Analysing The Market For Beginners
Whether you’ve just stumbled across Forex trading, or if you’ve heard about it in the past but never really grasped the concepts, we’re here to give you a quick fire introduction to analysing the market as a beginner.
The Basics Of Forex Trading
Let’s start with the basics: What is Forex? The word ‘Forex’ is used to describe the foreign exchange market. Many of us participate in the market when we go on holiday without giving it a second thought!
The Forex market is the biggest financial market in the world – trading 6.6 trillion daily. But how can you take advantage of this?
As a Forex trader, you can exchange one currency for another on a daily basis, making profits based on the difference between one rate and another. We do this through brokers; professionals who allow you to buy or sell stock based on the difference between the bid and the ask of the currency.
So, what are the basics for analysing the market? Here, we’ve listed two of the (many) complex factors that you need to know about when beginning your journey into Forex trading.
There’s two key terms you need to know as a beginner in the world of Forex trading: bear and bull. The bears are stocks that you sell when the market is dropping in value, while the bulls are stocks you buy when the market is improving. Similarly, traders use the term ‘long’ to mean the market is going up and ‘short’ to mean the market is going down. When one currency moves against another, it’s called a ‘pip’ – compared to what would be called a ‘point’ in stock market trading.
Establishing A Trading System
As a beginner, it can be challenging to navigate the changes you see in the Forex charts. To combat this and establish a reliable trading system, you should seek education from an experienced trader.
A trading mentor, or expert educational platform like our own, can help you to understand the ups and downs of the Forex market and avoid wasted time trading live markets without adequate knowledge.
Keen to get started? Speak to our team today and find out how we can set you on the path for Forex trading success.
Or, better yet, sign up! With our in-depth educational resources, experienced mentors and global community, signing up to our Forex trading membership is a step in the right direction for your career.