For beginner level traders in the foreign exchange (Forex) trading business, the best place to start is by developing a trading plan. A trading plan should include your overall trading strategy, risk management rules, money management rules, and trading psychology guidelines. It should also include specific rules for entry and exit points, and stop-loss levels. Additionally, it is important to consider the time frame of the trades you plan to take. For example, if you plan to take day trades, you will need to be more active in the market than if you plan to take longer-term trades.
You will also need to learn the basics of technical analysis, which includes an understanding of chart patterns, trendlines, support and resistance levels, candlestick patterns, and indicators. Additionally, you should also understand the basics of fundamental analysis, which includes analyzing economic news, central bank policies, and geopolitical events.
You should also consider the broker you use and make sure that it offers the services and instruments you need, as well as competitive spreads. Additionally, make sure that the broker is regulated and has a good reputation.
Finally, it is important to understand the risks associated with trading and make sure you have enough capital to cover any potential losses.
