How to Start Forex Trading and Make the Money You Want
There are many ways through which one can make money online. In our previous article, we talked about some of these ways of making money online and we are here once again to continue with other methods.
For some time now, I’ve been looking for some opportunities to make money online to supplement my other business. After days of searching, I stumble upon Forex trading. I took some time to study this new opportunity and to tell you what? it’s the best and simple way to make money in the comfort fo your home.
If you are here, reading this article, it means you are also on a search for the best way to make money in the comfort of your home. If my prediction is right, then in this article am going to introduce you to the best and simple way to profit online through the forex market.
What is Forex trading
Forex trading has to do with the exchange of one currency with another. The Forex Market (FX) is the largest financial market in the world. In FX Trading we buy and sell currencies.
For example, if you are going to the united state or any of the countries, you’ll need to change your cedis or naira into that countries currency before you can carry out any transaction once you reached that countries. Most traders who go to China to buy goods changes their Ghana cedis into Chinees yen through the country’s forex bureau.
In Forex trading, you either buy the base currency or sell the quote currency. Initially, the forex market was occupied by big companies and banks. This is because of the high capital required to trade. Today, because of the leverage given by the brokers, everyone can trade in the market.
Before we jump to see how to trade and make money in the forex market, I will like us to look at some key terminologies. Knowing these terms will help you make the maximum decision when taking a trade.
These are the currencies that forex traders trade with. In the forex market, we trade currencies pairs. Meaning, A forex trader has to trade in two currencies. Currency pair is the quotation of two different currencies with the value of one currency being quoted against the other. For instance, a trader can decide to “BUY” GBPCAD or SELL EURUSD.
Some of the major currency pairs are EURUSD, GBPUSD, USDJPY, USDCHF, USDCAD, AUDUSD, and NZDUSD. The reason why currencies are always quoted in pairs is that, in every foreign exchange, you are literally buying one currency and selling the other.
You would buy the pair if you believe the base currency will appreciate (gain value) relative to the quote currency. You sell the pair if you think the Base currency will depreciate(lose value) relative to the quote currency.
The base currency is the currency that comes first before the other currency in a pair. For example, if a trader decides to trade GBPCAD, In this case, GBP comes before the CAD. This means the GBP is the based currency. So when you take a SELL order/Position in that trade, you’re saying that the GBP(pounds) is going to be weak and CAD (Canadian dollar) will be strong within the stipulated timeframe, hence you sell it.
The quote currency is the currency that comes after the based currency. It shows how much the base currency is worth against the second currency. Coming back to the GBPCAD, the CAD is the quote currency in this pair. When you take a BUY position in that trade, it means, you predicated a rise in GBP against the CAD. What that means is that you are saying, the value of GBP is going to increase against the CAD hence you buy. If your predictions go right, and the GBP increases, you then make a profit in that trade. For example, if GBPCAD Rate = 1.17629 it means 1 GBP is worth 1.1762 CAD.
These are companies/firms that provide traders with access to a platform that allows them to buy and sell foreign currencies. Most forex brokers handle only a very small portion of the volume of the overall foreign exchange market. They allow clients to trade with very substantial leverage.
The number of currency units you buy or sell is called Lot size. Forex market currencies trade in lots called micro, mini, and standard lots. A micro lot is 1000 worth of a given currency, a mini lot is 10,000, and a standard lot is 100,000.
The unit of measurement to express a change in value between two currencies pair is called a pip. For example, if GBPCAD moves 1.1762 to 1.1764, the 0.0002 movements in values are two pips. A pip is usually the last decimal place of the price quote. The value of a pip is measured by the Lot Size Used.
Margin is basically, the amount of money that a trader needs to put forward in order to open a trade. when trading forex on margin, you only need to pay a percentage of the full value of the position to open that trade.
Leverage is the rage of the amount of capital used in a transaction to the required security deposit (margin). It is the ability to control the dollar amount of security with a relatively small amount of capital. leverage varies with different brokers, ranging from 1:1 to 500:1
This is a platform that forex traders use to trade foreign exchange. The most widely used trading platform is Meter trader 4. This trading platform gives you the flexibility to trade.
How to Start Trading Forex
The forex market is open 24 hours a day, five days a week across major financial centers across the globe. This means that you can buy or sell currencies at any time during the week.
There are quite a few reasons why I use this broker. This we will talk in our next discussion.
How to Setup an exness account
First, you need to visit the exness website from this link.
Then signup for an account using your required details
Confirm/verify your account and you are good to start trading
After successful account creation, the next thing is to deposit an amount into the account. This amount will be your initial capital.
You can deposit an amount that is as low as 2 dollars (GHS 10).
The good thing about using the exness broker is that you can deposit and withdraw through mobile money.
Now you need to create an MT4 account with the exness broker.
To create a Meter trader 4 account on exness, you have to make sure you are login to the website.
Now locate the account menu and click on it, then click on the Open new account button.
Here you’ll be given the two options: Demo account and a real account. Select a Real account and then you have to choose the account type.
The standard account is the most preferable one.
Select the currency you’ll like to use as default on the account.
Follow the next steps to finish up the account creation.
After creating the MT4 account, you’ll see your account number and the Password. Copy and save them somewhere since we’ll need them to connect to the MT4 App.
How to connect your exness broker to Meter Trader 4 (MT4)
The meter trader 4 trading platform comes in two forms, we have the mobile app and that of the desktop computer. The Mobile app version can be installed on any smartphone. Android and iOS users can download this app in their respective stores.
Once you’ve successfully downloaded and installed the app, you have to launch the app.
After successfully launching the app, you ‘ll need to connect it to your broker.
Here you have to login using the details given to you when you open the MT4 trading account on the exness broker.
To connect to the broker, you open the MT4 app and then click on the settings tab located at the downright end of the app.
Now locate a new account and then you’ll see a search bar, in the search, type exness, and then tap on it to login.
Here, you will be asked to enter the account number and the password. Enter the details I’ve made you copy earlier and then enter it here.
Tap on the login button to finish up the account connection. Once everything goes right, you’ll be connected and from here you can start trading.
How to Place your first trade
To place a trade, you have to select your currency pair. Let’s say we are going to Trade GBPUSD.
Now on the MT4 app, tap on the quotes tab, and then you’ll see the GBPUSD pairs there since is a major currency pair.
But in case you haven’t seen it there, you can look at the top and see the Plus Button (+), tap on it, and a search bar will appear. there you can search for the Currency pair and tap to add.
Now tap on the GBPUSD pair to open the trade section. under this page, you’ll see the Buy and Sell Button.
Assuming you have the belief that, the GBP is going to appreciate against the USD, then you tap on the BUY button to place a buy order. The same way you Tap on the SELL button to take a Sell order if you believe the GBP will lose value against the USD.
That’s all. once your place the order, and your predictions come through, you can then close the trade and take profit.
Alright friends, this is where we come to the end of this post. we shall talk more on trading and how to analyze the market and place trade on the MT4 platform.
It’s worth mentioning that, I got to know more about forex trading through a guy called kojoforex. A.k.A king of Blues, A.K.A the Snipper Man. A very good forex trader in Ghana and the world at large. You can follow him on IG, Instagram, and Twitter at Kojoforex.
You can get in touch with me through the contact form or the details below for more clarification on how to trade forex in Ghana and Nigeria.
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