Trading for beginners
Trading means trading operations on the currency or stock market with the purpose to profit from the difference between the buy and sale prices. Put, trading is a trade where currencies or securities act as a commodity and a single electronic platform on which transactions are made. For currency trading, such platform is the Forex market (from the English "foreign exchange"), and for dealing in securities - international exchanges (Moscow, Tokyo, New York and others).
Trading for beginners, especially if they do not have a fundamental knowledge of economics and analysis, may seem to be an overly complicated thing. It is only partially true: as any business related to money, trading requires training. It is worth trading only on training accounts with virtual money without any preparation.
Basics of FOREX trading
The scheme of trading on the currency market Forex has the following bases:
The dealing centre provides access to making transactions for traders;
The dealing centre opens a trading account in the name of the trader to which the funds are credited;
With the help of specialized software - trading terminal - a trader receives information about the history and dynamics of prices and generates requests for making deals to buy and sell currency;
Forex company makes transactions and fixes its results on the trader's trading account.
If the rate of purchased currency has increased, the trader can sell it for another currency and make a profit - as in classical trading.
If the rate of the purchased currency starts to fall, the trader should think about selling it quickly to minimize its possible losses.
Many novice traders have an abundance of charts and functions in the trading terminal, giving the impression that trading is an occupation for highly qualified analysts. Of course, analysts with training have a good chance to quickly learn the basics of trading and start making a profit from trading - and this is logical - but a good part of trading is technical information, not secret knowledge. You can learn it and practice it.
That's right: to successfully trade with real money, you need knowledge and practice. This knowledge and practice can be obtained by reading thematic literature, attending training programs of forex companies or contacting expert centres engaged in studying the markets.
Why start trading?
A reasonable way to start a trader's career is to study the basics of currency trading.
To begin with, you can watch free Forex video lessons - they will help you understand the terms, concepts, market participants and critical mechanisms. As a result of learning the basics, it will be apparent if you are interested in this topic and if you want to study it more deeply - in this case, it is worth enrolling in a full course of training. After that, you can try your hand at a secure demo account and gradually come to trading with real money.