Starting trading currencies in Indonesia is as easy as in the rest of the world. All you need to do is spend a few minutes of your time on opening a trading account and going through the verification process. However, this is hardly enough to start making money, let alone make a living out of forex trading. To learn about the best ways to trade currency in Indonesia, read this article.
What Is a Trader?
A trader is an individual who speculates on the price of securities such as stocks, currencies, commodities, etc. A forex trader specializes in buying and selling currencies, or more specifically, currency pairs. By exchanging one currency for another, traders gain or lose money depending on whether they predict the price right or wrong. To predict the future price of a currency pair, traders refer to technical and fundamental analysis.
Technical analysis involves studying the price’s behavior in the past to make predictions about its future behavior. This method involves the use of various technical indicators. Fundamental analysis in its turn deals with the economic events and their influence on currency prices. Examples of such events are central banks’ monetary policy decisions and non-farm payrolls.
To have a more clear idea of a forex trade, look at the chart below. Using one of the simplest strategies based on breaking the trend line and using the MA trend indicator, a trader could earn 2,000 pips or $2,180 by opening 1 lot to buy the USD/CHF currency pair. The exit was made at the nearest resistance level.
Read more: How to Read Forex Currency Pairs
1. Define Success in Forex Trading
One thing to keep in mind is that successful trading is not a matter of luck. And you should not expect to get rich overnight after opening a trading account. It sometimes takes a few trades before you figure out how to make a profit. So consider setting realistic goals in the initial stages:
- Get acquainted with the trading terminal;
- Open the first trade;
- Profit from the trade;
- Gain 10 pips;
2. Find a Broker in Indonesia
With the development of modern software, forex trading has become available to the general public. Now, anyone over the age of 18 can open a trading account and benefit from currency price fluctuations without having to leave their house. It is possible due to a network of online brokers that serve as a mediator for market participants and provide access to buying and selling currencies.
All brokers offer similar services but different trading conditions. As a trader, you are interested in trading with brokers who offer minimal spreads and provide the quickest order execution. Small spreads are the small differences between the buying and selling prices. The smaller spreads are, the smaller the expenses of a trader will be. Sometimes brokers also set additional commissions on deposit and withdrawal of funds. It is best to avoid brokers who offer both commissions and high spreads.
3. Learn to Trade in Indonesia
To learn to trade FX in theory, one can read educational articles, watch videos on YouTube, and follow up on daily market news. Learn about the best books to read when getting started with forex from our article. To be aware of all market updates, subscribe to our daily newsletters with the news from forex, stock, and commodity markets. For those who want to get a solid and structured forex education, it may be a good idea to start an online course.
4. Demo Trade First
Many beginners don’t want to deposit money to learn to trade, which makes sense as initial trades are often unsuccessful. To allow you to practice without the risk of money loss, brokers offer opening demo accounts that don’t require investing money in order to trade. Basically, you open an account where you don’t have to deposit money but you still can open and close trades, observing the real situation in the currency market. This is the only completely risk-free way to practice trading.
5. Choose a Trading Strategy
A strategy is a foundation for any successful trade. You should never open a position without one. There are plenty of strategies online, e.g., scalping, swing trading, position trading. Which strategy to choose depends on your personality, goals, and trading experience. As a beginner trader, you should start with simple approaches. Learn about Support and Resistance and follow up our daily analytics, which may give you a better idea of how to implement the Support/Resistance strategy. You can also refer to forex signal providers to practice opening and closing trades designed by professionals.
6. Trade with Discipline
One of the things you should not forget about is discipline. The good thing about forex is that it functions 24 hours a day from Monday to Friday, which means that you can trade at any time on weekdays. But it doesn’t mean you should do so. To benefit from the forex market, choose the most appropriate hours for trading and trade regularly during those hours. The beginning of the North American session is preferable due to a high trading volume.
7. Do Not Overtrade
Trading is a risky business whatsoever. This is why they say you should never trade more than you are ready to lose. Do not ever trade the money you have to pay your rent, for example. It is crucial that you have a responsible attitude not only to your finances but also to the trading itself. Once you start trading real money, form a sort of budget for trading and don’t go beyond its limits.
The success of your trades depends on the level of preparation. So, if you are interested in becoming a trader, the first thing to focus on is self-education. Luckily, with so many online resources, one can master trading free of charge, simply by reading articles, watching videos, and placing orders on a demo account. Trade in a responsible and disciplined way and make the best out of forex.
Justforex is the world’s trusted broker that offers 180 popular trading instruments. By having a trading account on Justforex, you benefit from advantageous conditions, including high leverage, low spreads (from 0 pips), as well as commission-free deposits and withdrawals. And if you have any questions, there is a helpful support team working round the clock to ensure you have the most convenient trading experience.
Try your hand at currency trading by opening a demo account on Justforex. It’s a quick and risk-free way to master trading in the most liquid financial market. A practice account will help you learn trading basics and develop a strategy before investing money. Start trading today to take care of your future tomorrow.
Can you get rich by trading forex in Indonesia?
Yes, you can. The outcome of your trades depends on two things: your expertise and the size of your investment. Given you possess good knowledge of the market and have enough funds for trading, there is a great chance that you make a lot of money.
How much do forex traders make in Indonesia?
Experienced traders make up to 15% of the amount they invest in trading. The level of your income from trading depends on your expertise and the size of funds you trade.
Can I teach myself to trade forex in Indonesia?
Yes, you can. There is plenty of information sufficient to start trading in the forex market. Read articles on the Justforex website and open a demo trading account to successfully master forex trading.
How long does it take to learn forex in Indonesia?
It is possible to learn basic forex concepts within a week. To turn trading into a profitable activity though, one needs about a year of consistent practice.
Is forex good for beginners in Indonesia?
It is pretty easy to start trading currencies. The fact that there is no need for special education to start trading and the deposit requirements are rather low, forex is considered a rather beginner-friendly market.