Forex trading existed even before we were born. Yes, trading been there for ages now but imagine a time when they had no calculators and no computers. Imagine, dealing with numbers with your paper and a pencil and wouldn’t that take ages to trade?
So glad we have computers, so glad we have internet and so glad that we now have FX trade online. Not just the brokers, we also have the real banks to trade with. We open the trading accounts online in just no time, we deposit via credit cards in just no time and we are there, ready to trade, FX trade online.
So how do you trade or take your first step towards trading? First of all, you need some basic education that you find on multiple websites. There are some very good ones like Baby pips where you will find not just the good educational material but also good notes by experienced traders who actually make a living by FX trade online.
Your next step is to find a broker who will take your orders and maintain your account. Make sure you find a broker who is registered with the regulatory bodies of its country as internet is full of fake companies with all kinds of malpractices. A regulated broker is safe to trade with in terms of safety of your deposits and withdrawal.
Now you have to start your career in FX trade online but you need to know that buying and selling currencies require decision making based on market analysis. You have two options here, first, to learn to analyze the market on your own. For this, your broker will facilitate you with charting application where you can apply your technical indicators and start trading on your own. You may also decide to use fundamental indicators rather. The good news is that the brokers also send you regular updates on all major news happening around the world. What more can you ask for when you get all the news on your desktop, the moment it happens, all the time?
Your second option is to find a good and reputed signal provider who analyses the market and gives you the right trade recommendation. Even better is to find a few hubs like Zulu trade or collective2 where you can find all the major signal providers listed with their performance history on multiple parameters. You can decide who you want to go with and thereon, its simple. Subscribe to him and just follow his trades.
However, FX trade online has now taken a new dimension with the now available API configuration systems and Auto trading. Under these, you can just connect your trading account to good trader that you may know or find on Zulu trade. Once you have connected to him, his real time trades are automatically mirrored onto your account also, hence keeping your trading hands free. This concept is called mirror trading and has the major advantage of keeping you free from analyzing the markets and making decisions on your own. This concept now is on the rise and you too should take advantage of this mechanism as this is easy money.
But remember before you start FX trade online; put only that money to the markets which you can afford to lose. Never ever trade with borrowed money as forex trading has a lot to do with Human Psychology and that takes a toll on your trading decisions the moment you realize that the money on the line is borrowed, not yours. Always invest only your own money and only what you can afford to lose.
This can add another interesting dimension to your trading interests when you start your week with a forex contest. The brokers, all over the world organize regular contests for traders like you and me where hundreds of traders from different parts of the world, with different kinds of strategies come to participate and test the supremacy of their skill-sets against each other. All contests are held online and promise excellent rewards for the winners including live funded accounts, cash prizes, Ipad’s, laptops and a lot of things like those. Guess what, these contests are absolutely free to participate so you have nothing to lose but a lot to win.
Most of the contest are monthly and weekly in nature and usually are conducted upon demo accounts, so you never really need any of your own money to risk in it. Of course there are live account contest also Like ‘King of MINI’ contest by FXCM broker’ (www.fxcm.com ) where the top prizes can be in the tune of even $15000 but you run the risk of losing your own money in a live trading contest. This risk is eliminated by participating in a demo contest where you just need to register a free demo account and there you go. The prizes in a demo are limited alright but If you could just explore that more, then you will see the even the demo contests can win you a million dollar account. I remember this forex contest held sometime in the end of the last year in Dubai where the contestants were to be judged upon their’ ‘adjusted rates of return’ and the highest achiever was to be handed over a $ 2.5 Million live account to keep. Of course, it takes perseverance to keep an eye on the latest happenings in the contest world and finding a seat in it at the right time but you will see that in the end that all these efforts are worthwhile as the winners not only get to keep the winning prize but also come in the notice of other traders around who have a lot of interest in finding a winner trading guru. An example of this will be the monthly demo contests held by Dukascopy broker of Switzerland ( www.dukascopy.com) where the winner of each of the tournament gets to become a listed trading guru whose services can be availed of by the other members in lieu of a fee, so that’s regular extra income besides the basic winning prize.
That’s not the end of it. The hidden game is that the contest winners and other statistics are tracked by the recruiting firms who are always in need of top performing traders for their hedge fund clients. The contest data is bought by these recruiters as this is the easiest method for them to reach the right guys for their top notch companies, all in a single place. To the winners, there is this international exposure to earn which comes extra to the basic prize you win and then, you never know when the hedge fund is coming your way.
I also witnessed a ‘Trade to lose’ contest held by a US based broker where the biggest loser in the contest was to be declared the winner. Funny it is but know what, it isn’t easy to lose it either when your sole objective behind your trading is to lose. So make up your mind, sharpen your strategies and start participating in few. It’s just a matter of days that you will see for yourself where you stand and find it on your own if you really are better than the rest.
Brokers Who Organize Regular Contests:
This article is only an extension to our previous articles on eToro social investment network and the concept of Mirror trading. While mirror trading, popularly known as ‘Auto trading’ is only a facility to copy the profitable trader’s trades in your account without any human intervention, the concept of eToro guru program goes one-step forward in facilitating your forex learning stage with a full-fledged teacher’s touch. It’s called ‘Social-trading’ or a ‘Social investment network’, a concept where you get to learn to trade from the wisdom of the real trader Gurus, interact with your fellow traders and make good profits in the forex markets as all good traders do.
Under the eToro Guru program, you get to choose a Guru from the profitable expert traders available on eToro open-book software. You are of course, free to choose any number of Gurus that you like and then you can follow them on their trades as they go live. Since the Gurus earn a part of the spread paid to eToro, it becomes Guru’s responsibility to explain you each trade, the logic behind trade and also how to set your risk management that would best match the given trade. The performance and feedback on each of the Gurus is listed on Open-book, so you get to analyze their trading at your own comfort and then decide who it is that matches your comfort the most. Open-book also has its own criteria to select ‘Top 100 Guru’s on its own parameters and this list is updated with each trade that they make. So you need not bother if selecting a Guru was a challenge as here, you can simply opt for the top ten and then just Copy, follow, trade.
So, a perfect platform to learn and benefit from the experience of the trading Gurus but what if you yourself are a profitable trader and would like to boast off your skills to the world ? It’s really simple to do it here and find a strong followership on eToro as this is the only place where your trading skills will instantly be exposed to tens of thousands of people, all in a single place. The followers on open-book search for newer and more profitable Gurus, so If you are good with your trading, then it’s just a matter of a few weeks that you will have your own followers and your own fan-following across the Globe. eToro not only makes you a Global Brand but also pays you very good money for every new follower that you gain. What more, you don’t really need a Live account to prove your words, you can just sign up for a practice Guru Account and your statistics will automatically be shown to the world. Same is the facility for the followers also where they can simply open a Practice account, select a few Gurus and let their trading run.
That’s not the end as the eToro Guru program not only offers the opportunity to earn a trading income but also a second Income that is generated as you spread a word around about eToro-Guru program. Under this program, you can be paid over $100 for each of the new Trader who joins eToro social investment network and opts for this eToro guru program. Of course eToro takes no guarantee or responsibility on the success of the chosen guru but then again, forex market is all about risks and taking risks and Isn’t that what makes the forex market so much exciting? The Gurus have their own money and their own followership on stake, so they are always very cautious while choosing their trades. However, if one sometimes makes an occasional mistake, remember that this is a people-based Portfolio where occasional failures of one of the Gurus can easily be compensated by the profitability of others. eToro Guru is a carefully designed program that costs nothing to join and has only the rewards to take. So if you are a learning trader with a lifelong trading goal, I will strongly recommend that you take a look at eToro social investment network at the earliest and give this network a real shot.
With its Head office on Wall Street in New York, U.S.A, Fxclub has been in the business for over fifteen years now and has a worldwide clientele with its major presence in U.S., Brazil, China, Russia and other European countries. The company’s managed to keep a reserve fund of no less than $20 Million to be able to meet up any contingencies if and when anything arrives. This broker also boasts of a huge manpower of over 550 employees to cater to all its client needs, be it in the area of training or the trading.
Coming to their services, Fxclub offers the opportunity to trade and profit in the forex markets even to the smallest of the traders. There is no minimum requirement to open a live account which you can open with anything as low as $100. They also offer a free demo account of up to $50,000 to everybody to practice their strategies and learning before putting their real money in the line. However, the traders of Fxclub are never left alone to face any difficulties as the broker has a dedicated training department where experienced professionals take good care of your trading interest and guide you well in developing your trading career right from scratch. Similarly, Fxclub has also employed a team of experienced analysts who analyze all markets movement and keep you updated on happening and trading opportunities as and when they arise. The wonderful library of Fxclub consists of downloadable videos and eBooks that they offer to every client who has an interest in it. Not just that, Fxclub also gives you auto market scanning and analysis software ‘Auto chartist’ to help you at all stages of decision- making. This broker makes sure that you capitalize off its intelligence and experience and are provided with the best of training, analytics and a personal customer support, irrespective of where you reside. The company also holds daily training webinars for both beginner and experienced people that include daily market strategies. Guess what, it’s all free.
Coming to its trading platforms and charting applications, Fxclub has a vast array of options available to its customers. The platforms available are Meta-trader and Act-trader. They also have their own proprietary platforms, Rumus and Expressfx that are very easy to operate and work with lightening speed. Express-Fx in particular is a very special platform that has limited pairs but zero spreads, no slippages and ‘no re-quotes’. What more can you ask for than this that they instantly refund you the commission charged on negative trades, so they become your partners not only in profits, but also in your loss, I haven’t heard of any broker with that good a feature. However, this kind of an account has a minimum requirement of $1500 to open an account but don’t worry about that as with this account, you get the ‘auto chartist software’ absolutely free.
Time and again, Fxclub comes out with newer promotional campaigns which include schemes like ‘no deposit bonus’ and ‘100% bonus to your deposits’. They also organize regular contest which are participated by tens of thousands of customers across the globe with ‘winner takes it all’. The prizes can include hefty live accounts, cruise trips with paid vacations and even a new luxury car.
Coming to auto trading, there is no restriction by Fxclub to put your account in the hands of their over 300 experienced traders who can mirror their trades in your account, manage your risk profile and handle everything in your account as their own. I truly believe that by choosing to learn and trade with Fxclub, you are taking a very wise step towards investing with a friendly reliable broker that will not only walk with you on a personal level but also match all your expectations, a hundred times.
Act-trader - fast execution, low spread costs, and no dealing desk intervention.
Rumus - offers all kinds of complex and advanced tools, including historical data, alerts, market news, and charting options
Express-Fx - a simple trading platform that is easy to understand. refund you the commission charged on negative trades
ECN brokers are the real source of quotes and trading as far as forex is concerned as unlike the market-maker brokers, they aren’t any real dealing-desks. Most of the brokers that you see in forex Industry are market-makers who accept your orders but do not process them further to the market or to the bank. In a way, market makers are a counter -party to your trade and their interest lies in trading against your order which is not the case with ECN’s.
ECN, a better and a more transparent system is electronic communications network (ECN) that brings all the banks and major investing institutions in forex to the party. An ECN broker only connects people in the marketplace and lets them trade against each other. All the orders are processed straight to the bank with no exceptions, so they don’t have any real interest in cheating their clients or in trading against them. With transparency being paramount, there are a couple of other important features that make ECN brokers a preferred mode of trading but let me mention before-hand that ECN brokers are not meant for any small trading activities. To be able to avail of ECN broker facilities, you must have a significantly large amount in your account as the Lot sizes with ECN run only in Standard lots and not any Nano or a micro lot. Similarly, the leverage available is very low, hence requiring huge margin-money on each trade-order which may not be available with most of the traders, not with 99% of them at-least.
Coming to ease of operation and the cost of trading, it definitely is cheaper to trade with an ECN broker. ECN brokers (courtesy its network connectivity) can find you the cheapest spreads in the market which can be as low as zero sometimes. They charge you some commission besides the spread which is not charged by market-makers but in-spite of that, the cost of placing your orders is lesser here than conventional spread-based trading. That also suggests that the spreads with an ECN broker are not fixed and keep changing as the market grows, taking all the demand and supply into consideration.
As all the profits and losses are paid directly by the bank, the ECN brokers do not have any interest in cheating their clients with re-quotes, unauthorized trades and stop-loss hunting. The ECN broker’s only interest is in the commission and the spreads. They are also paid nice incentives by the banks on cumulated monthly transactions by all their traders, so more trading means more profits for them. Another unique advantage to being with an ECN broker is that an ECN can accommodate all kinds of trading style including even scalping. So whether you are a day trader or a swing trader, an ECN broker will always have a room for you unlike market-makers who do not prefer scalpers and profit- makers.
However, leaving the disadvantages aside, the ECN brokers are fairly transparent in their operations. The money deposited with them is straight processed to the banks and not used for meeting the broker company expenses, hence keeping your money safe. Even if the broker was to go bankrupt after sometime, your money is held safe in the custody of the bank. Another major advantage is that ECN brokers accept bank guarantees, so there need not be any physical transfer of money from your bank account to the broker. This is useful for offshore-trading as your bank can simply issue an undertaking guarantee which you can send to the brokers and then they can give you a ready account, duly funded, ready to trade.
In the end, I must make it simpler for our readers to be able to avail of ECN rates and facilities even while trading with small initial deposits. My pick is www.fxclub.com that in-spite of being a conventional forex broker, offers tight ECN rates which can also be as low as zero. Similarly, fxclub refunds all of the spread charges in case your close your position in a loss, now that’s unique. The leverage is as high as available with any other U.S. based broker and now what more can you ask for when fxclub can also match up your deposit balance with an equivalent bonus, absolutely free.
Imagine having an Indicator where you could just click on a button and you know the trend. All newcomers enter with the illusion that one day they will be able to find this best Forex trend indicator that could tell the ongoing trend with an absolute guarantee and then will follow a Ferrari, Merc, and a private jet. But poof! People try out every possible indicator with this angle and that but only to find continuous failures, certain defeats and final surrenders. Hence, it becomes important for me to tell everybody that the market is never in any kind of a trend.
A trend is only a way of looking at the market movements on certain parameters so as to facilitate you with a platform to form your trading strategies. You will be surprised to know that while one indicator can show the same market in an uptrend, the second indicator at the same time can prove you wrong. Why even two indicators, if you were to deploy only one indicator on the same pair at two different points, you will see the each application shows a different trend. It’s not determining the trend that makes you successful; it is your strategy on your Indicator that makes you rich.
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With that purview, you will see that each Indicator and each of its application have a different projection to the ongoing movement. If you fail to understand how you should use those projections to your benefit, then it’s your failure and not the indicators’ as I say, each Indicator that is available on your charting applications is the best Forex trend indicator that you could ever find. Switching over from one to the other indicator doesn’t help but understanding your indicator’s projections nicely and having continued faith in only one indicator is what lays the foundations of great success.
All Indicators show a trend depending on what time frame you use it on. It’s surprising that you may believe that the pair is in downtrend and I say it’s in the uptrend, we both contradict and yet we both can end up making profits together. It is you who has to give a definition to trend you want to see and then, leave it on your indicator to read. Right when the indicator projects that the market has just confirmed your definition of a starting trend, you can decide what you want to do, I/e. go with the trend or against it, your choice. Any indicator that can alert you about your trend formation in the current market is the best Forex trend indicator you could find, so why to not keep it rather simple. It’s with the experience that you will learn that even the simple lines can serve as the best Forex trend indicator for some of the traders irrespective of whether they trade with it or against.
Remember that while developing your forex trading career, you focus should entirely be on selecting the simplest indicator, not on finding the best Forex trend indicator. If you could only do it till here, you will see that the best Forex trend indicator that even the biggest companies are yet to find was actually developed hundreds of years back when they learnt to connect two points and make a simple moving line, either going up or coming down. This is what makes the market; this is what makes an Indicator and this precisely is what makes the moving trend.
MARKETS.COM is the trading name of Safecap Investments Limited – an online Forex and CFD Broker.
Founded in: 2008
Maximum leverage: 1-200
Minimum deposit: 100$
Web Site : www.markets.com
Markets.com is operated by Safecap Investments Limited. The company regulated by the following:
FSA – Financial Services Authority (UK regulator)
CONSOB – Italy regulatory Authority
CNMV – Spain regulatory Authority
AFM – Netherlands regulatory Authority
Bafin – Germany regulatory Authority
Meta Trader 4 – the leading trading platform includes advanced technical analysis, automation capabilities, wide range of indicators, charting tools and more.
MarketTrader - Windows based platform comes with a flexible, one click drag and drop interface.
Market WebTrader - User friendly web platform offers all the functions you need in order to trade. As a web platform – not require download and installation and give you the ability to trade from any computer.
Market Java Trader - Another web based trading platform that not require download and installation and allow you to trader from any web browser.
Mobile Applications - Build from 3 different mobile applications:
Market iTrader – iPhone dedicated application.
Market Mobile Trader – for Smartphones.
Market WAP Trader – WAP Application.
To read more about MARKETS com trading platforms click here.
Payment / Withdrawal: wire, credit, debit, moneybookers, webmoney
Support: MARKET.com suggests multilingual support including live chat. They also offer training (including Webinars).
360 degrees offer and support for all levels of experience
Good trading platforms and tools.
Multi currency accounts.
Account Managers and Trading Specialists to help you to succeed.
MARKETS.com Main Disadvantages:
Not accepting trading from US (at least at this point).
The fact that MARKETs.com is regulated by leading regulatory Authorities, make it a reliable broker that you can trust. Wide range of trading platforms and good support, make MARKETS.com to a broker you should consider. I highly recommend you to open Demo account and give it a try.
Proper Disclosure – I’m affiliate of Easy-Forex. On the review above I tried to provide details and facts. The considerations to choose affiliate programs are similar to choosing trading platform (reliable partner, ease of use, good reputation, good tools, good support…)
Many international Forex brokers not accept US traders. The main reason for this is the Dodd-Frank Act. On July 21, 2010 president Obama signed the Dodd-Frank wall street reform and consumer protection act. The new rules goal is to regulate financial markets like futures, options, stocks and Forex.
In order offer Forex trading service for US residents, the Forex broker must be authorized and regulated by following bodies:
NFA – the National Futures Association.
CFTC – Commodity Futures Trading Commission.
Register to these two bodies isn’t an easy task and most of the international brokers didn’t do this yet.
Brokers Accepting US residents:
To check ZuluTrade registration on NFA site click here
eToro = eToroUSA is operated by Tradonomi LLC, which acts as an introducing broker to FX Solutions. Both eToroUSA and FX Solutions are regulated by The Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Tradonomi LLc is operating under license number NFA (ID:0382918). Here you can read detailed review on eToro.
To check eToro registration on NFA site click here
Working with regulated broker ensures the safety of your funds so it’s highly recommended to work only with regulated brokers.
Last two years have seen a fast growing interest of Indians in forex trading with huge masses wanting to shift from conventional stocks-trading to the forex-markets, but the time has also witnessed controversies, confusions and disputes as to the issue of the legality of Forex trading in India.
While, I personally believe that that the best of traders come from developing and under-developed countries and not the developed ones and thus the reason why majority of trading Indians are highly-successful traders but the concern is the lack of opportunities, trading-facilities and the lack of awareness of the subject that continues to dissuade Indians from entering, growing and profiting from forex-trading markets. Adding to their miseries is the fact that there is no legal recognition to Forex trading in India, leave aside having regulated brokers, trading-hubs and the forex community groups. Though lately, stocks brokers have been able to push government to open trading Forex future contracts as an alternate investment option for investors but then, it’s only on futures contracts and restricted to only the INR pairs. Even spot Forex trading in India is yet to find an acceptance by financial authorities as the lawmakers are yet to decide on opening this as an alternative growth sector for self-employment and revenue-generation as the government as well as the people still think of forex as a gambling sector which is strictly prohibited by the Indian laws.
However, when the Indians can climb Everest and the Indians can reach the Moon, could there ever be any deterrent to their profiting will and the trading ambitions? The Indian laws allow an Indian to send remittances of up to $25000 annual without asking for much of an explanation, so the shrewd Indian has found his way through to his trading and the first trick in their hat is “offshore online broker account opening and PayPal money transfers”. As most of the transactions involving significant amounts are always reported by Credit card issuing agencies to the Indian law authorities, the shrewd Indian never makes a direct deposit to his forex account. As most of the forex brokers accept PayPal as the source of deposit, the Indians transfer money to their broker’s accounts using their PayPal accounts as PayPal transactions never comes to the notice of the government. Similarly, Withdrawals also are made back to their PayPal accounts and then transferred to their Indian bank accounts, hence keeping their trading and profits risk-free and unnoticed. Lately, Indians are also resorting to Money bookers and other similar online money-transfer websites that can receive and fund their forex broker account for trading purposes.
Well, there’s another breed of the risky participants who are willing to even fight the government but yet do their utmost best to promote Forex trading in India. There have been Indian companies who opened an introducing-broker-office for Alpari brokers of UK in India though they were soon forced to wrap up their operations by the government. A couple of other unregulated brokers came up from Norway, U.S.A and UK and were thrown back but some, like www.4xp.com or www.liteforex.com still continue to operate in spite of the illegality of their nature of work in India. In fact, it’s not only the illegality but Internet is also full of complaints about their fraudulent practices but then, this is India where there’s no listening. As I mentioned in the other article that it’s always a good idea to go to regulatory authorities’ website first and then select your brokers from there but there is no such controlling authority for Forex trading in India, and hence no real place to go and complain. But if you are serious about making your career in Forex, then develop and test your skills on a free Demo account and then consider migrating to a country with legal opportunities for forex traders or forex entrepreneurs. An alternate to this is finding an online remote-based Hedge fund trading contract where the company can invest in your trading account and you can invest your skills with them.
Regulated Brokers with PayPal Deposit/Withdrawal Option:
Here’s the firstsocial investment network adding further value to its service by introducing mirror-trading to its clients in a rather more leveraged manner, hence taking the entire process of trading and profit-making beyond its ease. The social investment network name is eToro, the application is eToro Open Book and here we will quickly see why I place this application one-step above other conventional mirror-trading websites like collective2 or zulutrade.com.
The application eToro Open Book is an innovation based on the three pillars of trading success i.e. see, follow and copy. When you open an account with Etoro, you get to download an application eToro Open Book onto your system that runs alongside your trading platform. This open-book displays the current trading activity of all your chosen traders as they go and then you are free to follow them and copy their trades onto your own account also, hence making the same profit or the same loss as they would do in their own accounts. To choose your preferred traders, you just need to go to the LIVE RANKINGS option on eToro Open Book where they have ranked each of the winning traders based on his profit- loss ratio, average trade-duration, trading Sharpe-ratio and all similar factors that make the essential ingredients of risk-free profitable trading. The ranking procedure is carefully drafted, hence the chances of finding a rogue trader or a bad system are minimal or even nil. Even better is the fact that all trades that are displayed on the eToro Open Book are taken only from the live accounts and not demo; hence you know how serious these trades are.
The advantage of using the eToro Open Book over other mirror-trading websites is that it allows you to copy the trades in real-time unlike others where the trader’s trades are automatically copied into your account. This gives you more control over your account trading activities as you are free to skip some of the trades in case you find a better trade on the same pair with some other trader. Yes, it does call for an active involvement with the market all day long which is not precisely the essence of automated mirror- trading but remember that success comes for a price, so if you want to reap the profits of trading, you better pay the devil the dues. Otherwise, eToro Open Book also has another interesting feature called Copy-trader that allows automatic copying of the chosen trader’s trades in your account and then you can find your hands-free income. Remember, all features of the Open-book come to you absolutely free.
However, there’s another interesting feature to eToro Open Book and that is its innovative Trade-story feature. Every time a trade is closed in profit, the user gets the option the read the story of this trade, i.e. learn why this trade was made and the logic with the system behind this trade. This helps the followers understand the system in good details and thereafter become independent, i.e. be able to read the market on this system and then do all the trading on his own. This helps you on a long run when you want to set- up a business in forex-trading using a tested trading system; this trade story on eToro Open Book is precisely THAT.
So it appears to a beginner that the market is so easy to win, just buy or sell and take your profits. It’s only after losing, filling and losing again that the beginner realizes that trading takes less of luck and more of a real methodical approach. The search of this absolute method takes you to ten of hundreds of tradable strategies and soon you realize that life is a little too short to test each one of them and then selecting one for a use. So when do you settle down on your strategy and when do you start getting rich?
To get rich, its important that you keep your trading restricted to the basic Forex strategies for beginners and not let your mind wander for more profits or the quicker profits. The basic strategies that we identified in our last article were range-trading, breakout-trading, pullbacks and trend- continuations trading. Out of all these, the best Forex strategies for beginners is the range-trading strategy where he has to simply prepare his rules of identifying a trading-range for a pair on his chart set- up. This could be as simple as using high and low of the day as your range-barriers and then starting to trade within them. So every time the pair moves up, you come short and when it goes down, you go long but you ensure that during all your activities, the pair strictly remains inside the range. This Forex strategies for beginners calls for abandoning the chart as soon as the ranges are broken and then the trader is expected to move on to the next chart where the pair now is trading within its daily high and low range.
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It’s only after gaining mastery over this basic method that the trader learns to also deploy other indicators and other Forex strategies for beginners which could be as nice as breakout pullbacks also. Of course, you also learn to trade without a stop-loss as you gain experience but to start with, the Forex strategies for beginners calls for using a strict stop-loss and a strict profit-target. There is also the fact this strategy calls for an exit at the sight of the first possible opportunity instead of waiting for second or the third profit target levels.
There is another aspect of beginner-level trading and that relates to his psychology. A beginner tends to close positions even before reaching his profit-targets and even without the position triggering the stop-loss when it goes negative. This happens out of factors like greed and fear where the negative movements on your positions start affecting your temperament and hence your strategy. The range- trading Forex strategies for beginners can control this aspect as the beginners feel comfortable and do not fiddle with their negative positions as long as the boundaries are defined and pair is within the given range. After a few weeks, the beginner develops the required temperament to become an expert as he gets accustomed to seeing his range-bound position running in losses without shedding those tears of blood and that is the stage when your trading starts paying you and you start becoming rich.
Best Forex Indicator