Page 182 – XTrade

Forex Trading Broker Review Reports by Real Clients

Forex trading broker review reports are useful when they are impartial and have been created by real traders-clients of these brokers. They do a reality check.

Which Forex Trading Broker Review Reports You Can Rely on

Good, dependable forex trading broker review reports are found in reputable online forums. That’s where traders of all kinds, including seasoned and large size traders offer impartial feedback and advice to new traders, regarding various brokers. Most forex brokers discussed in forums are good, it’s just not possible for a bad forex broker to survive out there anymore. Despite that, some brokers are more suitable for day trading, while other brokers are more suitable for Carry strategies and long term trades. Forex trading broker review reports and impartial feedback help new traders see the problems in the industry, and choose the broker that is best for them. The competition in this industry is so fierce that brokers cannot afford not to improve. They cannot afford not to address efficiency and liquidity issues, and not provide the best possible customer service. That is why, under normal trading conditions, most forex brokers can handle your trades well, for trading up to $100 per pip in the forex market. If market conditions become too extreme due to unforeseen events, this presents liquidity problems for even the best brokers out there. At such extreme circumstances day traders may not be able to trade for that day. But other than that, the entire brokerage industry can handle all trades, even fast trades up to $100 per pip relatively well. A decade ago, things were not as good as they are today, and day traders often suffered from slippage and requotes. Today these adverse effects have been minimized dramatically. Review and opinion reports however do help traders find the most suitable broker, best matching their specific strategy

Forex Trading Broker Review and Comparison

Forex Trading Broker Review and comparison reports are a good way to look into what the industry offers. Not just in term of well rated brokers, but also what trading instruments these brokers have to offer. With the advent of online CFD trading, forex traders have looked past spread betting, Futures and the spot markets themselves. And into the benefits of CFDs. CFD contracts do offer some unique flexibility, affordability and exceptionally good liquidity, unique to CFDs. Most people only look at leverage when considering what instruments to trade the market with, but liquidity is far more important. Good CFD brokers win hands down over spot forex brokers, and are way better than spread betting firms and Futures brokers. It’s not just liquidity, but also linearity. CFDs allow you to hedge an open losing trade for several days or weeks, down to the last penny, until you make a decision on that open losing trade, depending on whether the market will swing in your favor. This is impossible to do with spread betting or Futures, because they do not follow the underlying market 100% linearly. Only spot forex and CFDs can provide perfect hedging protection, saving traders $1000s in unnecessary losses. And CFDs do have better liquidity over the spot market as well. That is something to consider in the forex market.

Trading CFD for a Living – Fiction or Fact?

Trading CFD for a living, to the average trader is an elusive dream. It is difficult to accomplice. But to wise, bold traders, with creative ideas it is real.

Trading CFD for a Living is Difficult Not Impossible

Trading CFD for a living is far more possible than with trading through Futures, Options, or the spot market itself. The trick however is that success doesn’t work linearly in trading. Rather it tends to work exponentially. Every trader reaches a limit in their trading skills, a kind of threshold. If they manage to go beyond that, then profitability increases exponentially. Once this limit has been passed, one can see what a difference CFD contracts make. Trading CFD for a living becomes a routine thing, and profits keep on coming in. Not because traders have found the holly grail of predicting markets better. But because CFDs allow them to implement perfect, 100% linear and effective hedging on losing trades. It’s as if getting most of their losses back on the losing trades, while the profitable trades still remain profitable for the most part. CFDs also offer them great liquidity. Online CFD trading is so exciting that all creative traders find ways to deal with losing trades. For example, why use tight stops and risk losing money in a sideways market. When all the trader wants is few hours to let the market settle, and make a decision on the losing trade later. CFD hedging provides the answer, it locks the losing trade by offsetting the losses. And when the market has settled, and the trader has made a decision, with clear mind, they act accordingly on these trades. Success works exponentially, not linearly when trading forex. But it is the very fact that CFDs are themselves very linear in their pricing. Which makes trading through CFDs an even more powerful strategy, once the trader goes beyond their initial limit. It is possible to trade for a living, except that you won’t have a monthly income. Traders who trade for a living tend to increase their account size exponentially, all the way. Until personal limitations, or market conditions impose natural limits. The safety limit on trade size is at around $100 per pip. Once traders reach this size, they will start having liquidity problems, especially if trading fast. But by that time, they will have made millions.

Trading CFD for a Living – It’s a Matter of Faith As Well

Many people will try to discourage you from advancing your trading. These are socially conditioned people who believe that having a 9 to 5 job, is everything in life. And that not having one is like not having an identity. Embarking on trading CFD for a living will surely pose challenges and problems, until you reach your pivotal skills limit. Once you pass that, profits will increase so much, that your confidence will be boosted. And when one has a lot of confidence, other people’s opinion does not matter. Everyone is entitled to having an opinion, and you should simply agree to disagree with them. And it’s not just for trading online. In many aspects of life, you will have to question other people’s opinion. Because people are socially conditioned, and suffer from so called peer syndrome. They would rather accept the wrong opinion, just to make themselves socially compatible. Rather than the correct opinion, and lose that compatibility.

People in general tend to have a negative attitude towards risk takers. They will simply try to dismiss stories of millionaire traders and CFD trading stories, as being fictitious and nonsensical. But they do so through forceful thinking, without evaluating any facts. And it’s all because they don’t want to accept that someone else out there, is so much smarter then them. Wise traders know to evaluate facts, and that trading CFD for a living is possible. If you simply flip the trades of any losing trading method, you will end up with a winning one. The tricky part is in evaluating open losses fast. So as to cut losers short and let winners run for longer. That’s what classic trading theory has been telling us for years. But it hasn’t given us any practical tips to actually evaluate open trades. In reality, it is possible to evaluate open trades and have a profitable trading system. One where total drawdown of no more than 30%, at all times. So no matter what people will tell you in their efforts to discourage you from pursuing trading success. Profitable trading does in fact exist! And it’s best to keep quiet about your own efforts and your trading success. Once you are past the simple CFD trading guide books and seminars, you will be leading a mission of secrecy, where you will look to make money trading. And not seek recognition among negative thinkers. Keep these people away from your trading. If success comes, you can disguise your financial status through some classic business. Say you invested abroad or you are dealing in antiques, and people will buy your story.

Trading CFD for Dummies and Former Losing Traders

Trading CFD for Dummies and Complete Newbies

Trading CFD for dummies and former losing traders is not a very hard thing to get into. It requires though good devotion, and ignoring all negative thinkers.

Trading CFD for Dummies – The Right Way

Trading CFD for dummies may seem intimidating but it is not. CFDs are used by novices and seasoned trades alike. CFDs allow for making mistakes, and even allow for more stress-free trading. This is because many losing trades on the daily time frame can be hedged all the way. Currency trading doesn’t have to be all about directional trades and large momentum rides. It can also be about hedging and offsetting risk 80% of the time, and riding momentum only 10% of the time, or less. The forex market cannot be beaten simply by picking entry points, these are bound to be wrong far too often. That is why trading CFD for dummies is actually possible. And it doesn’t require having a crystal ball, to figure the markets out. Seasoned traders also use CFDs, they don’t have crystal balls or psychic powers either. They simply know more on picking entry points on the market. But they too have losing trades, even at their level of experience. So traders should not be afraid of losing trades. They are part of trading. What CFDs come to offer, is a limitation on these losses. And ultimately a limitation on stress and impulse trading. Because traders can postpone making the crucial decision, on whether or not to close that open trade. Beginner traders can find ways and creative ideas as to how to deal with this. And many of them do actually become very good through practicing, in small size live trading accounts.

Trading CFD for Dummies and Former Losing Forex Traders

Trading CFD for dummies is also what former losing traders need. Fomer losing traders, having lost money in the forex market now lack confidence. They are no better than those newbies. They lack confidence because way too many losses have broken them psychologically. And they still tend to think wrong. This is because they still believe that 80% of the trading game is about riding momentum trends, which is not. There is nothing wrong with wanting to catch a long lasting linear move in a currency. But they lack the analytical skills to filter out so many false signals on the currency charts. Most of these traders blew their accounts because they used too many established nonsensical rules. Such as using ultra tight stops, not adding to losing trades when they should have done so. And also getting out of good trades, way too early. Just because some Fibonacci price projection rule told them so. These former losers can still learn forex trading in a much better way. First they have to pursue the 80% sideways market idea, that the market will trade sideways most of the time. And then look for ways to work on volatility and daily range predictions, and not price trends. The market does move directionally for more than 20% of the time, but the trades can still managed as if it was 20%. All because CFDs can hedge losing trades, very linearly. Thereby giving them time to think again. Without rushing to make a quick decision just for the sake of time pressure.

Online CFD Simulator for Testing Trading Skills

Using an online CFD simulator can help you understand the benefits of CFD trading in great depth. Concepts of hedging and hybrid trading can be put to the test.

Using an Online CFD Simulator to Test a Trading Idea

Putting trading ideas to the test, through the use of an online CFD simulator is a very insightful experience. Unlike Futures and Options, CFDs offer straightforward, linear pricing. If the trade works in the simulator, it will also work in the real market. Simulated trading doesn’t make it easier to win, except that you can run many different tests, without risking funds. Online CFD simulator software can also be used to test hypothetical trades against the concept of using notional stops in the time domain. Various currency pairs tend to exhibit different properties on this. Some pairs though do have specific time limits, where you can safely make the decision to close or reverse the trade. Trading forex after these tests, using online CFD dealing, will set you several years ahead in the learning curve. Simulated trading helps reveal overlooked aspects of the markets, while revealing your money management weaknesses. This is because you can see at all time what your account drawdown is. And how much risk you could possible take in live trading. You can also extend to long term commodity trading. Since gold crude oil and other commodities set solid trends from time to time. These offer an alternative trading choice at time when your favorite currencies may be too confusing to trade. Long term trading is really investing together with some protective trades on the other side. But CFDs are better since you can actually profit even from falling commodity prices. Commodity investing is a lot like investing in foreign currency. Except that there are no interest rates involved.

Online CFD Simulator Use for Struggling Traders

If you are a former losing trader, or someone who is simply struggling on their live account. Then using an online CFD simulator will help you identify at least some of your biggest mistakes. Most traders lose money because of using tight stops, and not paying attention to volatility patterns. This virtual trading is not real, and yet it is so accurate through the linear pricing of CFDs. So that trading mistakes due to tight stops and adverse volatility, can be identified with remarkable accuracy. This gives you plenty of time to focus on studying the market, and seeing things from a new perspective. Futures and Option traders cannot do this. Their simulation may be perfect, but if another variable in the pricing of these instruments changes (without the market trading differently). Then the trade may work out significantly differently. Futures contain variables relating to future expected market price, and Options are even worse, as a tiny variable change can yield a losing trade even when the market moves in your favor. That’s why virtual trading only works with the spot market, and CFDs in particular.

Online CFD training can help struggling traders improve on their judgmental skills. So as to be able to evaluate open losing trades much better. Remember that all trades start out as losing trades! Choose a strategy that allows for larger than normal stops. And pay attention to mental stops in the time domain. According to time based analysis an open trade may be considered as a losing, doomed trade even though it is currently at partial profit. This is because if several days have elapsed and the open trade is at minimal profit, the probability of success may be evaporating fast. And when the probability of success is evaporating fast, what will prevail is risk. And the nice looking trade will turn into a big loser. Simulated trading allows you to assess and improve your skills in that regard. By taking online CFD training a step further rather than just following nonsensical classic tips, such as cut losses short and let profits run… which is a useless tip, because it doesn’t define which is which. By watching many simulated trades you will develop a kind of sixth sense. Which will allow you to see the real losing and winning trades. Objectivity is very high in simulated trading and even in small trading accounts. Traders start to lose objectivity when jumping directly into large trading because the money at risk gets them emotional. Yet those who have experience in simulated trading stand a much better chance handling larger real money trades.

Trading CFD Strategies for Success

Trading CFD strategies and ideas allow for above average results and for better risk control are perfectly possible to implement. And wise traders know how.

Trading CFD Strategies You Can Develop

Some trading CFD strategies you can develop today. They can include trend-following and hybrid strategies between day trading, swing trading and directionless trading. The basic concept in all these ideas, is to use confusion and volatility in your favor. These are given market facts, and will never go away. So instead of planning ahead to execute a single trade from A to B, which is what conventional wisdom dictates. You should include a more complex path, from A to B, but also from A to C, in case the trade takes too long, or fails to yield a profit. They don’t teach such methods and ideas in the average forex trading course, because the mentor will probably have some kind of tight stop mentality. But tight stops never really work, and no one made good money trading like this. Good trading CFD strategies take trading beyond classic ideas, and into hybrid trading. You are neither a day trader or a swing trader, in fact no established term may define your trading. Because the currency markets trade in all kinds of patterns, where confusion and volatility rule. You can still be a specialist in your market, but there is no need to believe in specialized tradings styles. Low volatility means you will have to trade almost like a scalper. High volatility means you will have to trade differently, and often against the daily trend as well. Many established rules in classic trading will have to be broken and adjusted through modification. As a rule of thumb, you will know that the market may go from A to B as your analysis suggests, but it will do so in the most confusing way possible. This is a natural tendency of the financial markets. Good CFD strategies are very profitable, but require using large stops, and a plan B. A plan where if the first trade idea fails, the probability for plan B becoming successful trade increases dramatically.

Trading CFD Strategies for Success — It may seem as though profitable trading is about precision, tidy accounts and tight stops. But profitable, really profitable commodity and forex trading is about messy looking accounts using large stops. The more messy the account looks, with large open losing trades etc, the more voltility it can take. Which results in flexibility and making a profit through plan B, when plan A fails.

Trading CFD Strategies and Risk Control

Beyond the classic methods for risk control, trading CFD strategies allow for affordable hedging through commodities. This is the holly grail of hedged Carry trading. But the key concepts apply to directional currency trading as well, as long as the market is a commodity currency. Anyone who knows what is CFD trading, and the benefits it offers, can figure out the role of commodities. Markets are interrelated and commodities are correlated to specific currencies. All good CFD trading platforms offer both commodity and currency trading. You will have to become a specialist in the underlying market, crude oil for example. That is the very underlying market which makes up both crude oil price and USDCAD price trends. You can control much of the risk by viewing both of these markets as one entity, and identify opportunities occurring daily, weekly, etc. One time it might be a day trade, lasting 1 hour. Another time it may be a trade lasting 10 days. You will have to use large stops, hold trades overnight, and have a plan B in case plan A fails. If a trade takes longer than usual to become profitable, then the probabilities will be against that trade. And will favor trade plan B.

Trading CFD Online with Confidence

Trading CFD online with confidence and determination flies in the face of common sense. Such traders often do things which seem to defy belief and price action.

Finding All the Confidence for Trading CFD Online Profitably

Trading CFD online profitably does require courage and some determination. Discipline is okay, but is not the key. Confusion and volatility are the forces that make the markets work. It’s okay to be disciplined, but remember that rules may have to be broken. And things can get messy before success if achieved. In fact you cannot trade the markets if you believe in absolute order and discipline. Good traders are planning ahead, using loosely defined plans. As the more detailed a plan is, the more likely you are to run into totally unforeseen price action. Good traders are patient, but also ruthless when necessary. They think and act a lot like generals in the battlefield. Battlefields are not orderly and easily predictable situations. The general is allowed to break rules, and to even ignore losses during critical times. A moment of hesitation can make a big difference. And that’s how bold forex traders think also. They know trading CFD online is risky and things can get messy. So that no tight trading plan will really work. Good currency trading is about loosely defined, flexible strategies. And the good thing is that in all that volatility and confusion of the markets, often the big opportunity appears. And that’s where big money is made. The profit margin is available because the majority of traders out there don’t dare to jump in. as they don’t dare breaking any of their set rules. And finally those who dare, with loosely defined plans, and little preparation, end up winning.

Trading CFD Online and Coping with Early Losses

Trading CFD online is almost like a real war situation, and early losses will surely intimidate you. Even experienced traders lose confidence on some days or weeks. When this happens they cease trading, watch the markets again, and set new trading ideas. Then they go in again and again. Online CFD trading will not make you a better trader just be trading more. It will make you a better trader by reviewing your trades one by one. Forget all about statistics and how many trades out of 10, were successful. It’s about each trade individually. Especially when day trading forex is easy to fall into the trap of statistics, and try to make prediction about the future, based on recent past performance. You have to deal with each trade on its own, and even regard profitable trades as losers. Because even profitable trades went through risk, and some possibly went through unacceptable risk. So the bottom line is about risk taken on each trade, and what the real odds were. Whether or not the trade in question was closed at a profit, has no much relevance in objective assessment. All trades need to be looked into as losers, where the trading plan failed. Profitable trades can very easily mask weaknesses in your trading, giving you all kind of misleading impressions. Losses are welcome, as long as you learn from them. But all trades contain an element of overlooked risk.