Until very recently, trading on foreign currency exchange was reserved for financial institutions and funds, keeping retail investors out of this great market. With relaxing of this rule, individual investors were given another way to diversify their portfolio and trade. However, many of them are reluctant to do so, and often are intimidated by this vast market. In order to overcome these fears and concerns, investors should educate themselves about the risks and signals of this market.
- A demo account is a good way to practice trading strategies without risking real money.
- It’s a good idea to follow the news of the countries whose currencies you will be trading.
- Day traders have a very short term focus, while position traders use time frames of up to a month or more.
“Forex trading used to be the exclusive territory of large market operators, but it’s now accessible to the general public and there are many resources available to help beginning traders achieve success.”