Live Forex Trading- Important Things You Need To Know and Have
Forex trading has been derived from two words i.e., foreign and exchange. Forex trading is nothing but the exchange of foreign currencies on the market. This exchange of currencies is very important to people across all nations because it is needed for various transactions and transfers related to money. These transactions include buying and selling goods in the global market.
What is live Forex Trading?
Live forex trading is basically the exchange of currencies on an online platform. The rates of different currencies change per second but this change is very negligible. In this, you can purchase different currencies from different people based on the original rates or negotiate different rates.
What is a trading platform?
A trading platform is a software which helps financial transactions of different currencies. This trade is executed for buying and sell various currencies from all around the world. The transaction of these currencies is done very safely and properly via this trading platform. This software helps investors and traders to open and close market positions. These platforms can be bought for free bought at a discounted price by brokers. Normally, to keep an account open you have to pay some funds. These accounts are made mostly for a fixed number of transactions per month.
What is a MetaTrader 4 (MT4) trading platform?
Metatrader 4, better known as MT4 is the name of an electronic trading platform which is used for forex trading widely across the world by retailers in the forex exchange market. It was released in 2005 after being completely developed by the MetaQuotes software. This software is purchased and licenced to brokers who then sell this software to their clients. This is one of the most popular online trading platforms in the market today and is available on your PC, laptop, mobile and even tablet devices which includes both android and iOS.
Important things you need to have before beginning live forex trading
Trading live actually needs a lot of confidence, knowledge and a couple of things that you must have. In case you still need to get some of these things organized yet. I personally would suggest you get organized properly, prepare yourself well, experience some more demos and then get ready to go live.
This is the first and foremost thing you need to have as the trading strategy is the one that is going to be your guiding factor. Price action trading and a well-defined strategy will ensure smooth and stress free trading. The strategy should not be too complicated and should be fairly to understand and explain- if you ever need to explain to someone. You need to be absolutely clued up about the price dynamics in the market to be able to do some simple and easy explaining.
This is actually something that you can easily derive from your trading strategy. You don’t really need a plan neatly chalked out but if you do have one it really helps. Get your thoughts into order and jot them done so that you are not left stranded when decision making time comes.
Once you get going, you need something to track your progress. This is where your trading journal will come into the picture. Most people make do with spread sheets but a spread sheet journal will help you maintain a proper record. Practising tracking your progress during demos is also a good idea to increase your confidence levels. Maintaining this trade journal have a lot of advantages which includes patience, discipline, and positive trading habits which are going to help you in long -term trading business.
At least a month of demo trading is recommended and for those who are not confident there is no harm in doing it for 4- 6 months till you are completely sure of your moves and plans. Live forex trading involves trading with really huge sums of money and one needs to know the value of both time and money in this trading business.
At the end of the day, despite how much ever preparation. Practise and demos you have down, your confidence level and faith in your abilities is what is really going to see you through. Remember to be in charge of your emotions as getting emotional is not going to help at all. The forex market is extremely unpredictable and volatile, so be confident and stick to you plan and strategy.
So, gear up and put your best foot forward and get ready for some live forex trading- an experience that is going to be with you for a lifetime.