Page 158 – XTrade

How The Elections Day Will Affect the Online CFD Trading Market

Online CFD Trading and the US Presidential Election

Online CFD trading is not currently available to US citizens, putting them at a severe disadvantage. Traders do not realize this until the day they trade CFDs.

The US Presidential Election Could Enhance Online CFD Trading

US citizens are currently not allowed to trade CFDs, due to regulatory restrictions. In the same way that leverage for US forex traders is limited to just 50 to 1. Leverage is not a big deal, traders can still profit from good trades, even at a 50 to 1 leverage. But not having access to CFD brokers is a severe disadvantage. Since it prevents US retail traders from accessing the best liquidity pools in the financial markets. Online CFD trading may finally become a reality for many US traders, who really need it. It all depends on the next elected government. Historical evidence hints that republican presidents are far more likely to loosen regulatory restrictions, and make derivatives trading in the US better. Many online CFD brokers are ready to offer their services to future US clients. And US traders are clever and fast enough to adapt such improvements, and seize up new trading opportunities. Some of which are really only possible through CFD trading. These traders are already contemplating some kind of CFD trading system.

How Soon Could US Traders See Online CFD Trading?

This largely depends on the securities and exchange commission, which regulates the derivatives market in the US. It is more than 50% likely that a new republican administration will make suggestions and present the benefits of the entire retail trading market. So that retail traders will be able to provide more and more liquidity to the financial markets. An action which will make markets somewhat less volatile. And less volatility means more stability for these markets. Online CFD trading can help get there faster. So it is possible to see online CFD trading available to US retail traders, in less than 2 years from now.

How Will CFD Trading Impact New US Traders

Beginner traders all over the world have a high rate of failure, which is around 70%. US traders have a slightly better chance of success. Because they have access to seminars and training materials that are not available in other countries. The advent of CFD trading will definitely allow these new traders to implement better and better strategies. It’s all a matter of personal determination, training, and the risk-control benefits that CFDs offer. US traders who are already successful, will want to switch to CFDs, and pursue trading CFD for a living. Since CFDs offer superior liquidity and therefore a better filling price. Which means that the profitability of already profitable systems will increase. If one looks at the history of stock options and commodity futures, and how they contributed to market stabilization. It will become apparent that the small retail trader benefits from reduced volatility. This doesn’t mean that volatility will go away, but that there will be fewer extreme range days in the markets. The stock market has been suffering from reduced liquidity in recent years, due to changes made. And volatility has actually increased. Unlike commodity markets which have remained stable for decades. And where price stability is of extreme importance for the entire US economy and the rest of the world as well.

Trading CFD For a Living: How to Get Started

Many traders are held back by their fear of the market. And this fear prevents them from executing many good trades, and hence from trading CFD for a living.

It’s All in the Mind – Trading CFD for a Living VS Reality

Your mind does keep you back, so as to prevent you from taking risks. But if you look back at all those losing trades, it was excessive excitement, over-reliance on others, and unrealistic goals, that made you take these trades. Trading CFD for a living is possible, for many experienced, yet struggling traders. These traders are almost making money, but are not quite there yet. Especially when considering the time committed to trading and studying the markets. In any case, it is important to take your own risks, stop relying too much on other traders, and be bolder. Trading is not the typical day job, where you have to be socially conditioned. Most working people see their day job as their identity, and not having one is like not having an identity. That’s where social conditioning comes in. But trading is very different, and requires you to be humble, and to talk in a spirit of humility about your skills.

Trading CFD for a Living Requires Breaking Classic Trading Rules

Trading CFD for a living does require you to break some classic trading rules. Because that’s what the formula of success requires. In order to have a high probability of trading success, some rules have to be broken, period. Trading CFD online offers much more than classic trading instruments, and that’s why some rules can be broken. Stops for example can be larger than normal, and risk-reward ratios can be high. Because they have to be high, to be successful. Classic trading rules are okay, but wise traders feel that at least a quarter of these rules don’t apply to them. Some wise trader may break the risk-reward ratio rule, while another wise trader may break another rule. Today’s CFD trading platforms allow traders to handle risk in many innovative ways, but the most amazing way is that of hedging. Simply hedging a risky trade until the fog of uncertainty clears. If on the other hand you attempt to play by all the rules, this will not get you anywhere, because the classic rules themselves are not compatible with one another. They are all full of ambiguities and gray areas. The most tired and ridiculous rule is that of cut profits short and let profits run… Well the problem is, one trader’s perceived losing trade may be another trader’s winning trade, in the same market direction! Only the timing differs! These classic rules and tips fail to deal with reality, big time…

Difference of Opinion is Key

Maintaining a difference of opinion spirit, against older and wiser traders, is essential to becoming a profitable trader faster. Trading CFD for a living is all about courage and original thinking. The very act of challenging top traders, on market direction will help you get years ahead in the trading game. Even if your opinion proves wrong most of the time. You still get to sharpen your observational and judgmental skills. And this makes you a much better trader. Sooner or later you will be able to trade better than these top traders. At least in one market, or one type of trade.

How Online CFD Training Can Improve Your Trading Skills

There is more to online CFD training than just learning the basic inner workings of CFD instruments. The more one learns about the markets, the better CFDs get.

In-Depth Online CFD Training is More than Preparation

Online CFD training can cover many different aspects, not directly related to CFD trading. But these aspects of trading are directly related to specific price moves that the financial markets make. And because other instruments fail to properly capture these moves. In any volatility environment, the linear pricing of CFDs comes naturally to mind. That’s why many stock and forex trading educators use CFDs even in their examples and training materials, even though the main subject is not about CFDs. Moreover, the importance of linear pricing can be so critical at times. So that it makes all the difference between profit and loss, in a trading system. So CFDs and market moves need to be taken seriously, as well as the pricing nature of non CFD instruments.

Online CFD Training is about Being a Different and Better Trader

Many price moves in the markets are obvious and easy to spot. These can be traded through CFDs. But there are also less obvious price moves, such as in the case of enhanced forex scalping. And CFDs are the only way to trade, at least for the vast majority of traders who are retail traders. Online CFD training can help you identify your weaknesses against a confusing market. How to manage risk through hedging, and much more. Especially in scalping, hedging even a single risky trade, for just 30 minutes can prove vital. As most scalpers make a lot of money through the trading week, from Monday to Friday, only to lose 70% of these profits on the last Friday scalping trade. You only need to hedge one such risky trade per week, and that 70% loss can be avoided. Good CFD training provides the basic brainstorming ideas for developing such trading methods! You will be able to implement these methods in your CFD trading account, soon after understanding the markets and the basics of CFD instruments.

Stay away from Big Promises

Courses that have fancy tittles so as to impress you, and make you believe all kinds of things, are useless. Such courses will have you believe that they are all about picking entry points in the markets, and that you don’t need to focus on CFDs and market basics. But all new ideas are born upon basic principles. Because every student has slightly different understanding. Online CFD training is not really about picking obvious entry points, or using advanced CFD trading software products. It’s about teaching you to think originally, through brainstorming ideas and principles. Even though many have seen those, only a minority of traders uses them creatively. In wise CFD training, there is no free lunch, there are no silly promises. Just the key ingredients for trading success.

Which World Economic Factors Influence Your Forex Strategies

Geopolitical Analysis in Forex Strategies

Forex strategies developed for day to day, or longer term trading, need to have flexibility. So that the trader can handle the risk from various global events.

Global Event Analysis Used in Forex Strategies

Traders using forex strategies, should pay attention to some economic events, not all. While also learning how to make sense of geopolitical events, which impact risk appetite among investors. Economic events are complicated. Because of the complexity of the markets. The perceived message can vary dramatically from investor to investor. As one investor thinks the impact is already absorbed by the market. While other investors or analysts may appear in the media, giving all kinds of conflicting predictions. The easiest way to make sense of economic events, such as interest rate decisions and trade agreements, is to gauge investor sentiment. If the country in question gains in credibility, its currency will also gain such credibility. Whether it will rise or not it depends on how attractive that currency is at that time. But gaining a better reputation is the first step, for finally staging a rally. And because things are relative, a currency may rise not because of domestic economic improvement. But rather because other competing currencies poses greater risks. This is where serious economic events and geopolitics can appear out of the blue, and change market trends. All good forex strategies which focus on the US dollar and its crosses, take into account geopolitics. Any risk event, that causes uncertainty, such as instability which may lead to war etc. Has a direct impact on risk appetite, causing investors to buy the US dollar. And that’s when the US dollar will defy all bearish technical and even fundamental signals. And it will simply keep on rallying and rallying, going up on the charts like a rocket. All critical geopolitical events impact investor risk appetite, and override previous economic predictions.

Forex Strategies and World Events

Traders should pay attention to interest rates, inflation risks, and which currency is better than others, for inflation hedging purposes. You have to think like those billionaire investors who are willing to invest in anything, as long as the annual yield offsets their inflation costs. Typically, you will want to find the next best investment offering 2% to 4% a year. Because that’s the real inflation cost in most cases, in fact it’s more like 4.5%, but billionaires are willing to accept the reality. Which is that world markets are limited, and safe investments will not really fully cover inflation costs. No matter how wise the investor is. These investors make their real, adjusted for inflation profits, through riskier investments. Traders should also watch geopolitical factors breeding instability and uncertainty. All these factors can become economic factors overnight, and risk markets are very sensitive to them. Online currency trading is exposed to these risks. The same risks of course do create profitable opportunities. And they are all possible to profit from, through swing trading. Fast methods such as day trading cannot be used to profit from these risk events. Because more than half the time, the markets will make their moves outside your trading hours, probably at nighttime in your country. And day trading is based on the naive, perhaps wrong assumption that trades should not be held overnight due to higher risk. Well in fact, it is precisely this risk that makes markets profitable. It’s just that classic day traders lack the analytical skills to follow world events and make sense of them. It’s a fact that world events can override even previous fundamental analysis, and naive economic theories. That’s why many analysts in the media get their forecasts wrong on the US dollar, most of the time.

Beware of Economists

Economics is by definition a naive science, and different models of economic theory exist. Which do not agree with each other. Forex strategies should be based on risk appetite analysis first, and not so much on classic economic theories. The global forex currency converter mechanism is powered by investor appetite, and not by naive economic theories. In fact if you ask an economist some basic question, such as why there is inflation, they will give you all kinds of superficial analysis. But they fail to address the root of the problem. And in fact you can get perfect answers for such questions through physics. Because in a final analysis all financial transactions are energy transactions, where some energy is being consumed. And energy follows the rules of physics, where inflation, or energy diffusion is a fact of the universe. No work is done if energy cannot diffuse out, and the financial system follows suit. Because all money transactions are deep down energy transactions. Economists, at least most of them, also fail to assess risk appetite and critical non economic events. Because like everyone else, they tend to think in their field of expertise.

Day Trading Forex Live is Your Dream Job!

Day trading forex live does require a huge initial commitment. But once realistic confidence is embedded, nothing will ever stop you from reaching huge success.

Day Trading Forex Live Offers Realistic Odds and Rewards

In this day and age, very few jobs that most people can do, actually pay well. It’s a basic and very true rule of the job market. That the easier it is for your employer to fire you and replace you, the less you will be paid. We all see jobs where people are not happy working, because the prospects for development are not great. Or because these jobs simply fail to provide good financial security to these people. The financial markets on the other hand offer almost no safety net. They are always risky, even by the safest hedging trading strategy. Risk never goes away 100% when one trades. But the rewards are great too. And sometimes the rewards can be disproportionately higher than these risks. The forex markets offers even more flexibility and excitement than other markets. This is why day trading forex live is many traders’ favorite game. The question is of course whether or not one should jump directly into day trading. As in an effort to quit their day job, and making a living all through trading. The answer is rather simple… You cannot quit your day job and become a day trader overnight! Day trading is a kind of enhanced trading activity. What should precede day trading is some kind of slow, relaxed trading. And there are many forex strategies for beginners to choose.

Day Trading Forex Live is For Anyone Who is Bold Enough

Undertaking many endeavors in life, and reaching final success, is all about boldness, courage and perseverance. Some people will never be good forex traders, not even bad traders, because they lack the courage to take the required risks. Some people are born to be totally obedient, and adhere to the requirements of a day job. Financial trading on the other hand, requires at least some appetite for risk, and for adventure. Whether we like it or not, life itself is filled with risks, uncertainties and good surprises. But only the bold risk takers can handle them nicely. Day trading forex live is one of the most risky, and most exciting ways to play the markets. It is also potentially one of the most rewarding. since such traders stand to make $100s per day, even in their first steps. Trading online worldwide is really amazing. Because as one currency pair loses momentum, another starts to gather momentum. But also lack of momentum itself, can be day-traded using low volatility methods, such as scalping!

The Forex Market is Huge But Also Fair

The forex market is attractive for many reasons. But to many traders one reason stands above all, and that is fairness. The forex market is to them, the world’s most equal opportunity employer! Trading mistakes are punished, always, no matter who the trader committing these mistakes is. And also, good trades are generously rewarded. So much, that no employer could actually pay you so well to work for them. The forex market knows no class and social status, it is extremely fair, and the best are rewarded. This is the biggest motive which makes many working people gradually quit their day jobs, and become their own boss. That’s what day trading forex live is really all about, vindication on a personal level.

Learning The Basic Elements Needed to Trade Forex Online

Most beginner traders mistakenly think that to trade forex online profitably, one has to be a super trader. And they tend to rely too much on 3rd party opinion.

Trade Forex Online and Rely More on Yourself

While traders do need to take advice from proven, experienced traders. It’s a bad habit to be afraid of being wrong, and not expressing your own opinion. You can take advice and see how other traders think and act. At the same time however, you can still have a different opinion about current trends in the markets. Trading is all about difference of opinion, that’s what makes the markets tick! So there is no reason to be afraid, and look at all the different angles. You can trade the forex market, much better and much more wisely through adding your own little opinion.

Trade Forex Online through Reason and Judgmental Skill

You can trade forex online much better than passive traders, who simply look to emulate other people’s trades. You can be at least 30% of an active trader, and 70% of a passive trader, and still be years ahead of the majority of traders. Third party opinion will keep you focused, and will prevent you from getting carried away. While that little initiative you show, will get you thinking originally in every single trade. Totally passive trader who lack courage, cannot possibly do well in the long run. Because trading itself becomes boring in their eyes, and you should never trade out of boredom. All good trades come from motivated thoughts and actions. You can trade forex online much better than passive traders, and maintain an intense motivation. You can learn forex trading in many different ways, just remember to always have at least 30% independence in your decision making. In fact 30% may be just right for many of us.

Fading Expert Traders’ Opinions

It is a hard to fade a seasoned trader’s opinion. But if you suspect that such a trader is wrong, at least about one trade at a time, go with your instinct. Difference of opinion is good, and helps both parties sharpen their skills and become better market observers. Some wise beginner traders focus more on fading obvious trading signals, signals that seem too easy and too convenient. The truth is, it’s not easy. And there’s no clear cut percentage of success. The odds are 50-50, and even obvious trading signals may be hiding market momentum. There is no single secret shortcut method for dealing with false signals. There are however various ways and methods based on early signs. Through which a wise trader may assess, detect and avoid many false signals. Given the complexity of the forex market, and all these different foreign exchange currency symbols. One has to monitor correlated currency pairs, the US dollar, and impacting commodities. If given two correlated pairs, where only one has an apparent false signal. The trader becomes confused. And in fact the markets themselves are confused, and the trader should wait, to see which market direction will finally prevail. Traders should trade forex online through patience and a simple thought process. While complexity can be good, too much complexity all at once, leads to trading mistakes.