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Our Advice – Learn Forex Basics and Beat the Market!

A trader’s learning curve is cut shorter when they learn forex basics in-depth. This enables them to be an active rather than a passive trader, thinking right.

Learn Forex Basics beyond the Obvious

Traders who learn forex basics have a better chance of evaluating their own trading systems right. As opposed to traders who fail to understand them. All basic concepts, such as market terms, pip value calculation, leverage and volatility, are all important basics. All forex strategies will require you at some point to reevaluate them, and possibly make improvements. Basic training also includes definitions of swing trading theory, and picking entry points. Even though the task of picking entry points in the market is enormously huge and diverse. Traders can learn the basic ideas which define the average market trend. All these things will not make you a trader. But will act so as to improve your judgment on the market. Carry forex trading requires all these basics, and a good understanding of the definitions, at all times. As profitability in Carry forex trading is often hidden away. And only after few calculations can traders figure out whether there is a profit margin or not.

Learn Forex Basics for Hedging Strategies

Carry forex trading is a hedging strategy itself. But there are many more concepts where hedging is used in one way or another. Accuracy of calculations is extremely important. And knowing the basic definitions helps avoid miscalculation of market risk. When you learn forex basics, you should not think like everyone else. Rather, you learn in order to be better than the average trader, in real trading. And not for the purpose of impressing your friends with your knowledge of forex. They all want to learn how to trade forex but most are lazy, and only after the easy way. Lazy learners cannot make it far in the financial markets, because they focus too much on entry points. While ignoring money management and basic risk calculation. Which means they will find it increasingly difficult to assess risk in more complicated scenarios.

Go Further than Others

You can become a better, much better trader by also understanding the basics of probability. This will make you see why trading on the news is a bad idea. And also which kinds of trades offer the highest probability of success. Probability theory is fascinating, and it will help sharpen your risk assessment skills, in amazing ways. You can learn forex basics and apply basic probability theory on everything you do in the markets. Probability theory can allow you to go further, by studying the patterns of the losing trades. And to be able to detect them early, before they actually become losing trades. This alone is worth studying probability theory for. As it is more important not to lose in the markets, than to win. And once the losing trades are kept in control, the profitable ones will take care of themselves. Because by simply removing more and more risk from the equation, all that will remain is the reward. So to learn forex basics could really transform you into a new innovative trader. You can even do better than people who are probability specialists, who simply don’t make use of their knowledge.

Can Online Currency Trading Help You Achieve Financial Goals?

Online Currency Trading as a Personal Income

Online currency trading seems appealing to many young people. As it is promising. Few however can embrace market risk and really make a lot of money from it.

Online Currency Trading for Daredevils

Online Currency trading is seen by big risk takers as the best way to make a lot of money fast. And in some cases they are proven very right. Because as they say, who dare wins. This is indeed true. And traders who prepare before starting trading do have the odds on their side. The idea of trading online made easy is not true, not by any stretch of the imagination. Daredevils take risks, but they do prepare before doing so. So just because someone takes a lot of risk, it doesn’t mean that this risk has not been assessed. Foreign exchange currency trading online for beginners tends to teach that excessive risk is unacceptable, and that all trading should adhere to limiting rules. Such as using a low risk-reward ratio, which is really nonsense. Risk is better understood through probability analysis, and over the weekly time frame. All other kinds of analyses which are based on single trades, are total nonsense. Risk takers have figured this out already. They know that beginner trading advice is against taking risks. They also know that no beginner trader ever made 1000% in a year. So the prospects of making good money through such basic training are non existent.

Online Currency Trading for Slow Traders

Slow traders willing to profit from online currency trading are simply low frequency traders, not beginners. They simply make fewer traders, they want to encounter less volatility, but are willing to trade at much larger size. They have an investor’s mindset, who wants to trade forex online, at significant size. And doing it slowly is just their preferred style. Slow traders can include all kinds of seasoned traders, even very sophisticated commodity CFD traders. Trading slowly and through a large account, implies that all volatility from Monday through to Friday can be handled smoothly. Plus, they have the time to plan smaller hedging trades when things go wrong. So they are in fact risk takers just like all daredevils in trading. Except that they can do a whole day away from the markets, without checking pricing, trusting their open trades to their risk management skills. Large stops and sufficient account margins make this possible. And think about it, how would a classic investor, or a classic antiques dealer trade forex? They have learned to invest big money, and to trade slowly. Waiting one or 3 weeks for a good forex trade is okay with them. The average trade in the antiques market may takes several years. So patience is second nature to them. They are also selective. Seeing all these foreign exchange currency symbols. Slow traders are very selective as to what they will trade.

What are Your Financial Goals?

In order to achieve your financial goals you must realize that life itself is just as volatile as markets are. And tight, well defined goals are hard to reach. Whereas loosely defined goals are possible to reach, all through life’s volatility. People who make too many detailed plans, end up achieving almost nothing in life. Because life’s volatility messes everything up. So it’s best to have loose plans and an open mind, where one has to turn problems into opportunities. Forex trading is one of those things which can provide total financial independence in as early as 3 years. You can be a profitable trader within 3 years. But realistically, it’s not possible to cut the learning curve any shorter. Because 3 years is enough to expose you to extensive market volatility and confusion. Turning you into a superstar trader.

The Importance of Opening the Right CFD Trading Account

Choosing the right broker and CFD trading account is a good idea. Nonetheless, CFDs are so much better, that even the worst rated CFD broker will work for you.

CFD Trading Account Selection

Traders can choose their CFD trading account based on trading platform preferences and customer support. But more importantly based on actual ratings. The financial industry is so competitive that all brokers have to keep up with evolution and latest trends. The CFD market is even more competitive because most CFD traders are savvy veteran traders and stock investors. And they are naturally more demanding than beginner traders. Online CFD brokers do their bests to meet clients demands. And the ratings by veteran traders are fair. There are some beginner traders who may give negative ratings, in an effort to blame their trading failures on their brokers. But the reality is that if a CFD broker cannot facilitate your trading well enough, then non CFD brokers can only do worse, much worse in fact. Veteran traders’ ratings are therefore the most useful and most insightful ratings. As they are realistic and impartial. All CFD trading accounts can actually allow you to make very good money, even millions. But the trader has to trade profitably, and manage risk properly. CFD brokers even allow retail traders to short stocks listed in the NYSE, even at times of imposed short selling restrictions. Which is unique to CFD brokers. And even large investment banks are left outside this amazing advantage. They actually use options to hedge risk in such cases. But options are so complicated, that even investment banks get it wrong, and end up losing money. And often totally missing minor price moves, because options cannot capture these. At least not in an affordable and straightforward way. The retail CFD trader can do all these things, at a much lower cost, much faster and accurately. All through a single CFD trading account!

Your CFD Trading Account is Your Gateway to Enormous Global Opportunity

Your CFD trading account is really your window to opportunity. As it offers you all these advantages, and the best filling price, on every trade. You just need to choose a trading platform that works best for you, in terms of ease of use and overall comfort. Day traders may require simpler platforms than stock investors-hedgers. But in general, a single CFD account can do it all, up to the point where the trader becomes very sophisticated. And they will have made millions by that time. The idea of trading online made easy, does apply to CFD platforms. And the hard work has been done by the CFD industry itself. Of course it is up to the trader to have a working trading strategy. But imagine that trading strategies developed in the 70s and 80s, based on phone calls and primitive data terminals, still work. Except that they are much more profitable implemented through a modern CFD account.

Customer Service

Customer service is useful, in all brokers. You should however realize that fast response is something that only beginner traders demand. Wise veteran traders, trading CFDs, know their trading so well, that they do not require ultra fast support from customer service. Unless there is technical problem with the platform, which is extremely unlikely to happen. New traders are known to develop crying baby syndrome and to lack confidence. So when things go wrong in the markets, they contact customer service for no real reason.

Using an Online CFD Simulator to Improve Trading Skills

An online CFD simulator is more than a testing platform for your trading skills. It can also facilitate research into advanced hedging methods and risk control.

Online CFD Simulator and CFD Advantages

All the hidden benefits of CFD instruments, as well as advanced risk control methods. Can all be explored through the use of an online CFD simulator. All traders have new ideas, some of which might be quite unusual and good. Traders often lack the confidence to implement these ideas in their live accounts right away. And this is understandable since an original idea, in its crude form is not a complete trading method. The biggest concern of traders is dealing with risk control, so as to minimize losing trades. Or even detect them early enough through probability evaluation. So as to close the would be losers while still at their breakeven level. Probability theory is very powerful in trading, because the market does provide the clues. CFD contracts are very powerful in controlling risk through temporary hedging. Since all losing trades can be hedged with an opposite trade. Traders who do active hedging essentially lock all market risk during high risk times. When risk comes down, they take the hedging trade out, or whichever trade of the two, that is in profit. CFDs are extremely linear in their pricing, and so maximum protection and profit is achieved.

Online CFD Simulator and Psychology

Traders can also explore their psychological weaknesses through an online CFD simulator. Even though it’s virtual trading, and critics would argue against it. Simulation does help not just traders, but all kinds of professionals, identify weaknesses in their training. Therefore simulation is highly beneficial in trading as well, despite critics’ theories. Moreover, risk control and psychology are strongly related. The more one can control market risk, the more confident they will feel in live trading. After all the process of trading is identical in their CFD trading platforms. And good habits bring more good habits. So there is no base for critics comments on simulated trading. And don’t forget that all traders do some sort of simulated trading either on paper, or in their heads. Critics just love to brag about the real thing too much. Citing that only live trading will shape you as a trader. On the contrary, live trading without simulation experience leads to unnecessary psychological pressures and narrow-minded situations. An online CFD simulator is a great tool, and simply an extension of a logical or mathematical theory. All of these are tools of simulating the real world. Think how probability theory seems so abstract and remote. Yet it can describe and predict the real world much better than a human making random decisions on the spot.

Probability Theory and Simulated Trading are Both Misunderstood

Probability theory requires sharp analytical skills. As well as the willingness to employ all mathematical tools to simplify formulas and expressions. Probability theory is the most powerful way to simulate and predict important aspects of the market. Once again, critics of simulated trading are wrong. Because trading the live markets, at random, without any preparation, does not allow you to gain experience. Even though it’s live trading, the trader will be oblivious to many probabilistic aspects and patterns. All good online CFD brokers are compatible with well theorized trading. Based on probability theory. And as always, it is theory that simulates the real thing, and also leads progress. Everywhere you look in the world around you, it’s theory first, implementation later.

The Day Trading Forex Review – How to Get Started

Day trading forex live is all about doing the analysis beforehand, and then trading fast, almost mechanically. It is the only case where discipline does help.

Day Trading Forex Live for More Profit

Traders turn to day trading forex live only because they can afford the time, and because slow trading seems less profitable. And in reality, slow trading may be less profitable since the market offers less price margin to capture. Day trading forex live is about understanding volatility, and trading the minor ups and downs of market price. As much as 70% of the time, the average market is either locked in some kind of range, or it is trading in totally flat mode. In both of these cases day traders can act and trade profitably. Day trading forex live review reports focus on used strategies and concepts. And these prove that day trading is actually very difficult, but not impossible. As only a handful of traders really prepare for the daily trading session. Most of the day traders who lose money do so because they attempt to trade the daily news, which is impossible. While the few that win time after time, are selective on choosing the trading day, and prepare hard. Once in the trading session, wise day traders use good indicators to gauge false trends, as well as the gathering of momentum. Momentum of good trends tends to build up quietly, and amateur traders are oblivious to it. And when the momentum is enough, the market suddenly makes its move. Momentum build up refers to traders who think alike, and who act collectively. Their thoughts and decisions are based on indicators and charts. And it is very difficult to detect such collective thinking. Market price momentum is only the result, and by the time it has happened it’s even more difficult to determine subsequent market direction. You cannot learn how to trade forex based on price momentum itself, as it is the result, not the cause of traders’ actions. Momentum in general, as defined in terms of market price, is a lagging, almost useless indicator.

Day Trading Forex Live and Physical Exchanges

Physical exchanges are still relevant in the age of electronic trading. Because the trading times and the noise on the floor reveals major turning points. All major stock and commodity exchanges around the world are relevant in all markets, even in forex trading. But especially in stock day trading, and stocks strongly correlated to the major indices. You can actually do fast forex day trading, on major currencies, and use stock and index data in the process. Currencies tend to correlate once in a while to some stock index, or specific stocks. And when a correlation is in place the data is very useful. For example EURUSD tends to correlate with the major US stock indices, for long periods at a time. And you can use premium information. Such as level II quotes, or floor audio data. To determine if anything interesting is about to happen in the daily session. Trading online made easy through level II stock quotes is difficult and requires knowing the inner workings. But it is possible. As is floor audio information. As the stock exchange in question does set the tone for the entire market, part of which is the currency pair you trade. And this will work while the correlation lasts.

Getting Started in Day Trading

Traders should approach day trading in forex with caution, and become specialists in one or two pairs. They should avoid using the daily news as a directional indicator, and focus on volatility and daily range instead. Another useful tool are the LSS pivot numbers, which they do work more often than not. And LSS does indicate market momentum potential as well. Because market price very often slows down or stops right at some LSS number. Day trading works best through a CFD trading account, as CFD liquidity pools are superior to that of other instruments. Which makes CFDs ideal for retail size forex day trading.

The Advantages of Using an Online CFD Simulator

Risk Control Insights through An Online CFD Simulator

Most losing trades make sense when seen in hindsight. But in fact, you can learn to detect them early, through probability analysis and an online CFD simulator.

An Online CFD Simulator for Evaluating Risk Control Methods

An online CFD simulator allows you to test theories and ideas on risk control. And to explore the hedging power of CFDs. So as to get around the riskiest periods in the markets. The biggest losing trades occur exactly because traders fail to focus enough. They fail to evaluate the uniqueness of each trading day, and the volatility risk. What usually happens is that traders are caught on the wrong side, trying guess market direction. And all this fear and confusion leads to closing the right trade. The right trade could be the one that is actually a losing trade at the time of taking action. That’s why probability analysis through both time and price data, is so important. Because unlike what your instinct tells you to do, the analysis will tell you otherwise. And the analysis will have a much higher probability of being right. To be exact, traders who employ such risk control methods don’t come up with a buy or sell formula. But rather with an algorithm, which has many steps and conditional decisions to go through. In some cases it will tell the trader to close the open trade, regardless of profit/loss. Because the probability of success is diminishing exponentially with the passage of time. In other cases, it will tell the trader to temporarily hedge an open losing trade with an offsetting CFD trade. Because the probability on a longer time frame suggests it’s the right thing to do. And through multi-time-frame probability analysis, it will finally tell the trader how to handle the open trade and the hedging trade. This approach saves the trader a lot of stress, and offers a map to navigate through the confusing markets. This is all tested and improved in an online CFD simulator.

The Market is Not always Right!

The urban legend says that the market is always right, but we don’t care about the latest price momentum. Because that’s what the legend refers to. We care about prevailing probability, and that’s what really matters. And moreover the trend is a function of time. A trader’s trend might be up, while another trader’s perception of trend is down. If you attempt to analyze the markets through probability theory and logic. You need to start simple, by applying your theory to 3 time frames simultaneously. So that you have one shorter and one longer time frame, while looking to start trading on the middle one. CFD trading news based strategies are not advised. As news trading is also a subject of intense debate, due to many myths taught. A CFD trading system works best when the benefits of CFDs are exploited, and when the trading myths are left out.

Testing Simple Concepts through an Online CFD Simulator

An online CFD simulator can be used to test hedging concepts based on multi-time-frame analysis. And concepts of stops in the time domain. Typically, some popular markets tend to have critical pivotal times. Which range from 20-30 minutes to around 3 days, for 5 minute and daily charts respectively. So day traders will consider closing open trades after 20-30 minutes, counting from exact entry conditions. When the entry to the market was made using the right criteria, and the time limit is elapsed, it makes no sense to wait longer. Probability favors closing that open trade and start planning the next one. Far too often you will see that you will be able to close marginally profitable trades before they turn into losing ones. That’s the basis for probability analysis, in a nutshell… But you can take things much further through more data and more advanced probability calculating tools.