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Forex Trading Strategies for Success

Learning to trade for success is a long hard road to take, the best forex trading strategies are the ones that start simple. So that traders are not overloaded.

Simple Forex Trading Strategies Ensure Path in the Right Learning Curve

All new traders want to reach the end of the learning curve, as fast as possible. But this is not possible because the learning curve is unimaginably long and tough to follow. The best forex trading strategies come with such long learning curves, and a lot of trial and error. The traders developing these strategies take things slowly and easy, without pressure and the necessity to win here and now. It is this urgency that sabotages and ultimately fails so many traders. Trading online is difficult and challenging, often beyond the levels that most new traders could bear. These traders who rush into things without knowing what to expect, and what is forex hiding from them, end up finding out the hard way how nasty and disappointing trading can get.

Why Complex Strategies are not Good to Start with

The best forex trading strategies are the ones that start simple and allow the trader to build on them, using their imagination. So they simply provide the brainstorming of ideas and encourage the trader to add a little more technique each time they make use of them. Complicated strategies overload the trader and ultimately kill all imagination and original thinking. Looking at forex charts for hours and hours helps traders get more ideas, and finally settle down to the ones that work best. Developing a really good strategy is like making premium wine, where it starts simple but it takes a long time, and a whole series of carefully planned steps to come to the final product. Software developers too work using the same principle. The first version of the software is very basic, so that the developers understand it in full, then they add a little more code each time, finding the bugs one by one as they go along. If the software was developed all at once, it would have so many bugs that it would be impossible to find them and correct them. So trading is not different, in that it takes time to become successful, and complexity has to come in slowly, without overwhelming the trader. Many trading strategies start with something simple, such as a 10 day moving average, or some kind of momentum gauge. Then more and more indicators are added, and with different criteria each. One indicator applies to such and such circumstances while another indicator applies later, and so on. So one has to think of successful trading as being some kind of premium wine, which takes years and years to make. There are no shortcuts to this.

What are the Most Suitable CFD Trading Platforms for Smart Trading?

CFD trading platforms come in many different kinds, and when it comes to specialized trading, some are more suitable than others for each specific market.

CFD Trading Platforms for the Specialist Trader

Each specialist trader knows that they need more of certain features and less of other features in their highly focused strategy. Some CFD trading platforms offer more flexibility, more ease of use, and better suit the needs of flexible traders. Traders who may switch from fast trading to slow trading or vice versa. Traders who engage in trading CFD contracts for efficiency reasons. These traders demand reliability from their brokers and trading platforms, as well as good levels of liquidity. They care less about commission costs, the need for having a larger size monitor or using all kinds of mobile devices to be in touch with the market at all times. Specialist traders study their markets at home, and never whilst on the move. They are confident to trade on the move only when they have their market analysis notes with them. The trading platform has to be good enough to work on a mobile device, and at least display the market charts accurately, and to update prices fast. Some new traders fall victims to technology convenience, thinking that all these smart phones and tablets can enable them to study the markets while away from their offices, but this is not possible. Brokers do encourage trading on the move, but without the proper guidance that the study
at home office can provide, good trading becomes almost impossible to implement.

Traders Want Simple, Reliable Trading Platforms

CFD trading platforms in particular, have to be fast and efficient, since the CFD trading Australia’s traders want and demand is all about efficiency. This efficiency relates to higher profit margins per trade, not commission costs. These traders are wise enough to know one market from another, and how each specific market is best traded. As long as the platform is reliable, good trading will be possible. As far as automation goes, things such as contingent order placing and automatic triggers for these orders, different platforms vary significantly. Occasionally, all traders will need automation of some kind, though it’s not super-critical to success. Those who learn forex trading for example may first avoid overnight trades, as they have been told by their mentors. But they soon find out that most profitable trading hours in a currency pair, might be while they are sleeping. So automation and contingent orders may provide some solution to this problem, but even a primitive, but still reliable platform, coupled with a longer term trading strategy will work just as well. After all it is very unlikely that the automated orders of those new traders will be 100% right on the timing.

Why Traders Prefer Online CFD Trading

Online CFD trading offers same profitability as the spot market, but at better liquidity conditions and better efficiency, which no other instrument offers.

Online CFD Trading Gains in Popularity

More and more demanding traders switch to online CFD trading, as it offers them better exposure to the market, without the big liquidity risks. Most CFD trading platforms are suitable for trading up to quite large size, typically up to $100 per pip for currencies, and also quite high for stocks and commodities as well, such as gold. So these limits are not actual limits, but rather levels below which all CFD platforms offer the best benefits a trader can get, and a good trading strategy is significantly enhanced as a result. The online trading Australia’s brokerage industry offers today is very good and competitive. In fact Australia’s brokers offer more to their clients in term of level of service, leverage and even liquidity than many US brokers offer to their clients. CFDs in particular are most popular in Europe and Australia than anywhere else. Traders prefer CFDs for various reasons, but solid liquidity has to be the number one reason. The second most obvious reason is high leverage, which makes trading and investing in commodities so much more affordable. With leverage rates up to 200 to 1, one can only imagine the possibilities in the hands of a wise commodities trader. Oftentimes, gold and silver traders use CFD contracts because of these reasons, as gold in particular tends to become illiquid at times and even the best brokers suffer as a result. Poor liquidity means traders cannot close profitable trades fast enough while the market starts moving against them on profit taking, this factor alone can eat into profits very fast. So the CFD gold trader has a huge advantage over the spot gold trader during such times.

Every Trader Wants to Have Maximum Efficiency

Efficiency in trading is key, whether through better liquidity or better leverage, the wise trader knows how to handle the conditions as best a they possibly can, all in the interests of trading success. The reason online CFD trading caught on so well is precisely because of these traders, who will not settle for anything less than the best out there. As soon as something new and innovative comes out, they spot it, and grab it. CFD trading was an innovating step towards better trading. The CFD trading Australia’s brokerage firms offer is of professional level, and can meet the needs to all traders trading up to $100 per pip /point in most markets. For larger trading volumes, some CFD brokers may be better than others, but it certainly possible to extend CFD trading with the right broker, even beyond $100 per pip or point. In the case of gold alone, CFDs have won hands down, and no other trading instrument even comes close to CFDs.

Why Trading in Foreign Currency is a Worthwhile Investment

Every trader wants the best for their trading, a risky but rewarding business. Investing in foreign currency makes the impossible.. possible in terms of gain.

Investing in Foreign Currency is a Serious Challenge

The currency trading Australia’s brokerage industry offers is very competitive and among the best in the word, in terms of leverage levels, efficiency and overall trading experience. Foreign currency trading is a very exciting and challenging way to invest in the money markets, on a short term basis ranging from few minutes to possibly several days. Most traders trading online are focused on popular trends, trends that most market participants agree upon. Investing in foreign currency however can span beyond just few days, and it can last weeks or even months. The general idea however is that most price swings can be captured around market cycles which typically last for a few daily sessions. The forex market offers great flexibility, as one pair rises or falls, the two different currencies in that pair tend to move essentially in different directions, and the movements are solid, and often of significant magnitude. Investors make good money through trading currencies, some professional bank investment traders make their banks more profits from currency trading than they make from all their other investments combined. The risk is there, it is real, but they have it under some basic control, where if wrong, they can limit losses and close their positions.

How Traders Make Large Profits

Most traders trading online are aware of basic fundamental trends in various currencies, and attempt to make trades in the right direction, usually one or two per currency pair per week. Investing in foreign currency this way, yields most profit when inter-market analysis is taken into account, and the trader pays close attention to other correlated pairs. Even though one currency pair is traded, the trader thinks like an investor, and looks at all correlated pairs. Different pairs weigh most on the pair in focus, on any given week. This allows the trader to adjust trading size, entry points and even change their initial analysis and perspective if necessary. The reason forex trading and investing is more profitable than stock trading, is because there’s more flexibility and hardly a week goes by without offering an opportunity. Whereas in stocks and commodities traders often face week after week, where no confidence is found in either direction. And excessive risk prevents them from making large trades. Currencies will always be attractive to trade, one way or another, as they have no restrictions and offer great flexibility. Stocks on the other hand, and even commodities, are seen as a secondary kind of market where opportunities will arise only once in a while, in specific cases. Currencies offer great opportunities week after week, and the seemingly small weekly profits can end up compounding to spectacular annual figures.

Forex Strategies Brokers Can Facilitate

Some trading methods can be applied to all currency pairs. But there are forex strategies which are pair-specific and rely more on fundamentals over technicals.

Forex Strategies Various Traders Use

Different traders use different forex strategies, and each one comes with some unique rules and criteria for each and every trade that the trader makes. Most good Forex brokers Australia’s seasoned traders use, do offer the tools and the flexibility to trade as a day-trader. Day-trading is perhaps among the most widely promoted trading methods by many brokers and the industry itself, as more frequent trading generates more commissions. It is one of the most difficult strategies one can implement, and also the most profitable for the trader themselves. But good brokers offer more than just day-trading tools, they offer so much flexibility that all kinds of trades can be executed with precision. Trading online has become smoother in recent years, as the brokerage industry has improved in many countries of the world, and Australia is at the forefront of it all. Traders are able to trade specific currencies, based on in-depth fundamental analysis and some day-to-day technical analysis. While other traders use a more simplistic, technicals-only approach, which applies to all currency pairs. Most new but wise traders start their trading using evolving strategies. Ones that will not create panic situations and will give them plenty of time to figure out when to take profits and to cut losses. While there’s nothing wrong with day-trading, it takes much more skill and stronger psychology to trade at fast pace. Trading on news for example can be very difficult. Brokers however make it possible to trade at high speeds, and those who know how to trade do make money day-trading.

Brokers Want Clients to Have a Good Trading Experience

All good brokers want their clients to stay with them for many years, as loyalty is important. So they offer their clients all the best that can go on a trading platform, to facilitate all kinds of forex strategies. Even if a client trades only once in a while, they are still a good client. Even such clients often end up figuring out profitable trades having very low risk. These clients, unlike maybe the high frequency day-traders, usually end up making fewer trades but with much larger size. Even today’s small size trader, may become tomorrow’s large size trader, so brokers respect all clients equally well. The competition in the industry has forced many brokers to constantly improve their platforms and the quality and accuracy of their forex charts. Almost to the point where one can trade using one broker, no matter what the strategy is, without the need to pay for a premium chart subscription service, which often would cost as much as several $100s a month. Only day traders do often need such premium services, and only for the purpose of ultra fast day-trading. The brokerage industry can facilitate fast trading, many kinds of strategies already.

Best Guide for CFD Trading of Stocks and Shares

Investors and traders have some common ground in the markets, their time frames often overlap. CFD trading facilitates the needs of both in various ways.

Complex Stock Investing through CFD Trading

CFD trading has become very popular in the last 10 years or so, this is for various different reasons which range from tax planning to flexible trading terms, and better leverage which makes even expensive stocks much more affordable to trade or invest in. Many know what is CFD trading all about, and they certainly all know about the affordability leverage offers. But CFDs also offer other more subtle advantages, such as the ability to go short a stock, even when the same stock in the stock market is under short selling restrictions, during extreme bear market times. CFDs also offer a kind of unfair advantage to the trader, because the trader has all the liquidity they can possibly need, at all times. Which results in better filling prices, and overall higher profitability. Trading the stocks themselves, often comes with liquidity issues, and traders end up getting bad filling prices, especially when wanting to close a profitable long trade and the stock is already falling on profit taking. CFDs are even better than Futures in that regard, and provide the most one-way liquidity to the market, while shielding the trader from many adverse liquidity issues.

CFDs Make it Easier to Make Money when One Already Trades Profitably

CFD trading doesn’t help traders turn their trading around from losing to winning, it only helps boost profitability of already profitable trading strategies. Trading online is often advertised as an effortless and ultra affordable low risk game, but this isn’t so of course. Risk and confusion are always in the market. Stock investors often find themselves in a dilemma when holding onto stocks, stock that will rise over the years but are bound to have downward corrections in the short term. This is when investors become traders, using CFDs. Online CFD trading does in such cases allow these investors-traders, to make $1,000s during these corrections, even when short selling restrictions are imposed on the said stocks. Thereby significantly increasing the profitability of their investment portfolios. Investors are more selective on choosing stocks to invest, while traders who only trade CFDs without holding the underlying stocks, tend to trade in both directions. Traders are less concerned with the quality of the stock, and trade many more stocks than the typical investor holds in their portfolio. CFDs are very efficient trading instruments in the hands of these investors and traders. Then, there are some tax related benefits, which are more or less straighforward in most western countries. These allow traders and investors to offset some of their capital gains tax liability against losses.