There aren’t too many modern investment vehicles as exciting as the world of Forex.
Constantly changing, ever evolving, and open 24/7 every single day of the year, Forex trading is a roller coaster ride that can be incredibly profitable – so long as you have the basics and fundamentals down before you jump right in.
Throughout the rest of this quick Forex trading guide we shine a light on all the things you need to know before you get started.
Master these core details and you’ll find Forex profitability a lot less elusive than most beginners, cranking out smart trades and making intelligent moves in the Forex market that help you build real wealth.
Shall we get started?
Let’s get to it!
Better Navigating the Forex Market
The first thing you need to do is fully familiarize yourself with the basics of the Forex market itself.
You’ll want to better understand how different currencies around the world are treated against one another, how you can take advantage of shortselling and Forex spreads to boost your profitability, and how to spot the right kind of signals that tell you different types of trades are most likely to succeed in real time.
Understanding the lay of the land, so to speak, is the most important piece of the puzzle behind Forex trading success.
If you don’t understand the composition of the market, how these trades are handled, or how basic moves are made your never going to be able to master the more involved strategies and tactics in Forex that can really start to add mounds of money to your bank account.
Getting Comfortable with Forex Fundamental Analysis
The next thing you’re going to want to do when learning the fundamentals of Forex trading is get comfortable with fundamental analysis.
This means learning how to read Forex economic calendars so you can more accurately track news and upcoming events, how to understand the impact GDP has on Forex currencies all over the world, the CPI (Consumer Price Index) and its impact, using PPI and ISM data to help make smarter moves, and so much more.
All of this goes well beyond learning a handful of signals, being able to read candle charts, and fooling around in the market with paper money accounts.
Not only do you to be able to find this information (most of it available from high quality trading platforms), but you also have to know how to make the most of that information as well. Fundamental analysis – and, later, technical analysis – are big pieces of the success puzzle as well.
Trading with Discipline
The last thing you need to master when you’re getting serious about Forex trading mastering yourself, your emotions, and your decision-making process.
Year after year the most successful Forex traders are always the ones that are able to trade with extreme discipline.
This means understanding your own psychology, recognizing when the fear of missing out is pushing you to make moves you wouldn’t have made otherwise, any how to take control of your decisions in a way that forces you to use logic and reason rather than just cave on emotional swings or “gut feelings”.
Work on all of these elements and you’ll be able to get down the basics of Forex trading a lot faster than most of your competition.