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Steps to making your first trade in forex

At this point, I am assuming that you have done all the preliminary preparation that you need to do in order to start trading forex and are now ready to get your feet wet. I also assume that you have created an account and have deposited some money into it so that you can use it for trading. As such, below, I will be looking at some of the steps that you now need to perform in order to place your first forex trade. Get ready because you will be trading currencies in no time with forex brokers with zar accounts in no time.

Select a currency pair

Forex trading is all about currency pairs. That means that in order to trade, you will need to choose a counter currency that you will use to buy the intended currency also referred to as the base currency. This way, you are exchanging one currency for another one with the hope that the base currency will make you a profit when you finally sell it. This basically is what forms the forex trading process. When you buy one currency, you are ultimately selling another one and that is how profit is made in forex trading.

As a beginner, I suggest that you start with the most common currency pairs and when you become more conversant with the whole process, you can then try out other currency pairs. The most common currency pair that is traded in the forex industry is EUR/USD, that is, the Euro and the United States Dollar. However, there are countless other currency pairs that you can choose from and trade.

Analyze the market

Once you make a choice of currency pairs to trade in, you will now need to go a step further and do a market analysis. This is the one thing that fails many traders because many people take it for granted while others don’t have the skills for doing it. The importance of ding research is that it serves as a guide for your actions in as far as trading is concerned. If you try to trade without doing proper research, you will be operating on emotions and that is never a good thing when it comes to making any decisions that involve money.

There are endless resources on the internet that you can use to do your research so that you make better decisions when it comes to trading. Thus, it is advisable to take full advantage of them and make fully informed decisions. Also, take time to talk to other traders on social media and other forex trading platforms on the internet because you could learn a lot from them.

Read the quote and pick a position

Lastly, you will need to pick a quote for the currency pairs you have chosen and pick a position. Armed with your research, you can speculate whatever direction you think the markets will move and place your trade. After that, all you can do is wait and hope that your research works.