Whether stock market expert or small trader
nobody has an information advantage in the foreign exchange market. Insider trading is excluded here. Trading on the stock market, on the other hand, is often characterized by manipulation by insiders, who artificially inflate prices to then short sell the securities.
Is trading in foreign exchange not riskier than stock trading?
Foreign exchange trading is no riskier than trading in stocks or other financial instruments. On the contrary, due to the often clean technical market and the barely occurring gaps, it is considered to be particularly easy to trade.
Like every business and profession
You also have to practice forex trading from the start. So that we do not burn any real money, we use a demo account for the beginning and practice with virtual money. No master has fallen from the sky, so we have to deal with the technical analysis.
Learn currency trading
In order to learn currency trading, we recommend the following measures: Reading the bestsellers of German trading literature. Subscribe to our YouTube channel with numerous introductory videos and video tutorials on trading Subscribe to our RSS feed to stay up to date.
Is there enough movement in the foreign exchange market to make enough money?
Yes, foreign exchange moves well enough to earn money or even money. The foreign exchange market is extremely liquid and therefore more suitable for beginners than the trading of commodities or indices. Due in part to the pronounced and long-lasting trend phases, foreign exchange is also quite popular with hedge funds. Since one can leverage his trades accordingly, in sluggish currency pairs only a few pips are sufficient to achieve an acceptable profit. All a question of the right money management.
How much starting capital do I need as a beginner?
Some forex brokers allow you to get started with only a few euros or dollars. The cheapest provider in our broker comparison, for example, only requires a deposit of $ 100. With that you can practice, but be aware that this sum is never enough to live off it. In order to act realistically, however, at least a small four-digit amount should be in the account in order to survive even draw-down phases (loss phases). Also, not all brokers offer trading in microlots, which are the smallest denominations in which a pip is worth ten cents.
If you want to trade a small account
You should definitely make sure that microlots are also available to scale your trades appropriately and to be able to operate an adequate risk and money management.
It should not be forgotten
May well be weeks or months when you do not earn anything or even generate losses. Therefore, it makes sense not to withdraw money from your trading account until
The position size in foreign exchange
Trading in foreign exchange is also possible for the absolute novice. The fundamentals of trading are identical in every market and can thus be learned in the foreign exchange market. The individual forex brokers offer numerous information videos, eBooks, webinars, seminars and tools, with which every beginner is clearly introduced to the topic.