Online Forex Trading Tutorial
There is an old adage connected to online forex and stock trading. It goes some what like this If you are inexperienced and have money and meet an experienced trader, but without money, you are likely to end up with experience and the experienced trader your money. There can be some semblance of truth in this but what this infers is trading without experience and strong fundamental knowledge of the market is an invitation to loss making.
Online Forex Trading Tutorial
There are several reputed online forex trading houses that cater to retail investors and traders. The same trading houses offer to train their prospective and existing clients on the nitty gritties of online forex trading most of the times free of cost.
What You Need To Learn About Online Forex Trading?
If you are a novice you need to start from the beginning. The macro economic factors that affect price volatility and the demand and supply of currencies that trigger the short term fluctuations which are your trading opportunities and most importantly the points of entry and exits form the basis of your learning.
Most of the online forex trading tutorials available require you to open a cost free demo/practice account so that you get exposure to either real time or simulated environment for better understanding.
Online Forex Trading Tutorial Curricula
You will see that, generally all the tutorials have more or less the same curricula. Basically speculations are made through a number of charts and indicators.
Chart Types:
1. Line chart
2. Bar chart
3. Candle stick chart
All these charts are price plots for selected periods. Then there are several indicators that help make decision. The important and most followed ones are
1. Average true range (ATR)
2. BOLLINGER BAND
3. Commodity Channel Index
4. Linear Regression
5. MACD
6. Momentum
7. Moving average
8. Parabolic time price
9. (ROC)Rate of Change
10. Relative Strength Index
11. Slow Stochastic
12. Standard Deviation
13. Stochastic
All charts and indicators are taught with sufficient demonstrations for self study. The tutorials deal with the patterns and formations made by charts/indicators and what they mean. While charts help you for short term speculative trading (technical analysis) they don’t concentrate on the underlying reasons for price movements. This is the ground for fundamental analysis. The study of macroeconomic factors such as changes in government policies, wars etc that influence supply and demand, and as a consequence prices, constitute the fundamental analysis. These things are illustrated in contrast with demonstrative price movements.
Online forex trading tutorial helps gain a lot for everyone who takes it.
anonymous
http://www.articlesbase.com/finance-articles/online-forex-trading-tutorial-114192.html
Here’s the answer I gave to the same question yesterday:
First, learn about the 50% retracement rule. This is the single most reliable and simple rule for a beginning trader. You may ignore every other "technical" or chart indicator when you are first starting out. You may learn about this by googling for it, or by finding a book.
Second, learn what to expect and what not to expect from the "advice" that you will find in your search to learn how the stock or commodities markets work. This "advice" will come in the form of fundamental analysis, news, websites, technical analysis, stock brokers, investment advisors. The best way to learn which things to pay attention to and which to ignore, is to read the book "WAll Street: The Other LAs Vegas." It might sound like a cheesy title, but it’s a good book written by a dancer who started trading in stocks, and learned what to trust and what not to trust. He learned the hard way. Once he figured it out, he turned some 50 thousand dollars into two million.
Third, you will need to develop a trading plan. This will be primarily based on your 50% retracement. rule. To this you will add a method to control your losses. For beginning traders, the easiest way to do this is to learn how to use "stop losses." So you will enter trades with the rule, you will let your profits run, and you will limit your losses.
Next, you will open an online account with a stock, currency or futures brokerage. It doesn’t matter which. Day trading is all the same. If you want to trade stocks, trade stocks. If you want to do currencies or futures, do those. The differences between them are as follows:
Stocks usually require several thousand dollars to trade. They tend to charge higher commissions and fees. With stock accounts you can usually buy a "little" more than how much cash you have. It’s called "margin."
You can open up a currencies account with *very* little money. Like, $250. Currencies are highly "leveraged" trading. Meaning a little goes a long ways. It’s good and bad.
A futures account is for trading commodity futures, stuff like oil, sugar, coffee. Again, highly leveraged. You need a minimum of 10,000 to open up this one.
If you live in the US, here are the things to look for when you shop for a brokerage:
- If you’re going to trade STOCKS, look for a brokerage that is a member of the FINRA and SIPC. This means the company is "regulated" and you won’t have to worry about them stealing your money.
- If you’re going to trade CURRENCIES or FUTURES, make sure the company is a member of the National Futures Association (NFA).
Next, open up your account. If you open a currency or futures account, the cool thing is, you can "practice" trade with their demo accounts for as long as you need. This is very useful. I recommend doing it.
Finally, once you get used to trading, start learning about additional methods of risk control. Such things as option spreads are very useful.
References :
How to start with forex?
Do you know any good online FREE!!! tutorials? Also do I have to pay for the real account? Thx for help
Hi. I am really new to online currency trading and all this stuff. Actually i havent done it ever before. I want to start with the online forex trading but i need some tips. How do I start? I got the demo account and all I see is some charts and symbols i have no idea about
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