You need to conquer some important knowledge in order to trade smoothly in the forex market. Here are the steps to master in your trading journey:
- Forex Trading Software and Glossaries
In the first step, you are expected to be able to master how to use forex trading software like MetaTrader. Glossaries like Bid, Ask, Stop Loss, Equity, Balance, and Margin are also important to understand.
- How to Read the Forex Market
In order to read the forex market, you must be able to understand and analyze charts. One of the most common charts in trading is called the candlestick chart. By learning the candlestick chart, you would be able to identify the price trend and even predict the next movement.
- Practicing the Strategy
After mastering the previous steps, now is the time for you to practice your strategy. You can use a demo account to apply what you learn and execute the trades without any risk. If the strategy turns out to be successful, you may try to use it on a live account. But just to be careful, it's recommended to use small money instead of going big on your first try in the real account.
- Riding the Forex Wave
Following the practice, what's left to do is maintain your win rate. The forex market is known to be very active and always changes from time to time. Therefore, you need to be capable of riding the wave and adapting well to any market change that may be influential to your trading strategy.