What is Forex Trading?

Forex trading means buying one currency and selling another at the same time. Traders aim to profit from price changes between currency pairs like EUR/USD or GBP/JPY.

How to Start Trading Forex (Step by Step)

1. Choose a Trusted Broker

Pick a regulated broker with tight spreads, low commissions, and fast execution.
Check account types (Standard, Pro, ECN), deposit methods, and platform support (MT4/MT5).

2. Open & Verify Your Trading Account

Complete KYC verification, deposit funds, and choose leverage according to your risk profile.

3. Learn Your Trading Platform

Understand how to:

• Read charts

• Apply indicators

• Place Buy/Sell orders

• Set Stop-Loss & Take-Profit

4. Analyze the Market

Use two types of analysis:

• Technical Analysis → charts, patterns, indicators (RSI, MA, ATR, Fibonacci)

• Fundamental Analysis → economic calendar, interest rates, news events

5. Place Your First Trade

Example setup:

• If you expect EUR/USD to go up → Buy (Long)

• If you expect it to drop → Sell (Short)

Always set Stop-Loss to limit risk and Take-Profit for automatic exit.

Types of Forex Orders

Risk Management Rules for Beginners

• Risk 1–2% of capital per trade

• Always use a Stop-Loss

• Reduce leverage during high volatility

• Avoid trading during major news events

• Review performance weekly

Common Mistakes to Avoid

❌ Over-trading
❌ No strategy or trading plan
❌ High leverage without experience
❌ Emotional decision-making

Simple Trading Example

If EUR/USD is trending up and ATR is rising:

• Place Buy entry after pullback

• Wide Stop-Loss below support (based on ATR)

• Target next resistance level

Final Tip

Start on Demo account first, then move to live trading once consistent.