Posted by Hugos Way on 17th Oct
Where Can I Start To Invest?
When it comes to investing, potential investors in the Forex market don’t know where to start and how to take the first steps. This market is a little more complicated than domestic trading markets so many people are hesitant about investing in it. However, if you find the movement of currencies and the potential for profit fascinating, you should take that step. Here are some tips on where to start:
Forex will require some initial investment so you need to be certain that you have a substantial amount for investment before you go in. While you can earn small profits with smaller amounts, you need a stronger position to earn something substantial. Of course, the more money you invest, the more you risk, so you should also be prepared to write off the initial investment.
Experienced traders believe that investments of around $3,000 to $5,000 will help you establish a solid position in the market. Traders with higher investment and greater risk are also very careful and utilize conservative amounts of leverage. Before you start trading, make sure you’re in a relatively comfortable financial situation to invest.
Most Forex brokers offer Demo trading accounts. You can even experiment with trading. This will help you understand how the system works and ensure you don’t lose your initial investment in the market.
We don’t recommend that you jump into live trading immediately after you collect enough money to invest. Most brokers will be perfectly willing to offer advice and explain how the system works. Some brokers also offer short training sessions and seminars to explain how Forex trading works.
Forex is a global market so it’s open 24 hours a day for 5 days a week. If you choose the right time of day, you have a better chance of earning a profit. Experienced traders have observed that the best times to trade is during the overlaps of different markets. Forex has the highest amount of liquidity during these times and the currency value fluctuates quite often. There are three overlap times that are considered most profitable based on the currencies you trade in and they are:
You should avoid trading in markets with low liquidity. Between 5PM to 7PM EST, the market is quite dull and slow. During this time, the price spread is wide and the market is thin. The potential for loss of money and position is higher.
If you’re still confused, look at how experts and traders operate in different markets before you invest. That will help you make the best decisions early in the game.
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