If you are just starting out in Forex trading or you are interested in starting to trade Forex you have to begin with small scale Forex trading, to get “the hang” of when to invest, how good your r.o.I. is and how much you want to invest. If you invest to heavily in your first few trades then you may lose a lot of money and get the impression that Forex trading is gambling which is how many people lose a lot of money with trading. If you treat small scale Forex as small scale investment then you can make a lot of money by making lots of mini Forex trades which all earn you a small amount of money but a high r.o.I. (return on investment) of what you initially invested.
For example, I know everyone uses this example but is the easiest example to use. In 2005 if you brought ï¿½1000 it would have cost you $1250. Then in the middle of 2006 if you traded back to dollars you would have got: $1350 for your money which is a $100 increase. This is small scale with minimal risk Forex trading. There is not much to lose but you are only likely to get a small r.o.I. If you invested a million then you would have got $10,000 back. This is large scale Forex trading but we are going to concentrate on small scale for now.
If you do multiply trades such as the example above this will obviously increase the amount of r.o.I. you receive. But they are all still small scale Forex trading. There are a few things you need to get before you can trade Forex. You need a trading platform, such as Etoro or forexyard. Once you have this you can make a deposit, these companies usually give you an extra 10% of what you invested into your account, so maybe put more than you are going to use into your trading account. Next you need to decide how much you are going to invest and obvious where. Now we are talking about small scale Forex trading, so this is usually amounts of money under $2,000. Next is probably the most important section.
When are you going to invest, if you get this wrong you may lose a lot of money or not get your best r.o.I. So in simple terms invest when the experts tell you, invest when the trend and stats all point to investing. Listen to the trend and invest when it is increasing. Also invest in the middle of the week as the markets are most active at this time.
In conclusion, begin trading Forex on a small scale, timing is critical and get yourself a platform and make a deposit today.