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adamsmiths

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  1. A lot of traders in the Forex market has the same question. How can we invest our money in Forex? As not many traders like to answer the questions and brokers only answer what you need to know about Forex, it is important for the traders to know how to invest their money in this volatile market. If you think you can make a profit in this market, you have to know when to invest money. Money is the capital in Forex and it will keep you trading in the market as long as you have it in your account. All the strategies of Forex are focused on saving your money from the market volatility and in this article, we are going to say how traders can invest their money in Forex. To be honest, investing money in the forex trading industry is one the easiest task for the traders. But you should be extremely careful in selecting your trading broker since a bad broker can wipe your entire trading account. Though reputed broker like Saxo will charge a little higher but compared to their offered service you will get the best possible trading environment. But investing money is not going to make you rich. You need to learn to place high-quality trades with a high level of accuracy to make a consistent profit. Know the risks: The market of Forex is very risky. You can lose your profit anytime. If you do not know how to trade the market and what the risks in Forex are, it will be good for your money if you do not invest it. Forex is not a quick rich scheme and you need to know it will take some time before you can get your money back. You need to have an extreme level of patience or else you will end up by losing money. According to statistics, only 5 percent of the traders are making money. And they are the most experienced and skill traders with an extreme level of patience. Multiple sources of income: Forex trading is risky and it is not advisable to trade the market as your only source of income. You do not have to quit your job to start trading in Forex. All the people who are trading in Forex are mainly part time trader and a very small number of traders are professional in this market. If you think you cannot afford to lose money, you cannot depend on this risky trading as your main profession or income source, do not invest your money in Forex. Before you start placing your trades in your online trading account make sure that you have enough money to support your family even if you lose money in trading. If you trade with your last savings then your mental pressure you will make you a loser in this financial industry. You can give money to pro traders for profit: There are a lot of people in the market who are giving hundreds of thousands of dollars to the professional traders for making a profit. These traders are taking the money from the rich people, trading them in the market and making a successful return of investment. If you do not understand how to trade in Forex, you can always give these pro traders your money to get a profit. Remember there are risks in the market and they can also lose. But as they are professional, you are likely to get profit in return when you invest with them. Summary: Making a perfect investment is one of the toughest tasks in the world of economic crisis. When you are looking to become a professional trader you are actually becoming professional investors. So make sure that you know all the details about the financial asset on which you will invest your money to make a profit.
  2. Price action trading is very much popular among all levels of traders. Starting from the professional ending with the novice, all are a big fan of price action trading. This trading system is extremely simple and reliable and the expert in Switzerland uses this system to execute the high-quality trade. But when you use the price action confirmation signal you need to trade the key support and resistance level. Some of the new traders often trade the minor support and resistance level and thus they lose a big amount of money. In order to avoid such scenario, it is highly imperative that you learn this trading system by using a demo account. When you use the demo account you can trade as much as you want since you will not lose any real money. Some professional consider it as the best way to develop a trading strategy. Though many people want to become a successful price action trader but very few can actually master this skill. But don’t worry. We will give you three amazing tips which will help you to truly master the price action trading skills. Knowledge is the key to success No matter which trading strategy you use, there is no guarantee that you will make profit consistently. In order to do so, you need to have a very clear knowledge about the financial market. Most of us tend to take trading as lightly. At your initial stage, you need to read as much book as you can since this is one of the best ways to develop your trading knowledge. The successful traders still read books and articles on a regular basis even though they know that they can trade profitably.IN order to become a full-time trader you need to develop a strong reading habit as it will guide you to enhance your trading performance and let you know about the real market movements. At your initial stage if you lose money then don’t get upset as it is a part of the trader's career. Always focus on proper education and it will guide you towards the door of success. Use Fibonacci retracement tools The professional price action traders are always the advanced traders in the society. They don’t trade the support and resistance only rather they use some useful tools to make sure they make a profit in the forex trading industry. Fibonacci retracement tools are one of the best tools that you can find in today’s trading world. It allows the traders to trade in favor of the long term trading. But you should not trade all the Fibonacci retracement levels rather trade the 38.2%, 50% and 61.8% retracement levels. These are the most prominent levels as the market tends to respect this level very often. Use the moving average The 100-day moving average is very much popular among expert traders. It gives the dynamic support and resistance level to the trades. As a price action trader, you need to use it as your sweet trading spot. Instead of placing pending orders at the dynamic support and resistance level you need to wait for price action confirmation signal. However, some of the advanced traders often set pending orders which are very risky and requires strong knowledge about market sentiment analysis. Though the 100-day moving average is one of the most popular indicators some professional traders prefer to use the 200 SMA to trade the live assets using price action confirmation signal. But when you place your trade make sure that you are following proper trading discipline.
  3. There are many professions in the world which you can do in order to earn your living. You might have the best education from the best university but still, after doing all the hard word, there is no guarantee that you will be paid well from your job place. No matter how hard you try, your salary is predefined and there is nothing you can do about it. However, if you look at smart people in the United Kingdom then you will notice that most of them have started forex trading as their part time income. The forex market is a huge market and if you can master the art of trading then you can easily make a huge amount of money in this market. In this article, we will discuss the key ingredients that every full-time trader should know. Fundamental analysis: Fundamental analysis is the study of the economic performance of the certain country. The forex market is an extremely volatile market and the price movement becomes extremely wild during the event of the high impact news release. If you truly want to become a professional trader in the forex market then you need to trade the live assets after having the perfect knowledge about fundamental analysis. Most of the novice traders in the forex trading industry blow their entire trading account in the market since they don’t know how to execute their orders in the market by following proper fundamental analysis. Technical analysis: Technical analysis is the most common types of analysis in the forex market. If you look at the notice traders then you will notice that every single one of them are executing the orders in the market based on technical analysis. Technical analysis gives you the unique opportunity to find the best possible entry point in the market. However when you do the technical analysis in the market make sure that you are not overloading your trading charts with tons of indicators. In order to achieve success in the forex trading world, you need to keep your trading system as much simple as possible. If you truly want to execute high-quality trades in the market then make sure that you do the technical analysis in the higher time frame. Sentiment analysis: Sentiment analysis is hardly used by traders in the market. If you do the research then you will notice that only the professional traders in the forex market are doing the sentiment analysis. Some of the curious traders in the forex industry often ask that how they will learn the sentiment analysis. But as a trader, you should know that this is the only thing in the forex market which you will develop over the period of time as your experience. Once you master the art of sentiment analysis in the market you will be able to execute high-quality trades in the market. Most importantly your sentiment analysis skills will save you from lots of false signals in the market. Balanced trading system: Based on the above-mentioned analysis a balanced trading system is made. If you truly want to become a professional trader in the forex market then make sure that your system looks after of all the trading parameters mentioned in this article. If you execute random trades in the market based on your emotions then you will never become a profitable trader in the forex market. In order to make money in the online trading world, you need to execute high-quality trades only. When you execute any orders in the market make sure that you follow proper risk management factors since it is the key ingredient to becoming a profitable trader in the forex market. In the eyes of trained professional perfect risk management factors is often considered to be the Holy Grail in the forex market. So follow this at all cost.
  4. When you are in the Forex market, you should get some basic education about the market structure. There are hundreds of websites on the internet providing materials to you for fundamental and basic knowledge. There is even Forex master with years of experience. Most of them have their own websites to host an online education if the interested traders could not get the education physically due to distance. You should not ignore the role of these institutes in Forex learning. Most of the time, if you do not have proper education, you end up at the bottom of your trade. Here, in this article, we will emphasis on the education of Forex. As long as you are getting a right and proper education, you should not worry about if it is virtual or not. If you look at the professional trader then you will see that every single one of them is trading in their online trading account after gaining the perfect knowledge in the financial market. Why you need Forex education Most of the newbie traders think that, when they are saying Forex education, they have to register for an online course of a Forex master. It is wrong. You do not need to go anywhere, not even on your computer. The fundamental knowledge of Forex hasn’t changed very much since its beginning. You can also buy a book and learn the basic terms and know their meanings in the Forex. But we encourage you to practice with a master, to see how far you are from the learning of true meaning of Forex. You can also learn forex trading for free by exploring Saxo academy developed by the professional broker Saxo. Even the professional traders’ access that section every single day to learn more even they are trading in their online trading account. It will prepare you for the real world: You cannot learn how to ride a bicycle no matter how many books you have read about it. The moment you ride on the cycle is the moment you actually starting to learn it. Forex is like riding a bicycle. You have to step your foot outside to know the path of your journey and its destination. Don’t think the market will move the way as it was supposed to move, as it is written or told by some expert. Exceptions are always here. Learning education and practicing your knowledge will prepare you for the real Forex world where you need to make money to materialize your knowledge into profit. You get the true feeling of forex trading after you execute the first orders in your online trading account in the market. Solid trading system: There are many different ways of trading the financial instrument in the world. However, if you look at the professional trader then you see that most of them are trading with their own developed trading strategy in the market. But in order to develop your own trading strategy in the market, you need to have a clear understanding of the forex market. It’s true that developing your trading strategy at the initial stage will be a little bit difficult for you but if you have strong patience in the financial sector then you can easily develop a solid trading strategy. Conclusion: Forex trading can be seen as driving a cruiser. You do not know how much depth the water has when you are looking at it. When you ride on that cruise, you experience a new world. The real world is much different from the imaginary world. Take a realistic education to prepare yourself for Forex trading with the professionals.
  5. The financial market that can be regarded as the largest financial market is the foreign exchange market or the forex market or the FX market. People from all over the world can take part in the forex trading and gain huge amount of profits. In order to trade in the forex market, you will need a forex broker and a forex trading account. And if you are trying to find a forex broker, chances are that you belong to any of the two categories: you either are an experienced forex trader who is not happy with his or her current broker and looking for a better one, or you are a newbie in the forex market. Whatever category you may fall into, you need to consider a few things before zeroing on one broker. They are, as discussed below: 1. Regulation Regulation is the most important thing that you need to consider while selecting a broker. Always choose a broker who is regulated by an authority that people have actually heard of, for example, UK Financial Conduct Authority (FCA). If a forex broker is a license holder, this will make sure that they meet the highest of standards along with very specific capital requirements at all times. They will handle deposits as needed by legislation. Also, they will act according to all the accepted codes of conduct. 2. Transparency Always hire a forex broker easymarkets who is transparent about all the procedures being followed as well as discloses clear metrics about their operations. Also, they don’t hide anything from you. You may find a number of brokers who frequently publish not only their trading volumes but also their execution statistics and other details which may be of use to you. This becomes more important if you want to have an idea about a broker’s operations before opening an account with them. 3. Beware of hidden costs There is actually no hidden cost in the forex market. There are just costs that you may discover later. Generally, these costs are associated with the quality of trade execution that is offered, as well as with the execution model of a broker. May be you already know that you will be charged by a broker either for the spread or a commission. Before registering with a particular broker, it is necessary that you know some things such as other transaction costs, withdrawal and deposit fees, and also swap rates if your plan is to hold positions open overnight. 4. Know the details It is important that you know the details about the trading conditions of different brokers. This may take a while. Still, you should compare the web-based, downloadable as well as mobile platforms that are offered and see what the instruments are that are available for trading. Also, know whether you can trade micro or mini lots or not; ask if scalping, hedging, algos or anything else that you have in mind are permitted. So keep these things in mind and you will definitely get a good broker and earn a lot of money in the forex market.
  6. The foreign exchange market or the forex market is the largest market in the world in terms of regular turnover and its volatility. This market is the largest liquid market and the most popular one. The popularity of the foreign exchange market is chiefly because of the liquidity and the volatility of the market. More and more people want to trade in this market so that they can earn some more money. This market is open for 24 hours a day and 5 days in a week. They are even open on the weekends. This is really advantageous for those who want to trade on a part time basis. Some points about the foreign exchange market are discussed here in this article by easy markets. 1. The foreign exchange trading is mainly executed to assist international trade and forex investment. It can be said that this is the primary purpose of the forex. This enables the business to convert one currency into another one. 2. The forex market is an over the counter market. So the market is huge, and it is the largest market in the world. The daily turnover of the market is more than 4 trillion dollar. As it is an over the counter market, anyone can trade in this market from anywhere in the world. 3. This market is the most liquid trading market because of the huge trading volume of the market. Because of it’s highly liquidity, more and more people are trading in this market in order to earn some more money. 4. Since the market is an over the counter market, it does not require a central exchange or a clearing house. In order to trade, the forex brokers and traders call each other and they have the ability to negotiate directly with one another. In order to do so they use online trading platforms. 5. The interbank and the central banks are the biggest users of the forex market, as they have branches all over the world and make loans in various currencies. Most forex trade is executed between the banks and the companies or the institutional investors and the banks. Hence, in most transactions, the banks play the role of intermediaries. 6. There is no waiting for the opening bell in the foreign exchange market. It is a process that is continuously happening 24 hours a day and 5 days in a week. All the major banks that continue forex trading have branches across the world in New York, London, Tokyo, Hong Kong and so many major cities. In order to pay for goods and services, many companies seek for foreign exchange. This process is known as direct investment. This market is also used by institutional investors for indirect investment. By buying stocks and shares, they invest in companies all over the world.
  7. The forex market is one of the most popular financial markets in the world. A trader can earn a huge amount of money by investing in different currencies and other fortunes. Moreover, the forex market is influenced by the economic fluctuations around the world. So a trader must have knowledge about the procedures of trading and the conditions of the real market. Here arises the need of a good broker forex trading. The number of forex brokers is increasing day by day, and one should be careful while choosing the right broker. Some of the key considerations one must look into before choosing a forex broker are discussed below: Safety and reliability: There are regulatory bodies in different countries and in different financial centres of the world; that are responsible for screening different brokerage firms so as to check their reliability. In the U.S., a reputed broker would be a member of the National Future Association (NFA) and will be registered with the U.S. Commodity Futures Trading Commission (CFTC). A trader must open his account with a brokerage firm that is duly regulated, keeping the safety of deposits and integrity of the broker in mind. Deposits and withdrawal: The account withdrawal and funding policies are different for different brokers. A trader must be able to withdraw his earnings with ease. In case a trader wants to terminate his account for any reason, the broker must assist in the process. Similarly, the broker must ensure that the deposition of funds is done smoothly. Leverage and margin: Margin requirement and leverage ratios are among the most important features one must consider while choosing a forex broker. Higher leverage increases the potential for profit if the trader is in a winning position, while the trader has to bear heavy losses if the opposite happens. So a little bit of caution is required for using leverage. A low leverage is better for the trader who is a beginner. Therefore, it is good for a trader to choose a broker who gives low leverage with high customisability. Commissions and spreads: Spreads are equally important for brokers, whether experienced or novice. A broker earns money either through commissions or through spreads. Some brokers receive commissions by charging a percentage of the spread, while some do not charge any commission. Instead, they make money through wider spreads. So it is advisable to choose the broker who offers competitive spreads in the market. Initial deposit: The initial deposit of a forex account can be very low. Many traders in the initial stage of their career in forex trading prefer to risk very small amounts. So those traders would prefer a broker who offers account with a low initial deposit. Trading platform: All the activities in forex trading are conducted through trading software. It is very essential for safe trading. So it will be better for a trader if he ensures that the platform or any software to be used for forex trading is advanced, easy to use and uncomplicated. Customer service: A broker should be able to provide support at any time of trading hours.
  8. adamsmiths welcome on Collective Investments Forum. Nice to have you here with us.

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