as we know that there are many people out there who are still new to the forex world and are always looking for ways to get started with opening a trading account. We need to know together, that playing forex trading is a big enough risk if you don’t prepare a strategy well enough, especially if you only have funds but don’t know anything about the ins and outs of the forex world. In general, there is a lot of preparation that you need to start trading forex, interestingly we have summarized 10 important preparations before jumping into the world of trading. Hopefully with this information, you can understand better about the ins and outs of forex. Please read carefully.
10 Important Preparations Before Trading Forex
As with a soldier who will fight, of course it requires a lot of preparation starting from mental, skill, experience, weapons and many others. This also applies to those of you who are just starting to open a forex trading account. Please see below.
- Reliable computer or laptop
One of the equipment that we think is very important that you must have is a computer or laptop that is capable or reliable. Although there is currently the use of a trading platform that you can play on an Android smartphone, the menus and features provided are much more complete if you play trading via a reliable computer or laptop. No need to buy a laptop at an expensive price, just 5 million can be used for forex trading. Most successful traders out there, use two platforms at once namely laptops and smartphones.
- Internet connection
Next, the equipment you need to jump into the world of trading is none other than a stable internet connection, you can only run forex online because the chart information displayed is live from market prices at that time, other languages are real time. A stable and smooth internet connection can make it easier for you to trade forex quite easily and quickly. Unlike the stock game, you do not need to continuously monitor market movements because in detail forex is a trading game whose movements are so volatile.
- Capital to play
As we know, you will not benefit if you do not have the capital to play. The capital of this forex game depends on your financial capabilities, if you already understand enough about the world of forex, a capital of 10 million is enough for a start. There is no need to use capital reaching 50 million and above if you are not a trader who really has mastered market analysis well. In addition, also apply risk management and good financial management so as not to experience big losses.
- Trading platforms
It is also important for you to know, before playing forex, you have to choose a trading platform that you can later install on your computer or laptop. The most popular trading platform and widely used by traders is Metatrader 4 or shortened to MT4 because it provides complete features to understand market movements. In addition, there is Metatrader 5 which has much more complete features, usually used by traders who are already professionals in the forex world. You can download this platform from the broker’s site of your choice. Well, in number 5 we will discuss this.
- Choose the best broker
The fifth stage you have to do is choose the best broker, either local in Indonesia or abroad, we suggest choosing a broker that has been verified or registered with an Indonesian Official Financial Institution or BAPPETI. Because brokers who are not registered with these financial institutions can be said to be illegal brokers who come from outside, they are looking for the Indonesian market by using global payment systems such as Fastpay, Moneysend, Paypal and many others. Choosing the right broker is the most important thing for novice traders.
- Forex trading learning journal
If you have completed the first preparation to number 5, the next step is to prepare a journal for the learning process to explore the ins and outs of the forex world. This is important for every prospective trader to master before jumping into real trading. Make sure to study first so that your rin rate calculation is clearer, don’t just install it with a prediction system, because obviously it’s like an online gambling game that relies on luck from your instincts. There are quite a lot of journals for learning forex, you can listen to the article this time with the title “Applications for learning forex trading”. There are explained several application platforms that you can use to learn forex such as Forex Course, Fx School, Forex Learning and Forex Around.
- Don’t risk more than you can afford
It is important in forex trading preparation, never to open a position with a high risk, especially one that makes your chances of loss bigger. Most novice traders are always wrong in this regard, according to them installing high leverage can get higher profits too, although it is possible but the chances are quite small.
- Use stop loss
In playing forex, be sure to also use a stop loss, the function of the stop loss itself is to make sure the loss you get is not bigger. That is, if this is ignored, the loss that will occur can destroy your account and the guarantee of profit is quite small. Some professional traders still use the stop loss system to avoid bigger losses. You must dare to do this because it is very likely that market movements are very difficult to predict. Remember once again, no matter how sophisticated your strategy is in playing forex, at least keep protecting your trading account. This is important and you should remember carefully.
- Use take profit
If the stop loss was used to stop losses, then the opposite if the take profit is to take the amount of profit you get in order to secure the profit you receive. Also make sure that the amount of profit you receive must be in accordance with market analysis so that it is not too bearable. Don’t be a trader who is too ambitious to get a high take profit, keep doing it gradually for the safety of your account.
- Use demo account for re-analysis
Of all the preparations you have done, at least come back to learn to explore the forex market movements with a demo account. This is important to further test whether your trading analysis skills are getting better or worse.
So much information from us about 10 important things to prepare before starting forex trading. Hopefully this information can be useful for all of us. Thank you.