Teaching Forex to beginners, a simplified explanation of the true beginning of trading

Foreign exchange or short Forex is still considered a popular topic by the majority of people not only in small areas, but in urban areas as well and the reason is that materials related to this financial product have not yet reached many people For this reason, GIC Indonesia sees the need to teach Forex for beginners to the general public through Learn Forex, Forex Academy, CD eBooks, premium YouTube video content, Video Trading for Freedom, and NFP Live Trading. Regarding the Forex education that GIC will impart, there are several points in the spotlight, namely how to learn Forex for beginners from scratch, how to master Forex trading, division of categories, reasons why it is important to learn Forex, market characteristics, Forex costs, how to open a Forex account, what is MetaTrader, what is technical analysis, for general Forex learning sources other than what you can get in GIC.

Topic Contents Toggle The Importance of Teaching Forex to Beginners Preparation

To learn Forex, Forex lessons section, Beginner's class Learn more about Forex trading for beginners Learn for beginners Forex trading Forex spreads and stocks Traded currencies Contract size and leverage What is the Forex market? Illustration of Risk Trading in Forex The Importance of Teaching Forex to Beginners If you want to teach Forex to beginners seriously, you have to know everything related to Forex. While you can learn forex trading over time, there is no method or method that can go beyond learning from experience, and if you want to learn forex trading, experience is the best teacher.

When you first enter the world of Forex trading, you may decide to open a Forex demo account and try to make some transactions with it. No matter how many transactions you make on a Forex demo account, the most important thing in this case is to give you a good basic understanding of the mechanics of Forex trading and familiarization with the trading platform. Preparing to learn Forex In order to master Forex trading and teaching Forex to beginners, it is necessary to prepare to learn Forex. A newbie must prepare three main things before dealing in Forex and commodity trading. The three things involved are: Software (Software) Hardware (Hardware) Knowledge The hardware or hardware needed to learn Forex here is a laptop, smartphone, computer or any other electronic device powered by the Internet. With this device, you will be running the software used to trade in the Forex market, which is MetaTrader.

In order to enter the Forex market, you must have a real or demo account first. As for real accounts, you are a must have if you want to make live transactions using real capital. And demo accounts are a must have when you want to learn or practice forex trading.

Demo and real accounts differ in their prices. In the demo account, the prices used are unreal and their movements do not match the real conditions of the financial market. Meanwhile, in real accounts, the price used is the real price of the financial market, and the movements are in real time and according to market conditions at that time. The hardware and software you have set up will not be very useful if it is not balanced with sufficient knowledge or know-how about Forex trading. Just being an affiliate will not make you understand the basics of every trade you make. Forex Learning Lessons Division Forex education for beginners Forex learning lessons are divided into several parts, some 2, some 3, and some 4. In each chapter, you will learn all the important points that you need to master in order to be successful in the world of foreign exchange trading.

The breakdown is more or less explained as follows: Beginner Class Learn to understand how things work, how to make transactions, learn about potential profits, Forex and Gold trading Other general information related to Forex trading is also included in this Beginner Class. Beginners will learn how to predict price movements in the Forex market and maximize profit potential using technical indicators. At its core, this class is the starting gateway to analysis in Forex trading. Some combine this basic class with a beginner class and it can also be an advanced class depending on the class breakdown.

Learn more about Forex trading for beginners Do you already know what Forex is? If not, then you can learn forex trading for beginners here. Let's start by learning about Forex.

What is Forex (FX)? The basic understanding of what is forex trading and forex trading is forex trading with the aim of making a profit. Example of this Forex trading, when you buy on the EUR/USD pair, it means that you are buying the Euro currency and at the same time you are also selling the US Dollar currency.

This is the first thing you should know if you want to learn beginners in forex trading. Learn Forex Trading for Beginners Some of you may think that forex trading for beginners and forex trading is an activity related to exchanging foreign currencies at a cashier. Actually this is not wrong, but this is the traditional way using teller services or doing it directly at the bank.

Forex trading referred to here is the activity of buying and selling foreign currencies in the online interbank market to obtain profit. Forex trading is not a profit earning activity just like business and investment, but it can also become a profession like professional workers. Forex trading on an international scale is not only done by individuals, but involves many parties such as central banks, multinational companies and there are also individuals who own large amounts of assets.

Forex Spreads and Stocks in Forex Education for Beginners Although both are part of the financial market, Forex and stock investments are two different processes. Forex trading deals in currencies where the trading uses leverage so that the capital can be reduced by a greater value. While stocks trade in stocks with a larger capital than forex trading In addition, stocks have a limited opening time of the stock market according to the stock exchange's working hours from Monday to Friday and are divided into two sessions.

While trading Forex, the market is fully open 24 hours a day from Monday to Friday and there are many trading platforms available to help you. Currencies in Trade In fact, there are a very large number of currencies in circulation in the Forex trading market, but there are 8 major currencies that are widely traded and have become the driving currency of the economy with moderate price movements around the world. USD: Dollars from the United States EUR: Euro used in European countries Japanese Yen: Japanese Yen GBP: Pounds from the United Kingdom CHF: Francs from Switzerland CAD: Dollars from Canada Australian Dollar: Dollars from Australia NZD: Dollars from New Zealand The currency code consists of 3 letters, where the first two letters are the abbreviation of the country and the third letter is the abbreviation of the currency used in that country. Traders will always monitor every price movement of the currencies mentioned above.

Jp = Japan, Y = Yen AU = Australia, D = Dollar GB = Great Britain (United Kingdom), P = Pound Sterling Contract Size and Leverage Contract size or contract value is a standard contract that is used if we want to make transactions on a regular basis, which is 100,000 units of currency while leverage can be interpreted as loan money given from brokers to traders, so that traders can have more purchasing power. The relationship between the two, using leverage, makes it easier for traders to trade the same contract size value. So, to make a €100,000 trade, using leverage, you only need to spend $200.

What is the Forex market? The Forex market is basically a place where buyers and sellers meet or also known as Forex traders where currency is a traded commodity. Every market participant can act as a buyer as well as a seller. Where market participants are multinational banks, central banks, major corporations, governments of any country, financial institutions, and speculators.

One of the things that novice traders should know when learning forex trading is the market hours. The Forex market is open 24 hours from Monday to Friday and is divided into 3 trading sessions: Asian session: 05.00 – 16.00 European session: 13.00 – 22.00 and American session: 20.00 – 05.00 Forex education for beginners These 3 market sessions make trading always open 24 hours for 5 days in one week so you can trade wherever you are. Trading Illustration When doing Forex education for beginners, Forex trading has a very simple principle, which is to profit from the difference between the buying price and the selling price, buying at the lower price and selling at the higher price (and vice versa).

For example, you will use the currency EUR/USD The Euro is currently at a 1.13000 price position and the Euro in the next few hours rose 10 pips to 1.13100 where the value of each 1 pip increase is $10, so with the increase from 1.13000 to 1.13100 the profit obtained is 10 pips x $10 = $100. Risks in Forex Having many advantages does not mean that forex trading does not involve risks. It can be said that Forex trading is a double-edged sword as we can get very big profits but at the same time, we as traders can also get very big losses.

Read also: How Forex Market Strategies Work is Complex This risk simply cannot be avoided or eliminated at all. The risks will still exist, but you can do risk management to reduce the risks, especially for beginners. With good risk management, you can manage trading well and can measure how much profit or loss you get from forex trading activities. Or you can study using a demo account provided by the trading platform to understand things in this world.

So these are some knowledge you should have when learning forex trading beginners hopefully you can apply it well and go from a novice trader to a reliable trader. #Forex education for beginners