Worldwide investors are investing in forex trading to gain lucrative returns from the market. The trend is quite popular in Pakistan, and Pakistani investors are also looking forward to investing in forex trading in Pakistan.
Apart from the lucrative incentives and profits offered by the markets, this can also be considered that the Forex market is among the most volatile markets. So to invest in forex trading, you should also consider the risk of loss and should not invest more than what you can afford to lose in the forex market.
This article will deliver a detailed and in-depth analysis of how to invest in Forex trading in Pakistan by describing a step-by-step guide on getting started.
How to get started in forex from Pakistan?
There are no restrictions to start trading from Pakistan. The only hurdle faced by the Pakistani traders is payment processing which is now resolved by the local deposit and withdrawal options. All you need is a fine broker and basic knowledge and skills to successfully execute the trading. You can take a start on a demo or real account depending on your risk appetite and urge to master the trading. Consider all objective scenarios before choosing any broker or choosing between real or live account.
Choose the broker
To start Forex trading and how to invest in Forex trading in Pakistan, the first step is to choose the broker to gain access to the trading platform.
While choosing the broker for forex trading, you should consider the type of your trading strategy, including scalping, day trading, news trading, and high-frequency trading, to maintain the portfolio accordingly and design the strategy as per the trading spectrum. If you trade a lot every day, find a broker that charges low spreads.
While choosing the broker, you should always see whether a broker is regulated or not. Never fall prey to a non-regulated broker and always try to find a highly regulated broker with many positive reviews.
Open a demo account
The next step is to open a demo account on the broker’s platform.
The demo account is a dummy account offered by different brokers on various trading platforms. This account delivers the virtual capital to the investor to trade in the real forex market. So, you can maintain the maximum practice upon the demo account by utilizing different trading strategies, trading mechanisms, tools, and indicators along with the expert advisors.
You can experiment with anything in the demo account. However, veteran traders suggest that a demo account should be treated as a real account if you wish to take maximum benefits from it. It is recommended to choose the same balance in the demo account that you intend to go with your real account. You have to implement the exact strategy in trading that you would use in a real account. Create a trade journal and make sure you record all your trades in it along with the reason. After every fifty trades, evaluate your performance, find the flaws in your trading strategy and think of fixing them. Never take demo account as a mean to gamble because you will learn nothing, and you will repeat the same behavior in your real account, resulting in losses.
The purpose of a demo account is to make a trader familiar with the market, and the investor can easily get the hang of the forex market by practically applying forex trading tactics, techniques, tools, and indicators in the demo account.
It also helps you learn to minimize the risk of loss and equip you with maximum experience in the forex market. You can understand the complete platform indicators and all the supporting tools on the platform provided with a demo account.
Learn skills and gain experience
After opening a demo account with a specific forex broker, the next step is to get a detailed and in-depth study of forex trading. This is important because it allows you to gain maximum experience in the market by getting familiar with the various trading concepts and trading instruments to gain practical experience and study within the same spectrum. Try to master both technical and fundamental trading methods if you wish to become a successful trader.
Sometimes it is time taking for you to understand forex trading patterns and the market indicators. Still, you have to invest time in acquiring technical and fundamental trading; otherwise, you may struggle to retain gains in your trading.
Before investing real capital into the forex market, you should try to learn it well. Without proper knowledge, understanding, and experience, there is no concept to invest and gain in the forex market. The volatile nature of the forex market practically demands the maximum knowledge and experience to tackle unforeseen circumstances.
Open a live account and deposit real money
After gaining the knowledge and experience from the demo account and the maximum understanding of forex tools, indicators, and understanding of MT5 and MT4 platforms, you can open a live account called a real account. You can open the real account in the forex market via the same broker with whom you opened a demo account or change broker according to your choice and deposit real capital in your account.
The forex brokers have different methods available for deposit and withdrawal, including Western Union, Bank wire transfer, PayPal, Perfect Money, Skrill, and Neteller.
At the same stage in the live or real account, you can deposit the real capital within different currency mediums. Major among them are the Euro, Pound, and USD. Although many forex brokers don’t have PKR as their account currency, some of them, like FBS, and HotForex allow you to open an account in PKR. This is helpful because you don’t need to pay a conversion fee when opening an account in the local currency.
In contrast to a demo account, a real account in forex trading comes with real capital, and your profits or losses are real too. Therefore, you should not experiment with the real account and only go for it if you are confident enough to perform adequately.
A trader in the forex market aims to minimize the loss and maximize the profit, which can only be generated through the maximum knowledge and experience of the trading within a volatile environment as per the nature of the forex market. Although this is part of the trading strategy, as a trader of real account, you should know that the only way to maximize your profits and minimize your losses is to keep a healthy risk to reward ratio in your trading.
Where to get a basic trading education?
Forex is considered among the most volatile markets in the world. Hence the proper knowledge and learning are necessary to start forex trading.
To develop learning and acquire skills, there are several free resources available online. You can surf those resources, dig them more and keep learning.
Among them, the most reliable educational content freely available on two websites named Baby Pips and Investopedia. They deliver complete detailed, and in-depth information about forex learning.
Baby Pips has a dedicated section known as “School of Pipsology”, where you can learn entire trading in small and easy steps. Gradually, you are pushed to advanced techniques of trading. Not only this, you can enjoy the form discussion, participate in different debates, share ideas and ask questions from veteran members.
Investopedia is loaded with educational blogs on forex. Any topic you name, you can find it on Investopedia. You can learn technical analysis, fundamental analysis, statistical indicators, trading approaches and many other parts of forex trading.