In trading, of course, we must know how to do it. Starting from a basic understanding of the term, to how to play trading itself. We will discuss these methods in this article. For those of you who are beginners, then you can understand the explanation of how to play trading below. The way to play trading is very diverse and can consist of several steps. Therefore, understand all the steps and do trading when you are ready with the understanding that will be explained below. But before you trade, make sure to have the trading app itself first. You can download application of the GIC Mobile through the App Store or Google Play Store on your phone.

What is Forex Trading?

Before learning how to play trading, it's a good idea for you to understand forex trading itself. In this case, forex is short for Foreign Exchange or what can also be called foreign exchange exchange. For example, from forex trading when buying Euros, while simultaneously selling USD, this trade can be abbreviated as EUR or USD.
 
In general, forex itself is a transaction by exchanging the currency of the chosen country with the currency of another country. If you exchange money at a money changer, this activity can be referred to as foreign exchange. As for forex trading itself, it has a different meaning. Forex trading is the activity of buying and selling foreign currencies that will be carried out online. The purpose of trading forex as an investment itself is to profit from the difference in sales figures that are being made. Usually, those who carry out forex trading activities are known as traders.

History of Forex Trading

Before learning how to play trading, it's a good idea for you to understand the history of forex trading. Historically, forex trading in the late 90s was only done by the wealthy, large financial institutions such as central banks, private and government banks, as well as large commercial companies such as Apple or Toyota who carried out this trade. They trade used for debt repayment, trading, hedging (hedging), and investing.

The capital needed will also be quite large, and not just anyone can do the forex business. After the development of the internet in the late 90s, the forex market was finally able to be followed by almost every individual. Brokers have also begun to structure forex trading so that it can be traded in retail by each individual. So at this time, starting from banks, money changers, to every individual can also enter the Forex market.

The End of the Barter Period & the Beginning of the Money Exchange

This barter system often encounters obstacles, because this system often has difficulties in being able to calculate agreements in the exchange of goods and services itself. To reduce this, humans finally began to create commodity money to transact. Furthermore, the history of money entered a new chapter with barter beginning to be abandoned. Humans began to use commodities such as salt, tea, tobacco and grains as a means of payment. In 600 BC, King Lydia Alyattes of Turkey had minted the world's first official coin.
 
Then China began to design banknotes in the first century AD, which was during the Tang Dynasty. After paper money and coins have been used in various countries, then card-based electronic money is issued. The money is usually used to make transportation payments, at retail stores to payments at toll gates.

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History of Modern Forex Trading

In the Bretton Woods System, the United States in 1944, had official rules to regulate monetary relations between countries. The United States, which at that time held two-thirds of the world's gold reserves, insisted that its system be based on gold and also the US dollar. This system requires each country involved to be able to relate the value of its currency to gold and also the US Dollar.
 
However, this did not last long. On August 15, 1971, the United States unilaterally severed its currency ties with gold, which automatically ended the Bretton Woods system. The value of the dollar is no longer obtained from its gold reserves, but only based on the promise of the US government. This action certainly makes the US Dollar a reserve currency for countries in the world. At that time, the exchange rate between currencies is not determined by default, but by following a simple economic system, namely demand and supply. And a new phase in the history of forex trading was born, which is the period of floating exchange rate (floating exchange rate system).

Era Trading Forex Online

The development of this technology is a crucial point in the history of forex trading, as it has driven the trading volume of the forex market to become the largest financial market in the world with daily liquidity reaching USD5.3 trillion in 2013. At that time, we will also be able to find out which currencies are very much traded and can try to benefit from the strengthening or weakening of the currency exchange rate.
 
Now there are also many "forex brokers" who will serve currency trading for people on a small scale. In contrast to the interbank market which already has a standard trading scale (100,000 US dollars per unit); The forex broker will facilitate the public to trade forex even with a small capital of a few tens or hundreds of dollars only. More sophisticated, forex trading can be done through tablets, laptops, androids, or iPhones.

The Law of Forex Trading according to Islam

Before learning how to play trading, it's a good idea for you to understand the laws of trading itself. According to Islam, currency trading or forex trading occurs due to the need in the global market to be able to meet the needs of the diverse country itself. This is in accordance with a book entitled "Masail Fiqhiyah" written by a fiqh expert named Prof. Drs. Masjfuk Zuhdi by stating that if foreign exchange trading or known as foreign exchange is allowed in Islamic law.

Forex trading is also considered halal, because the products traded have a clear form and value, namely foreign currency. Forex trading is also different from riba and purely from the results of buying and selling transactions because forex itself trades currencies and does not lend money with the expectation of more change. The Indonesian Ulema Council (MUI) also legalizes SPOT forex trading activities which are in the SPOT purchase and also sale of financial instruments, commodities, and other assets which are carried out with cash and direct payments. This market is also often referred to as the cash market because the direct trade is exchanged for assets. If you already know the laws of forex trading yourself, you can invite your friends to join GIC or become an IB so that you can get additional money for trading.

Advantages of Forex Trading

Before learning how to play trading, it's a good idea for you to understand the advantages of trading. There are advantages to trading forex itself. You can feel this advantage when doing these activities.
  1. Less Capital. Many brokers offer capital with as little as US$ 1. With profits that can be 100 or even 1000 times. Meanwhile, for those who want to trade stocks, they will need a large amount of capital.
  2. The Forex trading market is open 24 hours. This forex trading market activity will be quite easy because it will be open 24 hours a day for 5 working days. Which is carried out according to standards around the world, by following world regulations. Meanwhile, for stock trading, there will be a time that can be said to be less flexible in its implementation.
  3. Quite High Liquidity. You can disburse funds for transactions at any time. So that almost every day the turnover funds in the forex market can reach a figure of trillions of dollars per day, and can be used as transactions.
  4. Most have a trial account. This, will be very beneficial for beginner traders. It can be by starting a simulation before making a transaction using real capital.
  5. Low Complexity Level. There are only a few types of currencies to choose from, there are US dollars, pounds sterling, euros, and also Japanese yen. Of course, because the type of eye chosen is not too big, you will have a lot of time to be able to inspect other factors. Another is a stock that consists of many companies so you have to research it from one company to another.
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Disadvantages of Forex Trading

Before learning how to play trading, it's a good idea for you to understand the trading losses themselves. In addition to the advantages, you also need to understand the losses that will be experienced when trading forex. You can understand these losses below.
  1. There is government intervention of the origin of the currency. The intervention in question is an intervention from the central bank through the country by increasing the value of an interest rate, releasing bonds from the government as well as buying foreign exchange on a large scale.
  2. Forex goes up and down very quickly. As is known, the rupiah currency can also be very weak so it may be risky to buy dollars because of its high price. Waiting for the Indonesian currency to strengthen will also take time, so it can make forex trading in Indonesia will be at risk of losses.

Risk Management How to Play Forex Trading

After knowing the advantages and disadvantages, you can find out about how to play trading by doing risk management from forex trading itself. You can understand this risk management below.

How to Play Trading: Use "Cold Money" when Trading Forex

The first way to play trading by doing risk management is to use cold money. Cold money is money that is not used for urgent purposes. This means that it is not money that will be needed for daily needs, or emergency funds, insurance, children's education funds, installment funds, or anything else. It is also highly discouraged for you to use borrowed money as trading capital.

How to Play Trading: Set Stop Loss to Avoid Losing Too Much

The second way to trade by doing risk management is by setting a stop loss. A stop loss order or stop loss is an order placed to be able to close an open transaction with the aim of limiting the risk of loss. It is mandatory by law to trade by limiting risk. By minimizing the possibility of a stop loss being "poked" by price movements. This is the stop loss placement technique itself. Place your stop loss a few pips above the key resistance (if your position is sell) or have a position below the key support (if your position is buy).

How to Play Trading: Create a Good Trading Plan

The third way to trade by doing risk management is to create a trading plan. One of the success factors in forex trading is discipline. Through a Trading Plan that has been made correctly and objectively, a trader will continue to practice for discipline in accordance with the rules that have been set in the plan that has been made. If the trading results are not as expected or the direction of a market price movement will be contrary to the prediction, then the trader can immediately take the best steps according to the trading plan without hesitation and panic.

How to Play Trading: Take Profit to Make a Profit

The last way to play trading by doing risk management is to learn the take profit method. Methods that need to be learned to be able to determine how to close positions in order to achieve optimal profits, include:
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  • Determine take profit in trending market conditions
  • Determine take profit during ranging (sideways) market conditions
  • Using a risk/reward ratio.
Risk management is indeed indispensable in doing something, especially in trading. For those of you who are still confused and want to consult your risk management, consult a trading plan and other things at Trader Assessment together with GIC!

Process & How to Play Forex Trading for Beginners

Here are some processes and ways to play forex trading for beginners that you can apply to do forex trading for beginners. You can understand the process below.

Create a demo account

The process and how to play forex trading for beginners for the first time by creating a demo account. Keep in mind that this demo account is a means to learn forex trading, so it would be better if you learned about the forex transaction process rather than just looking at the movements of the money market dynamics. Usually the demo account used to learn forex trading will have an idea of the real foreign exchange market conditions. So, you can use this demo account to practice your intuition and analysis needed as a trader.

Getting to know the types of trading platforms

The process and how to play forex trading for beginners is the second by getting to know the platform. There are so many trading platforms available online that can be used to learn forex trading. You can search for it on the internet or find out from the trading community itself. To get access by using this trading platform, you can contact the broker who took care of your demo account beforehand.

Understand the right time to trade forex

The process and how to play forex trading for beginners next by understanding the time in trading. For the time element, there are basically 4 time sessions that you need to pay attention to when learning forex trading, namely in the Sydney, Tokyo, London, and New York sessions. By understanding the four time sessions when learning to trade, you can determine the time scheme that suits your personality to be able to carry out forex transactions.

Get to know the mechanics of technical indicators

The process and how to play forex trading for beginners is next by recognizing technical indicators. With a deep understanding of technical indicators, it will be easier for you to perform calculations or analyses related to prices, volumes, and also market interest related to foreign exchange. Technical indicators are also used as one of the ways that traders can use to be able to map market conditions which at the same time predict the direction of foreign exchange price movements in the future.

Learn fundamental indicators

The process and how to play forex trading for beginners is the next with fundamental indicators. These fundamental indicators usually come from economic data, as well as socio-political issues that are developing in a country and can affect movements in foreign exchange values. In studying a fundamental indicator, you will do more research on economic and social data that will affect a country's currency. The economic data that you will research will usually dwell on the economic outlook in a country, inflation, and the unemployment rate. So basically, if a country has a good economic prospect, the analysis you do will tend to lead to the strengthening of the value of a currency.

Understand the risks before trading

The process and how to play forex trading for beginners is the latter by understanding the risks. The understanding of forex trading risks is not just based on instinct. There are many factors that can be analyzed to be able to present a variety of risk projections that will be present later. With a deep understanding and also good management, you can determine a loss tolerance limit so that you can launch a wise strategy to be able to divert potential losses that will later be large.

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FAQs How to Play Trading

Here are some questions that are often asked by some traders when playing trading. These questions have been summarized based on the following explanation.

How to Play Stock Trading?

  1. By choosing the right and appropriate securities. Choose securities that already have a low fee percentage.
  2. Conduct Transactions with Patience. Especially for beginners, start with a small capital. Then you can add capital as your understanding of the world of trading increases.
  3. Determining the Right Stock Index. Before choosing, make sure you recognize the types first. Before determining, you can conduct an in-depth survey on the stock index that you will determine.
  4. Planning a trading period. Trading on a short-term period will usually be risky to incur greater losses. However, for the short term, it will offer faster profit opportunities. Meanwhile, in the long term, the profit opportunities you get will be much greater.

How to Play Trading on Indodax?

  1. The first step is to download Indodax on the Apps Store, then download the Indodax application on the PlayStore.

  2. Enter the Indodax Login application. Entering the application must use a PIN.

  3. Then open an account on the Indodax application by verifying KYC and filling in personal data along with taking a selfie to complete the data.

  4. Then open a Wallet at Indodax to make a rupiah deposit so that you can buy bitcoin

How to Play Crypto Trading?

  1. Decide on your Cryptocurrency. But before choosing a cryptocurrency, you must first understand the trends that exist in the market for the need of price speculation. So that the price speculation you do is not wrong, then it's a good idea to be able to use the services of a broker.
  2. Put funds into the account. All verification requirements for depositing funds and trading will be very important for the security of your account data.
  3. Buying Cryptocurrency. This cryptocurrency will actually be more fixated on price speculation rather than owning the cryptocurrency coin itself.
  4. Make a buying and selling transaction. When you already have cryptocurrency, then you have to check the price development more often. In addition to monitoring trading movements live, you can also read the latest news in various media related to the cryptocurrency you are buying.
After knowing some discussions about how to play trading, you can apply it to the trades you will do. And for those of you who want to test how far your trading skills have been applied, you can test it on the Preliminasry Test from this GIM. In addition to these methods, you can also apply the risk management that has been explained to be able to minimize the trades you make.

Forex trading is a very profitable activity if you can do it well based on risk management and also a very careful trading plan. You can realize this by understanding and practicing the explanation above. And for those of you who are satisfied with the explanation from GIC, you can fill out an internal survey so that we can also further improve our performance.