financial strengthening activity. Trading is different from investing, which tends to be passive. Even so, both forex trading and forex investment are considered capable of providing promising profits. 

Many people have started to be interested in learning forex trading to improve their financial strength in the future. However, you need to know that forex is a type of investment that has high risk. 

Even though you have started learning forex trading , without experience and in-depth investment knowledge, forex trading could backfire and attack you and weaken your financial strength.

Read Also: Understanding What Forex Trading Is and Its Disadvantages as an Investment

You also need to invest so that your future is more secure. Now investing is easier with OCTO Mobile from CIMB Niaga. The product choices are complete, ranging from mutual funds, bonds, to foreign exchange. Come on, #GetWealthSoon !

6 steps to learn forex trading for beginners

Even though it has high risks, learning forex trading from an early age can be a good alternative to increase knowledge and strategies for making good and wise investments . One of the important skills for you to have when learning forex trading is a high level of concentration. This skill is needed considering that forex movements continue to change every second, so you have to be really observant and thorough in learning forex trading so you can carry out the right analysis. Apart from that, there are also several steps that might help you in learning forex trading , such as the following.

1. Create a demo account

When learning forex trading , it's a good idea to immediately apply the theory you get. However, do not immediately carry out forex trading transactions . 

Therefore, you can start creating a demo account that projects a forex trading activity as your first step in learning this investment activity. You don't need to worry about losing capital when learning forex trading using a demo account. The reason is, you can carry out trading activities without having to spend a penny.

Please remember that this demo account is a means of learning forex trading , it would be better if you learn about the forex transaction process rather than seeing the dynamic movements of the money market. Usually demo accounts for learning forex trading have an overview of real foreign exchange market conditions. 

So, you can also use the demo account to train the intuition and analysis needed as a trader. In creating a demo account, you can contact a trusted broker.

2. Get to know the types of trading platforms

Once you have a demo account, you can immediately start continuing your forex trading learning steps with real market situations. However, there is one thing that is needed to continue this step. 

You must first enter or register yourself on a trading platform . The demo account you create through a broker is indeed your identity as a trader, but you must also register the account with the trading platform to continue the process of learning forex trading . 

Currently, there are many trading platforms available online that can be used to learn forex trading . To get access to use this trading platform , you can contact the broker who managed your previous demo account again. If you are already established in forex transactions, you can make transactions easily and quickly using OCTO Mobile.

3. Understand the right time for forex trading

Time is an essential element that you need to pay attention to when learning forex trading . As is well known, the money market continues to run 24 hours a day for 5 days a week. However, as a human being to continue working during that time period is impossible. 

Therefore, you must be able to carefully manage the time that is appropriate and right for you in doing forex trading . For the time element, basically there are 4 time sessions that you need to pay attention to when learning forex trading , namely the Sydney, Tokyo, London, and New York sessions.

By understanding the four sessions when learning to trade , you can determine a time scheme that suits your personality to carry out forex transactions. If you really intend to become a full-time trader , maybe you can try each session faster. However, in applying the time or session you must have high concentration. If you feel that the activity is too risky, you can start learning trading time in your spare time, such as after work hours.

4. Understand the mechanisms of technical indicators

Technical indicators are one of the instruments that are important for you to understand when learning forex trading . With a deep understanding of technical indicators, it will be easier for you to carry out calculations or analysis regarding prices, volumes and market interest related to foreign exchange. Technical indicators are also one of the methods used by traders to map market conditions as well as predict the direction of future foreign exchange price movements. 

Trading indicators also usually exist as tools on various trading platforms . Even so, you still need to understand how to analyze technical indicators in depth as an important step in learning forex trading

5. Learn fundamental indicators

In addition to technical indicators, there are other terms that you need to understand. Namely fundamental indicators. Fundamental indicators are also one of the references you need to conduct analysis as a means of learning forex trading . These fundamental indicators usually come from economic data, as well as socio-political issues that are developing in a country and can affect the movement of foreign exchange rates. 

In studying fundamental indicators, you will do more research on economic and social data that affect a country's currency. The economic data that you will research will usually be strong around a country's economic prospects, inflation, and unemployment rates. Basically, if a country has good economic prospects, the analysis you do will tend to lead to strengthening the value of a currency. However, the opposite also applies.

6. Understand the risks before trading

Even though you already understand all kinds of knowledge and good steps to learn forex trading , you also need to understand what risks can come your way when you start trading forex seriously. Understanding the risks of forex trading is not just based on instinct. There are many factors that can be analyzed to present various projections of future risks. 

Risk will always be present in every trading activity , but with in-depth understanding and good management, you can determine your loss tolerance limit so that you can launch a wise strategy to divert potential large losses.

After you gain good knowledge and understanding when learning forex trading , the next step you can take is to start making real-time forex transactions . For those of you who are interested in starting to invest in forex, you can choose a trusted foreign exchange transaction institution , such as CIMB Niaga. CIMB Niaga has a forex service product that offers convenience related to foreign exchange transaction services that can meet your needs. 

The forex transactions offered by CIMB Niaga are quite diverse, competitive exchange rates (rates) which also provide various foreign currencies, foreign exchange buying and selling, and transfer facilities to all countries. You are free to make forex transactions anytime and anywhere with OCTO Mobile and OCTO Clicks Make sure to always make forex transactions with CIMB Niaga. Find complete information here .

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