How to trade Forex as a beginner

        Forex means foreign exchange market. Foreign exchange is changing one currency to another for trading ,  foreign business and usually for tourism. It has largest trading volume over more than $5trillion dollar daily. If we can make little of it is enough for all of us. In Forex market there is so much liquidity that every millisecond couple of  trade has been made.  So question is how to trade Forex as a beginner? I've made a simple steps to help you guys understand-

1.  LEARN THE BASIC OF FOREX :   Before you start to trade first you need to know the basic things like the Currency Pairs, Base Currency, Quote Currency, Exchange Rate, Long Position, Short position Bid price, Ask Price, Spread, Stop Loss, Take profit  all this are necessary. 

•   In Forex you purchase one currency to sell another currency. Example if you buy Euro and sell US dollar that means you  buy EURUSD and it is a Forex major pair.

•  The exchange rate tells you how much you have to spend in quote currency to purchase base currency.

•  The type of currency you are spending, or getting rid of, is the base currency. The currency that you are purchasing is called  quote currency.

• A long position means that you want to buy the base currency and sell the quote currency. In our example above, you would want to sell U.S. dollars to purchase Euro.

• A short position means that you want to buy quote currency and sell base currency

•  The ask price, or the offer price, is the price at which your broker will sell base currency in exchange for quote currency. The ask price is the best available price at which you are willing to buy from the market.                                                                   

• The bid price is the price at which your broker is willing to buy base currency in exchange for quote currency

• A spread is the difference between the ask price and bid price and it is also calculate the commission of the broker from your trade.

2. DEVELOP YOUR OWN TRADING STRATEGY :  If you want to become a successful trader then you must develop your own strategy. You just can't rely on some stupid paid Forex signal service who claim to be 99% accurate. However you can follow news and analysis from reliable trusted source like from some experience professional trader or broker.

             Before a strategy can be created you needed to know that what type of trader are you, a day trader , swing trader or investor. Will you trade on a one-minute time frame or  daily or a monthly time frame? Be sure to choose a time frame that suits your needs.

             You can create Forex strategy very easily but creating a profitable strategy is very hard. You need to do a lot of research, read both technical and fundamental analysis and you must have an idea how the market works. Trade enough on the Demo Forex Account to get this idea and use it beautifully with your strategy.

            Write down your trading rules and also backtest your trading strategy, this way you can improve your strategy effectively. 60% winning trades with 1:2 risk to reward ratio is a healthy and profitable strategy.
 
            Don't create your strategy with lot of indicators. Keep is as simple as possible. You don’t want to be overwhelmed by a complex strategy right from the start. Moreover, a trading strategy with more moving parts is harder to manage and improve.

           Always trade without emotions, never trade against trend because trend is your friend. Also include Price Action into your strategy like professional trader do. Always have a trading plan when major news released like NFP, FED interest rate, these are causing high volatility that time your strategy may not work. Scalper trader should avoid this. 

3. CHOOSE THE BROKER WISELY : In this article i am not going to tell you who is the best Forex broker in 2019 but we will analyze the security features, trading platform, trading conditions , spreads  and other important stuff.

            The first and foremost characteristic that a good broker must have is a high level of security. Make sure that your broker is regulated and safe and also have good ratings and good reviews. FCA, PRA  CySec  SFBC NFA are some of the good regulator bodies.After all, you’re not going to hand over thousands of dollars to a person or firm who simply claims he’s legit, right?
 
           Basically there are mainly two types of broker one is Market maker broker and the other ECN or STP (electronic communications network)  . 
          You may have very great working Forex strategies but if your broker runs off with your money, all your hard work and research was for nothing. Market maker broker is a bookie taking the opposite side of your trades.Basically you are trading against them. Market makers want losers means newbie traders who have no skills or enough experience. They want you to lose so they can pocket your account. They tend to have wider spreads and no commissions.

          On the other hand ECN brokers are trader friendly comes with great low spread with little commission. A ECN broker passes your order through to liquidity providers or the interbank market, meaning your trades are actually being matched with other traders in the real market. They make money on the spread, meaning that they want active, profitable traders that will keep coming back for more. If you are a scalping trader ECN broker is best for you.
 
         No matter what kind of currency trader you are, like it or not, you will always be subject to transaction costs.Every single time you enter a trade, you will have to pay for either the spread or a commission so it is only natural to look for the most affordable and cheapest rates.
Sometimes you may need to sacrifice low transaction for a more reliable broker.


         If you’re a new trader, getting good quality educational material from your broker can be very worthwhile. Many traders of any skill level will also appreciate high-quality market analysis to give them fresh ideas.

       
        When looking for a broker, always check what its trading platform has to offer. Does it offer free news feed? How about easy-to-use technical and charting tools? Does it present you with all the information you will need to trade properly? Be sure to look over a broker’s software to see if you can easily use it and that it fulfills all your requirements. You might look for the popular Metatrader 4 or 5 platforms. It is also nice to have Web trading platform to do trade on the go.

       It is mandatory that your broker fills you at the best possible price for your orders. Make sure your broker offer faster execution. For example, assuming you have a stable internet connection, if you click “buy” EUR/USD for 1.3000, you should get filled at that price or within micro-pips of it. The speed at which your orders get filled is very important, especially if you’re a scalper.
A few pips difference in price can make that much harder on you to win that trade.


         One of the important thing which many trader ignore is that your broker should have a good customer service 24/7. Many broker provide access to support staff using phone, live chat and email.

4. RISK MANAGEMENT :  Without proper risk management you can lose everything you have in your trading account. If you don't have fund in your account then how can you trade So think smart. Limiting risk ensures that you'll be able to stay in the game and continue trading--even when things don't go as planned.

           One of the fundamental ground rules of risk management in the Forex market is that you should never risk more than you can afford to lose. That being said, this mistake is extremely common, especially newbie Forex traders who just starting out. The Forex market is highly unpredictable, so traders who are willing to put in more than they can actually afford make themselves very vulnerable to Forex risks.
   
         Never put your all money in just one trade, you should never risk more than 1%  of your account size in one trade. One of the biggest mistakes of newcomer trader is when they win one or two trades they will start thinking that they are perfect now and they'll never lose, So they start trading big volume trades and ended up losing there deposit within short period of time.
  
        One of the famous rules of trading is BE THE CASINO, NOT THE GAMBLER. It means don't gamble take it as business, it is not a get rich quick scheme. Never let your emotions control your trades. Cut the lose as early as possible and let the profit run and like i said take double what you risk for. And never trade without stop loss.


       Lastly i wanna say don't just jump directly to the real trading account, before that try your skill on Demo trading account. I will provide some great tips and technical analysis on Forex. Be sure to check it out regularly in this site.