If you’re about to take your first steps into forex trading, congratulations! The foreign exchange markets are among some of the most dynamic markets out there and, if traded well, they offer an opportunity to make some money. But as a newbie, it’s essential to ensure that you don’t plunge into something you don’t fully understand – and that’s where tools come in.
The foreign exchange marketsare shifted by all sorts of factors, one of which is, of course, the global economy. If a major country’s central bank is announcing a change in the base lending rate, for example, the forex markets are likely to be vulnerable. And the same goes for any of the many data releases that come out of the leading economies every single day, such as factory output levels and unemployment rates. By using a comprehensive economic calendar that aggregates analysts’ predictions and provides accurate time and date information, a forex trader can ensure they don’t miss anything important.
No matter whether you use technical analysisand focus mainly on price charts and points or you use fundamental analysis tools and look at the broader economic context, it’s almost impossible to trade forex successfully without having a strong understanding of prices. That’s where price charts come in. These helpful resources track the value movement of a currency pair over a relevant timeframe, whether that’s a short-term one like an hour or a long-term one, perhaps a year. Most good quality brokers will offer some software which can help you make sense of these charts and extract from them the relevant trends.
Guides and books
And while many of the tools available on the market for a new foreign exchange trader to use might seem like highly advanced technological items, there are also some more traditional options. There are plenty of guides which can help you learn how to trade, and the very best ones are those that are free and comprehensive. It might also be worth choosing a review that offers advice on security: forex fraud methods are sadly becoming more and more sophisticated so a new starter could be particularly vulnerable.
And if you learn best by reading something physical, it may also be worth checking out bookshops in your local area for books which explain the basics of trading – or at least printing out an online guide and annotating it as you go.
As a new foreign exchange trader, you’re likely both excited about the possibilities this holds and also potentially a little worried about the risks. But when it comes to getting well-informed, help is at hand. From technical tools like price charts to online guides that offer clear and educational overviews about how this market works, there are plenty of ways to ensure that you stay up to date about the markets and how to navigate them.