Page 208 – XTrade

The Best Forex Broker Australia Has

Using the most efficient way to trade is critically important, that’s why it all comes down to the best forex broker Australia has to offer to local traders.

What is So Unique about the Best Forex Broker Australia has to Offer

Finding the best forex broker Australia has to offer today, is very important to local traders, traders who will not settle for anything less than the best out there. There’s so much more to Choosing a forex broker than just making few comparisons and asking around. This has to do with finding little but critical and accurate information, rather than all the information regarding various brokers. Most clients will give feedback and make comments about their broker, based on their low size trading, and through their overall experience. And experience which for the majority of traders, especially new ones, the whole focus of the feedback resonates around a penny wise-pound foolish mentality. Most of them are focused on free offers, bonuses, ultra low trading commissions and to some extend on customer service. And while these things may seem important, they are not really nowhere near as important when it comes to trading profitably. What really matters is trading stability, the flow of the live forex rates and the overall efficiency of the trading platform. What is the point of using a ultra low commission broker, if they charge you little per trade, but you are being given requotes and slippage on every trade, in addition to poor filling prices. Trading efficiency in the brokerage industry is everything! No matter what the transaction cost is, only an efficient broker can really facilitate profitable trading for serious traders.

Why New Traders Give Shallow Feedback

New traders tend to glue themselves on forex charts and down to the minute analysis, and even news based strategies for trading. All of which could work in the hands of a seasoned trader, but not in the hands of a new trader. So these new traders tend to have a bad experience in the end, because they are unaware of the slippage and requotes issues surrounding the reality of trading. These problems are inevitable, and they affect even the best forex brokers, but to a much lesser degree. In addition, they tend to blame their whatever broker for things that the broker is not responsible, it is their own trading strategy and way of implementation that is to blame. But nobody wants to blame themselves, so it is convenient to always blame someone else instead. New traders tend to give bad, meaningless feedback, as they trade small size, fast, and they often base their judgement on ridiculous things as well, such as free offers and bonuses. There are brokers which for example offer a $25 sign up bonus, which in the eyes of many penny wise -pound foolish traders sounds like a hot deal not to be missed. To a serious trader, $25 is 5 seconds of profitable trading and certainly not much of an incentive to choose that broker over another. The best forex broker Australia has to offer goes beyond and above ridiculous offers, and offers what matters most, efficient trading!

What to Expect from a Forex Trading Course

A forex trading course can teach basic ways and methods for developing unique trading strategies over time. It is a good first step towards learning to trade.

What a Forex Trading Course Really is

A forex trading course is the first correct step towards learning to trade. There is always a long learning curve in order to learn forex trading and understand what is forex suitable for. New traders tend to have big, unrealistic expectations, where they want to make a lot of money right from their first year of trading. And while this is not impossible to achieve, it certainly is very difficult. Most new traders tend to follow generic trading systems and lame strategies, taught by generic teachers, who themselves were not spectacularly successful in trading. Other strategies may be powerful, but are hard to emulate and properly implement. So, there’s no easy way to big profits when it comes to trading. Generic and poorly planned trading systems will always fail, as the market is always more unpredictable than those systems can handle. A good course however will present these facts, and prepare the traders for realistic expectations. The bottom line reality is that most good traders become good after at least 5 years of trading. Promises of success that rely on few months of trading or even 2-3 years are not good enough. Because these time frames are not long enough to allow traders to experience changing volatility and unpredictable currency moves, which are bound to happen over a 5 year period.

Traders Lack Confidence

All traders face times of fear and uncertainty, new ones even more so. A forex trading course can certainly take years off their learning curve and can help them avoid some of the mistakes that others made. Mistakes in trading are many and sometimes difficult to detect. Many wonder what is spot market trading, and what is cfd trading, and while each has its unique characteristics, one can start to trade perfectly well and more safely through cfd contracts. Especially as traders complete their courses, and start trading with larger and larger size, the benefits of cfd contracts become apparent. Other questions new traders face are things like stop loss size, risk tolerance and money management. A good course will always focus on psychology and money management, which are more important than learning how to pick entry points in the market. The course in question may teach momentum based techniques, or other more advanced techniques, but none will be perfect. All techniques for trading suffer to some degree, and are bound to produce false trading signals. This is because all indicators and analysis techniques are inherently bound to be inaccurate about 50% of the time. So good traders learn how to adjust and embrace false signals, and overall uncertainty. The only thing that finally boosts traders’ confidence is long term profitability, where it becomes evident that these profits are the result of planning and not luck.

What is Foreign Currency Trading So Beneficial

Foreign currency trading is more attractive than for most other instruments, because of the flexibility, liquidity and profitability that the diverse forex market offers.

What is Nice and Unique about Foreign Currency Trading

Foreign currency trading is promoted by many brokers and software vendors as a market that offers high leverage and easy money. While leverage is good, it is hard to learn forex trading and make consistent profits out of it. The global foreign currency converter infrastructure has some hidden advantages that are not found in most other financial markets. These have to do with the ability to hedge one trade with another, in ways that are not easy to implement say in stocks or in most commodities. This hedging allows traders to be wrong in their judgement, and still manage to make money, through a series of hedging trades. Another unique advantage of the forex market is the Carry trade, where traders make money from interest rate differentials. And again hedging is required to offset, or at least limit adverse price movement. The forex market is more forgiving to rookie traders and traders who make mistakes. Whereas in the stock market, one mistake could be catastrophic as all stocks tend to move in one underlying direction, and once in the wrong trade hedging becomes very difficult, at least when using stocks alone.

What about Predictability?

Investing in foreign currency pairs is all about country-specific analysis, where the economy of the country is analysed. Currencies are easier to predict than stocks, this is because of many reasons, one of them being the decentralised nature of the forex market. As information is spread wider around the world, and the basic trend of a currency is easier to figure out than that of a specific company’s stock. Foreign currency trading is therefore more flexible, less stressful and better meets the needs of creative traders, traders who are original thinkers. Currencies are still volatile and tricky to figure out, but the are smoother when there are solid trends in place. They are also more liquid than stocks, and when the investor or trader knows how to predict a move in price, they stand to make good money. Stocks are harder to trade, especially in the short term, because trading action is directed from the centralized trading floor, where many new trends are initiated. As far as day trading goes, one is far better off trying their luck with currencies than with stocks. Currencies tend to make their highs and lows during specific time zones, for example one currency may have the tendency to make its move during the European session. While another has a tendency to make its move during the Asian session. And liquidity is good around the year, there are no light volume days or months. Also, currencies offer flexibility on analysis methods. One currency may be highly technical, while another trades strongly on long term fundamentals.

The Profitability of Day Trading Forex

Day trading forex is much more difficult and time consuming than day to day trading, as the trader is under much more pressure not to tolerate much risk.

The Answer is Yes! Day Trading Forex is Profitable, But Also Risky

As most good traders know, day trading forex is often about chasing market momentum and paying attention to few key price levels. Other traders go further by paying attention to time zones and time related factors, but they all have some way for making good trades. In order to learn forex trading this way, one has to commit fully to the task. Day trading requires at least few hours of total commitment, and very low tolerance for excessive risk. Once the trade is no longer valid the trader has to get out, no matter what. Forex charts can be confusing at times, to the swing trader or investor, but they have ways to make sense of the markets, they also have the luxury of time. The day trader by contrast implements a mechanical approach, a kind of martial art methodology, where each step is discrete and no much flexibility is allowed. In fact, there is no much thinking allowed in day trading, it’s open the trade, watch the criteria, and then either close at a loss or close a little while later at some profit, even small profit.

Day traders have simple, strict rules, it’s almost like a martial art, where discipline and repetition of simple steps makes meeting the objective possible.

What One Has to be Careful about

Day trading forex is a very time consuming affair, most new traders are actually wasting their time because of being ill-prepared and not educated on day trading specifically. Even those that win out of those new traders end up making less money per hour, than they would be making flipping burgers at a fast food joint. There is the bright side however, and this is what some good traders and some investment banks do. That is to develop forex strategies for different currency pairs, each has to be specific and be tested well. The more one can specialize in one currency pair, the more opportunities they will be finding when trading. Being a specialist means that you can in fact be a good day trader, one who can beat the average $5 or $6 that most amateur winning traders actually make day trading. In order to be successful in this game, you need to focus strongly on one pair, have the discipline of the strict day-trader, and be willing not to trade on days where no entry criteria are met. Even though everybody wants to make a 9-5 job out of day-trading, this is not possible. On some days one can trade and win $2,000, while on other days one has to refrain from trading altogether and not risk $1. The reason the amateur winners only make $5-$6 per hours, on average, is because they do not refrain from over trading and they are giving back most of their gains, resulting in that poor, fast food joint kind of pay rate. The truth is that some of them have good trading skills, and they can increase their profitability 10 fold, simply by reducing the number of trades.

What are the Pitfalls in the Forex Market

The forex market seems so easy and appealing to trade, and yet many traders end up losing money or even becoming totally disoriented on market direction.

Why the Forex Market Seems So Easy to Beat

The forex market seems very easy or at least quite possible to predict, that’s how most new traders tend to view it, and this is because they look at past price action. They tend to relate past price action with correlated indicators and this creates the illusion that trading forex is quite easy. But as they begin to trade the real thing confusion rules, and it’s no long before total confusion and lack of orientation makes them lose. Trading on the live forex rates is very difficult even for seasoned traders. It is that psychological factor, as well as the fear of having to deal with a losing trade. When confidence gives in to fear, traders start to believe that it’s all some kind of conspiracy where the market will move contrary to whatever trade they open, so as to make them lose money overall. So what happens to the pre-trading period enthusiasm and drive for fast success? It seems to have disappeared as the harsh reality of the financial markets makes these new traders realize that every easy trading idea, every simple way to trade the markets, has already been tried out by someone else and failed. Or that at least the market is so efficient and saturated that no more simple ideas can fit in.

All new losing traders can reassess their trading, and many of them can really turn their trading around. It’s a matter of changing some habits.

So What Can the New Losing Traders Do?

All new traders starting up in the foex market, need at least several years of trading experience, and actually some trading losses, before they are able to make solid profitable trades. It is a fact that the global forex converter mechanism is so unforgiving, so harsh on new traders, that they stand to lose everything they have. Even older traders who are rather naïve about the markets can still fail down the line, even though they might have had a couple of profitable years. So the lesson here is simple, and it is that one tends to learn a lot from their mistakes and their losing trades, but they hardly learn anything from their profitable ones, because they attribute those to irrelevant factors. So for example if the new trader makes a trade on EURUSD and loses $150 in a day, they will dedicate time and effort to figure out what they did wrong, what indicators let them down and so on. But if they were to win $150 in the same trade, using the same indicators, they would tend to believe that these indicators are really good and dependable. So you cannot become a profitable trader unless you start to think for yourself, and start to question everything, even the actions of the most profitable traders. You have to question so much more, and forget all about confidence. In fact the best way to be confident, is to question everything and consider it as not encouraging any confidence in you. The forex market starts to make much more logic sense when one keeps on guessing, rather than have firm, inflexible beliefs.

How Traders Can Benefit from Joining a Forex Forum

A forex forum allows traders to interact, argue about their opinions and beliefs on various matters, and it ultimately allows them to see how others think.

How Joining a Forex Forum Benefits Traders

A forex forum provides all traders, both new and seasoned alike, with a new challenge all the time. Every day some forum member will ask some challenging question which all will find interesting. Traders are able to learn forex trading through this interaction with others. They also learn the pitfalls and traps that other traders encountered in their lives and how to be prepared for them. Ultimately they learn how to trade forex in a better prepared way, and the very first thing they learn is to have moderate expectations, and that the market can defeat all kinds of indicators. Forex traders also learn a lot about market direction, as different traders talk their positions while others take a more realistic, more impartial look and look deeper on the charts. There one can see all this difference of opinion, which is what ultimately makes the markets work. Without difference of opinion there is no market, so new traders see these arguments and are better prepared to handle an unfavourable market move later on.

All traders learn new things every day as a result of actively participating in forum discussions. Where new and seasoned traders often meet to discuss various topics, in great depth and in impartial ways, away from the marketing hype of various forex product vendors.

Forum Discussion Activity Creates Really Intelligent Traders

Every busy forex forum creates, more or less, street wise traders, as they all learn from each other’s mistakes and experiences. Everyone wants to learn what is forex, how to get involved in forex trading, and which strategy works best for other traders. Active forum readers tend to become very street wise people, they learn about things, and skills, that are essential for every day trading, as well as day to day life. Being street smart means that they are less likely to be sold on fancy promises and overhyped products. In trading, they know that vendors of various products often use terms such as proprietary or sophisticated, to describe their software or market indicator. The street smart trader has a rough, but still pretty good grasp on probability, they know that some things cannot be possibly true because the claims are not realistic. A software that sells for $97.99 for example bears the hallmarks of overhyped marketing right in the price format. Why would anyone sell profitable trading software less than several $1000s?. In other cases, many new traders are taken in by promotional offers and low commission costs, all presented by brokers in deceptive ways. Once again, the savvy forum readers know that what really matter sin trading is the filling price, not the commission, and not the bonuses. They know this from some forum member who happens to be a large size trader, and who has seen these overlooked details in magnified action.