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11 Tips on Forex trading that can help you earn extra money

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Forex trading or Foreign Exchange trading is the market where exchange of one country's currency with that of another country takes place. It is one of the most profitable financial markets. If you want to earn more money you can invest your money in Forex trading. However, before you get into this trade, you should know the right way to invest in the Forex market.

11 Tips on Forex trading

Some of the tips on Forex trading are as follows:

1. The fundamentals of Forex trading – To be successful in Forex trading you need to know the fundamentals or basics of Forex trading and the exchange rates. You need to have clear idea on the techniques of Forex trading.

2. Know how to read Forex charts – You should also know how to read the Forex charts.

3. Practice on a Forex demo account – Before you actually start practicing Forex, you should practice with a Forex demo account.

4. Know Forex terms – It is essential for you to know Forex quotes, prices and the Forex terms.

5. Register with a broker - You can talk to a reliable broker and enter into a contract with him, so that he
carries out the transaction son your behalf.

6. Open an account – In order to do Forex trading, you need to open a trading account under the broker. Only
after you have opened an account, you can start buying and selling currencies.

7. Get Forex education – Before starting to invest your money in the Forex market, you can try to get education on Forex. This will provide you with a better grasp on the Forex market and you will be able to profit on your Forex investment.

8. Take advice from experienced friends – You can take the advice of your friends or neighbours who have experience in dealing with Forex trading.

9. Follow the market trend – You need to follow the market trend in order to profit in Forex trading. If you want to trade against the trend, you will have to be a more skilled trader.

10. Do not risk more than 2-3% of your trading account – Do not risk more than 2-3% of your total trading
account.

11. Spend time for the Forex market – You need to spend some time on Forex trading in order to be a successful Forex trader. You need to invest some time to analyse the market.

In addition to above tips, you should also try to know about terms like, pip, spread, and bid, ask, leverage and margin.

Forex or foreign exchange trade is a very popular trades in market, as it a 24 hour market without any physical boundary. It is important for you to know the ways in which you can successfully invest in Forex trading. So, read on to know the tips to manage your investments in Forex.




This is a contribution from Ms. Angela
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