A lot of people have this question in mind: What is forex trading and how does it work? So basically Forex trading, also known as foreign exchange trading, is the process of buying and selling of different currencies like EUR, GBP, XAU, etc, to profit from their price movements. Unlike stock markets, or the Crypto Market, forex is open 24 hours a day and closed on weekends, allowing traders to trade at any time across the world. In this free forex trading course for beginners, you will understand key terms like currency pairs, pips, and leverage. Forex trading offers opportunities for you to grow your small account, but it also involves great risks. By learning the basics and practicing strategies, anyone of you can start exploring this huge market.
Beginners guide to analysis in forex market: Fundamental Analysis & Technical Analysis
Learning about technical and fundamental analysis is super important if you’re new to forex trading. There are two main types of analysis.
Fundamental analysis:
Fundamental analysis looks at big-picture things like economic factors such as interest rates, inflation, and news like CPI, and PPI, that affect currency prices and mainly the USD
Technical analysis :
Technical analysis is all about reading charts and analyzing patterns to predict currency price movements, whether it goes up or down. Both help make smart trading decisions.
For beginners, in forex trading it’s a good idea to learn and practice both methods to understand the forex market better. With time and practice, you can use both technical and fundamental analysis to trade more confidently in the forex market and make money.
types of forex trading: Scalping, day trading, swing trading
Forex trading comes with different styles, allowing you to choose what type of trader you want to be. If you are a beginner in currency trading, you need to know that there are three popular types of trading, scalping, day trading, and swing trading.
Scalping
Scalping is the fastest way in trading where you can make quick trades to earn small profits within minutes. In scalping we analyze any currency chart from seconds to minutes.
Day trading
Day trading focuses on opening and closing trades within the same day, avoiding overnight big risks.
In day trading, we analyze any currency chart from the minutes to the hourly timeframe.
Swing trading
Swing trading is a slower method, where trades are held for a few days or weeks to catch larger price movements of any currency pair.
For beginners, day trading is often a good starting point because in a high time frame you can predict market movements easily than scalping, and can do proper risk management. However, it’s important to try different styles to find what works best for you.
Best currency pairs for beginners to trade forex
If you’re new to forex trading, starting with the right currency pairs is so important. The best currency pair for beginners to trade in the forex market is the euro (EUR/USD), the British pound (GBP/USD), and the Gold (XAU/USD) are best for beginners. These pairs are popular because they have high liquidity and predictable price movements, and also have the highest trading volume daily, which makes them easier to trade. The euro (EUR/USD) and pound (GBP/USD) are affected by European and UK economic news, while Gold (XAU/USD) reacts to global trends and also some major news like CPI and PPI. Focusing on these pairs helps you to learn faster and build confidence.
Best time frame to trade in the Forex market for beginners
Every beginner has a question in mind, what time frame is best in forex trading? For beginners, choosing the right time frame to trade in the forex market is too important. Start trading (EUR/USD), British pound (GBP/USD), and gold (XAU/USD) with a top-to-bottom analysis from 1 day time to 4-hour and then 1-hour time frame, because it simplifies the chart and your analysis. The euro (EUR/USD) and pound (GBP/USD) are the most traded pair during the London sessions, offering plenty of opportunities during the London and also in the New York session. Gold (XAU/USD) gives a big move during major global news like in CPI, PPI and becomes active during the New York session. By focusing on these time frames and currency pairs, you can identify market trends easily.
understand the lot size in forex trading
In forex trading, a lot size is the amount of currency you trade, and it’s important to understand it. There are three common types of lot size in forex trading: standard, mini, and micro lots. If you are a Beginner trader, then start trading the euro (EUR/USD), British pound (GBP/USD), or gold (XAU/USD) with micro or mini lots. These smaller lot sizes help reduce risk while you learn how the market works, and also your account will be safe from blowing. By choosing the right lot size, you can avoid big losses. Understanding lot size is a key step for you to trade smarter and build confidence in forex trading.
Some of the lot size examples for beginners to know, according to your account size
| Account size | Lot size |
| 100$ | 0.03 lot |
| 500$ | 0.05 lot |
| 1000$ | 0.10 lot |
basic trends in forex trading: up trend / down trend / sideways
Forex trading goes around three main trends on a daily basis: uptrend, downtrend, and sideways.
Uptrend
An uptrend can be identified by price making higher highs and higher lows, showing strong buyer control in the market.
Downtrend
A downtrend can be identified by price falling and making lower highs and lower lows, controlled by sellers.
Sideways
Sideways in the market occurs when a price is moving in a range between support and resistance. Price does not give a clear breakout and ranges in the same levels.
Using the Fibonacci Retracement Tool and the support resistance strategy can help you to predict market movements.
best forex trading strategies for beginners: support resistance/trendline / Fibonacci
For beginners in forex trading, mastering strategies like support and resistance, Candlestick Patterns, Trading Chart Patterns, trendlines, and Fibonacci retracement trading strategy brings you closer to success. Support and resistance levels in the market help you in identifying if a currency pair will reverse or give a breakout at this point. Trendlines strategy helps in spotting out the market direction that it will go up or down. The Fibonacci retracement strategy gives you a certain point where the market will return and will go up or down.
top 5 Best forex trading platform
Choosing the best forex trading platform is essential for success. Look for platforms offering user-friendly interfaces, real-time charts, low spreads, advanced tools, and reliable customer support to trade effectively.
Here are the top best trading platforms
AvaTrade
OctaFX
exness
Saxo
Plus500
Forex trading course online
If you want to learn trading online through live classes in 1 to 1 on the Zoom app. Here’s the detail about the course from basics to advanced level, so contact us if you’re interested.
Frequently Asked Questions (FAQs)
How much money do I need to start forex trading?
You can start with $50-$100, but $500-$1,000 is recommended for better risk management.
What are the best Forex trading strategies?
Beginners can use trendline, support and resistance, and scalping trading strategy, with indicators like Moving Averages and RSI.
What’s the role of risk management in forex trading?
Minimize losses with stop-loss orders, leverage control, and position sizing. We prioritize trading psychology to avoid emotional decisions.
Can forex trading make consistent income?
Yes, but success requires discipline. Our students use forex signals (RSI, MACD) and trading psychology techniques to avoid emotional decisions. Some earn $500+/month part-time.
Conclusion
understanding forex trading basics, strategies, and platforms is key to success. With proper knowledge, practice, and tools, you can confidently navigate the forex market and achieve your goals.
“Trade with Confidence, Trade with Heist!” Heist Trader Academy wishing you Happy-trading!