For anyone new in currency trading, a good idea would be to first read a currency trading for dummies guide. You can find online many currency trading for dummies e-books that are free to download.
The next step in your new currency trading career would be to open a demo practice account at any of the online Forex brokers. Most of them offer practice accounts that are a real help in currency trading for dummies. They let you experience the real-life feeling of dealing foreign currencies in the market. Demo accounts are using virtual money, that way you would be able learn how to trade without risking your own money. You will gain experience about the exchange rates, the price movements in the currency market, and margin trading.
Using a demo account gives you a chance to experience how prices change at different times of the day, as well as the particularities of various currency pairs. A good idea for a beginner is to check out the Forex market when any major news and economic data is released. That way you can observe how the Forex market reacts to the news.
Another good tips in currency trading would be to experiment with different trading strategies, to practice with different types of orders and learn how to manage open positions, to get knowledge on how margin trading works and understand how to use leverage. A good start in currency trading may also be to start learning how to follow technical indicators and how to analyze charts.
Other concepts usually explained in currency trading for dummies guides are the fundamental analysis and the technical analysis. As explained in any currency trading for dummies guides, the fundamental analysis is the analysis of the market based on real events and macroeconomic data related with the currency exchange rate. This kind of analysis is also used in any financial planning or forecasting. The currency trading for dummies e-books also explain some indicators that are part of the Forex fundamental analysis. Here are included the macroeconomic news, the overnight interest rates, the central banks meetings and decisions, the economic and political news. Even the weather news can have an influence on the currency exchange rate.
The next concept to study in the currency trading for dummies guides is the technical analysis. That is based on market data numbers, such as volume of supply and demand, indicators, quotes, charts, past market data. The Forex technical analysis is based on the functional dependence between the future market technical data and the past market technical data.
The currency trading for dummies guides are also explaining the proper money management strategies for the new traders. Risk management and money management strategies are essential for long term survival on the market and improve in a substantial way your chances to make profit. Being able to master the market analysis and to make accurate predictions for the future Forex market behavior is not enough. In order to make any profit you will need to learn a proper money management strategy. Money management is, in fact, a complex set of rules you need to develop, based on your own trading style and the amount of money you plan to invest.