TABLE OF CONTENTS
2. Forex trading tips to Leverage
2.2. Use Multiple Strategies
2.3. Choose a Suitable Broker
2.4. Avoid Getting Emotional
2.5. Stay Updated
2.6. Find the Right Trading or Currency Pairs
2.7. Use Demo Account for Trading Practice
2.8. Never go against the Trend
2.9. Don't Trade the Lower Time Frames
2.10. Trade Forex CFDs and Learn from Mistakes
2.11. Invest in Studying
2.12. Try something new
4. How To Trade Forex With PrimeFin
6. Frequently Asked Questions
The forex industry is one of the most fast-paced and liquid financial markets in the world. The average daily trade on the FX market is around 5 trillion dollars. With this trading volume, you will find a lot of buyers and sellers saturating the market. Recently, forex trading in India has become rampant due to the aftereffect of the pandemic.
To make the most of the FX market, you need the right knowledge, tools and indicators, and dedication, especially if you want to trade forex profitably in India. Bear in mind that the market can be very volatile and risky, and that's why you should know exactly what you are going into before you end up losing your money.
In this article, we will unveil the top 12 Forex trading tips for forex trading in India. These Forex trading tips could help you navigate the FX market to avoid getting caught on the wrong side. Before we dive into the Forex trading tips, let's quickly run through what forex trading is, how it works, and the importance of money management. Remember, you can learn forex trading online using content on our educational center.
What Is Forex Trading?
Forex is an acronym for foreign exchange, involving buying or selling one currency for another to make a profit or gain. If you have ever traveled abroad, you must have exchanged your local money for the currency of the country you are traveling to. That's forex trading in action.
These days, you don't need to travel abroad to be involved in FX trading. Today, several online brokers can help facilitate your forex trading. Now you know what forex trading is, let's look at some of the Forex trading tips and how you can utilize these tips.
Forex trading tips to Leverage
According to a famous saying, "Mentors are a shortcut to wherever you want to go." These tips to trade forex in India are needed to cross the hurdles of most forex traders' mistakes and failures.
Several professional traders have paid the price – time, patience and money. While having a mentor is not guaranteed to make you succeed, these Forex trading tips can give you an edge that most amateur traders lack. If you are ready for the best 12 tips for forex trading, it shows you are a step closer to achieving your goal.
1. Use the Right Platforms and Tools
The trading tools and platforms that you use as a forex trader are critical in your trading. If you are an experienced trader, navigating between different trading platforms and tools won't be an issue. Still, for new traders, it would be overwhelming to settle for a trading platform. There is no one size fit all when choosing a trading platform and tools for your forex trading.
MT4 trading terminal is among the top platforms traders use. This trading platform is designed with beginners in mind with several tools that traders may find helpful.
2. Use Multiple Strategies
Using a single forex strategy to build an investment portfolio for traders can spell doom. If traders stick to one trading method, it could be challenging to make potential profits. Therefore, as a trader, you might consider adopting multiple strategies. You can use a demo account to test different strategies before transcending to a live trading environment. Using multiple strategies is an essential tips traders never neglect.
You can research different techniques such as day trading, position trading, and scalping to maximize your range of styles when trading. Each of these strategies comes with its advantages and disadvantages. It is your responsibility to learn what works for you or not.
For instance, as a day trader, you've got to close your trade position before the day ends. Additionally, whether you want to choose day trading or swing trading, learn to use multiple strategies. However, in day trading, you have to make quick trading decisions on stop loss and take profits.
Here are a few questions to help you in building your strategies.
What do you want to achieve in the trading session?
You don't have to trade all the trading sessions. You must find one that suits your lifestyle. You have the option of trading the Asian, Tokyo, London, and the New York session. One of the best Forex trading tips and tricks is to trade during the London and New York sessions as both overlaps.
What trading strategy will you follow in this trading session?
The strategy you decide to implement would depend on the trading session you choose. If you want to trade the London and New York session, you should expect big moves and retracement to take place. As such, expect the market to be highly volatile.
What are your profit goals?
Your profit goal would depend on what you want to risk. Usually, most professional takes trades that offer at least 1-to-2 risk to reward ratio. For instance, you might risk $10 to get $30. There is no limit to your profit goal, as long-term traders have a risk-to-reward ratio of 1:5.
What will be your stop-loss?
The stop-loss you choose might relate to your account size. Your stop loss is usually your opening price minus the price change against the position you enter.
What are your risk tolerance levels?
Each trader has a different risk tolerance level, and you have to find what suits you. Some traders can comfortably lose 10%, while others find that incredibly high.
3. Choose a Suitable Broker
Forex brokers are the linking bridge between you and the FX market. As such, it is vital to choose a reliable forex broker in India.
You should not choose a broker just because it is domicile in your country of residence. It could be wise to pick a broker that has passed the litmus test in several areas. Here are a few things to check in an online broker.• Regulated • Authorized by SEBI to offer forex trading services • Trustworthy • Offers lower brokerage charges and spreads • Provide high leverage • Offers unrestricted speed to the market • It suits your trading style • Responsive customer support unit
Overall, trading with a regulated forex broker in India means that your funds are safe and secure. Furthermore, if your broker goes bankrupt, the regulator will compensate you for your losses. For instance, in the United Kingdom, the Financial Conduct Authority is the apex regulator regulating forex activities.
4. Avoid Getting Emotional
Trading the foreign exchange market and adding emotions to it can be dangerous. The foreign exchange market doesn’t respond to human emotions; instead, it responds to fundamental and technical analysis.
To trade professionally, you don't require your emotions. Try and keep your emotions under check. Additionally, traders should not be overconfident, as it may result in making unwise trading decisions.
5. Stay Updated
Remember that the forex market is one of the most fast-paced financial markets in the world. As such, the need to stay updated cannot be overemphasized. In other words, you need to keep up with the market; listen to the news, and read newspapers to follow the trend to make a proper plan and reduce the risk.
The skills or strategies that worked 2 years ago may not work in 2021. So, if you are an experienced trader, you still need to update yourself with the latest information online. You can join online groups or forums and network with other forex traders to stay updated.
6. Find the Right Trading or Currency Pairs
Finding the right forex currency pairs to trade and using the right forex trading strategy is one way to make potential money in the forex market. Therefore, it is advisable to choose the pairs you will trade. You don’t have to trade all the pairs. Once you identify the currency pairs to trade, you need to find what time they are highly volatile.
7. Use Demo Account for Trading Practice
The essence of using a demo account is to without any financial obligation. Therefore, as a newbie, the demo account is your learning field. You shouldn’t bypass the process if you want to be successful. The demo account works like a live account, except you have nothing to lose. You'd be trading with a virtual currency rather than using your hard-earned money.
With a demo account, you can deploy any strategies; test run any trading tools, indicators, and open multiple positions to see how it works. You don't get these trade opportunities with a live account because any mistake may blow your account.
8. Never go against the Trend
When trading on the FX market, it can be dangerous if you go against the trend. The consequences are grievous as you stand to lose money. While there are many trend trading strategies, your ability to choose one is what separates you from other traders.
Additionally, do not jump on every trend that comes your way. Some trends can be fake-outs. Understand the market structure as it would help you determine when the market is trending or in a reversal.
9. Don't Trade the Lower Time Frames
Most forex professionals won’t tell you this as a newbie - trading the lower time frame is dangerous. Most experts use higher timeframes. These timeframes give traders a clear picture of how the market is performing and could be preferred more than any other time frame in terms of handling risks.
10. Trade Forex CFDs and Learn from Mistakes
Forex CFDs are contracts for difference. CFDs are complex instruments, which come with high risks. When you trade CFDs, it means you’re entering into agreements to either buy or sell an asset. CFD trading is also a way to speculate on the price movement of financial instruments. And upon going wrong, there is a high risk of losing.
As you navigate the FX market, making mistakes is a no-brainer. Although making a mistake isn't bad, repeating the same mistake can be very dangerous. Whenever you make a mistake, ensure you take note and learn from it.
Learning from your mistakes will enable you to learn and improve your trading skills. It also helps to minimize your risks. So, instead of regretting your mistakes, take time to find out what went wrong and take steps to correct the anomaly. As making money when trading CFDs is not impossible but requires attention and skills.
11. Invest in Studying
The forex market is constantly evolving, and you don't want to remain static. To be part of the successful forex traders in India, you need to invest in studying. You can decide to buy courses, attend workshops or read books. In addition to these, you can join trading forums and platform that allows other traders to share their idea.
PrimeFin has adequate resource materials, including books and tutorials, to help build your trading skill. Keep studying more about chart patterns, price action, and much more as you navigate your way to the top.
12. Try something new
There is no one route to learn forex trading in India. You can try something new that has never existed. How about coming up with your forex trading tricks and tips from experimenting on several currency pairs. For instance, you can study how each pair reacts whenever there is high-impact news. Once you understand the pattern, it becomes forex tips for you unless you share with others.
Reasons of Trading Forex with PrimeFin
The first step to getting it right as a new trader is to choose the right online broker. If you are searching for a forex broker with reputable history, PrimeFin can be the answer. Here are a few reasons to consider choosing PrimeFin to kick-start your forex trading career:
- Regulations: The need to trade with a regulated broker cannot be overemphasized. At PrimeFin, we are regulated by the relevant government agencies in South Africa. Therefore, you are secured trading with us.
- Deposit/withdrawal methods: We support different payment methods to fund your trading account and withdraw your funds. PrimeFin processes both deposit and withdrawal swiftly.
- Diversification: If you want to diversify your investment portfolio, it is possible with PrimeFin. At PrimeFin, we support various financial instruments, including CFD in cryptos, indices, stocks, commodities, and pure metals. Remember that CFDs are complex instruments and come with high risks. Therefore, you should have risk management measures in place. And only then making money when trading CFDs could be more straightforward.
- Intuitive Trading Platforms: You can choose from our intuitive trading platforms. We have different trading platforms, including MT4 and MT5.
How To Trade Forex With PrimeFin
If you have made up your mind to start trading forex with PrimeFin, then find the process below on how to trade FX with us:
- Once you get on our landing page, navigate to where you will find the registration button.
- Create a new account and upload the required documents for KYC purposes.
- You will receive a mail to verify your email. Click on the link in your email and proceed with the process.
- Once your account is approved, deposit funds through your credit card or bank account.
- You are now set to start trading forex. Choose a currency pair that you are comfortable with.
- Choose different support levels.
- Place a buy stop-loss order and monitor your trade.
There you have the best Forex trading tips you need to kick-start your trading. Forex trading requires discipline, patience, and the ability to use the right tools. It also involves the development of the right strategies. We believe that the 12 Forex trading tips in India we have shared in this article will go a long way to improve your trading skills.
However, before you open a position, ensure you practice with a demo and are comfortable with your trading. Furthermore, adhere to the forex tips mentioned here. A demo account enables you to develop your trading strategy and navigate the market confidently. In addition, you won't lose real money in your bid to learn the nitty-gritty of the market. Once you are confident of yourself, you may proceed to open a live account to start trading.
Remarkably, PrimeFin offers a demo account for its traders. It also comes equipped with relevant trading tools and indicators. With this, you are on your path to trading in right direction, and have chance to be amongst successful forex traders in India.
Frequently Asked Questions
How to learn forex trading in India?
There are several ways to learn how to trade forex in India. We offer training and tutorials to help you understand the forex market. Additionally, you can also take advantage of YouTube, which contains numerous videos. However, we won’t recommend YouTube because some of these traders don’t understand the market. Check our education center for all the materials you need.
Is forex trading profitable in India?
Yes. Forex trading can be profitable in India, but it is not guaranteed. Like any financial market, it comes with risk, and forex isn't exempted from it. It would help if you determined your risk to reward before venturing into forex trading.
How to open a forex trading account in India?
You need to register with a broker to start trading forex in India. After choosing the regulated broker of your choice, you need to provide relevant documents to prove your identity. You can open an account with documents such as a driving license, Aadhaar card, and electricity bill.
At what time forex market opens in India?
The forex market is fully operational 24 hours a day and 5 days a week. However, you can start trading forex in India from 2:30 am IST on Monday. Trading continues until 1:30 pm IST on Saturday.Open account