Forex Basics

So you've decided to dip your toe into the Forex currency markets and open yourself to the potential returns offered by Forex Trading? Congratulations! Trading foreign currencies is both an exciting and potentially highly profitable form of Financial Trading.
As a beginner to Forex Trading, there are plenty of places that you can go for great information. In fact there is so much information available on the internet these days that when starting out it can often seem overwhelming!
In this lesson we address some of the Forex basics that you will need to understand to start profiting from the Forex Markets.
Let's start by answering some common questions.

What do I need to start trading Forex?

Generally all you need to start Trading Forex is a computer with a high-speed Internet connection and a Forex brokerage account. Most people these days will have access to the former while online Forex Broker accounts can be opened quickly and easily in a matter of minutes.
However before you go heading off to the nearest Broker site we recommend that at the very minimumyou read the information on this website and ideally gain a good grasp of the general principles of Forex Trading.
At Forex Technical Chartist we cannot emphasize enough how important it is to not jump the gun! Remember the Forex Markets will be around for a long time, much longer than your Trading Capital if you do not approach them with both an idea of what you are trying to achieve and an understanding of the tools with which you intend to achieve this!

What does it cost to trade Forex?

Forex Trading can cost you as much or as little as you want it to. Forex Account opening deposits start very low with many brokers only requiring a $50 deposit to open a Micro account and sum offering account opening from just $1!
'Mini' account opening limits (their bigger brother) tend to start from around $500. This ‘higher’ level account may give you access to more platform features, better spreads or both. However increasingly, the distinction between account types is becoming more blurred as brokers become more competitive.
Both Mini and Micro accounts are good ways to dip your toe into the Forex markets for the first time with a limited exposure. Both account types will allow you to trade fully on the markets as you begin to pick up the ropes. Bear in mind though that just because you can open an account with a deposit of $50 in reality this is far too small an amount to allow you to follow a proper balanced Forex trading strategy.

Is it easy to open a Forex Brokerage Account?

Opening a Forex Brokerage Account is straightforward and painless. Most Brokers will offer a simple online sign up process and will supply links to download any necessary software for their trading platforms. Depending on your country of residence you may need to email or send proof of ID to your Broker in order to activate your account once opened.
As well as online dealing, most Forex Brokers will offer a telephone dealing desk should you wish to phone through orders. This is a great backup if you experience any technical issues with either the platform or your computer hardware... especially if you have open trades running!
Remember to check for this facility when appraising brokers if you want the ability and added security of trading this way.

Can I try out Forex Trading before committing my 'real' funds?

Yes. Most Forex Brokers will allow you to open a demo account for exactly this purpose. This will usually provide a simulation of the real trading platform offered by the Broker for live accounts. You may find that some of the advanced features are disabled but at least it will allow you to get a feel for the brokers operation and the reliability of their dealing platform. This is essential before taking the decision to open a live account.
.From the demo account you will be able to trade in real time and track your profit and loss by use of 'virtual' trading capital (The broker will give you a fictitious pot of trading capital to play with.)
It's useful to keep a demo account open even when you have progressed to live trading. Use this for testing strategies and systems in various trading scenarios before committing funds from your live account.

Can I trade Forex from my mobile?

Yes. Many Forex Brokers now offer the ability to run their trading platforms from mobile devices. Specifically several IPhone specific applications are now offered by many brokers.
These provide you with access to your account with a cut down version of the main trading platform. Some allow you to trade directly while others will simply let you keep track of open positions.
Certainly as mobile devices become faster and more sophisticated the ability to trade virtually anywhere(subject to your mobile operator network constraints) is fast becoming a reality.

Is there anything else I need to start out in Forex?

Make sure you bookmark some good news feeds so that you can keep up to date with the latest market news and trends. Some Forex Brokers will offer news feeds within their dealing platforms, but it also pays to bookmark some of the big financial sites like Yahoo Finance for example, which provides a good round up of all economic and financial news.

Remember...

Trading Forex is potentially a very lucrative occupation with which you can quickly generate some serious financial profits. Just because you know the Forex basics don't expect to suddenly become an expert. To become an expert, it takes time, patience and application. Before you jump in make sure you familiarise yourself with the risks involved and take time to build your knowledge. Most importantly decide upon the approach to trading that suites YOU best!

From: http://www.forextechnicalchartist.com