In the past, compared to other investment options like stocks and options, forex trading had been rather unregulated. Recently, there have been lots of talks, rumors and opinions about the proposed changes to forex trading in US by Commodities Futures Trading Commissions (in other words CFTC). What does it all mean? How can this affect you? Is it a good time to change your broker?

Read more: Crazy Forex Regulations by CFTC

One of the first steps towards forex success is constructing a productive trading strategy. What needs to be included? How long does it take to become ready to trade? How complicated should the strategy be?  Can you make profits with simple strategy? 

Becoming a professional forex trader requires lots of time, complete market understanding, well-designed trading strategy and plan, very harsh self control and ability to accept losses with open heart! Whoever tells you that it is possible to constantly make money is lying big time! It is not about what happens after each trade – the trick is to see the big picture (aka profits within months).

Read more: Winner Strategy for Beginner!

Conventionally stocks have been considered the optimal investment opportunity for many of us, however the recent volatility and fluctuations made many investors look for the alternative - currency trading. Before leaping into the unknown territory, however, it is important to fully understand the differences between the two equally sophisticated and profitable prospects. What are the benefits of each? What are the major differences between the two? Why today so many stock traders are turning to forex? 

Let’s consider the following essential differences between stock and forex markets:

Read more: What is Riskier – Stock or Forex Trading?

Forex market is volatile and involved difficult-to-imagine volumes of trades daily. While you can make thousands overnight, it is equally possible to empty your trading account within seconds. How can this happen? Who is responsible? What are the ways to avoid such misfortune? Let’s start with margin calls! 

Margin calls are one of those evil things in forex that you must avoid at all cost. Your risk management plan has to include ways to minimize if not completely avoid the devastating decisions, which lead to margin call.

Read more: How to Avoid Margin Calls?

One of the low risk trading strategies is hedging. The technique might give an impression of being too complicated; however when done right, a trader can reduce the overall risks and make profits. What is involved in hedging? How complex is it? What can you expect from this strategy? 

Forex Hedging reduces some amount of risk when holding an open position. What kind of risk are we talking about here?  How about market falling down unexpectedly leaving you with losses you can’t handle. This is a well-defined reason for using hedging in case you suspect that the currency pair of your choice may reverse against you.

Hedging technique involves holding a trade with one pair and opening another trade (or more) with a different pair, which is related to the first pair. The idea behind it is to reduce the risks involved – in case one trade goes bad, there still might be profit with the other trade.

Read more: Hedging Technique - Low Risk Strategy

Every successful forex trader knows that keeping a journal of the trades should be in the trading plan. Why is it important to keep track of all trades you make? What can the analysis of good and bad trades help you with? How can you minimize the risk with a trading journal? 

Mistakes

Failure is a scary word for all of us. Ever since you are born, you are taught that mistakes are perceived as bad, embarrassing and should be avoided at all cost. While in fact mistakes are opportunities to learn, truly understand something and improve your chances of success when you try again. The key is, of course, to analyze the mistake and not to make it again.

Forex trading is no different. Mistakes are unavoidable and, instead of crying over the spilled milk, it is important to know when and why did you make it and what can be done to avoid getting into troubles the next time. It doesn’t matter whether a bad trade led to big or small loss – there is always something to learn from it. Mistakes are the perfect tool to give a trader an immediate feedback and encourage finding out why the money were lost.

Read more: How to Keep Forex Trading Journal?

With 196 countries in the whole world, there is a handful of currency pairs to trade. The question is, which currency pair are worth trading and why?  What do most traders trade? Which currency factors influence the trading success?

Read more: Best Currency Pairs to Trade

Forex trading is not a computer game, it is not simple and it is definitely not 100% get-rich-quick scheme. Before your clench to yet another mouthwatering promise of unlimited profits and absolutely no loss, go over our list of things you should know. 

1.     Fully Examine Your Broker.

First of all, it is always a good idea to know everything about your forex broker. Registered brokers are generally more trusted. Read everything written in tiny letters (especially go over terms and conditions). Find out where the broker is located and make couple of phone calls – see if they actually answer! Customer support can be at times even more important than any trading features available!

Read more: 7 Things You Didn’t Know About Forex!

Being forex trader isn’t an easy profession. The entire career is based on watching, learning, making crucial decisions that either make thousands of dollars or clears up your trading account.  Forex trading is all about focusing on entry and exit points, reading fundamental and technical news, analyzing trading indicators and much more. To summarize – your computer becomes an item you spend the entire day next to! 

What if full-time trading is not an option? What if you are a beginner with another full-time job in, let’s say, computer programming, or real estate, or marketing? What if you are a student during the day and a waiter during the night? What if you cannot possibly afford trading all day long?

Read more: 5 Traps Used by Unreliable Signal Providers

Forex trading popularity is on the rise. Many investors and curious bystanders are now turning to currency exchange. What is so attractive about forex? Why is it a comfortable way of investment? Why is forex the talk of the day? 

Forex market is the largest and most liquid market in the world. Lots of big corporations are taking part – banks, currency speculators, government, and financial institutions. Along with big fish, there are traders like you and I, who slowly but surely take part in the $3 trillion daily turnover.

What is so attractive about forex anyway? What made you enter the market arena?

Read more: Not Trading Forex Yet? Big Mistake!