MAJOR THINGS YOU NEED TO KNOW

MAJOR THINGS YOU NEED TO KNOW 

BEFORE BECOMING A FOREX TRADER

  

FOREX IN INDIA: THINGS YOU NEED TO KNOW BEFORE BECOMING A FOREX TRADER

It has become very usual to hear that “Forex in India has become very popular, but it is risky to trade in this market, as you’ll have many losses.” Never mind! Losses are not the Forex fault, but losses are natural for those traders, who do not follow simple rules in Forex that are the keys to the success in the Foreign Exchange market.

The worry may be related to the simple evidence: Foreign Exchange in India is quite new. People are not familiar with simple rules that should be followed to. The more you follow the rules, the less the losses will be!

 Define your risk tolerance carefully

From the very beginning accept that Forex trading is a risky business and be ready for some failures. Remember that the loss is something you can gain experience from. Besides, after suffering losses, you begin to understand what your faults are and make attempts to improve your trading strategy.

Choose the brokerage company carefully

The result highly depends on the brokerage company with which you trade.  You act in accordance with the terms and conditions, set by it. So, be maximally careful to make a right choice. There might be people with conceptions such as “Foreign exchange in India is developing, so the Forex brokerage company should be Indian.” In reality, this is a misleading opinion, as there are many trustful Fx brokerage companies. Remember that your success partially depends on the brokerage company.

Focus on a single currency pair

The world of currency trading is deep and complicated. In order not to get confused in the variety of currencies, you should better focus on a single currency pair, the one which is more familiar to you. Beginning to trade with the currency of your nation can be a great idea. IFC Markets does not have any currency pair with rupee: some people may think that this is a negative point, but in reality it is a positive one, because it is better to start with one of the widely traded currency pairs, e.g. EUR/USD.

Begin with small sums. Increase the size of your account through profit, not by greater deposits

           It is advisable to start trading with small sums, using low leverages. Try to increase your account size by profits, not by enlarging your deposit.

Pick the account type and leverage according to your knowledge

If you have a good understanding of trading in general, standard account type is for you, but if you are a newcomer in this world, it’s better to choose the beginner account. As for leverage ratio, in any case it is safer to use low leverage, following the principle “The lower the risk is, the greater the chances are”.

Foreign Exchange in India is a fast developing sphere, which involves more and more people nowadays. The only thing you need to do is to take the right steps in order to reach the goal you have set out from the beginning.