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Is forex trading good for beginners?

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Is forex trading good for beginners - ForexspaceX.com

Forex trading is one of the most lucrative and rewarding professions provided if you are a professional. However, beginners can also make a decent return on their investment in one of the largest financial markets in the world. Currency trading is gaining more popularity with ease of access and low trading cost. This is the reason many beginners and part-time professionals have started trading forex.

Pros of Forex Trading

1.    24/5 trading

2.    High leverage

3.    high liquidity

4.    Low transactional charges

5.    Low entry barriers for beginners

Cons of Forex Trading

1.    Automation used by the institution

2.    Operational Risks from Cheap brokers

Why forex trading is popular?

Forex trading is popular due to the low entry barrier and high leverage. It takes less money to take a position in currency pair than it does to trade stocks.

The foreign exchange market is open 24 hours a day and provides equal opportunities to all the participants. The forex market is highly liquid and it is nearly impossible for any institution to manipulate it. The daily average volume of the forex market is nearly $5 trillion which is much higher than any stock indices.

Is forex trading difficult to learn?

Not at all. Anyone can learn forex trading with the help of Online resources, attending webinars of top forex brokers, and learning from free Tutorials and courses available on YouTube and books. One can easily become profitable in forex trading by using simple trading strategies and applying money management rules.

However, to become a professional trader one must have a little patience. Mastering price action in different market environments takes a couple of months. So, one cannot become a professional trader in a few weeks.

What does forex trading require?

There are basically three requirements. Laptop, reliable Internet connection, and a good broker. Forex trading provides the freedom to work anywhere and anytime.

How do I trade forex with $100?

$100 is enough to get you started. Just open an account with a good broker like. You will get a modern trading platform with dozens of technical indicators and multi-timeframe charting software. Practice your strategy on a demo account provided by the broker and then jump into the real market.

Do some research by reading financial news or economic data reports and then decide if you want to buy or sell. For instance, the Australian government has reported an increase in their GDP, so that means the Australian dollar will go up.

How much can a beginner earn in the forex market?

It really depends on the expertise of an individual. However, one can make a decent return on their investment by trading major currency pairs like EUR/USD, GBPUSD, or USDJPY.

Swing traders make good money when they buy at lower prices and sell at a higher price. Your aim should be to make a 10 to 15% return on your investment on a consistent basis. However, if you are trying to double your capital in a single month then you are taking a high risk.

Mistakes to avoid in forex trading

1.    Do not jump into the real market without proper education.

2.    Practice all your trading strategies in the demo account.

3.    Always use the stop loss order or you may lose your capital.

4.    Always plan your trade



Final thoughts

In this article, we have tried to summarize the questions asked by beginners. Once a beginner has understood the basics of forex and learned the usage of popular technical indicators, a good return can be generated easily.

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