A Currency Trader in Forex Trading can be any individual who trades in a form of buying and selling of currencies in the foreign exchange. There are a lot of traders around the globe from professionals hired by financial firms or groups of clients to trade, and then there are amateur traders, who do it for financial gain to make a living and/or sometimes as a hobby.
It is no secret that Forex is the largest financial market in the world. In January of 2018, the daily traded volume submitted to it had risen to $1.805 trillion. CLS confirmed by Feb 5 and Feb 8, volumes rose even further, by 14% making a total turnover of $2.054 trillion. So yes, it is the largest financial market there is.
As a trader, your job is to buy or sell currency in the hope of making a profit. there are a number of brokers around the world, those that you can trust, In the U.S, most known forex brokers are Thinkorswim, FXCM, and interactive brokers just to mention a few of top brokers.
You may open a trading account today, and officially become a trader once your details have been verified and necessary documents have been submitted. FBS is a broker in Asia and has a $1 minimum deposit account, which you may open, or try the free $50 Bonus Account or the $123 Bonus Account and start trading immediately.
TRADING
Find a broker, and open an account – once the account is opened and verified if necessary, you may start trading. However, if you are a beginner, I recommend opening a demo account.
Right, so – A trader trades by selecting the currencies they want to trade – always will show in pairs, forex trading involved paired currencies, typically when one currency rises the other falls, or if the other falls, the other rises, there are no in-betweens.
It is recommended that beginners’ should trade using most-widely traded pairs such as the British pound (GBP), U.S. dollar (USD) and the Euro (EUR). Use these because they are the most liquid with the smallest spreads.
An Example of trading as a trader would be, say you believe the Euro is going to be stronger/rise against the U.S. Dollar.
EUR/USD – ASK/BID 1.1511/1.1510 You may buy the EUR for the ASKing price.
DO NOT RUSH
Once you have opened a trading account with your money, do not rush into trading harshly, take it slow, just as you begin. Do not be attracted to making money because of leveraged opportunities and it involves very high risk, as well as humungous profit. The smaller accounts can lose money too.
Open a practice account and start trading for free and learn the basics.
TYPES OF TRADERS – what type are you?
- The Scalper
- The Day Trader
- The Swing Trader
- The Position Trader
The Scalpers are the busiest traders, everything is second based – holding on tight hoping to grab a few pips as many times as possible in small amounts.
The Day Traders are one of those disciplined traders, who either make a loss or a win at the end of the day, they have specific times of trading – they chose a side resulting in either a win or loss by the end of their trading hours.
The Swing Traders – These traders, hold on to trades for several days, they do not monitor their charts, they take time to analyze the market and make a trading decision based on the analysis and leave it open.
The Position Traders – Can you imagine holding trades for Weeks/Months and/or even years – it is often said that these traders understand that fundamental themes will be the predominant factor – when they are busy with their analysis of the market and making trading decisions based on them.
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