Posted by forex at 6:14 AM
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1. Learn more about the basics of trading before you purchase a FOREX trading software package. A little time and money spent on educating yourself can end up paying off for you significantly. Consider enrolling in a class or at least purchasing a few well-reviewed books on the subject before jumping into currency trading (see Resources below).
2. Download a free trading platform once you're comfortable with the ins and outs of the FOREX market (see Resources below). See how you like it before you start to shop for the more professional software.
3. Learn how to read charts rapidly if to increase the value that you derive from using FOREX trading software. If you're trading with obscure currencies, it can be helpful to learn how to read the currency charts. This is a completely different skill set from learning how to read stock charts. Currencies are not stocks, they do not behave like them and are affected by entirely different sets of fundamentals. If you want to be a currency investor rather than a gambler, it helps to have a solid foundation of knowledge about how government and central bank intervention effects prices, as well as how bank lending affects money supply. You should know the difference between money and credit as well.
4. Compare and contrast the different currency trading software packages on the market. Some trading platforms will let you trade all of the money that you put into the account, but others will require you to set some aside to cover your potential losses. Different software packages will have different features. Many will allow you to trade currencies directly along with currency futures and derivatives (see Resources below).
Read all the documentation you can about a trading platform before you deposit any money. Look for available free trials to get some hands on experience before you get to trading.
5. Invest in currency swaps using your software of choice. Customize your software settings so that you can choose which markets and currencies to monitor. A knowledge of FOREX markets can be very powerful tools for any investor. It opens up many new opportunities, such as learning how to borrow money at low interest rates in one currency and invest it in another. Staying on top of currency moves also opens up opportunities for arbitrage that would not otherwise become apparent.