Do you need an fx converter to trade the forex markets as a beginner?
A look at the importance of an fx converter in trading
While gathering trading tools, newbie traders try to use anything they feel would give them an extra edge in trading. One of these is the FX converter. The FX converter is a tool used to calculate how much an individual gets when he hands over an amount of money in a different currency. Although forex trading is all about trading exchange rates by the minute, there is normally no need for using a forex converter in your trading.
Why you don’t need an FX converter in trading
Trading is done on a platform. Now most of these platforms have a price feed or market watch window. Even the worst trading platforms have this. This means that you already have live foreign exchange rates being displayed for you. So if you need to convert money for use, you can make use of any of the FX converter websites but if you only need to keep an eye on rates, you platform already has that covered.
So what do you really need as a beginner in trading?
The only thing you need as a beginner in trading is a profitable trading strategy and nothing more. If you already have a profitable strategy that you have already demo traded extensively, you can now take note of the following rules:
Do not invest more than you can afford to lose
If you do not have enough money to invest, do not trade just yet. Forex trading is an activity that drives adrenaline levels high, especially as a beginner. So putting in more money than you can afford to lose simple means you will be under extreme pressure and you will not be able to look at the charts with a clear mind. If you feel you just can’t afford to lose a particular trade, you are not yet ready to start trading. This means you should spend more time on your demo!
Decide on the best timeframe for you
At first your only plan would be to enter and exit trades and make money as a beginner, giving no thought to what the time frame you are looking at is and if it is what you should be trading. If as a newbie trader you are looking at opening and closing positions the same day, it doesn’t make any sense staring at the 4 hour charts. The 30 minutes charts are the highest you might want to go. If your strategy is a break out strategy, you could take a look at the 5 minutes charts as they will help you catch trends just as they are about to start.
Keep things as simple as you can
Forex trading is not complicated. You need a very simple to understand strategy to make money in the market. When you have a highly complicated system your trading performance history will likely reflect negative results. You simply need to know are basic chart formations, understanding of support and resistance, and couple with an indicator that lets you know when to pull the trigger on a trade.
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