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Learning Online Currency Trading from Veteran Traders

Learning online currency trading is a very time consuming process. The learning curve can be cut shorter only through the guidance of some wise veteran traders.

Learning Online Currency Trading Based on Confidence

Learning online currency trading has to be based on confidence. Because too many negative thinkers will try to discourage you from pursuing your goals in trading. Trading is risky, and everyone has acquaintances who lost money trading. But very few know someone who made very good money trading in the forex market. That’s why so many negative thinkers exist. Confidence however can still be found among veteran traders, since these traders possess a demonstrated relevant skill set. And with an opportunity to see veteran traders in action, all doubts about trading viability recede. This proof that it is actually possible to beat the markets, dispels the negative thinkers are not absolutely right. Learning online currency trading becomes much more interesting when there is guidance provided by proven veterans. Any trading online course or seminar will be much more interesting to attend and learn from. Experience is priceless, and the mere guidance that veterans can provide is amazing. Even if they are not officially teaching, themselves. Official teaching by veteran traders is unlikely to contain their biggest trading tips. Especially seminars, which usually contain techniques and tips which address the whole picture of their trading strategy. Veterans will not share their best secrets, but even the tips they do share are still very valuable and insightful. All of these tips can be implemented on many markets, and on any currency trading account. Confidence is the most important personality trait of any trader in the making. It is important to be confident every day of the week, even during the worst phases of the learning curve, where many traders quit.

Learning Online Currency Trading Tips from the Veterans

Learning online currency trading tips from wise veterans directly, is a much better way to propel your trading ahead. Traders need to learn on two fronts. First on methods for identifying false signals and market moves. And secondly on identifying which elements of classic analysis do not really work, and to stop wasting time with them. By allocating more time on the techniques which do work, traders will end up reaching their objectives faster. The confidence gained in just a few profitable trades, based on correct judgment of the market, is really priceless. And this confidence encourages traders to continue their efforts, until the tipping point has been reached. Once past the tipping point successful trading becomes almost routine. There are losing and winning trades, but profits are bigger than losses. The fact that there are losing trades means that the trading strategy is a stable one (be suspicious of long winning streaks). And the fact that the trading account is profitable overall. Means that the strategy itself is viable, and profitable in the long run. CFD trading strategies can be cleverly integrated into any underlying strategy derived from the tips of the veterans too. The veterans may not be familiar with CFDs, but the tips work on the same markets. So combining these tips with the benefits of CFDs can bring new advantages into trading, which the veterans could never have dreamed of. Veterans however who are familiar with CFDs may have figured out even more creative trading methods. Especially veterans who have long experience as independent traders, not working as part of a team. These traders have secrets and tips which no one else has yet discovered.

Online Trading Accounts – Globalizing Market Opportunities

Online Trading Accounts All Over the World

The emergence of online trading accounts in the 21st century’s second decade as the definitive marketplace for price determination is a profound development. Global citizenry has taken on a new meaning when the only requirement to participate in the ultimate commercial activity is a browser and an internet connection.Furthermore the nature of markets has evolved as advances in communication and computing technology have facilitated the rise of new trading platforms and modalities.

This article will review the relevant developments in general and how they have affected online trading accounts in the following countries:

UK trading account
trading account Australia
Singapore trading account
online trading South Africa
Malaysia trading account

Online Trading Accounts Development

As far back as 1969, with the establishment of the electronic communications networks (ECNs), digital trading systems became a reality for U.S. brokerages to in-house broadcast stock bid and ask prices. Over the following score of years as technology – particularly software – progressed, brokerage firms singularly and in association iteratively refined the process of matching share traders with current price data, thereby increasing the efficiency of of the buy – sell process and introducing dramatic matching up buyers with sellers easily and efficiently and with significant cost savings. Yet, the model and paradigm of client – broker – market principal remained unaltered.

With the dawn of the internet in the mid-1990’s the situation underwent dramatic transformation / democratization as smaller players, both brokers and investors, gained access to and ability to trade on the same information previously available only to market principals. As the technology permeated the marketplace, the number of online brokerages increased from 12 in 1994 to more than 140 by the end of 2000.

In parallel, the better market access for individuals spawned an entirely new career class, day traders, who introduced unprecedented levels of breadth, interest and volatility to the equity markets of the late ’90s, along with an unprecedented dozen-year bull run.

This steady and continual influx of investors into the stock purchases during the 1990s helped to create a very strong bull run (1988 through 2001). The mania pervading the dot com bubble was an additional element in the technology takeover. All this interest and nascent technology and computing power encouraged new paradigms and disruptive processes.

UK trading account

While throughout their 200+ year competition, the New York Stock Exchange was more innovative than its London Stock Exchange (LSE) rival, at the dawn of the 21st century, LSE members began offering over-the-counter online trading accounts for Contracts for Demand (CFD) as a way for hedge funds and institutional traders to cost-effectively hedge their equity-risk exposure in a manner both leveraged and exempt for UK stamp duty tax.

Around 1998, CFDs became available to retail investors, providing all UK trading accounts with similar benefits. Approximately a decade later, as a result of insider information cases, the UK Financial Services Authority (FSA) regulator imposed a CFD general disclosure regime. While CFDs on individual UK shares were the impetus for their creation, other financial asset instruments were also initiated and traded, like those on indices, many global stocks, commodities, bonds, and currencies. CFDs on indices of major exchanges quickly rose in volume to become the most popular.

Trading account Australia

In 2007 exchange-traded CFDs were launched in Australia, under the auspices of the Australian Securities Exchange(ASX). Trade began in the leading 50 Australian stocks, 8 Foreign Exchange pairs, global indices and a few commodities. What started with 12 brokers offering trading withered continuously until ASX cessation in June 2014.

The migration to off-exchange trade arose as proprietary platforms gained sophistication and liquidity, with bid-ask spread shrinking, innovative trading tools, and the increasingly robust internet-enabled features. The typical trading account Australia now features high end trading technology and a variety of asset classes.

Singapore trading account

The online trading experience in Singapore has also improved as the friendly pro-business environment, competitive instincts of the business community, and readiness to adopt new technologies has fostered a competitive non-nonsense trading regime.

“Virtual Singapore”, the online platform in which the unprecedented “Smart Nation” sensor big data is collected and analyzed, is an example of Singapore’s enlightened attitude to online data and cloud processing. The effort is expected to transcend the data silos which have typically limited reach and effect of other similar urban efforts to date.

Among the features found in a typical Singapore trading account are:

secure trading networks consisting of high end trading technology
comprehensive brokerage services for a broad range of traders and investors
instant deposit and withdrawals and outstanding customer service

Online trading South Africa

The online trading South Africa experience has mirrored the country’s political growth and maturation. Though a classic commodity-based currency, the South African Rand (ZAR) (18th most actively traded) still punches above the weight of South Africa’s economy (33rd largest), largely on the strength of the well-developed economy. Traders, largely in Johannesburg and Cape Town have come to expect tight spreads, the newest technologies, top tier liquidity, and first class 24/7-customer support. International, premium service available to retail and commercial clients include No-Dealing-Desk execution, spreads as low as .0 – 1 Pip and with less than 5 ms latency. Because of its long history at the margins of the British Empire, brokers and purveyors of platforms offer an array of tools, news and analysis so that clients can become familiar with the markets

Malaysia trading account

The Malaysian investment community, settled around the Kuala Lumpur Bursa Malaysia Stock Exchange has a well-developed legal structure and culture of trading securities, allowing it to evolve with markets and technologies. As such, online Malaysia trading accounts feature: quality Forex signals throughout the trading day, multiple platforms, innovative vision and technology, live chat support, low spreads, instant execution, no slippage and fast order processing

This summary has described the evolution of online trading accounts both technologically and in five specific countries. A review of the available features shows the effect of globalization in distributing benefits across borders. Restrictions and limitations, at this moment of time when cloud computing and data storage dominate, have become a function of governmental restrictions either explicitly or through sanctions which support local brokerage services.

What is a Foreign Exchange Currency Swap?

A foreign exchange currency swap has two different definitions in finance. One applies to forex trading (also known as Rollover), the other applies to banking.

Foreign Exchange Currency Swap (also known as Rollover)

The term foreign exchange currency swap, as defined in forex trading are the interest rate differentials which apply to all currency pairs. In the AUDJPY currency pair for example, this interest rate differential has been quite large in recent years as Australia had high interest rates and Japan had zero. If a forex trader goes long AUDJPY, they are being paid interest based on the Australian dollar interest rate, and they are being charged based on the Japanese Yen interest rate. If Australia has interest rates set at 4% and Japan has zero, the differential is exactly 4%. If the trader goes short on AUDJPY they will be charged at 4%. These differentials are the annual rates. Actual daily swap (rollover) charge or credit amounts are the daily equivalent amounts of the annual interest rate. This is calculated by the banks. And it is based on the number of business days in the year, not on the 365 calendar days. Swap credits and charges are very tiny, but when leverage is used, they become important to traders. This is how Carry trading works. Where traders attempt to profit from interest rate differentials over medium to long term trades in the forex market. The risk of the daily movement in the live forex rates is much much greater than the risk-reward potential of the interest rate differentials. So much so, that price movements in the exchange rate dwarf the potential of the Carry trade by far! Nonetheless, wise forex Carry traders study their forex charts closely and hedge price movement risk. And they do it using another correlated currency pair having a smaller interest rate differential — or through related commodities and through CFD trading. Swap rates are only of concern to Carry traders, and they can help achieve very profitable trades, as long as market price risk is hedged properly. The foreign exchange currency swap is also important in other more complicated forex trades, where hedging of risk through arbitrage is desired.

Foreign Exchange Currency Swap in Banking

A foreign exchange currency swap in the banking industry is an agreement which enables two different banks to get a better borrowing interest rate. The two banks involved are based in different countries and hence currency zones. Because of the fact that credit rating agencies in every country tends to rate local banks as more trustworthy and more likely to repay their loans. And as a result, a domestic bank will always get a lower borrowing interest rate compared to a foreign bank. In a swap agreement, for example between a German and a US bank, both banks are able to borrow through each other, through each other’s local, better credit rating, resulting in a better deal for both. The swap agreement involves amounts of capital denominated in local currency and fixed forex exchange rates. So effectively, the US bank in our example ends up borrowing the Euros in needs, to finance its operations in Germany, at a lower interest rate, as opposed to borrowing directly as a foreign bank. The French bank does the same, and gets the US dollars it needs to finance its operations in its US-based subsidiary companies. Ultimately, the overall default risk is also reduced for both parties involved in a swap agreement.

In carry trade strategies it is important to learn currency trading basics, such as pip value and swap value. Because the carry forex trader is concerned with making a profit through interest rate differentials, while hedging price movement risk. In fact all success is determine in hedging movement risk, which can be from somewhat difficult to extremely complicated. But it can be done, and of great interest are commodity currencies because price movement risk can be hedged through exposure to the underlying commodity. In all cases traders do better when the take time to learn currency trading basics, because this is the only way to get the calculations right and avoid costly mistakes later on. Carry trading is interesting, flexible, and ca be combined with directional forex trading as well. There are no limits to how far a carry trader can go to evaluate and control risk in their portfolio.

Useful Forex Trading Tips for Beginners

Forex trading tips for beginners range from simple ones, to more complicated ones, depending on the strategy used. Beginner traders can put these to the test.

Good Forex Trading Tips for Beginners Don’t Have to be Too Complicated

Useful forex trading tips for beginners tend to focus on money management, risk control and making use of simple indicators. Most of these tips however are presented with inadequate information. Traders often have questions about these tips, and using them in actual trading is never straightforward. Some good forex trading tips for beginners focus on picking entry points in the market. And traders find that much more exciting that money management tips, yet they are both important. Traders who manage to learn forex trading well, and advance their techniques, tend to twist and modify all of these tips. Using any tip, in its rudimentary form alone, is not of much help in real trading. Then, there is a whole category of trading tips, which many naive beginners follow, and all of these tips are wrong. The use of tight stops for example, is a totally misleading and wrong tip. This is because this old and wrong trading tip fails to deal with probabilities of certain events occurring. Backtesting of trading tips is difficult, if not impossible. Though the one on using tight stops is an exception, it’s easy to figure out that tight stops do not really provide any meaningful protection in actual trading.

Some of the Best Forex Trading Tips for Beginners

Some of the best forex trading tips for beginners are the use of LSS weekly and daily pivots, and the use of the Value Area. The Value Area is more for day traders, whereas the LSS extends out to any time frame, so that even position and full swing traders can use it. Any good forex trading course will probably teach LSS pivot theory and use, to some depth. And if the entire range of forex training provided in that course is extensive enough, it will debunk many bad tips as well. Generally speaking, beginners can achieve good trading relatively fast. But they have to deal with psychological pressures, fear, and be bold enough to bend or even break established trading rules. Most of these rules and tips, are either right or wrong, depending on how they are used. The LSS pivot theory and Value Area prize zone, are two concepts whose way of using is not rigorously defined. Both of these concepts are used to figure out support and resistance levels in the market. And they can still be confusing, because even though price moves beyond a pivot level, and the support becomes resistance (or vice versa). That price breakout beyond the pivot level is a signal that will be good for a finite amount of time only. May be for as little as 30 minutes. Beginners traders need to realize that if the trading day in question is bound to be a sideways day, then all these pivots will have time-limited impact. And when a pivot is no longer relevant, it can be breached again, possibly invalidating the previous signal. Price however does move a lot between pivots, even on sideways days. So much so that traders can make good profits and good use of their trading time.

Traps of the Foreign Exchange Currency Market

Traders lacking experience, risk falling into traps in the foreign exchange currency market. Many such traps are set by false beliefs and extreme discipline.

Traps of the Foreign Exchange Currency Market and How to Avoid them

Forex mentors tend to teach too much on false, ambiguous indicators and discipline. Which the foreign exchange currency market tends to defeat. False indicators and trading methods are false because the creators lacked impartial judgment and critical thinking. Discipline on the other hand is good, as long as is not extreme. Generally, all rules have to be broken at one time or another. At least that’s what creative trading requires. And this is because the markets are not mechanical as many of these mentors make them out to be. Extreme discipline can lead into the trap of missing many good trades, because these trades don’t meet all your entry strict criteria. And if one believes too much in all trading rules, at all times, they might be afraid to take this or that trade. Online trading is not a very pleasant activity when one follows too many rigid rules. And the strategy used fails to connect to the flexible nature of the markets. Live forex rates are even more confusing than lower volatility time frames. And rigid rules may even lead you into placing the wrong trade. Rules such as to never buy below support, and to never add to a losing trade are nonsensical oversimplified rules lacking attention to detail. But because these details are way too many, and impossible to cover in a training course, teachers leave them out. So instead, they present a crude trading system which fails to match the details of the market. Trading the foreign exchange currency market successfully requires enormously great attention to detail. A set of skills which cannot really be taught overnight. It is kind of like learning to play chess, simply crude strategies are easy to teach, but will never defeat a skillful chess player. Not in a million years!

The Mind VS the Foreign Exchange Currency Market

The mind can learn to face and embrace the risk of the foreign exchange currency market. And I so doing it adapts, and it becomes possible for traders to figure out the next move. It becomes possible to avoid losing trade traps, because this skill becomes an effortless second nature. Good traders have notes and do a lot of analysis, but when they trade they don’t have a checklist of strict conditions and rules. It’s all second nature to them. Remember that the very reason why Forex Robots fail to trade profitably after a while, it’s exactly because they don’t have a mind to think, and just follow sets of rules. No matter how much detail goes into these sets of rules, or how dynamic the strategy is. Forex robots end up failing miserably after a while, and cannot even come close to beating humans at trading. They say emotions are bad in trading, that’s not quite true. Emotions are bad when caused by obvious trading signals. Which tend to be false more often than not. But good traders still have hunches and emotions. It’s just that they have to do with much less obvious trading signals. And these signals are checked against serious analysis. Some forex brokers have as many as 40% of their clients actually winning money trading the markets. All of them are to some extend suspicious, emotional traders. But because they use their hunches and emotions originally, and check their trades against in-depth analysis, they end up winning. Now what kind of ultra disciplined trading could possibly allow them to have such hunches and emotions? None! So emotions in trading are not necessarily a bad thing. Moreover, these emotions are not caused by money. Not by winning trades nor by losing trades.

Trading Online CFD Concepts and Ideas

New trading online CFD ideas are found in many curious traders’ journals. Some of these traders take experimentation to extreme levels. In order to reduce risk.

Trading Online CFD Powerful Concepts

Trading online CFD concepts range from simple day trading forex strategies to advanced hedging and dynamic hedging strategies. All implemented in order to somehow reduce exposure to risk, while keeping exposure to profit at appropriate levels. The wise CFD trader trades at multiple speeds, as the circumstances require each and every time. Dynamic hedging is all about varying the size of the hedging trade, depending on what the market is doing. The simplest method of such dynamic hedging is based on the idea of using LSS daily and weekly pivots. So if market price moves beyond one pivot level, small hedging size is used. And if price move even further in the undesired direction, beyond a secondary pivot, much larger hedging is used. LSS pivots define possible price reaction levels, and hint possible breakouts and market momentum. Traders who know what is CFD trading and the benefits it has, do use CFD in these strategies. CFD are linear and straightforward to trade, thereby enabling both the intended trade and the hedging trade to follow market price closely. And accurate pricing is the only way to make a strategy as this one, yield the expected results. Futures for example cannot be used for accurate hedging, because their pricing includes factors such as risk, and expected events. And can deviate dramatically from spot market price. It’s no wonder that many Futures and even Option traders use CFDs to hedge losing trades, or even recover losses on previously naked trades. The opposite is not easy to do, you cannot use Futures to accurately hedge any investment, especially short term ones. And using Options is possible, but their complexity makes it much easier for things to go wrong, than right. The slightest oversight in Option pricing parameters can turn a profitable trade into a ridiculously small profitable trade, or even into a loser. CFDs are simple and straightforward, but traders still have two variable to experiment with, and these are trade size, and LSS pivot levels.

Trading Online CFD Ideas for Forex News Traders

Forex news traders have developed some trading online CFD ideas, for using around news release times. The global forex currency converter trading platform makes it possible to trade the news in terms of volatility and breakouts. In simple words, traders cannot predict how the market will move after volatility dies down, following a news or economic report. But they know that the daily trend is unlikely to change. They also know the weekly and daily LSS pivots. So through critical thinking and logic they expect that market price will become very volatile right after the news or report release. And this volatility will make price sweep up and down, so as to cover all possible pricing scenarios. From worst to best. By figuring out this trading range, they plan their day trades accordingly on such days. Trading efficiency and liquidity are assured through CFD trading. And the only variables they will change are entry and exit points, and of course trading size. Stops can be very large, and outside the expected daily trading range. Even if that range is found to be 400 pips wide, they are willing to hold a 400 pip losing trade until volatility dies down. Tight stops won’t work. Such large range trades can be of smaller size, so as to reduce risk, and to make it easier to hedge them if necessary. But that’s the way it is, only these bold day traders make serious money in the forex market. You simply need to bear in mind, that a single day’s events cannot change the daily trend, not unless big and obvious conditions are in place. No matter what the news or report story is. And that market price will attempt to intimidate you into surrendering your open losing trades. Traders lacking this critical thinking use small stops, or panic in the volatility. They will close that losing trade at -150 pips, and as soon as they do that the market goes 300 pips the other way. Successful day trading online CFD ideas are based on such critical thinking, requiring to do things that defy belief. And they are extremely profitable, their success defies belief too.