Forex Basics - Lesson 3: How do you Make Money Trading Forex
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Traders gain access to the Forex market by using a Forex broker.
A Forex broker offers Forex pairs to buy and sell and also offers trading features and tools that can help you make better trading decisions.
How do you know when to Buy and when to Sell?
Being able to speculate future Forex price is one of the keys to being able to trade Forex profitably.
It is not as daunting as it may seem at first, as there are a number of trading tools and aids that help traders with their Forex price predictions...
Technical Analysis - this is one of the most common ways that Forex traders analyse and predict the Forex market. It is widely used amongst Forex traders, as well as stock and commodity traders.
Technical analysis involves studying historical price data, which is usually displayed on a price chart. Traders use this price charts to analyse current price direction and areas of potential reversals and identify patterns formed by price.
Fundamental Analysis - this involves studying and predicting economic reports, events and news that heavily influence the value of a currency. This includes studying employment and unemployment data, interest rates and inflation targets.
The next 2 Forex courses on this site will help you understand both Price Action Analysis and Technical Indicators, which form technical analysis. Please don't feel overwhelmed, learning technical analysis is not as difficult as it sounds and you have us to help you for free!
Using a Forex Broker
You can only access the Forex market by using a Forex broker - a broker acts as a bridge between traders and the market.
There are many things to consider when opening an account with a broker, this often includes...
- Broker costs, such as commission and spreads
Below are 2 brokers that are well-balanced and meet the criteria most Forex traders look for in a broker...
IC Markets - have a great reputation and offer free demo accounts for new traders. They are based in Australia but accept clients worldwide.
If you are looking for a great learning and trading experience, with little to no cost, this is the broker for you!
Click here to open a free practice account with IC Markets.
Darwinex - are well-regulated and are based in the UK. They accept clients worldwide.
Click here to open a free practice account with Darwinex.