In Forex trading, leverage or the capacity to make use of something to control something bigger means an investor can have a little capital in an account that controls a bigger amount in the market. This is referred to as trading in margin. There is no fee necessary as interest payment on the margin. Also, any trader who has an account can trade once the broker offers margin.
Professional trading
Majority of traders in Forex who have already reached the professional level and trading full time have a different way of conducting their work as compared to what beginners in the trade may expect. Majority of professionals do their trade in the market a lot less often than what people think. This is actually true for veterans in the industry who do four hour charts or and price action trading.
Getting insight on professional trading
A typical routine of a professional price action trader in Forex is different from what beginners and most people imagine. If you plan on engaging in this business, it may be helpful to obtain an insight about what professional or full time trading entails. This can provide a better picture of what your existing trading activity needs to improve on.
Being on top condition physically and mentally
This is highly essential for adhering to an effective plan in Forex trading and for making analyses of the charts.
Monitoring the markets
A professional trader regularly monitors open trades from trading the day before. The actions of the trader involve adjusting stop losses, bringing the trading journal up to date, or maybe just observe.
Analysis of charts
An expert trader conducts his trading with only a limited number of markets and is also very much aware of his preferred currency pairs as well as the arrangement he has preference for. These comprise a more efficient analysis of the markets. A professional trader looks into his charts for his particular market edge. If his edge exists and it is able to convene with the parameters of risk reward, he goes into the trade and leave until the time of market analysis that will follow. A professional also always keeps his trading journal updated before and after engaging in a new trade.
Value of temporarily breaking away from the markets
Among the most difficult for new traders to believe is the theory that when you do nothing, determines your success or failure. The idea may be a little strange; however, if you specifically know what you need in the market because you are very familiar with the trading edge, it is no longer important if you spend a lot of time in chart analysis.
Sunday 28 December 2014
Tuesday 18 November 2014
Types of Forex Traders
The Forex market would be incomplete without the multitude of traders who do business in all hours of the day. These traders have different personalities and have different preferences.
Are you a Forex trader? What type of trader are you? See which among these personalities have the same attitude as you.
Types of Forex Traders
1. Day Trader
• The day traders are the most appealing and the most popular type of forex traders.
• Day traders, as the name suggests, conduct trading and generate profits within the day. They use shorter timeframe charts, and look for quick turnover trades. They also don’t hold anything after the session close.
• Day traders need to be attentive and patient; they also have to develop their logical skills.
2. Technical Trader
• Technical traders use technical analysis to trade; they also make the most of trading rules and models using previous price and volume information.
• These types of traders rely on the premise of history repeating itself; prices move in trends, and the rise and fall of prices can somehow be predicted.
3. Scalpers / Scalping Trader
• Scalpers tend to trade for small gains; they take profits quickly with minimal exposure. They open and close a trade within minutes, and they take advantage of small price movements with large amounts of leverage.
• These types of traders need skills to respond to market changes; stress is caused by screen time and frequent trading.
4. News Trader
• News traders make decisions based on news announcements since news and other economic reports tend to have impacts on the forex market.
• News traders face a lot of risks because of the market’s volatility.
5. Position Trader
• The position trader looks to gain profit from holding long positions, and usually use either daily or weekly charts. With them, trading can last for a couple of months, and they aren’t affected by short-term fluctuations.
• These traders are more interested in the market’s structural movements rather than the day trader’s short-term movements.
6. Long Term Investor
• Long term traders tend to invest a lot of money, and expect to get twice or thrice the invested amount. They prefer to use either the weekly or monthly charts.
• They benefit from their actions by having more reliable long-run profits, but they have to make sure they can cover volatile movements alongside open positions.
There are various types of Forex traders. Have you realized which type of trader are you? Understanding your trading personality makes you improve your tactics better, hence giving you more chances to profit.
Are you a Forex trader looking for an Arabic Forex broker in Egypt, here below is list for you to choose from:
Are you a Forex trader? What type of trader are you? See which among these personalities have the same attitude as you.
Types of Forex Traders
1. Day Trader
• The day traders are the most appealing and the most popular type of forex traders.
• Day traders, as the name suggests, conduct trading and generate profits within the day. They use shorter timeframe charts, and look for quick turnover trades. They also don’t hold anything after the session close.
• Day traders need to be attentive and patient; they also have to develop their logical skills.
2. Technical Trader
• Technical traders use technical analysis to trade; they also make the most of trading rules and models using previous price and volume information.
• These types of traders rely on the premise of history repeating itself; prices move in trends, and the rise and fall of prices can somehow be predicted.
3. Scalpers / Scalping Trader
• Scalpers tend to trade for small gains; they take profits quickly with minimal exposure. They open and close a trade within minutes, and they take advantage of small price movements with large amounts of leverage.
• These types of traders need skills to respond to market changes; stress is caused by screen time and frequent trading.
4. News Trader
• News traders make decisions based on news announcements since news and other economic reports tend to have impacts on the forex market.
• News traders face a lot of risks because of the market’s volatility.
5. Position Trader
• The position trader looks to gain profit from holding long positions, and usually use either daily or weekly charts. With them, trading can last for a couple of months, and they aren’t affected by short-term fluctuations.
• These traders are more interested in the market’s structural movements rather than the day trader’s short-term movements.
6. Long Term Investor
• Long term traders tend to invest a lot of money, and expect to get twice or thrice the invested amount. They prefer to use either the weekly or monthly charts.
• They benefit from their actions by having more reliable long-run profits, but they have to make sure they can cover volatile movements alongside open positions.
There are various types of Forex traders. Have you realized which type of trader are you? Understanding your trading personality makes you improve your tactics better, hence giving you more chances to profit.
Are you a Forex trader looking for an Arabic Forex broker in Egypt, here below is list for you to choose from:
Sunday 9 November 2014
Comparing Forex Brokers and choosing the Right One
With the current rise in popularity that forex trading enjoys, more and more prospective investors are turning to forex brokers for help in managing their investment funds. Following are a few factors you need to consider in evaluating possible brokers you will assign to handle your trading activities:
Available Forex Currency Pairs – Make sure that the broker has the particular currency pairs that you are interested in trading. Although there are brokers who offer a wide range of options, some actually have only a limited number of pairs. This, however, should not be a concern if you are thinking of trading only the major pairs. But if you want to trade high volume pairs, find a broker who offers more options. There are even forex brokers who offer other products like futures options and stocks that you can trade on the same platform. Just be sure to check out the respective commission rates.
Downloadable vs. Web-based Trading Platform - Trading platforms that you can download and install such as the MetaTrader or Sierra Charts are ideal if you want to trade from home or from anywhere. However, if it would not be possible for you to install the software you will need to trade from, find forex brokers who have internet-based trading platforms instead.
Spreads – If the broker you are considering is a market maker, compare how their spreads fare against other brokers. Note that spreads can easily change with the latest news.
Managed Forex Account – If you do not have time to trade on your own or too busy to learn the workings of the forex market, then an account handled by a professional manager may be for you. However, this may expose you to incompetent and poor performing brokers, or worse, to scam threats.
Broker’s Performance – Evaluate the brokers’ performance over a given period of time. Some brokers have good track records that produce profitable results for clients most of the time. But before signing up, discuss how much commission they charge and their risk management strategies. Other questions to ask: Does the broker have margin requirements? What if your account falls below a specified amount? Is the broker under government and private regulation?
Demo or Trial Version – Look for a broker that offers a demo version you can test to have a feel of the real trading market.
Deposit and Withdrawal Charges - Some brokers do not charge for deposits and withdrawals. Some charge for either one or both.
If you can afford it, try opening small live accounts with a few brokers for comparison testing. Observe how the spreads will go at certain indicators or timeframes. There are brokers that perform better with long term positions, while there are brokers that are ideal for day traders. Ultimately, the key is in finding the forex brokers who can work best with your particular needs and preferences.
Available Forex Currency Pairs – Make sure that the broker has the particular currency pairs that you are interested in trading. Although there are brokers who offer a wide range of options, some actually have only a limited number of pairs. This, however, should not be a concern if you are thinking of trading only the major pairs. But if you want to trade high volume pairs, find a broker who offers more options. There are even forex brokers who offer other products like futures options and stocks that you can trade on the same platform. Just be sure to check out the respective commission rates.
Downloadable vs. Web-based Trading Platform - Trading platforms that you can download and install such as the MetaTrader or Sierra Charts are ideal if you want to trade from home or from anywhere. However, if it would not be possible for you to install the software you will need to trade from, find forex brokers who have internet-based trading platforms instead.
Spreads – If the broker you are considering is a market maker, compare how their spreads fare against other brokers. Note that spreads can easily change with the latest news.
Managed Forex Account – If you do not have time to trade on your own or too busy to learn the workings of the forex market, then an account handled by a professional manager may be for you. However, this may expose you to incompetent and poor performing brokers, or worse, to scam threats.
Broker’s Performance – Evaluate the brokers’ performance over a given period of time. Some brokers have good track records that produce profitable results for clients most of the time. But before signing up, discuss how much commission they charge and their risk management strategies. Other questions to ask: Does the broker have margin requirements? What if your account falls below a specified amount? Is the broker under government and private regulation?
Demo or Trial Version – Look for a broker that offers a demo version you can test to have a feel of the real trading market.
Deposit and Withdrawal Charges - Some brokers do not charge for deposits and withdrawals. Some charge for either one or both.
If you can afford it, try opening small live accounts with a few brokers for comparison testing. Observe how the spreads will go at certain indicators or timeframes. There are brokers that perform better with long term positions, while there are brokers that are ideal for day traders. Ultimately, the key is in finding the forex brokers who can work best with your particular needs and preferences.
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