All the brokers seem to sound so good when you read their sales pages, but how do you know which ones are worth your money? By following the acticle of How to choose a Forex Broker in the "For Beginners" page, we are going to drill down each main factors here. Before going through all the factors, you need keep the following questions in your mind. These include:
Can you tell me what the forex market is like?It's a very risky way to trade, due to high lvegraee and the market can get highly volatile, especially when surprising news hits the wires (i.e. Non-Farm Payroll numbers that were unexpected). But it follows the basic rule of investing high risk = high reward, low risk = low reward.How do you trade on the forex market? Swing trading using a combination of technical and fundamental analysis.What is it influenced by? Anything and everything, including economic growth, interest rates, inflation, monetary policy, other financial markets, political events, terrorism, natural disasters, and central bank intervention.How does one chose which broker is best? It depends on your trading strategy. If you scalp trade, find a broker that offers the tightest spreads. If your strategy involves the carry trade, find a broker that offers good rollover interest rates.How was your experience with the forex market? It's been a long learning curve, but I've finally found a trading strategy that's perfect for me. By the way, there is no single trading strategy / system that will prove successful for each and every trader that uses is. In other words, the holy grail trading system does not exist. That's because every trader is different. The key is to find a trading strategy that fits your own personality, trading style, and tolerance for risk.Would it be okay to go for the huge 1:100 to 1:200 lvegraee ratio? That's a common mistake for most beginner forex traders. Leverage is a double-edged sword it magnifies your profits, but it also magnifies your losses. Avoid high lvegraee.I'm attracted to the forex market because of the liquidity, lack of insider trading, and the high lvegraee. Would you recommend any forex software to help me with analysis of the forex market?Metatrader 4 is the best forex trading software (which is offered free by most forex brokers) to help you run technical analysis and execute trades. You can also learn its proprietary programming language, MetaQuotes Language 4 or MQL4, which you can use to create your own custom technical indicators and even automate your trading strategy (i.e., Expert Advisors).Which method of analysis should I use, technical or fundamental analysis? That depends on you and what you're comfortable with. As I mentioned earlier, you need to find a trading strategy that fits you and only you. That will take a lot of careful experimentation with all the different strategies out there. Test them without risking money by using demo trading accounts. In the end, you'll learn which strategy suits you best one that involves technical analysis, fundamental analysis, or both.Good luck! Was this answer helpful?
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