Learning how to become a professional forex trader

The forex is a huge financial market that offers very profitable investment opportunities to experienced traders. Beginning traders can learn the ropes on their own through websites and free demo accounts.  

What is the Forex?

The FOReign EXchange is the foreign currency market in which traders and investors from all over the world meet to buy and sell international currencies. To track the evolution of currency pairs and speculate on the forex, forex brokers provide traders with trading platforms. All you need is a computer and an internet connection to initiate trading orders on the exchange market.

Starting off right on the Forex

To get off on the right foot, it is crucial that you respect a few key rules:  

    - follow the macro-economic news of the principle currencies

    - learn the technical analysis of charts

    - learn money management

    - select a reliable broker that is regulated by the UK's FSA 

    - open a demo account

Many websites like www.forex-central.net are a genuine goldmine of information that allows you to freely learn about forex trading. Trader forums are also useful to ask for advice and learn about other traders' trading strategies. There are also trading courses given by professional trading trainers, in the form of classes or webinars. Books are also a good source of information, but the most important thing is to open a free demo account to discover forex trading with virtual money.  

Warning:

Speculating on the currency exchange market is risky in terms of losses linked to the use of leverage. Make sure that you understand the risks before you open a real trading account.

Forex: technical analysis

Online currency trading can be a good way to make money from an interesting and stimulating activity. The instant nature of online trades means that you can react quickly to changing forex conditions in order to generate profits.

Traders use technical charts to analyse the currency market's trends and potential rebound levels. Forex is a market that perfectly fits the styles of scalpers and day traders. Technical analysis is a particularly efficient approach to invest in the stock markets on a short-term basis. 

What is forex technical analysis?

Forex charts allow one to visualise the trends and correlations of the various currency pairs. With just a glance, forex traders can analyse what recently occurred on the market.  

No one can really see into the future, but it is possible to identify price levels where buyers and sellers will confront each other massively. Technical analysis also identifies chart patterns that frequently repeat over time.

How is forex technical analysis useful?

Forex technical analysis helps traders make logical decisions in terms of currency investments.

Technical analysis doesn't necessarily guarantee a return on your investment, but it improves your odds of success. It allows you understand some of the reasons why the market is rebounding on certain price levels according to the market's trends.

Technical analysis isn't a trading system, it simply provides traders with information about what happened in the past. It also gives indications to try to predict what will probably occur on the currency market in the near future. Such information allows traders to establish a forex strategy according to the various possible scenarios.

Forex charts are available on various websites and on the trading platforms which forex brokers provide.