As with any type of investment, there is a transition phase when you get started with Forex trading, during which you can learn about the knowledge and skills of investment. Here is a quick start guide for novice traders.

A. Understand the characteristics of Forex market

1. Over-the-counter. There is no centralized location, rather the Forex market is an electronic network of banks, brokers, institutions, and individual traders
2. Open 24-hour a day. Because of the different longitudes and latitudes of financial centers around the world, Forex has the ability to trade over a 24-hour window without a break. The New York market opens at 8:30 a.m. (EST), Chicago at 9:30 a.m., San Francisco at 10:30 a.m., Sydney at 6:30 p.m., Tokyo at 7:30 p.m., Hong Kong and Singapore at 8:30 p.m., Frankfurt at 2:30 a.m., and London at 3:30 a.m.
3. Two way transaction. One of the differences between the Forex market and the traditional market is that there are profit opportunities for both buying and selling. The key is how to find the best time to trade.
4. Leverage trading. The exchange rate change is quite limited under normal circumstances unless something important is announced, but investors can increase their trading positions hundreds of times by choosing the appropriate leverage, and the profit will be considerable.

B. Simulated transaction operation

Many Forex trading platforms will provide simulated accounts for beginners to practice their trades without risking any real money, and many people started out Forex trading with a practice account. Through continuous simulation of real transactions, they can understand the basic knowledge of Forex trading and master more trading skills.

C. Mastering Forex trading skills

1. Forex trading is different from stock trading. When doing Forex trading, investors often only see the price of entering the market, but ignore the overall upward and downward trend. Determine your risk tolerance and capital allocation before putting your money at risk. Be rational. Don’t let your emotion carry you away.
2. Maximize profits. When you find that the market trends will develop in the direction that is favorable to you, you need to calm down and let the price develop as far as possible to maximize profits. Closing a position at the sight of small profit is not equal to closing at the sight of profit. In this way, you may lose more than you earn.

The best way for a novice to start Forex trading is to practice through a free demo account, and get hands-on experience of what it feels like to trade currency pairs in the Forex market, which will be of great help to the real trade in the future.