A forex buying and selling guide
This Forex buying and selling guide intends to show you how to place your first trade following a simple understanding of concepts involved. We have touched upon the currency pair concept, and then moved onto the trading process as found with a known broker.
What makes up a currency pair?
A base currency is the first currency quoted in a currency pair, while the second currency is called the quote currency. In currency trading, one currency is always sold to buy another. The price of a currency pair is the extent to which a base currency unit is worth in the quotation currency.
Each currency in this pair is listed as a three-digit code, usually consisting of two letters representing the region and representing the currency itself. For instance, GBP/USD is a currency pair that represents buying the British pound and selling the US dollar.
Open an account at Tradedwell
Go to www.tradedwell.com in order to open a trading account. First, open the demo account. This account comes with $ 10000 of virtual money and makes it easy to learn how to trade.
The registration process is quite simple. Just enter the details asked for. Tradedwell will send you an email link. When you click on it, your new account will be verified. Once your account is set up, log in with your email address and password. Next, click on the plus sign “+”at the top of the screen. This will open a list of all financial instruments available on the platform. Click on”Forex”. This will display a list of currency pairs available for trading. Choose a currency pair to get started.
Currency pairs trading
The left panel contains features such as open trades, chat and support, your trading history, open and upcoming tournaments and videos for trading various financial instruments
Chart Type (Use this option to switch between bar, candlestick, and other chart types.)
Time interval for candles and bars
Graphical tools, including trend lines, and lines
Technical indicators including moving average and RSI
Investment amount per trade (Use the + and-buttons to increase or decrease)
Multiplier that gives leverage to your trade
Automatic closing setting. This is used to enter profit taking, stop loss and trailing stop for open positions.
Buy and sell trade entry buttons.
When trading forex with Tradedwell, it is only necessary to predict whether the price of the currency pair will rise or fall. If you believe that it will rise, place a buy trade and vice versa.
Make Your First Forex Trade with Tradedwell
Step 1: Select the currency pair.
Click the + button and select Forex. Then choose your currency pair. In this example, we’re using EUR / USD.
Step 2: Select the chart type and indicators to use.
We selected the candle chart with 5-minute candles. We will not use indicators in this example. Look at the price movement over the last 7 days in descending order until you reach the last 30 minutes. This analysis will give you an idea of how prices have moved, especially in the last 1 day. For example, you may notice that the trend has increased in the last 1 day. In addition, in the last 30 minutes, the trend has also increased. You can then speculate that the price will continue to rise. Then place a purchase.
Step 3: Place the amount to be invested in your trade, multiplier and auto close settings.
How much you invest in a trade depends on your money management strategy. We also recommend starting the account with 1% to 5% of your account balance.
Next, select a multiplier. This is simply a leverage applied to your trade. For example, if you choose a X200 multiplier, your win will be 200 times your win with only the amount you bet on your trade.
Multipliers must be used with caution. The losses that you may incur are multiplied in the same way.
Therefore, you also need to make settings for automatic closing. These include take profits, which allow the platform to automatically close trades when profits reach a certain amount.
The stop loss and trailing stop are also useful. The will essentially close the position automatically when losses reach a certain amount, protecting your account balance from exhaustion.
Step 4: Decide whether the price will rise or fall
Based on your previous chart analysis, you should decide whether the price will rise or fall. In addition, you need to decide how far you think the price will go up.
Move the mouse over the prices. A small box with a + sign appears. Click on this price, which is now your strike price. Then enter the trade by clicking ” Buy “if you expect a price increase, or” Sell ” if you expect a price decrease.
If the price reaches this point and goes beyond the strike price, your trade will turn a profit. However, unless the setting of profit is fixed at this price, trading will remain active.
It is therefore important that you keep track of all your FX trades on the screen. However, if you don't want to keep track of your trades, always use the stop loss and trailing stop loss and take profit features to protect your account balance.
Conclusion
How to buy and sell forex, is a natural enough topic inviting discussion. Given that the market is full of safe profitability opportunities, there's no reason why you should not go for a regulated broker. Tradedwell would be only too glad to help you on the road to millions.
