4 Beginner Tips to Success in Forex Trading and get more profits

Are you interested to forex trading? Here are beginner tips that will help you to trade. And, you also can save more money.

Survive

You must be able to survive. You can’t be a winner forever. Every trader, even professional trader, has experiences of losing in their trading. Therefore, you need to prepare.

The best way to do this is by having good money management. The simple formula is you don’t take risk more than 3% of your fund. This will help you to pass the beginner phase. More than that, you also need to have discipline and self control, in order to keep your fund and survive in the game.

Stop Loss

This is the strategy, where you set a limit of the price, when your broker should do a sell. And, as beginner, you can’t set the limit too high. Just make sure you set the price that match with your fund and skill capability, as well as your risk tolerance.

The benefits of using stop loss strategy are your account and fund is safer. Therefore, you don’t need to worry, if you choose bad trade. The reason is when your trade goes bad, there is limit that you have set before, and the broker will automatically deal with that trade. This is the important strategy to save money for beginner.

Be Realistic

Forex trading isn’t instant profit grabbing. It’s like a plant. You need to nurture your fund and investment, choose right time to buy or sell, and after that, you will get the profit. Therefore, you can’t just expect that your $500 will turn into $10K in just few months. Some expert trader even needs years to turn their $100 into $10K. 

So, choose the realistic target for every six months or a year. Match it with your fund and ability to trade. Then, once you succeed, increase the target level. By doing it slowly, you will be able to get more profit than you ever imagined.

Making Friends

Yes, you can do Forex trading from your house, by yourself. However, it’s important, if you also make connection with other traders. Information is important thing in Forex world. And, usually, you will get them faster from someone that you’re close with, especially if this someone is also trader. You will get best information from them.

Basically, those tips are what you need to know when you want to know forex and trading in its market. Follow them, learn, develop your strategy and be aware of the market situation, then you will be successful trader. 

All You Need to Know about Forex trading for beginner

What Is Forex Trading?

Forex trading is not an easy thing to do. But, it doesn’t mean that it is difficult to learn. The forex traders generally start from amateurs who don’t know about forex. With endless spirit, they can master forex trading.

What Is Forex?

Forex or foreign exchange is the biggest market investment in the world and keeps developing rapidly every year. A forex trading shows that it reaches $5,3 billion per a day in April 2013. This is increasing starting $4.0 bilion on April 2010 and $3.3 bilion on April 2007. The biggest trading volume causes high liquidity in forex trading. The online forex trading and liquidity in forex trading keep increasing so that it attracts the biggest participation from some sides.

When Do You Trade Forex?

You can do forex trading anytime except weekend for 24 hours per a day and 5 days in a week with the biggest trading session in Europe, Asia, and America. It is your turn to determine trading with short time range or long term time. All depend on the type of a trader. Of course, forex strategies used need to consider the trading time.

What Is the Form of Forex Products?

Forex is traded in a form of currency pair. It is not like market stock in which you can buy or sell your single stock. You have to buy currency and sell the other currencies in forex trading. The currency pair mostly traded are Euro, dollar, sterling, and yen. You can choose those currencies if you want to trade forex.

The forex trading can cause value exchange of currency. The main cause is supply and demand. When the world requires more dollars, it is causing the value of dollar increasing. When there are many dollars spreading, it affects the low price. The strength moving market stock has effect to the value exchange of currency. The other factors are the increase of interest, economics data from the biggest countries, geopolitics strict, and the other factors influencing the value of currency.

Where Do You Trade Forex?

Are you a beginner learning forex trading? You can do forex trading anywhere you are. It is important to connect to internet network. The development of forex market is growing rapidly and the growth of online forex steakholders become a good partner in trading to be a right guidance. An online forex trading system is of course helpful but you must be careful in choosing online steakholder regulated officially for the safety in trading forex.

All About Forex Trading

Forex is the abbreviation of Foreign Exchange, which means currency exchange. Here are all about forex or forex trading.

What is Forex Trading?

Forex trading or trading forex is a trading of currency from different countries. For instance, buying Euro (European currency) and selling USD (American currency) at the same time. In the perspective of common people, forex trading is an activity of changing money in Money Changer, or buying and selling foreign currency manually which is done in Money Changer. In fact, it is different. Usually, the purpose of people selling or buying foreign currency in Money Changer because they want to change their currency in order to do some transactions overseas.

On the other hand, forex trading is done in order to get some profits. This kind of trading is a business activity, investigation, and it can even be a profession. The profits are gotten from the difference of buying price and selling price. Forex trading is not only able to be done physically, it is also able to be done on the internet. It is done in a platform called platform trading.

Forex Market

The actors in forex market are various, from multinational banks, big companies, countries, institution, and many more. Because the scope and the actors are global, forex market is really interesting and profitable. The market opens 24 hours because of the time difference all over the world. So that we are able to do forex trading anytime. Moreover, forex market does not have any specific physical locations. And here is the function of platform trading.

The Purpose of Forex Trading

Simply, the purpose of forex trading is to get profits from the ups and downs of the rates of currency exchange. The condition of the market and the price in forex market move very dynamically. They are able to change anytime quickly in response to economic events, politic events, disasters, wars, and many more. Specifically for countries which strong economy such as Unites States of America and Japan, if there is a sensitive information even though just a little bit, the rates of the currency will quickly move ups and downs. The traders see this event as a chance to forex trade.

The Opportunity of Forex Trading

Forex trading can only be done by big players such as big companies and institutions back then. But nowadays, all people can forex trade. With only $10, now you are also able to trade forex.

Forex trading is a trade of foreign currency. It is different from the activity of buying and selling foreign currency in Money Changer, because of the purpose. While buying and selling foreign currency is done so that the person is able to do some transactions overseas, forex trading is done in order to get some profits. Since this kind of trading is a business activity. Here are some informations you may want to know about trading forex.

The Functions of Trading Forex

In the process, trading forex has some main functions that gives effects to the actors. The functions of trading forex are divided into 3:

1. To Make the Currency Exchange Process Easier

In daily economic activity, people sometime need foreign currency. Whether it is used as business activity, shopping, trip, investment, and etc. The currency exchange is able to be done with a system that called Kliring. And one of the functions of forex trading is providing that service. Forex trading is able to be done online, so that you do not have to go to Money Changer.

2. Hedging

The second function of trading forex is hedging. Hedging means protecting the value. It is an act which is usually done by forex trader as a guarantee, so that the value of the investment funds is not decreased or loss when the trader sells foreign currency in 2 different markets. In this case, some banks are also taking roles, both bank inside the country and also foreign bank in the United States of America as the guarantor of the funds.

3. Arbitration

The third function of trading forex is to do arbitration. Arbitration is basically the difference of interest rate from 2 different currencies. And arbitration is an act which is done in order to get some profits from the difference of the currencies itself. Simply, this act is done by buying a low value currency in a country, and selling that currency in a country where the value of that currency is high.

Forex trading is just like double edged sword. You are able to get rich by trading forex and vice versa. Forex trading has a high risk so that you need to completely know how to do this kind of trading, and look for what kinds of risks which can happen. Make sure you are careful if you want to try this kind of trading called forex trading.

3 Strategies of Forex Trading for Professional Traders and get more profits

Talking about forex trading means to discuss information of trading strategies in internet. All strategies cannot be claimed to sucessful and great really functioning. Here are some strategies in trading forex for professional traders.

Strongly Fundamental Movement Factor

When you want to trade forex, you need to concern on strong fundamental movement. This way is benefiting market response when there are economics release data. The market usually moves volatile if the number of particular economics data is announced better or worse than estimation. For example, if US non – farm payroll is released better than estimation, USD will strengthen significantly at least the first 20 minutes. Otherwise, if the data is worse than the estimation, USD will be promising. As a result, counterpart will move up and down.

Using Round Number as the Support or Resistance

What is meant to be round number in forex trading? Round number is price level like 1.50000, 0.50000, 100.000 and etc. Meanwhile, there are some numbers not regarded to be round such as 138.387, 1.398775, and etc. The round number is called to be psycological level usually being support area or key resistance. As an example, when you see moving price on the psycological level, the level becomes a key support. You can open a position of buy with stop loss direction on the psycological level. Otherwise, if the price penetrates to the down level, you can get a promising chance to open sell position.

Using Technical Indicator Combination

It is often called to be trading system in forex. Professional traders usually use some technical indicators with a particular purpose. The indicator can cover and handle the weakness of the other indicators so that produced signal is expected to be confirmed. As an example, you can see applied technical analysisi by Market Analyst Forex team. The team uses Stochastic Oscillator, Moving Average, and Fibonnacci Retracement.

Moving Average is used to help the strength of trend. If the trend is seen clearly such as uptrend or downtrend, Moving Average has a function to be support area or dynamic resistance. But, if the trend tends to be difficult to determine, it gives directions and guidance. Moving Average can collaborate to Fibonacci Retracement to give information of good entry area. The support area for entry market can be determined by Fibonacci Retracement only but it strengthens with Moving Average. In order to optimize forex, you can apply the right strategies for trading it.

3 Forex Trading Strategies for beginners that are widely used by professionals

Talking about Forex trading, it cannot be separated from the strategies may be used for gaining profit. But you should not be easily tempted with those declared in the internet. Not all of them are true and functioned well. However, there are at least 3 strategies that are commonly applied by professional traders. Make sure to see the situations before deciding to use them in your Forex transactions.

Do trading when there are strong fundamental factors

What does it mean? This way basically takes advantages of market responses when the data of economy are released. In general, the market will move in more volatile ways when the number of certain data is announced to be better or worse than the prediction.

A good example is related to the data of US non-farm payrolls (NFP). If it is released to be better than the prediction, USD is getting stronger significantly at least on its first 20 minutes. On the other hand, when it is worse, USD is weaker anyway. In other words, other currencies to be exchanged will be influenced as well whether it is stronger or weaker. Here are the facts based on the data released recently; when USD is stronger; its pairs like EUR/ USD, AUD/ USD, and GBP/ USD will move lower.

Use intact number as the resistance

What is the kind of number you commonly see in the Forex exchanges? They are things like 1.356775, 1.56687, and others. Meanwhile, it is rarely to see any number like 1.0000, 0.50000, 150.000, and so on. In fact, the intact number is also known as the psychology level which is on the support area or key resistance. When you see the value is moved above that psychology level area, the level is known as the key support. You can open the buy position with stop loss there. On the other hand, when the value is below, the opportunities can be found to open the cell positions.

Use the Combination of Technical Indicators

This is what we commonly call as the trading system. Many professional traders use some technical indicators at once so that one of them can cover up another’s weakness. The signal given can be confirmed as well at this stage. To learn more about this strategy, you can refer to the technical analysis applied by market teams that use some tools like Stochastic Oscillator, Moving Average, Fibonacci Retracement, CCI, and so on.

Why Forex or Forex Trading and Gambling are not the Same

Many people think Forex and gambling is no difference. But what factors make Forex trading and gambling different? Here, you will find out the comparison between those two industries.

Factor number 1: players

In Forex, the market is supported by several the most important and biggest financial institutions around the world. It is correct that Forex traders do not trade their money with banks, but they trade their money on retail market. Since, Forex market is supported by big organizations, the legitimacy is higher compare to gambling world. Gambling industry sometimes faces a lot of challenges related to legal front. The legitimacy of Forex is just the same as another market like commodities and stocks. So, if you are one of those people who are interested in Forex trading and taking a risk, why would you even think about putting your money on gambling where you will face morals and law in the future?

Factor number 2: numbers

When you think about legal issues, ethics, moral, and legitimacy, let’s bring your focus on one and only reason why people do Forex trading or gambling: money. Actually, there is no exact amount to be compared about the trading money in gambling arena and Forex market. But several statistics show that there are around 2 to 6 trillion dollars are traded every day in the Forex market. But the exact amount of trading in gambling is not really clear and surely can’t be compared.

Factor number 3: emotions

As we know that gambling causes addiction which is one of the main issues. It is because gamblers let their emotion get the best of them. When you step your foot into a casino, the only desire in your heart is getting money. When you fail to fulfill this desire, you tend to try to gamble again and again until you lose your money. This is the addiction people talk about when they gamble aggressively. Meanwhile, in Forex trading the first and essential rule is to leave all emotions behind. You should trade scientifically and objectively. Then, set the goal of your trading and stick with it. It can help you to not feel long disappointment when the result is not like what you expect. That is why strategy is really needed to trade in Forex market. 

Forex and gambling are not the same as many people think. Those factors are just the examples to differentiate gambling and Forex trading. If you have more ideas, you can list that and see why you should choose Forex instead of gambling.

3 Misconceptions made by traders about Forex and Forex Trading

Forex statistic shows that many traders fail. The failure sometimes is about misconception about Forex world. Here are five misconceptions about Forex trading you should know.

Forex is not about magical solution

Many people who are interested in Forex may think that Forex market is potentially bringing a lot of profits. But unfortunately, you will not make any profits with Forex without working hard and focus at it. There is no certain indicator that leads you to have much money pouring down in your pocket. You can look for a hint in the technical indicator for what thing you should do or follow. But all of that can’t be guarantee you are 100% successful. Forex is like the other things in life, the best things come to someone who waits. So, it’s not enough to learn only about what Forex is. You should learn the market, read, and practice in trading. You should expect for worse things too but don’t let them get in your way. Then, you will see day by day how much money you earn by the choices you’ve chosen.

Forex is not about getting money easily

Many Forex traders think that is interested in joining Forex because it is easy to get money from here. Yes, it is true that maybe Forex is a convenient thing you can do at home to earn money. Not to mention, you can buy a lot of amount of money just in single click. But back again, so is losing money. The trading may sound piece of cake, but how you make the profit is not as easy as you think. It takes a lot of consistency, smart strategy, knowledge of many topics, and endless patience. 

Forex is not about rush need

It is correct that the ability to trade amounts of money can let the excitement out. It seems that Forex is the right way for people who need money instantly. If that is your reason in joining Forex, get ready for a big surprise. This may be one of your expensive endeavor you try to achieve a lot of money in no time. Forex indeed gives you endless options in trading. But remember, those options come in danger too. We advise you that you shouldn’t bring any high hopes and too much excitement in the world of Forex trading. You shouldn’t think Forex is the right way for you to get money instantly.

So, those are three misconceptions about Forex trading you should know. Remember, if you have great patience and smart strategy, it is not impossible you can earn a lot of money from Forex.