Forex trading is not something as easy as imagined. This is evidenced by the number of new traders who experience loss while trading.

Here are tips on how to trade forex as follows:

Create a demo account

Beginner traders are highly recommended to try the demo account in forex trading with the real forex market. By using this demo account, novice traders do not need to spend a dime. And of course there is no need to be afraid of losing money.

After all, novice traders also have nothing to lose if they make mistakes. It is very easy to create a demo account. traders only need to register with the available forex brokers to open a demo account.

Download metatrader

Metatrader is a platform used by novice traders to trade forex online. By using metatrader, forex trading will be done more easily and quickly. The software is also equipped with a number of sophisticated tools and facilities to make it easier for traders to analyze.

Metatrader can be obtained by visiting the forex broker or you can download it from the Playstore and Appstore.

The type of Metatrader itself is divided into 2, namely Metatrader 4 (MT4) and Metatrader 5 (MT5).

Using technical and fundamental indicators

An indicator is a tool that provides data from the results of certain formula calculations to measure and assess market conditions so that traders can predict the next market direction. The number of forex indicators to date has reached hundreds and will continue to help traders make more profits.

Technical indicators are indicators that use charts to track price movement data and trading volume with the aim of identifying the current price trend.

In theory, technical analysis is based on three things:

Economic conditions that have an impact on existing exchange rates in prices.

History tends to repeat itself. Future price movements are likely to imitate previous price movements.

Once formed, the trend will tend to continue. There are three, namely Uptrend (uptrend), Downtrend (downtrend), and Sideways (horizontal). Technical indicators assume that if the price has officially formed an Uptrend, it will tend to continue to move up.

Fundamental indicators are indicators based on global or local economic, political and security situations and conditions that differ depending on the country of origin of the stock exchange, the company that issues shares, or the country whose currency is traded.

The following are the principles of fundamental analysis:

Chain Reaction: The greater the impact of an information, the chain effect it will have on forex.

Information Distance: The closer an information is to a currency, the greater the influence of the information.

News Source: The more official and popular the news source, the stronger its influence on the value of a currency.

Type of News: Economic news has a stronger influence on the currency of a country than other news, such as political, social and cultural news.

Candlestick analysis

Candlestick is a type of price chart or chart that looks like a candle, usually used to read price movements in the forex market.

A candlestick consists of two parts, namely the body (the middle of the rectangle) and the shadow (the thin line that runs above and below it). From here it can be seen how a candlestick can provide very important information that can be used in analyzing the forex market.

Open position

Errors in opening a position, either buy or sell, can be fatal to the trading account. With good experience capital regarding open positions, then in making trading decisions it will be more focused.

There are several methods that can be applied to open positions, one of which is to follow the trend. This method is considered effective by identifying ongoing trends, both technically and fundamentally.