We all know that trading Forex is a risky business and we encounter risks with each trade on a daily basis. It’s our duty as traders to protect our capital from these risks as much as possible.
One of those ways is providing strategies (or better-said trades) for other traders to copy. This is generally known as copy trading and can be very profitable for both the strategy provider and the copier. For strategy providers, it is a great way to boost your earnings that can range from very little at the beginning to something that can be your main source of income once you amass enough followers.
Recently, the hottest topic in the world of financial markets is the planned ESMA regulation for sure, not only restricting trading binary options completely, but it also limits the use of financial leverage followingly:
In investing and in life generally, we want to pay for assets, products or services that are at least at a fair price in order for those to be valuable in the longer term.
Consequently, it makes sense to leave trading to those that are really good at it if you are someone who doesn’t have the time to analyze the Forex charts on a daily basis. One of the simplest ways to do that is to start copying trading signals from Forex traders who are already profitable. However, profits are not guaranteed and there are certainly some dirty practices in this sphere of Forex trading as well.
Generally, it is seen as something negative and everybody wants to avoid it, but experienced traders realize that losing is the only thing we can control through money management.
The approach towards losses is clear: they have to be as small as possible. The lower a loss is the better.
Specifically, there are two key aspects of your account statement that give a valuable insight into how well you are performing as a trader. Essentially, these two key aspects are the relationship between your average winning trade to your average losing trade and the win per trade ratio or also known as the winning percentage.
Are such worries legitimate and is the forex as we know it coming to an end, or is it all just about the transition from gambling to trading for some traders?
A common question in the Forex community, especially asked around a lot by rookie traders, is whether fundamental analysis or technical analysis is better to trade the Fx market.
There are countless ways for traders to improve their trading sessions. Below are a couple of tips that can be used with almost any trading strategy.
Get to know price action and important price levels on the charts
Price action is, without a doubt, one of the most powerful weapons of many traders today. Price action usually has the highest predictive value because it’s not created by complicated calculations, but by the market.
In fact, many of the crucial skills for success in investing or Forex trading are skills that successful people in general possess which help them to get ahead in all areas of their lives.
Anyone who is into Forex trading more seriously has probably started with one ultimate goal – to be able to live from the generated profits by trading the currency market. Novice traders, however, commonly misunderstand how this can be done - largely due to misleading advertisements and sales schemes by Forex companies.
So, without any further ado, let’s get into clearing up some misconceptions regarding Forex trading as a source of income and how much capital would one need to deposit in their Forex account in order be able to generate an income from it.
When trading using trend lines, you are waiting for a moment when the price of an instrument gets to a certain price level, off of which the market is very likely to bounce.
When using this strategy, every trader has to remember that the market can react two different ways:
Values-Driven Forex Traders are generally independent individuals that are able to make good and rational decisions. They tend to be realistic, they know what their values in life are and they are mainly driven by them – including, to a large degree in trading as well.
Generally, those values for them would be people and relationships, life principles and material possessions.
We often hear that we should not plot too many lines and/or indicators on our charts when we trade Forex. This advice and the reasons cited behind it are certainly valid.
Stop-loss trading orders are one of the most important parts of every forex trader’s strategy. Naturally, there are traders who are brave enough to trade without stop-loss orders or other kinds of capital protection, but it can be very hard for them to achieve stable results long-term.
This type of a trader, however, will often find it very helpful to work in a group or together with others. Even letting someone else trade their money is a very good option for them since they lack a lot of key qualities that are important for traders.
Having others trade for them can be a much better way for those who simply are not suited for the trading arena. After all, they might have another job and be really good at other things but not everyone can be great at trading, and realizing that is an important part of being successful. Once one is aware of their weaknesses they can deal with them in an appropriate manner and one way to do it in case of trading is to let a professional trade for you.
The answer to the question “How much should I start with in Forex trading?” depends on several factors that we will explore in this article. But, first of all, one word of advice: Don’t be misled by the minimum deposits that you see on many brokers’ websites as part of their requirements to start trading.
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