‘A journey of a thousand miles begins with a single step’ – while this might be the most cliched statement ever, it nevertheless holds true and is even applicable to forex trading in India. With the FX market being one of the largest financial markets, its enormity and sheer size deters traders from entering it. Taking the first step into the market is the hardest part. If you’ve braved it, then the journey gets a lot smoother henceforth. So, if you’ve managed to overcome your inhibitions and have decided to trade in currencies, then this article is for you.

Here are five useful tips that every new entrant to the market should know:

1) Using the right trading platform

You need to choose a decent software program that allows you to execute trades. While the market is filled with a host of options, not all of them may suit your needs. For a beginner forex robot , the focus should be on ease of use and a short learning curve. WesternFX, a renowned forex broker, offers MetaTrader 5, an online trading platform that’s perfect for beginners. You can also explore other options, but since you’re new, it’s recommended to stick to tried-and-tested ways.

2) Diversify your trading account

Many forex traders direct their attention solely towards currency pairs. While it’s certainly a lucrative avenue, there’s scope for money-making in other markets as well. Attempt to diversify your trading portfolio by splitting your investments. A few options to consider include stocks, energy, indices, commodities, etc.

3) Learn technical and fundamental analysis

You cannot trade on the forex market like it’s a gamble. No guesses, no hunches, and no coin flips can make your decisions. That’s not how it works. This is why you need to learn to analyze the technical aspects of trading before you make a trade. Learn to read charts and indicators. When in doubt, read more and even ask other traders for help. WesternFX has a 24/5 helpline you can make use of. Remember; open a trade only if you’ve mastered the basics.

4) Trade on a demo first

Even if you’ve read every book on forex exchange in India on the planet, it still doesn’t make you an expert. Expertise comes with practice. So, before you start putting real money on the line, it’s advisable to make use of a demo trading account and practice what you’ve learned first. This will help you hone and refine your skills, and ensure that when you make your first move in the FX market, it’s a well-calculated one.

5) Keep a trading journal

Not every trade is bound to fetch you profits. You need to learn from your mistakes. It pays to write down everything and maintain a journal where you can keep track of your activities during online trading in India. Note down everything; the results of the trade, the forex trading strategies you used, where you went wrong and why etc. This is vital if you want to enhance your trading performance and become a better trader.