2. Develop a trading plan
This is particularly important if you’re new to the markets. A trading plan helps take the emotion out of your decision making, as well as providing some structure for when you open and close your positions. You might also want to consider employing a forex trading strategy, which governs how you find opportunity in the market.
3. Do your research
If you’ve chosen to use a particular forex trading strategy, then now’s the time to apply it. Use your favoured technical analysis tools on the markets you want to trade, and decide what your first trade should be.
Even if you’re a purely technical trader, though, you should also pay attention to any developments that look likely to cause volatility. Upcoming economic announcements, for instance, might well reverberate across the forex markets – something your technical analysis might not take into account.
Learn more about what moves forex markets.
4. Place a trade
You can trade via the IG Trading platform in your web browser, one of our mobile apps, or even using advanced third-party platforms like MT4.
Open the deal ticket for your chosen market, and you’ll see both a buy and a sell price listed. You’ll also be able to decide the size of your position, and add any stops or limits that will close your trade once it hits a certain level. Hit buy to open a long position, or sell to open a short position.
When you’ve decided it’s time to close your position, just make the opposite trade to when you opened it.