FOREX Trading

Today Forex trading is one of the most popular online revenue source. Previously, Forex (Forex, FX – an abbreviation of the English phrase FOReign EXchange (Wikipedia)) was available only in a certain professional environment. Nowadays everything has changed with the rapid development of the Internet and its arrival in every house, and more and more people are interested in obtaining a stable online income.

Forex is an international financial market where the currency acts as a commodity. It was created for currency exchange, works around the clock, includes a large set of trade, investment and speculative operations carried out with the help of a complex system of institutions (banks, dealers and brokers, insurance companies and pension funds, etc.).

Forex trading has become an affordable way to generate high income. To start work in the financial markets, you need to be trained, to learn what Forex is, to choose the right broker and trading platform, go through a quick registration and demo trading, and finally start earning the income that you personally need to achieve your life goals.

 

What is Forex trading and how to cash in on?

So to speak, it is the board of trade with its rules, where, if desired, anyone can trade, correctly using the data on the growth and fall in the value of foreign exchange quotations.

The market provides huge amounts of operations per day. It has no geographical constraints, large-scale and capable, and is easily accessible, even for traders without special education. Today, ерш board of trade employs a large number of online traders who trade currency without leaving home, considering Forex additional or the main source of income.

FOREX Trading

Without a certain trading platform, Forex trading gives an opportunity to earn real money by taking a certain position towards to currency. Forex operates according to a simple rule: a trader trades one currency against another, buying the value at which the currency should grow (long position) and sells the value at which it should fall (short position). At the same time, there are not many currencies (only Euro (EUR), Pound Sterling (GBP), Japanese Yen (JPY), US dollar (USD) and Swiss Franc (CHF), unlike a large set of tools in binary options, which allows you to concentrate on their movement and easily track changes.

To achieve good results, speculators learn the profitable strategies, reliable indicators and trading platforms, technical and fundamental analysis. Thus, trading in Forex market involves the ability to take a correct view of the information, analyze charts and put a position, orders, and the ability to choose the right Forex broker.

 

Basic concepts in Forex market

Long — opening of a long position aimed at the purchase of currency.
Short — opening of a short position aimed at the selling of currency.
Lot — is an indicator of trading volume measuring, standard unit operation for selling or purchasing of currency.
Trading Volume — is an indicator of the rate, which will significantly increase the income (if the volume is large), or make it less significant (if the trading volume is minimal).
Order Execution Type — is an option to execute the order; it could be instant and market:
Instant Execution — instant execution of the order at the declared cost.
Market Execution — type of the order execution when the order is executed not at the declared cost, but at market.
Ask — is the price at which the currency could be purchased.
Bid — is the price at which the currency could be sold.
Spread — the difference between the cost of Bid and Ask, which the broker earns; it could be fixed and variable:
Fixed spread — this type of spread always has one value. It is stable, does not change its value under the influence of various factors (market fluctuations, volatility, daypart).
Variable spread — unlike the fixed, this type of spread changes its value depending on different factors (sharp market fluctuations, daypart, etc.).
Stop loss — is a pending order that allows fixing income and stopping losses by automatically closing the trade if the selected currency starts moving against the trader’s position.
Take profit — is the type of order that allows generating income by automatically closing the trade as soon as the selected currency reaches the required value level.
Pending order —is a specially established order for purchasing and selling of currency in the future at a specified price. Types of pending orders are set as:

Limit:
Buy limit – is an order to purchase a currency at a lower cost than the price when placing an order, which is set by the trader, relied on to price decreasing.
Sell limit – is an order to sell a currency at a higher price than its indicator when opening an order, which is set by a trader, relied on to price increasing.

Stop:
Buy stop –is an order to purchase a currency at a higher price than its value when placing an order, which is set by the trader, relied on to price increasing.
Sell stop – is an order to sell a currency at a lower price than its indicator when opening an order, which is set by a trader, relied on to price decreasing.

 

Forex Trading: an affordable way to earn money through the Internet

Forex trading has become one of the most popular and affordable sources of online income. Anyone can get acquainted with the possibilities of this market and get down at the bottom of Forex market. To get a decent income, a trader should be guided by a simple principle “at or better”, be aware of the rules of money management, pending orders, stop loss, etc. However, this is not a simple speculation, but an impressive analytical work. Thereupon only serious users become professional players of the market, and this kind work becomes sustainable for them.
At Forex, it is suffice for trader to do not so many: just set a position (long, short), specify the volume of the trade, using also orders, types and variants of execution of orders. And yet, in order to make the stable income from Forex trading, it is worth remembering the constant self-improvement: reading professional literature, thematic forums, passing special courses, finding profitable strategies, testing indicators. As an option of freelancing or remote online job, Forex deserves to develop and achieve more with its help.

 

Difference Between Forex Trading & Binary Options

The difference between Forex trading and binary options exists; it is worth knowing about it to future traders. To obtain income from the Forex market the trader need to ensure that quotations, following the forecast, should be higher than the values for a substantial number of points, to then close the trade. In binary options trading the process is different: the trader does not need to keep track of the number of points, as in Forex; here it’s enough for price schedule to follow one point in the direction of the forecast for maximum income.

Difference Between Forex Trading & Binary Options

In addition, in the binary options the time of the end of the trade (expiration) is known in advance, as well as at the Forex market it’s necessary to fix the time on its own, that increases the risk of losses. Such losses are excluded in binary trading: the trader here can’t lose more than he put on the trade. And yet, serious traders may be more profitable to work at Forex that will allow getting a higher income in case of trading on trend and correctly using of orders, taking into account spreads, etc.

 

Why Do You Need a Broker?

To start trading on Forex, a trader first of all needs a dealer that serves the trading process and provides opportunities for comfortable and profitable work, which has a certain experience and reputation. Broker is, first of all, a serious legal entity providing access to Forex trading, where trading participants carry out their own operations, acting according to the acceptable system framework. It is important to be particularly careful choosing a Forex Broker as there are a lot of companies on the market; among them are as the undisputed leaders, as youthful companies. The choice of Broker in this case will be influenced not only by the actual reviews of traders in the network, the availability of licenses, experience, but also by such parameters as the provision of spreads, the accuracy and speed in order execution, the availability of bonuses, loyalty programs, etc.

After signing the contract with the Broker, the Trader gets access to a free demo account, functional trading terminal, analytics, training materials and other options. However, the Broker’s role does not end only with this, it guarantees the execution of orders in a short time, provides trade (credit) leverage — that is, a kind of interest-free loan, which can be used when working with the currency, as well as a large selection of ways of entering and withdrawing funds, consultations, etc.

 

Forex Trading Platform

As the brand owner of one of the most popular trading platforms in the world rightly noted: “successful trading in financial markets starts with a convenient and functional trading platform” (from the website metatrader5.com). Thereto it is difficult to disagree. Choosing a reliable Broker, you can only approach success only by half. The other half of it is a well-chosen terminal, where you can well-understand and carry out a full-fledged trade, taking advantages of all its features.

Forex Trading Platform

Today, there are a large number of Forex Trading Platforms (for example, MetaTrader 5 (continue to site), NinjaTrader (continue to site), ZuluTrade (continue to site), SpotOption (continue to site), Mirror Trader (continue to site), etc.) and to choose among them the most suitable, it is necessary to remember that the terminals must obtain such qualities as:

  • Safety, which will allow to keep the money and personal data away from network law-breaker;
  • Functionality, or advanced opportunities for trading and conducting analysis with indicators, graphical elements, testing strategies, tracing the history of trades;
  • Comfort of the program, the presence of an intuitive interface, user-friendly design, color design — all this should not prevent you from doing the main thing – to put orders to receive and increase the income;
  • Availability of demo account, which is usually provided by Brokers for free.It is needed to test the capabilities of the system without the risk of personal funds loss;
  • Availability of training materials, courses, webinars, which are usually provided by all leading Forex Brokers.

 

Forex Trading on Android and Apple

With the rapid development of mobile technologies, the income on Forex becomes possible with the help of convenient and functional applications. Apps to trade on mobile devices are offered by the majority of leading companies; often it’s a free program that a trader can easily download from the official website of the Broker. Typically, apps contain a mini-copy of the trading terminal, a personal account with the ability to replenish and withdraw funds, indicators and graphical elements for analysis and testing of trading strategies.

The advantage of such solutions is that the Trader can fully trade in the Forex market (as well as work with the Deposit balance, Analytics, Strategies) when it is convenient: from anywhere in the world, at any time. Today, to access the market and personal account PC is not required at hand, it’s enough just to have smartphone and Internet access.

 

Money Management & Forex Trading. 10 Rules of Money Management

Professional traders confidently say that, as one of the main points of successful trading, money management or otherwise “capital management” will allow to competently approach the income planning, to ensure the inflow of stable online income. And that’s right: using the rules of money management in trading, you can achieve high results; traders-beginners, who forget about that rules, come to failure. Knowing that the market has possessed the heightened risks, it is necessary to observe the rules of money management to be able to properly manage the capital.

Money Management & Forex Trading

One of the founders of money management rules is the legendary trader D. Livermore, who determined 5 points on which the modern money management is based:

1. Try not to lose money at once, that is, do not invest all your capital on one trade.
2. Use a protection order to protect your capital from losses and risks as much as possible.
3. Determine the cash reserve, which can be traded on Forex.
4. Allow positions to grow with a profitable trade, allowing for minor losses.
5. Transfer the income to money and keep them in reserve.
To abovementioned rules, we will add the following, equally important for Trader:
6. Prevent large losses, keeping them at a level of 2 to 5%, which is worth remembering when placing stop losses.
7. It is necessary to observe the ratio of profit and loss, to implement the ratio of take profit to stop loss as 3 to 1, that is, the profit should be three times more.
8. Do not open many trades at once; the market does not like greed.
9. Do not try to retrieve the losses if the trade doesn’t go in your favor; take a deep breath, calm down, and better leave the market — so you will save the money.
10. Avoid unnecessary emotions; trade calmly, carefully, make clear decisions and be confident.

Sometimes professionals say that money management is much more than a trading strategy; it is an opportunity not only to win, but also not to lose. Remember this and use the rules of money management in trading.

 

How to Trade Forex Properly?

How to trade Forex properly and where to start trading is one of the common questions for beginners. In order to succeed, you need to find time for serious preparation for trading, clearly understand for yourself what goal you want to reach and what you want to achieve. In order to trade Forex properly, you need to:

  • Pass good trading training, research market fundamentals (to know about the laws of the markets, formation of supply and demand, trends, levels of support and resistance, etc.). This can be both free courses and paid professional training programs. In any case, theoretical knowledge on how to trade Forex properly is the basis of your further success.
  • Read books about the market, the experience of successful traders with a worldwide reputation.
  • Find Forex Broker and keep track of Broker ratings in order for your trading to be reliable.
  • Try demo trading on a virtual account in order to get acquainted with the possibilities of the market and trading system.
  • Try to make the first trades on a real account, remember the instability of the market, possible losses and learn to treat them calmly.
  • Find and test trading strategies that will help to achieve a good profitability.
  • Develop your trading strategy that would take into account your capabilities and strengths, use the tools and knowledge proven by your own and brought in a decent income.
  • Improve yourself constantly: read books, test trading techniques, get acquainted with traders, build own psychological preparation for trading.

 

Forex Trading: Scam for Dummies or Truth?

Forex Trading: scam for dummies or still a real opportunity to earn? The answer to this question is of interest to all who are thinking about generating online income. The situation is complicated by the fact that there are a lot of negative reviews in the public network, life stories that Forex took all the money and did not give the opportunity to earn. And these reviews are true, but the whole tag line is another. Yes, people confidently claim that Forex is scam and fraud. But starting currency trading, how were they honest to them? What was their training, experience on a demo account, what were their actions, etc.? All truth about Forex is that the incompetence and unpreparedness — the first cause of negativity in the Internet.

We will not argue that all the reviews should only be positive, this is wrong and unnatural, but it should not be whole negative. And there is no such a thing with Forex, because there are many examples of successful traders who appear on television, give interviews, who live a different life and are not ready to stop. The presence of fraud and scams on Forex market who see their goals only in the need to take money from traders and disappear — the second reason why everyone claims that Forex is a scam.

To be able to distinguish the fraud from the serious company, it’s like as in a supermarket, means to be able to distinguish the doubtful offer from the qualitative that is capable to rescue from purchasing of the spoiled product, having made a right choice and having saved the budget. Only products we are able to choose, and the serious dealer for the trades — we’re not. Finding a reliable Broker is also an important job, which is to study the reviews of traders and website materials.

Forex Trading: Scam for Dummies or Truth?

The market and its essence is the third reason why more and more traders are confidently claiming that Forex is a scam. Starting acquaintance with Forex, you should know that the market is 100% impossible to predict, it is chaotic, dynamic. You need to be able to adapt to it, properly using risk management, money management, stop losses. If you take the example of chess, no professional can accurately predict the course of actions of the opponent, but he knows much more — how to build a line of defense and not to lose the position.

In Forex, all of these are available only to serious market players. So, what is the problem and why for most of us Forex is scam? Only one reason — the unwillingness and inability to spend enough time for preparing to work, the blind hope for immediate money, greed. And yet, if you are willing to work hard, you have a great chance to succeed in Forex trading.

 

How to Start Forex Trading?

How to start trading on Forex: it is very important to get an answer to this question to anyone who starts getting acquainted with the financial market. In order Forex to not become a scam, you need serious preparation by following several important points:

1. Decide for yourself – is it really what you need? Forex gives you the opportunity to get income, but are you ready to work for this, always improve knowledge, learn to analyze the market, track its dynamics?
2. Then, realizing that you want to try yourself in Forex trading, you can start learning: take courses, participate in webinars, read more than one book.
3. Choose a Broker to whom you can entrust your capital and reaching the required heights.
4. Trade on a demo account in order to test your knowledge and skills, the convenience of the terminal, etc.
5. Go to a real account and start making real money, be sure to use the rules of money management.

 

Is It Possible To Earn on Forex from Ground Zero?

The whole truth about Forex is that it is possible to make money from the ground zero. Moreover, it’s possible absolutely for any trader. To do this, you should constantly follow the news, promotions and bonuses conducted by Forex Brokers. Brokers conduct non-deposit shares specifically for market beginners, providing a good chance to obtain the decent income, only starting on Forex.

 

How Much Can Be Earned on Forex?

And really, how much can you earn on Forex? It’s a good, but difficult question, because your income from Forex trading will affect a large number of factors: how much you are theoretically prepared to work, how effectively you have worked on demo account, can you really trade within the unpredictability of the market, analyze market situation, use rules of money management to make better decisions.

How Much Can Be Earned on Forex?

In addition, the factors that determine your profit will necessarily be the following: the current state of the market, the size of the deposit, the presence of a profitable trading strategy. Considered all, the traders, answering the question” how much can be earned on Forex”, talk about 15-20%, some investor mention 40% as a good result of the work. Professionals of Forex market, of course, earn much more from 100%, but you should understand that you’re separated from such income by just your experience, your capabilities and desires.


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