Page 169 – XTrade

Where can I practice Currency Trading Effectively

New traders who ask the question of where can I practice currency trading wisely, should focus on their choices first. So as to settle down with one strategy that best matches their needs and comfort zone. Before even asking the question where can I practice currency trading wisely and efficiently, they have to know more about themselves. Learning from other trader’s mistakes is very difficult, because nobody can get into the mindset of another trader. We can only make assumptions about the way they think and make trading decisions. Learning from other people’s mistakes is very difficult when it comes to trading. New traders can practice currency trading through a CFD demo account, and come face to face with the tough reality of the forex market. They can make mistakes and place losing trades, and learn from each one of them. In fact, losing trades teach you a whole lot more than any profitable trade ever will. So losing trades and failures are good, especially during your first steps. Attempting to do fast trading, such as day trading forex live, will teach you many lessons. You as a new trader get to see that the markets are really hard to trade, and intimidating in nature. There goes the myth about trading online made easy. Trading can actually be made easier, but the trader needs to do the hard work and pave the way for success. In any case, it helps to remember that losing trades and bad decisions are your biggest friends. Because you will tend to remember those at the right time, and improve your trading. There is no reason to be embarrassed about failure. In fact, all stable forex trading systems are based on such stability, which arises from the losing trades, not the winning ones. Winning trades provide the money, losing trades provide stability through their reality check.

Where Can I practice Currency Trading online? — Failures are eye openers, and help you become very objective and ultimately avoid much bigger failures in the future. Successes on the other hand cause complacency! That is why losing trades perform a reality check on your trading, and are very valuable.

Where Can I practice Currency Trading and Eliminate all Failures?

They say practice makes perfect, but on the question of where can I practice currency trading so as to gradually eliminate all failures… The answer is on a small live CFD account! A demo account will also work just fine. But a small live account will also help you handle psychological pressure to some extent. Actual psychological pressure varies from trader to trader, for many traders a small live account is not that different to a demo account. One needs to be careful, and take this risk. As putting some money on the line will help them get used to managing stress and risk. Forget all about easy and fast, such as the trading online made easy notion. During your first steps as a trader nothing will be really easy, and the only thing that can happen fast is blowing your account entirely! As with all things in life, there are very few ways for things to go right, and a million ways for things to go wrong. It’s a law of the physical world. So when one embarks on forex trading, the going will be tough and extremely challenging. Things don’t become easy for at least a couple of years. It is impossible to train so well on a demo, or small live CFD account, so as to eliminate all failures. It is impossible to train perfectly, even a period of 2 years will not suffice. Just remember that losing trades will always be there, and that deep down, they are not bad at all.

How Much Training Do I need?

Forex training could last for anything from few weeks to several months. There is no ideal amount of time. Neither there is a requirement to focus on one or two foreign exchange currency symbols all the time. Training is about exploring many different currency pairs, trading methods and ideas, and expanding your horizon. Profitable traders never even knew in advance which way they would eventually go. Most profitable traders had loose plans, they set out to become day traders, and became swing traders. They set out to trade EURUSD, and end up trading totally different pairs. Their early training helped them make these decisions, based on reason and deeper observations. You can keep on training until you find your own comfort zone, there are no restrictive rules to abide by.

More Forex Trading International Market Opportunities

Forex trading international opportunities do exist in real estate investing, as well as angel investing between countries. This is because these investors can take out bank loans in various currencies available by commercial banks. These loans or mortgages dominated in foreign currencies, are defined by either fixed or variable interest rates. And the investors who are also forex traders, and know what the expected trend in a currency pair is, at a fundamental level. Will look to reduce their liability by lessening the monthly repayments on these loans. This is forex trading business opportunity within the original investment itself. It simply works on the principle, that if the loan is dominated in a steadily falling currency, against the one the investor uses. Then the loan itself becomes smaller and smaller over few years. Ultimately saving the investor a lot of money. And it may sound impossible to do, but it isn’t. Fundamental economic analysis and monetary policy, do provide clues all the time. These clues reveal which currency will do what in the long term. These forex trading international opportunities are very important. And what matters above and foremost are the trends in the currencies involved. The interest rates on the loans, are not much of a concern. Because when one deals with the US dollar, or the Swiss Franc. And other reputable currencies, the rates cannot deviate too much. So it’s all about long term trends and nothing else. On the other hand, it is unsophisticated home owners that only watch interest rates. Commercial banks tend to lure these clients into taking out mortgages denominated in Swiss Frank, on the promise of lower interest rates. But as we saw in 2015, these loans inflated by a huge amount due to the sudden appreciation of the Swiss currency. Had they been watching the fundamental trends, they would have been able to get around that. So it’s all about trends, not rates!

Hidden Forex Trading International Opportunities

Some hidden forex trading international opportunities also exist in various small countries, where the local currency is set to either explode or collapse. Depending on the case, the wise investor can invest in those countries, at the right time, in physical investments. Such as buying a hotel for example. This did happen in the Czech republic in the 1990s, as the local currency was too cheap. And started to slowly appreciate. Now actual forex trading and CFDs are still relevant to such investments, because there are many small month to month fluctuations throughout the long term trends. These can be traded through leveraged CFDs and help the investor further mitigate their risks, or even make a direct profit. So in effect, trading through CFDs and even partially day trading forex live, is part of any long term investor’s strategy. Because currencies do fluctuate, and CFD leverage can make these tiny movements big enough. And more importantly because one side of the trade, the risky one. Is totally covered by the investor’s long term physical investment. That’s why investors who also practice currency trading are ta a huge advantage. But make no mistake, all research begins with the fundamentals first.

The Best Opportunities are Never Announced

Opportunities regarding specific countries, products and currency zones, are never really announced or given as advice to anyone. Each serious investor must get used to the idea that they have to spend money on traveling, lots of money. So as to actually visit and see the potential countries one by one, and directly. Other travelers’ stories cannot convey potential opportunities, because they might not be as bright as you are. Some opportunities may have to do with import-export of physical products. Where again, it all boils down to fundamental currency trends and even daily fluctuations. Those who practice currency trading will know all about these concepts. The basic opportunity in the case of an import-export business, is that two currencies may fluctuate too much against each other. But 2 identical products, in these 2 countries will remain priced 1 to 1. So for example, the EURUSD rate went as high as 1.60 once. However, some products that were supposed to be priced at $1 in the USA, and 1 Euro in Germany, remained priced as such. And when one deals in a business with illiquid, non mainstream high priced products, a big profit opportunity instantly appears.

Insightful Penny Stock CFD Trading Tools

Penny stocks are interesting. Any stock under $5 is technically a penny stock, and especially those under $1 can be extremely profitable, since traders stand to make multi-fold gains out of small movements. Traders employ various CFD trading tools and methods for detecting these stocks and actually trading them. CFDs allow them to capture the entire stock price movement on the way up. And this is possible at very good liquidity, which in today’s stock market is essential. As liquidity in the stock market has been reduced in recent years. CFD penny stock traders have a huge advantage. CFD trading software can be used for planning the trades of the more risky penny stocks. Those stocks which are priced near $5, and hence have some downside risk. Trading CFD for a living through the opportunities of various penny stocks is actually possible. Traders usually pay attention to companies that could possibly merge, or companies with some unique proprietary technology. The stocks of such companies do at some point skyrocket, and it is possible even for a $0.50 stock to go as high as $17 in few days. But mergers are almost impossible to detect, and leaking of merger information from CEOs and lawyers is actually illegal, because it amounts to inside trading. In the case of technological breakthroughs, it is possible to know in advance which companies have good penny stocks. But timing the break out trade can still be difficult.

Penny Stock CFD Trading — Penny stocks are extremely profitable. This stock moved from around $0.2 to $6.5 in a few days, a gain of more than 30-fold! The only legal way of detecting such stocks is by looking for Optionable penny stocks whose out of the money Call Options are unusually high. But trading the actual moves through Call Options will either be way too costly, or non-linear, so that in this example only 30% to 40% of the move would have been captured. CFDs on the other hand are extremely linear from the start of the move, and all the way through. The entire $6.30 move would have been captured in this case with a CFD trade! And cost is never an issue because CFDs are always affordable, even at low leverage, much more affordable than in the money Options. And with CFDs the trader doesn’t nee to worry about expiry times, that’s one more critical edge. Because penny stock trading required planning trades lasting several weeks. As the exact breakout day is not known.

Using Stock Options as Predictive CFD Trading Tools

Stock Options are difficult to deal with instruments, and extremely hard to get right. But there is something cool wise CFD traders see in some stock Option contracts. It is actually possible to figure out when penny stocks are about to make a big move to the upside. By spotting over-inflated premiums in the out-of-the money Call Options, on that stock. Option brokers will know all the information about the company in question. All the information that can be legally known. And they inflate these premiums, so as to have higher premiums on these Call Options, which are typically very low for all other stocks. The problem is that most penny stocks only move by about few dollars, at best. For example they may rise from $2 to $5. But attempting to capture the actual move using Call Options is suicidal. This is because in-the-money Options are way too expensive to use. While cheap out-of-the money Call Options will only generate a tiny profit, perhaps only $0.5 even though the penny stock has a $2 or $3 actual gain! So wise CFD traders act as follows: They do look at Option premiums as part of their research, to confirm good penny stock setups. But then use CFDs to actually capture the stock price movement. CFDs are extremely linear instruments, so the entire stock price movement is captured, be it $1, $2, or even $20. And this is achieved at an affordable cost, and at amazingly good liquidity (you can close the trade right at the highest high).Online CFD trading has become extremely efficient in many ways. But looking at stock Option premiums to figure out the intentions and knowledge on the company in question, is a really cool idea all wise CFD traders know about. And it is one of their secret CFD trading tools. Out-of-the money Call Option premiums give away penny stocks that are about to make good moves. While CFDs allow to actually capture the entire move, linearly and in an affordable way, that no other trading instrument can ever offer.

Forex Charts Analysis Wise Traders Do

Forex charts will always be confusing to traders. Because there is no universal truth about these markets. It’s not always currency pair A leading B, but rather B can also lead A. The fact that one currency pair, such as EURUSD has the biggest trading volume, doesn’t make it a leading pair at all times. Low volume correlated pairs can also lead, just as easily. And the signal on EURUSD turns out to be a false one, is not as if EURUSD doesn’t give off false signals. Forex charts therefore will always create confusion to traders who think and act through an absolute mindset. Various good forex trading strategies can still be developed and implemented. All the trader has to do is identify the uniqueness of each currency pair, and what makes that pair unique each day. Wise CFD traders are very selective traders, and have learned to do just that. This is also why generic trading systems fail, because their approach to trading is quite naive and crude in nature. Forex robots also fail, because of this fact, because they cannot think like humans do. So as to identify what’s unique in any given trading session. Foreign exchange currency trading online for beginners can be a great learning experience when one learns to think wisely. Moreover, trading systems that treat each trading day as unique, help the trader overcome routine life. And overcoming routine makes trading much more personal and interesting. The charts will always be confusing to many traders. Because their learning lacks depth and the capacity to deal with the inner workings of the forex market. Only wise traders, traders who take initiative and question established opinion make progress. We all have seen the forex market do all kinds of crazy things. Things that defy belief, where a currency pair defied the best indicators and the unthinkable move happened. And not only it happened, but the pair in question moved by 200 or 400 pips in the unthinkable direction.

Forex Charts Traders Analysis — Momentum is tricky because it does act as a leading indicator at time, as well as a lagging indicator at other times. Therefore the old advice of ‘the trend is your friend’ is not really entirely true. Market momentum can go up, it can slow down and then reappear in the same direction. It can also reverse when you think it’s least likely to reverse. In other words, one has to be very suspicious of momentum.

Which Indicators to Suspect and Doubt Most on Forex Charts

Some indicators are really deceptive on the forex charts. Especially indicators of momentum and patterns defining thin levels of support and resistance. Momentum can be extremely deceptive, and this is because sometimes it acts in a leading way and it works. But few days later it starts to lag the market, and the big losing trade comes along. Thin pivots of support and resistance are also deceptive. Wise CFD traders treat these levels as levels of test, and not as levels of conclusive support and resistance. The market can simply test these levels, breach them, and still go in either direction. Traders eager to get in the market at that time, end up losing every time the test fails. And there is no way of knowing the outcome of the test there and then, because momentum itself is deceptive. So one way of getting around this problem. Is to use pivots that are defined over wider price zones. Giving momentum more margin to reveal itself. Momentum can easily fool you over a margin of 10 pips, but not so easily over a margin of 200 pips, and over many hours. Wise CFD day traders read day trading forex live review reports and learn about indicators that don’t work. As well as indicators that only work over wider margins of safety, as mentioned above.

The ABCs of CFD Trading: Beginner Strategies for Earning Profits

online CFD Trading Strategies for Beginners

The best CFD trading strategies for beginners are the ones that allow the trader to make enough money. So as to feel content with the overall work and the benefits of the actual trading. And in such a way, that they won’t have to deviate from the strategy and chase different trades here and there. While there is nothing wrong with some strategy diversification, beginners may find it overwhelming and confusing. So sticking to one strategy at a time, and for a long time, works better than anything else. These best CFD trading strategies for beginners have to take advantage of the unique benefits that CFD contracts offer. In actual trading, it has been proven that swing trading strategies offer just that. Very good profitability, the ability to stay focused on one market, and plenty of trade setups. It does help to know the basics of CFDs through some trading CFD for dummies guide. And when it comes to the forex market. The swing trading principles, all part of the more general swing point analysis theory. Are all a trader needs to know. Swing traders utilizing other currency trading strategies are able to avoid many false signals, exactly because swing point analysis reveals these signals. There is also much less emotion involved because the trades last anything from an entire day to several days or even weeks. And this is so different to the intense, stressful day trading strategies. Which make many new traders lose time after time. Day trading is fine to try out, but only experienced swing traders have a good chance of success. Day traders who use dry systems, and focus only on the single day, miss too much information about the daily trend. The swing trader doesn’t miss that critical information, because they pay attention to the entire daily chart. So that yesterday’s trading session is still relevant today.

CFD Trading Strategies for Beginners Lacking Confidence

CFD trading strategies for beginners who lack confidence can be based on swing trading theory. But they can also include a simple hedging trade setup. And there is plenty of time to place, modify or cancel that hedging trade at any time. By looking to hedge sudden big losing trades, the beginner trader will feel more comfortable and not go around chasing losses, without having enough clues. They only need to know that the daily trend will not really change unless a valid swing point is breached, in a valid way. Swing trading theory deals with all these problems and ambiguities. And more often than not, even in the most confusing cases, the swing trader who also hedges losers, is able to tolerate a lot of risk. While simple, straightforward winning trades will always come back. The concept of trading online made easy is true here, as the hedging trader does deal with a difficult task. And they are able to be in the market, and still not be intimidated. Intimidation and extreme stress are huge obstacles to becoming a profitable trader. The wise beginner trader only needs to trade once or twice a week. And they can also prepare their hedging trades accordingly. If the trade size is large enough, the profits will make the entire trading task meaningful and worth the effort. There absolutely is no need to jump into day trading and high volatility when you are a beginner trader. And successful trading is not about committing full time, but rather about committing few hours a week, but with a deeper, sharper judgment on the markets. And ideally, doing these hours of analysis outside of the chosen market’s active hours. The-non active hours are much better for doing objective analysis.

USDCAD Currency Trading Strategies that Work

Online Currency Trading- The Effects of Brexit

The concepts around all currency trading strategies for trading USDCAD are based to some extend on crude oil. And to a lesser extend on the US dollar. Being a commodity currency pair, USDCAD offers some nice setups almost every week. These come with variable amount of risk. Sometimes the risk is too low. And sometimes the risk depends on how the trade is made. Traders who practice currency trading well, know many of these critical points. These currency trading strategies have to do with all kinds of analyses, from technical to geopolitics. Because both crude oil, and US dollar are impacted in a subtle way by various events around the world. The best forex trading strategy for USDCAD is the one taking into account these factors. But also the volatility of crude oil. Traders find great solid trends in USDCAD, not easily found in other pairs. This allows them to hold temporary losing trades with the confidence that they will turn around, into winners. It also allows for greater flexibility, and the margin for mistakes is greater. So every time crude oil makes a substantial move. Traders have to re-calculate the actual move based on how much the US dollar moved over the same period. By re-pricing crude oil after a move was made. They are able to see how much of the move was due to the US dollar. The rest of the move is attributed to supply and demand changes for crude oil itself. Crude oil also has its own volatility index, which helps get an idea what the market fears are. With crude oil, unlike the stock market, the fear is always that prices will go to $100 or higher. Therefore a rising crude oil volatility which also stays high, suggests fear of higher crude oil prices to come. This is only fear as expressed by the market. But wise CFD forex traders take it seriously, as it may hint an imminent trend change in crude oil. This volatility number is not straight forward, as it is not exactly correlated to higher or lower crude oil price. It express fear, but depending when crude oil price is, in absolute numbers, fear may be seen differently. For crude oil prices between all time lows, and around $60, the stock market is correlated to crude oil price. And the fear may focus on crude oil actually going lower, which will hinder the economy from growing. Traders have to take these factors into account, and treat each economic phase differently. By asking the question, what role does crude oil play at this very time? And this will allow them to figure out what the market’s fears are about crude oil price.

Implementing these Currency Trading Strategies

Implementing these currency trading strategies on USDCAD is easy, only after the specific role of crude oil and its volatility have been figured out. These as we mentioned are economic-phase specific. But when the trader has understood them well, they know that if crude oil makes a certain move, then USDCAD will simply move in the opposite direction. Analysis of the US dollar is not really necessary except if day trading is required. As the impact of crude oil is smoothed out and offset over periods of few days. This means that the US dollar can make crude oil and USDCAD move. And the move will be somewhat more profound in the currency pair. But only over a period of one to three days. Sooner or later the underlying trend of crude oil will prevail, and the commodity will go where it’s supposed to go. Regardless of the US dollar. Wise CFD traders see this as a forex trading business opportunity in many different ways. As several entirely different day trades can be made during these one to three days. For example one can trade the variable impact of the US dollar on crude oil, through CFDs on USDCAD. And not worry much about longer term direction on crude oil itself. But all the concepts are food for thought, for very good strategies, that actually make it possible to make serious money. All through these 3 markets. The US dollar, crude oil, and USDCAD. There is no need to trade 10 different markets.