Tip: Always choose a well established broker who provides a free practice account so that you can test the account before starting with your live trading.
What is Forex Trading ?
Forex is the global foreign exchange market in which buying and selling of currencies take place worldwide among banks, hedge funds, trading and finance institutions and retail traders. In forex trading you can create revenues by making correct predictions of price movements via a regulated and licensed international forex broker (you can choose one from the list above) who provides the trading platform.
Tip: Popular forex currency pairs are EUR/USD and GBP/USD, which are known for their high volatility rates are also ideal pairs for trading.
How to Trade Forex ?
Once you create an account with a broker (use 1:500 or 1:100 as leverage when opening the account), you can then download and setup the trading application (MT4, MT5 or ctrader) on your computer, tablet or smartphone. If you are using the web trader, there will be no need to install any software as you will be able to use your browser directly.
Then, you can open the trading software / web trader, select a currency pair chart (e.g. EUR/USD) and choose lot size as 0.01 – 0.1.
If you then assume that the price may go up, choose the “Buy” button.
If you assume the price may go down, select the “Sell” button.
You can close the trade when it reaches your desired profits.
Also, you can set a fixed take profit value, which is the value to automatically close the trade once it reaches the desired profits with a stop loss. This stop loss is the value or option to automatically close the trade if this should go against the predicted value. This option is available so that you do not need to constantly monitor the trade, which is the advisable option when trading.
The videos below will be helpful to get an idea about placing a trade.
MT4 Platform – Opening a Position / Trade
cTrader Platform – Opening a Position / Trade
Tip: If you are a beginner to forex trading, it is recommended to test both MT4/5 and ctrader. Generally, ctrader is easier to use. If you are not a fan of calculating values, ctrader will automatically calculate and show values when you enter the required details.
Tip: When to place a trade ? Various trading ideas exist. One simple method is as follows: When the price is at its highest levels on a chart, you may go for a “Sell” order as soon as you see that the price is dropping. When the price is at its lowest levels on a chart, you may go for a, “Buy “order, as soon as you see the price is starting to rise again.
Red Boxes : Potential positions for sell orders / Green Boxes : potential positions for buy orders. Refer our ” Support and Resistance in Forex ” article to learn more about it.
What are the Risks and Rewards of Forex Trading?
Please note that any kind of trading, which has a high earning potential carries a high level of risk too. Therefore, trading is more suitable for those who are willing to take a risk. We recommend that you register for free, learn from free information already provided on our site and the broker’s site and start trading by using a demo account. Then, once you have achieved success with your demo account you can begin with your live trading.
Tip: Patience and money management is one of the key elements for success in forex trading as a beginner.
Forex Trading for Zambians with Best Forex Brokers
Best Forex Trading brokers welcome any Zambians from Lusaka, Kitwe, Chipata, Ndola, Kabwe, Chingola, Livingstone, Luanshya, Mufulira, Kasama or any part of Zambia to trade forex using Meta Trader, Web Trader or ctrader platforms!
General Risk Warning: The financial products offered by broker companies carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.