How To Trade Forex During Covid-19 Lockdown
One of the biggest impacts of the pandemic is the reduction or loss of financial power that many people are now experiencing. This is why it is crucial to equip yourself with the capacity to make money. Starting forex trading from home during COVID-19 lockdown is one way to do this.
This article gives a brief guide on what you should know and what you should do in order to be a successful forex trader.
Forex, short for foreign exchange, is the buying and selling of currencies in the currency market and making a profit from the dynamic exchange rates. The gain on forex is possible only because the exchange rates are always changing. The forex market is a vast, decentralised market with a daily volume of trillions of dollars with an estimated value of more than 2.5-times larger than the global GDP. Anyone can become quite successful at forex trading. Some have built a pedestal for their wealth from it; you can, too.
What you need to trade forex
Traditionally, forex trading is carried out by large financial institutions. But these days, individuals can also trade smaller volumes and rake in profits. To trade forex now, all you need in addition to sound knowledge and strategy, are:
- Trading capital
- A PC, or smartphone, or tablet with a fast internet connection
- Exchanges/brokers such as Ameritrade or OANDA
- A trading platform such as Metatrader 4 or Metatrader 5, commonly called MT4/MT5
As mentioned above, you will need to invest your time and effort into learning the basics of forex trading and getting a good understanding of the key terms. It is important that you don’t skip the learning process, or you might find yourself running back at every stage. Getting the basics won’t take too much time, and although the industry changes a lot, the fundamentals remain the same.
The first thing to do is open an account with your chosen broker. Make sure you choose a broker that charges little or no fees, that allows various options for deposits and withdrawals, and that offers excellent customer service. Your broker should also be trusted and licensed under the appropriate government body regulating such things.
Next, open an account on the trading platform you intend to use and link your broker account to it, and then fund your account with an amount you are comfortable with. Immediately you fund your account, you are ready to trade. But before then, it is advised that you open a demo account (which most platforms offer) in order for you to get familiar with the tools and options available to you. Once you are familiar with your tools and strategies, you can go on to place live trades.
The forex market is volatile, and if you want to succeed, you need to be level-headed and calm. This is one industry where your passion must not drive your choices, or you may hit huge losses over and over. It is also important that you keep up with global economic events and charts and draw insights from them.
Forex trading from home during COVID-19 lockdown is not just possible, but it is also an added stream of profitable income that you can take advantage of to mitigate the effects of the lockdown, and even build some sort of savings in the long run.