Information on capital gains from forex trading can be obtained easily in this internet era, both from news, press releases, and opinions from bloggers. Many are attracted to learn forex trading from zero when they know the capital gains that can be obtained.
However, the majority of people who are captivated by this, in the end, decide to withdraw from forex trading because they get losses.
Also read: What is Forex Trendline Analysis
These retreaters are beginners who push themselves into foreign exchange trading. In fact, to profit in forex trading from zero, there is a special way of learning to succeed.
In general, learning how to trade forex for beginners is divided into several parts, including beginners must first know forex, then get to know the legality of a business, learn about technical analysis in foreign currency trading, and also learn about trading strategies Qualified.
Well, here, forex.epsikologi.com presents to you (beginners) about learning how to trade forex from scratch that can make money fast.
Overview of Learning Forex Trading from Zero
Every entry into a new industry requires an introduction, including forex trading. Beginners should find out and learn what forex trading is all about.
You don’t have to know everything just yet, but you can still learn forex step by step! For starters, you should definitely know the basics.
Also read: Forex Price Movements: Pivot Points, Support and Resistance
You can get information about the basics of forex trading from many sources such as forex academies, premium forex video content, various ebooks such as forex scalping ebooks, to free information from Google.
Well, GIC itself, regarding this basic introduction to forex trading, will introduce several things such as buying and selling, trading currencies, leverage and contract sizes, transaction directions, trading times, to learning how to trade in forex.
All that has been mentioned above has been briefly explained by GIC in the discussion below.
1. Buy and Sell in Forex Trading
When the exchange of rupiah currency with foreign currencies occurs, then you are involved in buying and selling transactions in the forex market.
You can do this transaction via bank, and or money changer. Along with the development of technology, now, forex transactions can be done online via a computer or smartphone.
As long as you are connected to the internet network, you can freely trade forex, anytime and anywhere. Because of this, you can seize the opportunity to profit from trading foreign currencies every day.
You can make this profit opportunity easier through GIC. Apart from trading, GIC also offers other benefits, such as affiliate programs, 100% deposit bonuses, and the “Friday Barokah” event.
Also read: Learn About How to Read Forex Chart Patterns for Beginners Traders
2. Traded Currencies
In forex trading, the object of trading is money with a focus on transactions in the form of contracts based on the value of a currency. In forex trading, there are a number of currencies that have the predicate ‘major currency’.
The main currencies are the currencies of developed countries which are traded globally in the world financial markets.
Every currency, internationally, has a symbol consisting of three letters. For example, USD. The first two letters are the initials of the country and the third letters are the initials of the currency.
But there are unique and do not follow this rule. The currency is the CHF or Swiss franc. The first two letters represent the Latin name of the Swiss Confederation, with the third letter being the initials of the currency, the franc.
3. Leverage and Contract Size
In conventional forex transactions, in order to be able to trade forex worth $100,000, the available capital must be the same amount, namely, $100,000. However, the existence of a leverage facility allows relatively small capital to transact with a much larger contract value.
For example: Choosing a forex broker that applies 1:100 leverage makes a transaction worth $ 1,000,000, only requires funds worth $ 10,000.
The $10,000 is referred to as margin, and the transaction value of $1,000,000 is referred to as the Contract Size. That is, capital to start forex trading only takes 1% of the amount of capital that should be.
Also read: 3 Forex Trading Mindsets That Influence To Be Successful Trader
4. Transaction Profit Direction
Forex has a different direction of transactions from some other types of trading. In addition to being similar to forex, other trades have a one-way transaction profit direction.
In forex trading, transaction profits can be obtained from two directions or ‘two-way opportunities’. That is, profit opportunities can be obtained in every forex market condition, both when prices go up or down.
If the price is rising, then a buy (long) transaction can be made in order to make a profit. And, when the price is down, selling (short) can be done in order to make a profit.
5. Trading Time
In Indonesia, forex trading time lasts for 24 hours. The duration is 5 days, from Monday to Friday. However, in other countries it is different.
You should memorize these schedule differences. The point is to make it easier for you to reach the money.
Also read: What is Forex Money Management For Beginner Trader?
Transactions in Forex Trading
Beginners should learn about currency pairs because this is a way of trading in forex trading. From the type, currency pairs are divided into two parts, namely: Major Currency Pairs, and Counter Currency Pairs.
Major Currency Pairs involve major currencies that are traded against USD. Some examples of Major Currency Pairs are EUR/USD, AUD/USD, GBP/USD, USD/JPY, NZD/USD, USD/CAD, USD/CHF.
Counter Currency Pairs do not involve USD. For example EUR/CHF, EUR/GBP, GBP/JPY. In forex, the currency mentioned first is referred to as the base currency, and the second currency is referred to as the counter currency.
Also read: 5 Components of How to Become a Professional Forex Trader
After getting to know the currency, then beginners need to learn how to bid/ask in forex trading. In forex trading, currency pairs are traded on the basis of BID and ASK prices.
When making a SELL transaction, the BID price is the benchmark. Meanwhile, when making a BUY transaction, the ASK price is the benchmark for you.
Please note that the ASK price will always be higher than the bid price. The difference between the ask and the bid is known as the spread. A BID is often referred to as the buying rate and the ASK rate is referred to as the selling rate.
Also read: Know More About What is A Forex Trading for Beginners Traders
Know the Legality of Forex Brokerage Business
You need to know for sure about the clear business legal aspects of the company that you trust as an intermediary for your investment.
By knowing the legality of your investment brokerage company’s business, it will help increase the security of the funds stored.
Forex trading in Indonesia is regulated in Law Number 10 of 2011 which contains Commodity Futures Trading. All futures trading activities are supervised by BAPPEBTI. This is an agency under the auspices of the Ministry of Trade of the Republic of Indonesia.
Also read: List of Scam Forex Brokers in Indonesia According to BAPPEBTI Regulators
GIC already has an official license in the forex trading business. The permit is issued by the Commodity Futures Trading Supervisory Agency. Therefore, make sure you transact through us, GIC.
Because your funds will be safe because they are stored in a separate account that is supervised by the government. This account must be approved by BAPPEBTI and also the Indonesian Futures Clearing House.
Learn Forex Trading Technical Analysis from Zero
Beginners need to learn technical analysis because this is one way that newbies can earn money in forex trading.
Through technical analysis, it will be easier for you to recognize the character of price movements in the foreign exchange market.
The more you master technical analysis, the more you will be able to recognize profit opportunities that are stored in price movements, both up and down.
Technical analysis can help you predict price movements. It may not be 100% accurate, but at least it can be close to 100%. You need to know that even 60% accuracy can bring a hefty profit.
Also read: 8 How to Read Forex Factory Calendar Precisely and Accurately
Basic Technical Analysis
There are three things that form the basis of technical analysis, namely:
1. Market Action Discounts Everything
Technical analysis shows price movements that tend to reflect information circulating in the forex market.
Through technical analysis, the things you need to make decisions based on price movements. You don’t have to worry about the news or rumors circulating. Just look at the price action.
2. Prices Move in Trend
According to technical analysis, it is stated that the price is moving within a trend. That is, price movements will tend to move in a certain direction (trend) until one day the trend will end.
Directions can be down, up, or just flat. By knowing market trends, you can make the right decisions.
3. History Repeats Itself
In technical analysis, it is known that history always repeats itself. The technicians have found that price movements will tend to form certain patterns. These patterns have a tendency to repeat themselves from time to time.
The repetition of these patterns can be used to predict where the next price movement will go based on the ‘history’ recorded when the same patterns have appeared in the past.
Learn Forex Trading Strategies from Zero
In addition to having to know technical analysis, the way to make money in forex trading for beginners is to learn about strategies.
Some of the strategies that must be studied include trendline strategies, Fibonacci retracements, moving averages, Bollinger bands, commodity channel indexes, stochastic oscillators, relative strength indexes, and MACD.
Basically, a trading strategy is a list of steps to follow when trading. It shows the market conditions in which trades can be opened. The strategy shows the direction of the position and the stop loss and takes profit decisions that must be placed.
That’s the discussion about learning forex trading from scratch related to forex financial products. For those of you who want to deepen your knowledge of forex, you can try it through the GICTrade Trading for Freedom Video and also the Live Trading NFP that we have provided. Don’t forget to check out other forex learning articles for beginners such as ‘Deputy Futures Broker’ only on the GIC Blog.
