We all know that most Forex platforms offer a demo account with thousands of dollars for you to start your experience with Forex trading. These demo accounts have their pros and cons, as you can read here.
Wouldn't it be nice if you could start trading with real money and make real profit, without risking your own? I'm not talking about some type of cashback after you deposit. I'm talking about an account with real money deposited into it without you having to deposit a single dime.
Plus500, a great platform, very easy for anyone to use, offers an account with 20 Euros if you just register and verify your phone number. At Plus500 you can trade Forex, Stocks, Commodities, CFD.
I sincerely think it's worthwhile to try it. Click here to register and start trading for real in no time.
Making mistakes is a natural part of any learning process. When learning to trade or invest in the Forex market, mistakes can lead to losses and become very expensive. Mistakes are made not only by new but also by experienced traders.
Here's some of them:
1. Do not use too much margin when trading or investing. Margin is the use of borrowed money to purchase securities. While it is true that using margins can increase your profits, it can also make your losses bigger. Never look at margins as “free” money, otherwise your potential to lose much more money will greatly increase. Margin is not free money and using it too much can end up making more debt than profits. You would not buy stocks using a credit card, so you should not use margins to trade currency. When investors use margins in Forex trading, it requires the investor to watch their investments much more closely than when margins are not used. Margins should never be used if the investor does not have the experience or time to closely monitor their trades.
2. Do not buy and trade on unfounded tips. Unfortunately, this is one of the most common mistakes, even with more experienced traders. It is easy to be tempted to buy or trade currency or even stocks when you overhear someone talking about the next big “thing”. Do not fall victim of investing and trading based on tips you hear or read about on television or on the Internet. If you hear about a trade that interests you, do some research and talk to your broker before trading or investing. If possible get a second opinion about a Forex tip before buying, selling or trading any form of currency.
3. Understanding how the foreign exchange market works, the terminology and terms used in the Forex is very important to new traders. Go through the tutorials and free demos widely available on the Internet that show how to use the Forex market to your advantage. It is also wise to choose an experienced broker that can help you trade and invest. Brokers should know everything about the Forex Market and be able to help traders and investor make wise choices. To be on the safe side, find a broker that is tied with a good financial institution and that has experience in the Forex. 4. Avoid buying or selling any currency just because the rate is low. Sometimes this may be a good move, but a low rate does not necessarily mean that it will profit the investor. Instead of choosing a currency to buy or trade just because it is low, it would be best to look at all of the factors that affect the exchange rate and look at the trends and history. Most of the time, there is a distinct reason why these rates are low. Research the trends of the currency and find out, which ones are the best profit makers when trading on the foreign exchange market.
5. Do not underestimate your trading ability. Some investors feel that they do not understand the Forex well enough to trade to their fullest ability. Anyone with willingness to learn the Forex can profit with some education and research. The process of learning all the aspects of the foreign exchange market can take some time, but it is within the reach of new investors to learn how to obtain success and profits in forex trading.
If you intend to get involved in forex trading, you must do it through a broker or a financial institution. A broker or investment advisor will be able to tell you more about the forex trading market and the forex trading systems to use.
Deciding which brokerage firm is best for you is as important in the Forex market as it is in the Stock Market. However, the way of evaluating the various firms differs slightly between the two markets. In the Stock Market, brokers earn their money from commissions or a flat "per transaction" fee. Forex trading does not actually involve commissions, but it does have what is known as spread, i.e. the difference between the price a currency can be purchased and the price for which it can be sold at a given time. This spread is how the broker makes its money, so it functions exactly as a commission. You can be pretty certain that the spreads vary between brokerage firms just as widely as commissions do in the Stock Market, so you should investigate this carefully before making your selection.
Most brokerages dealing with the Forex market are involved with large financial institutions where the funds are available to provide sufficient leverage for their clients. It is also important to make sure the firm you choose is reliable. In the US, there are many regulations and laws in regards to who can handle forex trading so if you are searching the internet for a broker, be sure you read the print, and the information about where the company is located and if it is legal for you to do business with that company. They should be registered as a FCM (Futures Commission Merchant), and regulated by the CFTC- Commodity Futures Trading Commission.
Several firms offer widely varied packages of tools that can assist you in making trading decisions and understanding the market better. They provide information and research that is available to you in many different formats. It is wise to take a little time to study these tools, and to find the ones that are most helpful to you. They are going to end up being very important and you need to feel comfortable with them.
Look for a firm with a wide variety of account and leverage options. The ability to use the Forex market's advantages in leverage is one of the things that makes it the most attractive to you as an investor, and you want to have the maximum flexibility here. Although there are a few unethical firms operating, a few references and inquires should be able to identify them. Make sure that you learn as much as you can about a broker before you make your decision. It is also a good idea to go with a brokerage company that has been around for a while. This selection process is worth a little effort on your part and an investment of time. It is an investment that is going to most likely pay off by preventing future headaches.
