Tag Archives: Forex market

What is Forex: Beginners Guide To Forex Trading

Hey, what is Forex? You sure have heard the term Forex trading a lot recently. This probably has woken up some questions in your mind. This is why we have created this beginners guide to Forex trading in order to build your first impression about the currency market.

Content of Our Beginners Guide To Forex Trading

These are the topics that we will concern in our Forex trading beginners guide:

  1. What is Forex Trading
  2. How Does Forex Trading Work
  3. How to Start with Forex Trading

What is Forex Trading

Foreign Exchange market a.k.a. Forex is the place where trading goes off of the difference between various currencies. The Forex market is the largest, most liquid financial market in the world. It even dwarfs Stock market in size. The currency market has an average trading value of approximately $2,000 billion a day. Currency exchange generates foreign trade and business. Forex market takes advantage of the rise and fall of currency values based on global business dynamics among other factors.

How Does Forex Trading Work

Forex trading market is for currency exchange. But actually it has no central marketplace to work with. The whole Forex trading process runs electronically over-the-counter(OTC). This means that all the Forex trading transactions go electronically between traders over the network.

Forex Trading

In Forex trading, the user usually chooses a currency pair and has to bid based on the rises and the falls of its value. If the bidding is right the user gets his part of the profit. If the guess is wrong, the user loses. There are a lot of strategies and calculated studies in relation when investing in currency.

How to Start with Forex Trading Now

Even after reading this, perhaps you might have certain doubts and inhibitions about delving into the world of Forex trading. One of the websites that could give you more details is Aristrex.

4 Best Binary Options Trading Strategies that Work

Binary Options online trading is one of the famous trends in the pecuniary markets today. Both proficient and amateur traders are hurrying to incorporate them in their investment files. Same as to any other trading policy or business, you should have a game plan to use for making steady profits. In this relation, it is essential to approach some of the best binary options trading strategies that work.

How to Trade Binary Options Successfully

In the case without a tactic or technique to assist you in making money with binary options, you should see yourself betting. Depending on fortune is not pretty safe in binary options day trading. This is so because in the long run it will not be working for you and might wind up in losing the majority of your investment. You will require a dependable method that you can utilize all the time, which shall assist you to make the right forecasts. To trade binary options with success, you have to utilize a binary options trading and a system that you know well. If you test it and prove its positive odds, it is likely to steadily boost your odds of winning

Now let’s discuss some of the best binary options trading strategies that work.

1. Principal Analysis Methodology

This system involves the study of the conducting the entire performance or qualities of an organization e.g. fundamentals. As a binary options strategy trader, you are very interested about a sound balance sheet, the cash flow statement and the income statement of the organization before thinking about purchasing an option. When trading binary options with fundamental analysis, alternate elements that you ought to look at incorporate the worker and the business accomplices’ fulfillment. Basically, this methodology scrutinizes the total picture of the business they need to invest into their stock and on occasion the complete industry.

2. Technical Scrutiny System

This is a very famous procedure in option trading. It chiefly involves the investigation of the past, utilizing diverse parameters, for example, charts to anticipate the future cost of an asset. It’s very helpful in option trading in light of the fact that as a trader, you don’t need to dig into the organization’s financial statements.

3. Primary Options Systems

This technique is much famous amongst option traders. It is composed and utilized by a trader to defend himself from sustaining a total loss on their ventures. You shall pick an elementary asset or money that you are keen on and after that if the market is heading towards a good course, you can put a call option. In the meantime, you can place a put option in the same resource.

4. Money Administration Strategy

Without a right money administration, even the elite binary options trading system will destroy you in the end. Every binary options winning strategy is likely to lead to losing few trades. Accordingly, the primary objective of your trading approach can’t be to win every trade, yet to win adequate trades to wind up with a net gain at last. Money administration is the instrument that shall help you accomplish that.

Great money administration comprises of various guidelines, above all that you ought to just contribute a fixed little rate of your total capital in a trade. A precise money administration shall assist you to survive loss and make a consistent gain.


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Forex Loss: 5 Tips Why Newbie Traders Lose Money in Forex

Forex market is the most volatile and vulnerable market in the world. It requires lot of patience and discipline to make money on the Forex market. Many newbie traders enter the Forex market with huge expectations. The main aim of the FX newbie is to make quick money from Forex. However most of the newbie traders end up making many trading blunders. At the end they account for a big Forex Loss and quit trading.

5 Reasons Why Newbie Traders Account Forex Loss

The truth is that most traders lose money in Forex. The statistic shows that about 95% of the traders lose money on the Forex market. This means that only 5% are actually making a living from Forex. 1 out of 20 traders is making money from Forex. The other 19 traders account for overall trading losses when investing in Forex. This brings the question: “Since so many traders experience FX loss, is it actually possible to make money from Forex?” The answer to this question is YES!

But to understand how traders make money from Forex, you should first understand Forex loss and learn how to avoid big trading losses. Therefore, we will now go through the 5 reasons why traders lose money in Forex trading.

Deviating from the Trading Discipline

trading discipline

A person wishing to engage in Forex rate trading should always follow the strategy of maximizing the profits and minimizing the losses. Not everything that comes in your way should be traded. Forex trading requires lots of analysis and strategy formulation. Strategies have to be followed strictly and you should never cheat on your Forex trading discipline. One has to be preserved and disciplined when trading Forex. There may be several tempting deals coming across the Forex trading process. But one should follow the strategies in a disciplined manner. In a long term you will be rewarded for your patience. If you don’t follow strictly your strategy, then you will definitely experience the Forex loss more often than you should.

Poor Analysis of Factors Affecting the Trade

poor analysis

Newbie traders do not plan their trading moves properly. There are several factors that can have an impact on the Forex trade. It is important for a newbie trader to have a thorough knowledge of these before planning and implementing strategies. Below you will find a list of some important factors, which can impact your Forex trades.

  1. Varied Market Forces
  2. Policies of Different Nations
  3. Technical Indicators
  4. Economic Indicators
  5. Market Sentiment
  6. Relation between Currency Pairs
  7. Forex Trading Time Zones and Overlaps

Each of these is an important point for the implementation of a proper Forex analysis. Forex beginners should understand these factors determine the Forex forces. Not knowing these guarantees you that you will account for a loss in Forex.

Dependence on Forex Automation

Forex automation isolates the human factor when opening and closing Forex trades. This could make the amateur trader dependent on the automated Forex trading. This could turn out to be very bad in case a Forex beginner turns off the Forex automation. Would you be able to implement your strategy as strict as the automated Forex software does? If not, then you will definitely account for a higher FX loss.

Setting Unrealistic Forex Targets

trading discipline

People have high expectations from Forex trades. The dream of FX beginners is to become rich overnight. They set unrealistic targets which require a very high stake investment in a trade. This involves a great amount of risk which is often neglected. Only the returns are calculated ignoring the risks involved. Setting unrealistic Forex targets leads to:

  1. Greater Position Size
  2. Neglecting Margin Requirements
  3. Taking More Leverage than You Can Afford
  4. Trading Many Currency Pairs
  5. Taking Risks with Low Liquidity Currencies
  6. Experiencing High Currency Loss in the Long Term

If you expect to make fast money from Forex I guarantee you that you will end up broke. First, consider the amount you deposit in your bankroll. Then work on pursuing a realistic monthly return. Most experienced traders say that they make around 10% monthly return. As a beginner you can aim for anything above 5%. After all, we shouldn’t forget that the yearly interest rates in the US are 0.50% and in Europe are 0.00% (Nov, 2016). This means that a 5% monthly return is an extremely big achievement.

Taking Unrealistic Leverage

unrealistic leverage

A Forex trade offers low margin and yields higher leverage in order to commence the trade. The range may exist something between 50:1 and 400:1. As a result people go in for bigger trades with small investments. Although high leverage yields greater profits, it also results in bigger losses. Newbie traders just want to make more profit. As a result they opt for high leverage trades and end up being Forex losers. Experienced traders always aim for moderate leverage and continuous profits without any unnecessary blow to the investment.

Conclusion:

Trading profit and loss account are normal phases of the Forex trading process.

Forex trading is not about making fast money. It is about generating steady income.

Newbie traders often neglect the risk in trading and fall into the trap of being a Forex loser. The top 5 reasons why traders lose money and account Forex Loss in trading are:

  1. Poor Trading Discipline
  2. Poor Forex Analysis
  3. Dependence on Forex Automation
  4. Setting Unrealistic Forex Targets
  5. Taking Unrealistic Forex Leverage

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