Page 179 – XTrade

Trading Online Forex for 3% Monthly Gain

Trading online forex for 3% a month comes with a huge burden of commitment and focus. Even 3% per month is actually a lot, as it adds up to over 40% per year.

Trading Online Forex for Steady Success

Many traders think that success in trading forex works linearly and predictably, so 3% is not that much to ask. Trading online forex while aiming to make even 3% per month, is a huge challenge, and only experienced traders can do it. Because all other less competent traders lack analytical and psychological skills. And that 3% profit target, will come with huge risks, so huge that the trading strategy will fail. And it will fail to be profitable at all, even over one year. So it is important to realize that even small profit targets are difficult to achieve. If it was easy, many angel investors would invest in such traders. 3% a month, on one million dollars is $30K, which is a lot of money to all investors and traders. So trading online forex for quick and easy success doesn’t work, it’s a myth. It is possible to reach such basic profit targets, at low risk and drawdown. But it comes with enormous commitment on the part of the trader. So much that unless they are able to make a very good living out of it, they are not going to continue, it’s that simple. That 3% is a magic number, since it’s a pivotal profit target for many traders. Aiming for less than 3% a month will not produce enough money, in most cases of trading forex. And aiming for more than 3% a month starts to become extremely risky, and puts more stress on the trader. Nonetheless, trading is much better than simply investing in foreign currency and waiting for weeks or months to see that 3%. Most forex brokers facilitate trading which can yield 3% per month. Especially CFD brokers which facilitate trading in a way very beneficial to the trader. Beyond that, all success is down to the trader.

Trading Online Forex for Getting Rich Quick

Trading online forex for becoming rich very fast, may sound ridiculous to many. But some traders actually can do it. These are former losing traders with long learning curves and many bitter experiences. They are trading veterans who actually lost a lot of money trading, but also learned priceless trading skills in the process. Psychologically speaking, the more emotional an event is, the stronger a memory it leaves in our minds. That is why many of us can remember events that happened 20 or 30 years ago, as if they happened yesterday. While we cannot remember what we did last week. It’s because strong memories are related to emotional situations. So trading veterans who lost very big money, through painful trading mistakes remember all these trades. And what they did wrong. This experience cannot be emulated on a new trader by just teaching them trading, because there’s no emotion involved. And even though emotions are bad, and we all are told we should avoid them in trading. Veteran traders are emotionless now, but will never forget those painful losing trades. And some of them are competent enough to do high frequency trading and become rich very fast. Or even trade someone else’s account at that pace, and achieve phenomenal success.

What is Forex Broker Efficiency

Traders who know what is forex broker efficiency are wise. Concerned only about getting the best best filling price and stable price quotes, and nothing else.

What is Forex Broker Efficiency and its Importance

Knowing what is forex broker efficiency in terms of filling price, will set you way ahead in trading. Especially if you are a scalper or other high frequency trader. Knowing what is forex broker marketing will also help you choose a good broker. In the world of financial trading, many beginners tend to go for the forex brokers advertised most, or the ones offering biggest bonuses and offers. And many of them focus too much on dealing costs. But that is the wrong way to make decisions and choose a broker. Wise traders on the other hand care about one thing and one thing only, that is efficiency in trading. It simply means how good a filling price the broker can get you when you close that trade. Ideally you want maximum profit on winning trades, and minimum loss on losing trades. This is what a good filling price brings. And top brokers, especially in the field of online CFD trading are so well networked that they can handle your trades in almost no time, and at excellent filling prices. CFD brokers are ultra liquid and efficient, no one can argue against the facts. And this liquidity makes your trading efficient and more profitable than it would otherwise be. Even if your CFD broker charges high fees it may actually be much better and much more cost effective than many Futures and spot market brokers. Because many of these non CFD brokers entice clients through low dealing costs and bonuses. But their average filling price is horrible, and also they have unstable price quotes, where they keep on re-quoting you but when you click on the quotes to trade, the price has already expired and a new quote appears. Non CFD brokers’ shortcomings end up costing you so much more that the savings on their low dealing costs are dwarfed beyond worth comparing! But this loss is subtle and new inexperienced traders do not notice. CFD brokers however, even if high dealing costs are in place, are able to propel the profitability of your trading way higher.

What is Forex Broker of the Year Award Winning All about?

If you have heard about award winning brokers, it’s typically a marketing strategy by brokers to gain popularity. But there are many award winning brokers who are not the best around. It is best to choose a well rated broker, rated by real traders who have traded through the actual platform. This is the realistic way to assess a broker. Awards and marketing tactics such as bonuses and offers, do not appeal to wise traders. Any wise forex trader who knows what is forex broker award winning all about, will see it with skepticism. This is not a rule of thumb, but experience has shown that the best brokers are not necessarily the most popular ones. Wise traders ask around, and choose a broker which has many satisfied clients. Award wins and bonuses are not going to fetch you that best possible filling price when you trade at $50 per pip. And every pip will count. But good networking, sophisticated order handling, and liquidity will! They will fetch you the best possible filling price every step of the way.

What is Forex Spread and Does it Matter?

Forex traders may know what is forex spread. It is the difference between the price you buy and the price you sell a currency pair. And how brokers make money.

What is Forex Spread Cost

Those who may not know what is forex spread cost, it is simply the total cost of the charge incurred through the price gap, when dealing currencies online. This is how brokers make their money, in order to stay in business. Spreads in general are of little concern to most traders, because they tend to be tight, and the amount charged is negligible compared to trade size. Those who trade at very high frequency and know what is forex spread long term cost, may become concerned. In most forex trading strategies traders are open minded and look at the big picture. But some penny wise – pound foolish traders do make quite a fuss about spread cost. And even more about widening spreads. Which is a normal phenomenon during volatile times. However, it is wrong to focus too much on spread cost. Many trades eventually blame their own failures on their brokers, and the charges they incur. But if a trader is doomed to fail, they will fail anyway. So brokers with high commission charges are not the cause of failure. And in fact, some high commission brokers, with the highest spreads and possibly extra charges, may be better than others. That is because they deliver better on trade filling price. It is definitely wrong to judge brokers based on dealing cost alone. Nonetheless spread cost is important to traders such as scalpers and other high frequency traders. But even in that case, one has to compare dealing costs versus filling price, and overall efficiency.

What is Forex Spread as an Indicator?

You might not know what is forex spread as an indicator. But widening spreads do signal volatility and increased risk. Unlike stocks, where risk hints downside. Currency risk works in both directions. So widening spreads simply mean more volatility is expected. And traders should pay attention. Anyone who knows what is forex risk and volatility, should watch spread size on important pairs such as EURUSD. Forex charts do reveal how brokers sense market risk, and how they deal with it. By looking how spreads widen or contract relative to where price is on the currency chart. Brokers are very knowledgeable about various markets. And their concern may provide warning about coming volatility. Long before anyone in the media notices. The forex spread indicator works better with stocks. If spread costs increase suddenly, there is high risk that the stock will go down. Or at least that it will trade in a wild way, where short stops, or even medium size stops will not work. That’s about as far as you should be concerned about spread costs, and see them as an indicator and not as an obstacle to trading success .

What is Forex Scalping and How It is Done

Many traders don’t know what is forex scalping and how they can do it. Scalping has to do with almost directionless trading around a temporary price baseline.

What is Forex Scalping for Day Traders

Day traders who know what is forex scalping or simply have heard about, are interested in low risk trading. First by day trading, as and when it becomes possible to trade directional moves during the active hours of a market. And to a secondary degree, by trading a small range, sideways trend. That sideways trading is defined as scalping. Though there is no rigorous definition. Forex exchange rates tend to lose momentum during non active hours, and prices simply move very little. And usually revert back to a mean level. If the trader can figure out this mean price level, they can use it as a baseline for doing scalping trades. Online trading can become much more exciting this way, because these non trending hours occur very often. And from the momentum traders’ perspective these hours are nothing but boring, inactive trading time , where nothing happens. Wise traders looking for scalping opportunity, utilize high leverage, perhaps higher than that used in other strategies. They look for few pips of profit here and there. But since price tends to revert back to the baseline so often, profits begin to amount to significant sums. Market price may rotate 20 or more times around the baseline, in a matter of 2 hours. So the seemingly boring trading time can now be used to make some significant profit. Only those who don’t know what is forex scalping, or think it’s too dangerous, never look to profit from the absence of momentum.

What is Forex Scalping in Terms of Probability

You may wonder what is forex scalping in practice, and how profitable it is. It can be very profitable, and typically yield $300 per session, on a medium size account, but not greater than $3,000. Trading online like this requires careful day selection, and choosing only days and hours where the market is not likely to show momentum. Time selection for scalping trading is most of the work involved, actual scalping trading is piece of cake. Since there is no direction to figure out. The trader simply fades all moves reaching 6 or more pips away from the baseline. Direction doesn’t really matter much, unless there is some risk for a breakout. And the trader may consider leaving an open losing scalping trade open. As long as the trade is in the direction of the underlying daily trend. So that open losing scalping trade will turn around by the next day or so, and become a profitable one. Another key decision is on determining the baseline, this is usually defined by some high and low around that time, on the 30 minute chart. Scalping is more flexible than you think, and no exact rules apply. But in actual tests, these trading results, of $300 per session, 6 pips to 30 pips trades, etc were possible. Maximum loss was $600. And when traders lose big is because they fail to select quiet trading times properly, and to figure out the daily trend as well. These are important, and if addressed properly, losses can be limited much more.

All forex strategies can be enhanced through part time forex trading scalping. No doubt about it. It is even possible to recover almost totally blown trading accounts, all the way to the top, through scalping. Traders considering scalping should be careful about day selection, and avoiding scalping through daily LSS pivots. Even during the inactive market hours, LSS pivots may impact momentum, cause breakouts and ruin a scalping day. That’s why a good scalping baseline should be found well away from the daily LSS pivots, and during inactive market hours only. Just by following these 2 simple tips you will be able to avoid a great number of breakouts and confusing moves. No forex calculator or software is really needed in scalping trading. Just preparation and attention to volatility causing factors, including news. Now that you know what is what is forex scalping capable of you should seriously consider it as part of your broader trading strategy. Because scalping allows you to do so much more with so much less. The only catch is the long time commitment required in every scalping session. But remember that no other method offers you such a safety net, so as to even recover a lost account. While using only a fraction of the original funds.

Online CFD Brokers and Platforms

Online CFD brokers facilitate advanced CFD trading, which all wise traders use in one way or another in their trading. These brokers have evolved accordingly.

Online CFD Brokers and Advanced Platforms

Online CFD brokers offer sophisticated CFD trading to their clients today. Traders are able to trade in highly beneficial conditions, which exceed those offered by the spot market itself. Forex brokers offering liquid CFD dealing are also in that category. Though some CFD brokers might be better than others, depending on what specific needs the client may have. Online CFD brokers have evolved through the last 10 years, so as to offer even better trading conditions. Their CFD trading platforms have also evolved. As trading software has evolved dramatically across the online trading industry. They all offer strong customer support, competitive incentives, and mobile trading for full account access. CFD brokers perform a difficult task since they have to meet clients’ requirements at all times, and take their trades in. Even if the underlying spot market is tough and illiquid, for hours. CFD brokers will still take the trade, through the one way liquidity they provide. How hey do it is down to them, and it often it proprietary technology. But to traders, this is so beneficial. It facilitates perfect trading conditions for up to $100 per pip, on all currency pairs. Older, more experienced traders appreciate this much more than anyone else, because they have had some horror experiences back in the past, while trading trough various spot market brokers. The most typical of which, which you have probably heard of, is that of short selling restrictions on stocks. These restrictions are imposed by regulators on stock brokers, and their clients are unable to short stocks during extremely bearish times. Missing out on many trades. CFD brokers get around this problem, and their clients can still short stocks perfectly, up the maximum limit sustainable, which is a lot. Leaving old fashioned stock broker clients in the dust… CFD brokers really rule in small to medium size trading, and this covers almost all traders, except for few multi millionaire traders whose trading size is too large and not possible for CFD brokers to handle. But you can see how primitive and inefficient classic spot market brokers can be. Even if you trade with $100million with them, this doesn’t grant you exception to the rules. They will still impose short selling restrictions on stocks, in your account if they have to. Also, liquidity in day to day trading is worse with spot market brokers. And the larger a trader is, the more problems will have. So don’t be fooled into thinking that the rich have it easy in trading.

Online CFD Brokers Win Hands down!

When it comes to small and medium size trading online CFD brokers win the argument. They can handle single $10,000 large, profitable trades per day. Amount small by market size, but very big to most traders. The online CFD trading industry has changed the markets for the better. By bringing in competition and better liquidity for all traders, in all markets and brokers. Because ultimately all brokers are interconnected through the markets. CFDs were thought to be the trading tool of the poor trader, and rightly so because they are most affordable than anything else. But all wise profitable traders do use CFDs one way or another. Only some super rich traders stay away from CFDs, either because their trading size might be too large for CFD brokers to handle. Or because they might be not intelligent enough to figure out the benefits of CFDs. Many super rich traders and investors use lame and primitive investment and trading methods. And when they lose, they lose a lot of money. So wise traders avoid following the trading ideas of the super rich, because they are wrong and misleading. In fact, wise traders look how the super rich trade currencies and stocks, through their large, but primitive brokers. And look to take the other side of the trade through CFDs, and implement fast and cost effective trades. As in the notorious case of short-selling restrictions imposed on stocks. Whereby shorting the stocks the super rich hold, through CFDs allows you to really have the upper hand. And you the small trader, stands to simply profit out of their investments, and at their expense.

Online CFD Analyses and Testing of Trading Ideas

Traders perform online CFD analyses, using simulator and risk control tools. Their goal is to uncover and hedge potential risks that could blow their accounts.

Online CFD Analyses for Detecting Hidden Risks

Online CFD analyses come in many types and forms, all for detecting different hidden risks. Some traders for example are afraid that their trading is vulnerable to extreme and sudden geopolitical risk. The US dollar and its crosses are all currencies subjected to this risk. This risk is almost impossible to predict. And even those who can predict it come up with poor forecasts, where the prediction spans over many months, so timing is very poor. Traders however can find markets that will move sharply, in one direction when a given specific risk happens. Online CFD analyses allow them to model such risks, and also ways to hedge their trades through those risk-benefiting markets. Many currency pairs in the forex market are subjected to such risks on a daily basis. Yet, some forex strategies manage to eliminate as much as 90% of the risk. The 10% risk means that the market could 1 out of 10 times move in totally unpredictable ways, due to natural disasters, terrorists attacks and so on. During that 10% of trades, the trader may or may not lose money. There is roughly 50% probability that the hedging trade protection will work. But because there is still randomness, similar to a coin flip outcome, it is thought to be a 50% risk. Risk however doesn’t have to result in massive losses, the trader can act quickly when things go totally wrong, and close all trades. So it is okay to win small and to win big, 90% of the time. While breaking even or losing on the remaining 10% of trades. Factors impacting markets to extreme levels are volatility, natural disasters, terrorists attacks and unforeseen economic events. Typically anything that is bad, tends to happen very fast. Whereas good events happen slowly. This is important in devising a hedging trading idea. The US dollar remains even to this day a key currency. But one that is totally unpredictable at times. Because geopolitics can come in and override all economics, for days or weeks. Unprepared forex traders are not aware of this, and a sudden such move on the US dollar usually is enough to wipe out their trading accounts. Because they still hold onto economic and technical analysis and add to the losing trade.

Online CFD Analyses for Energy and Precious Metal Traders

Gold and crude oil CFD traders focus on supply and demand for the days and weeks ahead. The forces of supply and demand are critically important. But these come down to investor fear, and to a lesser extend, down to the US dollar. There is no clear cut relationship between the dollar and commodities. Sometimes both the US dollar and the commodities can rally hand in hand, for weeks. Various in-depth online CFD analyses offer these traders insights into how many risks can be hedged through CFDs. Because trading CFD offers linear hedging and profiting, and unrestricted access to the market. They can rely on CFD instruments more than any other. But this doesn’t stop them from investigating further, and staying within the safety limits. CFDs are extremely good and superior trading instruments but still not perfect, their benefits are limited to $100 per pip. Above this level, liquidity problems will probably arise. So very large size traders may not be able to use them in full. But to small and medium size traders and investors, they are the top tool in their trading arsenal.