Written by Danielle Franklin Monday, 16 January 2012 12:10
Become
skillful forex trader isn't easy, but there is no need to blow things out of
proportions. Trading might be difficult in the beginning, but all new things
are complicated at first. It gets better with time and whoever tells you
otherwise simply didn't take time to learn the basics.
What needs to be done to make forex trading less confusing?
1. Increase
Self-Confidence
The first thing that every novice trader fears is the
lack of knowledge. Most of the energy goes to finding "shortcuts" and
"tricks", which do not exist. Instead of looking for easy way out,
start learning the basics of trading right from the start.
Another thing that will increase the beginner's
self-confidence is the fact that losing trades are absolutely normal. In fact,
during the sequence of daily trades, there MUST be losing trades here and
there, otherwise you probably not trading forex market! Because of volatility
and price action, there is no way every trade is a winning trade. So take it
easy when you lose here and there. After all, it's all about the big picture at
the end of the week/month. Losing trades are just accompanying the success.
2. Stick
to The Plan
Sticking to the plan doesn't mean to stop analyzing and enhancing your trading system. What needs to be stopped is jumping from one system to another. Switching from one indicator to another will not magically turn you into a better trader. In fact, it is not about indicators, but rather about your understanding of the market and your experience with the developed system.
Read more: 5 Things to Overcome to Become a Real Forex Trader
Written by Danielle Franklin
You have got the basics of trading under your
belt. You even know how to enter a trade in a smartest way with minimum risk.
Now it is time to brainstorm over exit strategies, because without a winning
exit your perfect entry is worthless.
Taking profit (aka exit) strategy is far from simple and is unique from trader to trader. Depending on your trading preferences and time frame, taking profit is a true art form of forex.
Written by Danielle Franklin
Forex trading happens to be
an excellent way of generating good earnings on a consistent basis. There are
many people who think that forex trading is quite complex. Sure, it involves a
lot of follow up and monitoring but this does not mean that you cannot master
the forex trade. There are a number of guides that can help you understand how
the forex market operates. However, if you want to become a successful trader
or investor then you should choose a forex platform that is perfectly suited to
your needs.
Written by Danielle Franklin Sunday, 25 December 2011 07:47
Forex trading is a very dynamic business where people trade in international currencies. The international forex market is the largest trading market in the world where billions of dollars worth foreign currency is traded by financial institutions, banks, brokers and individuals. However, this market is so volatile that it is important for you to be well versed with how the market behaves. This means you should be able to understand the forex trading basics. Otherwise, you could lose your entire investment within a matter of hours.
Written by Forex Explore Saturday, 10 December 2011 12:59
Forex trading has been developed into the post popular markets today. The gates to riches are open not only to the experienced traders, but also to individual investors looking forward to trading currencies instead of buying stocks and futures.
Forex gives an exciting and profitable opportunity that sure beats stocks and commodities. Below are just some of the features that currency trading offers:
1. Leverage
Great leverage options starting from 1:100 and going all the way up to 1:500 with some brokers.
2. Liquidity
Currency trading is the largest financial market with almost $3 trillion traded per day!
3. No Commissions
No commissions, since brokers are getting paid with spreads (difference between buy and sell price of the selected currency pair). There are brokers that do offer fixed commissions, which is an attractive option for those who do not fancy changing spreads.
4. Tones of Forex Brokers
Lots of forex brokers to choose from. Even if you are not satisfied with your first choice, you can always move on to a more suitable option.
5. No Need to be a Genius!
You don’t have to have a degree in finance to start trading forex. Anyone can do it with a little determination and discipline.
6. Low Spreads
Top brokers offer low spreads. It may seem not much of a difference between trading with 4 pip spread vs 6 pip spread, but in fact there is a huge difference. If you multiply the spread by the amount of trades you make and the amount of money invested, you will appreciate the lower spread more!
7. Free Demo Accounts
Free practice accounts are available with every broker; some are for unlimited time, others are for 30 days. Demo accounts are great for obtaining the beginner trading skills and understanding a trading platform before plunging into real money trading.
8. Low Deposit Requirements
Forex brokers offer different types of accounts – mini, standard and professionals. Mini accounts may not possess all the attractive features of standard or professional accounts; however the minimum deposit requirement may be as low as $1 – perfect for those who aren’t confident enough to invest $500 and up.
9. Available All Day Long!
Currency market is available 24 hours, 5 days a week. With different market zones, you can trade all through the day. Forex trading can be your full time profession, or an afternoon hobby.
10. Fantastic Profit Potential
There is a great profit potential from rising and falling prices. The currency pair may increase in value in a minute, or decrease in value due to economic changes. By catching the important moments you can turn $500 into couple of thousands in no time.
Read more: Why Forex Trading is The Most Popular Market Today?
Written by Danielle Franklin
Technical analysis allows a trader to examine the market
with support and resistance, moving averages, Fibonacci and many other techniques.
One specific part of analysis that catches a great amount of attention is the
round numbers. How to use round numbers in trading?
What are Round Numbers?
We use round numbers in our daily life all the time.
Just like you round up $9.75 into $10, you can anticipate that most stop losses
in forex trading will be around the nearby round numbers. Why does this happen?
Most traders make their next decision at round numbers:
“As soon as it gets to 4.200 I am out”
“When 3.500 breaks I am going long”
What does it mean to us as traders and how can you use
this? First of all, it means that round numbers are special. In forex market
you can see the pull of the round numbers on daily basis.
People are naturally attracted to the order of round numbers and as a trader you have to be aware of this behavior to use it in making proper decisions.
Written by Danielle Franklin
Some things in forex trading are uncommon and better left
inexperienced. One of these unfortunate things that you should be aware of in
order to avoid it is a requote. What exactly is requote? Why does it happen?
How does it affect your trading?
What is a
requote?
A requote happens when there is a difference between the
price you decided to enter a trade by clicking buy/sell and the price on the
market when your order actually reaches the broker.
Not always a requote means a blatant attempt to screw a
trader. First of all a requote might be somewhat a risk management – if you
trade large lots, the broker may want to confirm that you really meant to make
that big of a trading order.
Most requites happen to big players, not a trader trying to make couple of bucks with mini lots during some economic press release. It is expected from a reputable broker to ask you first, before executing a potentially risky trade.
Written by Danielle Franklin
Becoming profitable in
forex trading is not about finding great opportunities and win every trade
(which is impossible), but to know the price at which you plan to close.
Today all trading
platforms allow you to place stop/loss orders, which close the moment the
desired level is reached. This provides the best money management a trader can
ask for.
What is Take Profit Order
A reverse of stop-loss
order is called Take Profit Order. If the currency goes up and
reaches a certain level, it is sold and profits are captured.
You use this order when
you wish to close the positions when a profit level is reached. Take
profit orders are also sometimes referred to as limit orders. An online forex
take profit order is the opposite of a stop-loss order, meaning
When using take profit orders, you specify take-profit point – the number of pips from the current trading price point. As soon as the take-profit point is reached, the trade is automatically closed.
Written by Danielle Franklin
There are a growing number of
brokers available online and equally expanding amount of websites that offer
forex broker reviews and rating. When choosing a broker, online reviews can be
very helpful. Along with your own research, the rating can truly help you find
the broker that suits your needs.
What are some of the features forex
brokers are rated for? Let’s go over the most acceptable standards:
Registration Process
None of us enjoys filling complex
online registration forms. While some brokers request documents upon
registration, others allow you to sign up within minutes and start trading.
Brokers that have hassle free registration process win a vote!
Demo Account
For a novice trader practice is
crucial. Today all forex brokers offer demo accounts. The question you should
be asking is for how long. There are brokers with unlimited time demo account.
There are also brokers with 30-day demo account. An extra point goes to brokers
with longer demo option.
Promotions
Most traders love bonuses and trading competitions. Whether it is a welcome bonus, or a winning prize in a challenge – it is nice to get a special treat.
Written by Danielle Franklin
It’s hard not to notice the new buzz in forex industry – binary options. It’s new, it’s exciting and it is profitable! What is binary option trading and how is it different from the conventional trading concept?
Forex Trading VS Binary Option
Instead of purchasing and selling the currency itself, binary option trader has to speculate on which direction the currency pair will move to. When you purchase binary option, a contract is made which gives the buyer (aka you) the right to buy an underlying asset at a fixed price, within a specified time frame with binary option broker (aka seller).
This kind of trading is called binary because there are just two possible outcomes known to investor - it is either yes or no, 0 or 1, win or lose.
While in forex trading each position may bring surprising turns and unexpected gains, in binary option both risk and reward is pre-defined. Therefore, binary option is less risky because the potential loss is limited to the amount of money committed to each trade, while in forex trading, due to leverage, you can end up clearing your whole account with one wrong decision.
Is it Gambling?
Due to the nature of this type of investment, you might ask yourself whether binary option is gambling. It’s true that traders forecast whether the price will rise or fall within the selected period of time, however the professional trader will still make the decisions based on technical and fundamental analysis. Therefore, while it seems like gambling at first glance, it is hardly a game of roulette where there is no possible way to predict the outcome.
Advantages Binary Options
1. It is Simple
Since the speculation options are limited to up or down, you don’t have to break your head with all the possible outcomes and fluctuations of the market. Following the news and documenting how the market reacts to latest economic data releases, is good enough to figure out the direction of the assets.
2. Less Risk
As mentioned above, you are in full control of how much money to put at risk. Before you start trading, you know exactly how much will the profit be, or how much will the wrong decision clear up from your wallet.
3. Fast Profits
Since you only have to focus on the direction and not on the volatility of the whole market in the long run, large profits can be made even with small trading amount.
4. Everyone Can Trade
You don’t have to be a mastermind to trade binary options – the doors are open to both professional traders and complete newbies. There are no restrictions and most brokers allow you to start trading with just $25!
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