Five Reasons to Give Forex Trading a Go

by Mrs Money

The world of foreign currency trading is fast-paced, thrilling, and volatile. Market trends can change in an instant, with the values of currencies rising and falling rapidly. Hard to predict, impossible to influence, and incredibly high risk, forex is a game for only the bravest of investors to attempt.

Yet aside from bravery and dedication, there is little that excludes those who wish to from trading forex. The markets may be a hard beast to master, but they are one that can be tamed by anyone with the nerve and tenacity to give trading a try.

If you’re considering experimenting with the currency markets yourself, then here are five reasons that you might want to give it a go…

#1: Forex is Accessible

One of the great appeals of the foreign exchange for investors is its accessibility. Unlike many markets, those who are not wealthy or well connected are not automatically barred from giving it a go; rather, they are encouraged. The forex fraternity are incredibly friendly and open-minded, and the majority of brokers won’t require you to have a fortune behind you before they’ll allow you to trade. Even if you only want to dabble with a few hundred pounds to start with, you’ll still be welcomed with open arms.

#2: Forex Can Be Traded Around the Clock

Perhaps the most appealing trait for forex investors is the ability to trade currencies around the clock. A lot of people use investing as a means of supplementing their primary income, and the flexible opening hours of the foreign exchange means that trades can be placed at any time of day or night.

Thus, irrespective of whether you wish to invest in your lunch break, or ply the foreign exchange all through the day, you can fit it around your other commitments, never having to sacrifice one for the other.

#3: Forex is Flexible

Forex has numerous traits to become it, and its flexibility is another factor that’s often lauded by erstwhile investors. Regardless of your trading aims or goals, there will always be a strategy to complement your needs, whether this is sticking with safe haven currencies, or exploring more exotic pairings. With varying levels of risk attached to different combinations, thousands of different brokers, and multiple trading options to choose from, you’re guaranteed to find a setup to suit you.

#4: Forex Caters to Every Level of Skill and Experience

Another aspect that might appeal is the accessibility of forex to traders of every level of skill and experience. With numerous different brokers to choose from, and varying degrees of support available, you can pick an option to suit you in order to create the perfect strategy. With execution-only, advisory, and discretionary choices all on offer, those who do their research will find that inexperience, or a lack of time, are no bar to achieving soaring successes on the currency markets.

#5: Forex is Exciting

If you require one final point to entice you, then you might want to consider the unique and exciting appeal of trading currencies. The markets are volatile, high-risk, and challenging, and trends can emerge in an instant. Although skill and experience will go a long way towards determining your triumphs, there will always be an added element of luck involved, and this is incredibly exciting for those in need of adrenaline-inducing moments. With no way to ever truly know the eventual outcome, forex is the perfect tonic for libertines, gamblers, and optimists everywhere. If you’re looking for a pastime that truly has the ability to transform your life, then look no further.

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Top 5 Successful Forex Trader Tricks

by Kaylie Phelps

Despite all the numbers, charts and ratios involved, trading is actually more of an art than it is science. Like art, there is talent involved, but that will only take you so far. The top traders train their skills through practice.

This article takes a look at the five steps a beginner can use to help perfect their craft in forex trading. Even those experienced at trading may even learn something new, to make more profitable trades.

1) Choose a methodology

Before you enter any market, you’ll need to have some idea of how you will make your decisions before executing a trade. You need to know what information is required in order to make the best decision for yourself. It’s the fundamentals that will drive the trend in the long term, whilst chart patterns tend to offer trading opportunities in the shorter term. Whatever methodology you choose, you’ll need to be consistent.

2) Calculate your expectancy

Check all of your previous trades that were winners against all your trades that were losers.  Next you should determine how profitable your winning trades were against how much your losing trades lost.  Looking at your last 10 trades should be sufficient. Or if you haven’t made an real-life trades just yet, you can go back to your chart to where your system would have determined when you should enter or exit a trade. Then you can determine when you would have made a profit or a less. Note down these results.

Your formula should look like this:

E = [1+ (W/L)] x P – 1

Where;

E = Expectancy
W = Average Winning Trade
L = Average Losing Trade
P = Percentage Win Ratio

3) Focus on your trades

After funding your account your money is then at risk. While you should learn to accept small losses, your ultimate aim is to focus on making profit. You should only leverage your trades to a maximum of 5% of your total funds. Therefore, if you had $1,000 in your account, never let any trade lose more than $50.

4) Conduct weekend analysis’

Advanced preparation is always a useful idea. Therefore, when the markets are closed on weekend, you should study the weekly charts to look for patterns or news that could affect your trades. This exercise will help your formulate your upcoming trades for the week
ahead.

5) Keep a record

Keeping a record of your trades is one of the best learning tools anyone can have, and something you should keep adding to throughout your trading career. Your record book should list the reasons for the trades, your entry and exit points. That way you can look back
on it in the future and learn from any mistakes you may have made.

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