The Forex market in its essence is a global currency trading market. It is the most liquid and largest foreign exchange market on the planet, and trading volumes are impressive. In terms of numbers, it is about $5 trillion. No stock exchange can match such figures.
This is the reason why Forex is so popular among a large number of investors.
However, often people who know absolutely nothing about trading enter the market. The outcome is almost always predictable - losing one deposit after another, while all they had to do was to find out how to start trading Forex correctly, to avoid a lot of mistakes.
Where do you start?
Both in the business environment and stock trading, it's hard to find a better way than self-education. Studying specialists' practices, reading their blogs, as well as analyzing news and market reactions to different events is very useful. Reading thematic books is also useful because it helps to broaden investors' horizons and knowledge base.
Minimum deposit to start Forex trading
Beginners are first of all interested in how much money to start trading at Forex. It is very important to clear up a common mistake, the essence of which is that the lower the amount of the minimum deposit at the broker, the better. Most people search for a broker who offers to begin with 10 or 15 dollars, and they are very happy when they find him.
Nothing good can come from the low market entry-level, as trading at Forex is carried out with standard lots of $100,000, which means that if the deposit is $5-10, even an order of 0.01 lots will have to be opened with significant leverage. This strategy leaves no room for mistake, if the price moves even slightly against his position, Margin Call and Stop Out can follow almost immediately.
Since the more money you have on deposit, the lower the risk, so anyone who takes his first steps in the financial markets, should not start with 5 dollars, unless, of course, we are talking about cent accounts, where $5-10 correspond to $ 500-1000 on the usual one.
Which broker should I choose?
The most important thing is to choose a reliable and trustworthy company from the list of forex brokers in South Africa
. Because it is from the broker that the safety of your investments and the processing of applications depend. So, the broker you choose must have a name on the Forex market, as well as have legal documents confirming its status.
How not to lose?
Be cautious and trust no one but you. Naturally, it is impossible to avoid losses, so try as much as possible to make this loss a virtual rather than a real one. Risk real money once you have gained a few months of experience in the active trading guide
on a demo account.
Eventually, you must come to determine your trading style and the basic parameters of deals. Since no trader, even the most brilliant one, will be able to advise solely for you. Keep enough money on your account to avoid a margin call. Stay open to new trading ideas and constantly scan for them.
Forex trading is not that easy to start, but it's exciting because it's a huge financial market where you always have to stay up-to-date.
It is an activity for advanced people who are exposed to great opportunities. Not only is it the reality of making money, but also the ability to work from almost any place on earth connected to the Internet. However, dreams won't come true if you don't treat them with great dedication and perseverance.