The progress of forex trading makes more people interested in trading. Thus, they want to try trading. However, most novice traders do not really understand what trading is so that they often lose in a great nominal.
Check out these beginning tips for novice traders to maximize your profit:
Find the right broker
Make sure the broker you choose has obtained an operating permit from the government. Thus, your funds are safe and avoid company fraud. Additionally, licensed brokers will provide realistic leverage facilities and other facilities that can support your transactions later.
Use minimal capital
After finding the right brokerage company, you need to start with small capital and low leverage. For example, a broker offers 1: 100 leverage. For example, from a standard trade of USD 100,000, you are only required to deposit $ 1,000. That means that you can already trade at least 1 standard lot. As a beginner, there is no harm in optimizing your minimum capital. Large leverage, it will indeed attract greater profit opportunities but also has a high-risk potential.
Focus on one currency pair
You should decide on one product that you want to trade with. Then, focus on exercising your skills through selected products so that later you can recognize trading opportunities faster.
You can choose one of the major currency pair categories of currencies such as EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD because these currency pairs are the most liquid and most traded currencies. The most important thing is that you can generate consistent and sustainable profits even from one currency pair.
Getting started with a demo account
It’s a good idea to try the demo account provided by the broker. According to Investopedia, demo accounts can provide some benefit to new traders, as they allow the trader to become familiar with trading software and get a sense of how the market works. Through a demo account, you will not be charged any fees and transactions without initial capital. All transactions will use virtual money but follow the actual conditions and data. This helps you evaluate trading performance before trading with a real account.