Strategies Tips

Forex Trading for Beginners


You might be intimidated by the idea of trading in the Forex market, but you don’t need to be. Whether you are a beginner or a professional trader, here we will give essential tips to improve your trading performance in forex.

In fact, though you probably didn’t think of it this way, you’ve may have traded currencies when you traveled outside of your home country, so you’ve already participated in the forex market!

Establishing a brokerage account and trading forex on purpose has become extremely simple nowadays.

Using Wiseinvest AI to trade automated is the most efficient way to perform forex trading. It is a hands-off investment solution that will save you time of making forex market analysis. Check out how it works:

automated trading with ai bot

With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account and you can monitor the AI trading performance directly on our dashboard.

You can also trade manually with AI forex signals that generate effective trading strategies is also very simple-it’s virtually a copy and paste into your forex brokerage account.

You can get started trading right away even if you don’t have much trading experience because Wiseinvest uses sophisticated algorithms that watch an advanced number of data points to assure you that you have an edge in your trading.

The historical results speak for themselves, and based on those, the expected return for the coming year is over 38%.

Trading in the Forex market is known by different names such as currency trading, FX trading or foreign exchange. It’s the largest and most heavily traded market in the world. It trades 24 hours a day, 5 days a week.

forex trading worth it

Currencies are always traded as pairs because the basis of the market is exchanging one currency for another. So a traded pair, say the U.S. Dollar and the Euro is an exchange of one for the other at a given exchange rate.

The forex symbol or currency pair by which the rate can be quoted is EUR/USD. Buying this symbol means you expect the Euro to become more valuable than the Dollar and selling this symbol means you expect the reverse.

There are 4 major currency pairs which make up 80% of total global FX trading volume. These 4 pairs trade 7 different currencies and their symbols are: EUR/USD, USD/JPY, GBP,USD, and USD/CHF. Each of these pairs represent major world economies such as Europe (EUR), the U.S. (USD), Japan (JPY), England (GBP), and Switzerland (CHF). There are other minor pairs, exotic pairs and regional pairs but your focus initially should just be on the 4 major currency pairs.

So, if you buy the GBP/USD, you buy GBP (base currency) and sell USD (quote currency) simultaneously. So if the chart for GBP/USD moves up, you know that the pound (base currency) has increased in value against the dollar (quote currency).

how trade forex

This happens if the expectation is more bullish for England compared to the U.S. If you think the dollar will increase in value, then you need to sell or short the GBP/USD instead.

Forex trading allows for significant trading margin. Some forex brokers allow for margins of 100:1. This means $1000 will trade like it is $100,000! The language used by your broker for this leverage is how big of a deposit is required to open a position.

So if your broker tells you a 1% deposit is required, you could open a US $10,000 position for just US $100. When you use such leverage, you take the risk that you can lose more than you deposit if you aren’t careful. The advantage of leverage is that it helps even smaller accounts grow very quickly.

Standard price quotes in FX trading are in a unit called, “Pip,” and they refer to one-one hundredth of a percent. An easy way to think of it is to count the movement seen in the fourth decimal place if a currency quote.

For example, if the EUR/USD traded from 1.85631 to 1.85741, it moved 11.0 pips because the fourth went 11 digits higher (from a 63 to a 74).

There are exceptions to this for currency pairs which are quoted in Yen (those that have JPY as the quote currency). For these quotes, a pip is the second number from the decimal.

In such quotes you might see a number such as 106.54 where a change from four to five in the last digit would represent the movement of a single pip.

If fully leveraged at 100:1, a single pip represents a $10 move. A 10 pip move therefore represents $100. What makes Forex trading so exciting is that the market can move 20-30 pips in literally minutes.

Some of the main levers moving currency pair pricing has to do with economic measures taken by the respective countries.

Elements that affect one currency’s price relative to its pair include quantitative easing, adjusting of base interest rates, and any reports that forecast an economy’s outlook such as inflation, retail sales, employment, GDP, or production reports.

Wiseinvest takes all such reports into consideration when generating recommended setups for forex trading. If you want to trade forex and improve your performance, we also recommend this reading. We are confident that AI is the most efficient way to reach for better outcomes in forex, regardless the experience level as a trader.

When investing through Wiseinvest automated AI trading or AI forex signals, you do not need to calculate or change the leverage in your forex broker account. Learn more about leverage in forex trading clicking here.

Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.

The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. The forex broker Fxcm warns that 69.66% of retail forex traders lose money trading CFDs.

The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.