Category: 3. Advance Questions

Many operators have made a life outside the operations of change and certain have had very rich yields that have tolerated that they become autonomous and leave the nine-five work behind them. All these merchants have 1 thing in common — they all started as a passionate currency merchant! Absolutely no one is born with the know-how trade; It is achieved through dedication and discipline.

Then yes! A merchant of the passionate currency can truly achieve sustainable benefits from currency trading. While he is ready to put in the strenuous and has the discipline to continue with this commitment, then there is no reason why he cannot do what others have done before him in exactly the same shoes.

If it was to sum up in one word, the key to a good forex trader is discipline. Yes, there are many things to learn and know before doing any operation or getting involved in the financial industry, but one thing that must be sustained incessantly through discipline. Discipline in education, in the manufacture of their first trades and in fulfilling their plan.

The basic elements that each and every one of the new operators must continue are the following:

– Learn about Forex — there are countless material on the internet. Have a good learning of 1 month. Technical study and essential analysis. Your learning should continue well into your business and be ongoing.

– We go with a strategy — Establish rules that will determine your trading pattern and how you will enter and exit the market.

– Practice in a Demo — Open a demo and trade account just as if you were. Naturally, this will not be “precisely” just as if it were operating in a real one, due to the fact that the fear of losing would not intervene in its resolutions. Do not continue with the next step unless you can get a benefit in the demo first.

– Practice in a real account with a small amount — Do this in order to be able to understand the difference between real money trading and demo trading. Do this with substantially a small amount, but enough so that you are worried about losing exactly the same.

– Trade in the real account with substantial amount — do this with an amount that is ‘comfortable’ to lose completely. Even if your strategy worked in the demo and in a real with a small amount that you can not continue doing so in the future. Stick to your strategy (have complete discipline). If you see the strategy, it fails, and then adjust your strategy accordingly, but adhere to it (to the PIP) at all times at the time it has been decided.

There are a number of free Automatic Forex trading software, each with its own advantages and disadvantages. Many commercial companies have built their platforms, while others prefer to use, and, in fact, White Label, the solutions that are generally known in the existing industry.

To say which is the best would be invalid as long as this falls into the opinion of the individual user, however, there has been a clear trend in terms of popular platforms, which have proven to be favored between the two beginner and veteran operators. These platforms are the Metatrader four and C-Trader. The first has been built primarily for forex products, while the second has been developed to accompany other instruments such as stocks and ETFs. The two platforms are simple to use and master and have full capacity for graphic and technical analysis.

If you have looked at currency trading now, you have more doubtable been exposed to each and every one of the different occasions to get money and wonder what is the best way to learn currency trading. First of all, the first thing I would recommend is to achieve a forex education. There are countless material on the Internet currency for newcomers, such as experienced operators — all you need to do is search. Spend some time reading about how the Forex market is going, the concepts behind the trades and how the costs are harmed by economic and political conditions.

Secondly, you have to achieve some experience, if you want to learn currency trading, which is the only way. To start, it is prudent so that this is in a demo account. This will give you a good technical basis on the mechanics of doing currency trading and get used to the use of a trading platform.

After having negotiated over a period of time in a demo account it is also essential to use a real being, although with a small amount of investment — find a broker that will admit the operations of smaller size (zero with one lots for FX) in order that you can have a real idea for the market in real time. It is a different game of trade in a demo and authentic platform, due to the psychological effect that trading with real money has. Operating small will let you put your money on the line, but soon danger if mistakes are made or you lose money.

From there, on the condition that they earn more than they lose, they should gradually increase the size of their trade and the capital invested, always and at all times keeping in mind that it must be an amount that can afford to lose and You feel comfortable.

There is no single way to answer this question. This obviously depends on the operator, according to his preference, knowledge, experience, such as what is raised for trade (the financial instrument). Many experienced intermediate traders, especially when trading in the forex market, prefer to use platforms such as MT4 or C-Trader that are primarily designed for exchange operations, such as CFD trading, and for someone with a bit of Commercial market knowledge.

Others, more novice merchants prefer the use of this genre of platforms such as those found from Easy-Forex, iForex, or eToro, where limited math / computational knowledge is required for their employment and are considerably simpler to use.

More advanced / experienced operators, who may also prefer access to multiple markets prefer to use intercessors such as Interactive Brokers or SAXO merchant from Saxo Bank. These platforms tend to contain considerably more advanced graphical / methodical tools (although to be fair most of the analysis tools can also be obtained from MT4 / C-Trader) and also give access to thousands and thousands of instruments including actions , ETF, sectoral approaches to trade, etc; and are designed with the ability to allow merchants to participate effectively in this kind of markets.

Different traders may have different approaches to identify a trending market. Ask your Forex trading coach what his approach is. Usually, a trending market is defined as a market that is forming consecutive higher highs and higher lows (an uptrend), or consecutive lower lows and lower highs (a downtrend.)

In addition, some technical indicators can also be used to identify trends and their strength, such as the Average Directional Movement Index. Your trading coach will show you what’s the best trend-analyzing tool to use based on your trading style.Learn about Technical AnalysisWe’ve got dozens of free courses where you can learn about technical analysis. Instead of repeating lessons from our courses here, we’d encourage you to take them to learn more. Our popular ones are:

• Take our free course: Technical Analysis Explained
• Take our free course: Trends, Support & Resistance
• Take our free course: Japanese Candlesticks Decoded
• Take our free course: Reversal Price Patterns
• Take our free course: Continuation Price Patterns
• Take our premium course: Trading for Beginners

Not all Forex pairs behave the same during certain market events. Even among majors, there is a large difference in liquidity, volatility and active market hours among them.

As a beginner, it might be a wise decision to focus on the most-traded currency pairs such as EUR/USD, USD/JPY and GBP/USD. Trading these currencies will likely reduce trading costs and slippage, and you’ll be able to avoid chaotic movements that may arise as a result of low liquidity in other pairs.

As most of you already know, there are eight major currencies in the Forex market.

If your trading style requires a longer-term approach to market analysis, it might be difficult to find profitable trading opportunities at times. So why not add exotic currencies to our analysis?

Exotic currencies are not as much traded as majors. As a result, their liquidity is low and volatility quite high. It’s not unusual for less-traded currencies to move hundreds and even thousands of pips in a matter of hours. In addition, you need to pay attention to political and economic risks of those currencies, which may change from day to day.

Ask your Forex trading coach whether trading exotic currencies fit into your trading style and how to manage the risks associated with trading them.

News and market reports can have a large impact on currencies.

Beginners often try to predict the actual number of a market report and get badly hurt after the number gets released. Once they realise that forecasting the actual number of a report is almost impossible, they begin to close their positions ahead of important market events, such as the non-farm payrolls or interest rate decisions.

Fundamentals can be broadly grouped into micro-fundamentals and macro-fundamentals. News, headlines and reports such as the aforementioned ones are micro-fundamentals that have a relatively short impact on the markets. The trend of a currency pair isn’t changed by the report itself, but rather by the collective view of a large number of market participants who may start to question the current trend.

For instance: If a country reports lower-then-expected economic growth for two consecutive quarters, investors may question the ability of the central bank to hike interest rates at the next meeting.

Trends change gradually, and if you have a longer-term approach to trading, you don’t have to close your trades ahead of scheduled news reports. However, if you’re a scalper or day trader, the increased volatility after the report can easily lead to relatively high losses.

There are many financial markets in the world as our free course covers, check it out. You can trade currencies, equities, bonds, commodities, or even derivative contracts based on each of these asset classes.

While we focus mostly on Forex, the truth is that all financial markets are interrelated with each other. Rising equities can increase the demand for the domestic currency in order to invest in stocks, for example, which can lead to an appreciation of that currency. Similarly, falling equities can decrease risk appetite among investors and support the price of gold, which is traditionally considered as a safe haven.

Ask your Forex trading coach whether they trade other markets and how to take advantage of the intermarket relationship that exists among different markets.