Using Your Forex Trading Account

How to use your forex trading account better and wiser, for more sophisticated trading. All by making use of trading tools and resources already available.

Using Your Forex Trading Account Better and Wiser

To use your forex trading account better and wiser, means to make use of the various trading tools, such as a forex calculator, which is already available in most trading platforms. Your forex broker provides these tools to make routine tasks easy and accurate to carry out. There is also the provision of news and market analysis. Usually this analysis is not accurate enough to trade on, but it can serve as a basic guide in your research. Trading tools and resources can be very useful for making trading faster, but not for figuring out the markets on direction. Speed however is essential in every trading day, as all traders have to perform calculations to place their stop loss and take profit orders. There are also more calculations, such as LSS pivot numbers and projections, where a trader can easily make a mistake if they don’t use the automatic calculators available. To use your account wisely and more efficiently, you will have to eliminate such calculation mistakes and relying too much on manual work. Most traders make mistakes in placing contingent orders, and fail to dedicate time to analyse markets for support and resistance levels, for placing these orders more efficiently. Fixed size orders don’t work, they never work in the long run, as the markets are dynamic.

 

Use Your Forex Trading Account More

Many traders use their forex trading account in more creative ways, than just trading few currency pairs in directional ways. They all are involved in trading forex, but as they progress into trading they are finding out that they can hedge other investments, such as long term gold investing through the forex market. In fact, many traders are actually also gold bullion or antique gold investors and collectors. But when the price of gold goes down, it doesn’t make sense to liquidate many of these physical assets. So they have figured out that they can profit through their trading account, either by going short gold itself, or by going short AUDUSD. Both of these markets can be used for hedging declines in gold, and even AUDUSD sometimes tends to go out of phase with gold. Despite the strong correlation, the out of phase period provides an excellent opportunity. As traders have plenty of time to place their hedging trade on the lagging market, and profit from gold’s overall decline, which is bound to happen. Most of these hedging trades are planned well in advance, but the related contingent orders make this kind of trading much more efficient. As gold tends to make its biggest moves during the NY trading session, which traders around the world find inconvenient to trade live.