Trading

What Makes FOREX Trading So Popular?

What Makes FOREX Trading So Popular?

If you are not investing on the FOREX market yet, you’d better get started– there are countless moneymaking opportunities everydaywith FOREX, the largest and most liquid market in the world. Today, around 5 trillionAmerican dollars are traded every day on the FOREX exchange. There are numerous playersin this market: large banks, central banks, multinationals, hedge funds and private investors.

So, why has trading currencies become so popular?

What is the FOREX Market?

FOREX stands for Foreign Exchange and is where market participants can buy and sell currencies. Depending on the country’s currency, you can find different types of currency pairs: majors, minors, and exotics.

Brokers, like UFX.COM, often apply different spreads depending on the liquidity and volatility of the particular currency pair you’re trading. It’s thus always better to know in advance the trading conditions with whichthe broker you’re using can provide you (spread, margin, leverage effect, etc.).

Why is this market so popular?

  • Flexibility: The FOREX market is open from Monday to Friday, 24 hours a day. It’s thus very convenient, as you can trade whenever you want.
  • High leverage: When investing on currencies, you are using a leveraged account, which allows you to open trades worth more money than you’ve actually invested.
  • Size of the position: Many brokers offer different lotsfor trading currencies, depending on the size of the position you wish to open. 1 standard lot is 100,000 units. A mini-lot is 10,000 units, while a micro-lot represents 1,000.
  • Liquidity and Volatility: This is one of the most volatile and liquid markets around. A well-informed and experienced trader can take advantage of a sizable profit, thanks to volatilityover short periods of time.
  • Scalping and Day Trading:For private traders,trading currencies is often done with the short term in mind, as it’s easier for a day trader or a scalper to make money on short price movements and have all their positions closed at the end of the trading day.
  • Advanced platforms and trading tools:The increasing accessibility of platforms and state-of-the-art tools help inform your trading decisions. You can really profit from everything that your brokers put at your disposal.

Reasons Why You Shouldn’t Be Afraid of Trading on the Stock Market

Many people are afraid of trading on the stock market. It can certainly be a daunting task when you’re trying it out for the very first time. There is no denying that. But you shouldn’t let those feelings stop you from giving it a go. Investing is not quite as intimidating or scary as you might imagine it to be. Here are some reasons why that’s the case.

You Can Learn All You Need to Know

There are certainly many complicated aspects of investing. It’s not the kind of thing that you can just dive into without knowing the basics first. And there are many other things that you’ll need to learn besides the basics. But don’t worry. These things can all be learnt if you’re willing to put in the effort. You don’t need to be an expert to invest; you just need to be willing to learn. You can learn more about what it takes to succeed as an investor by reading online articles and delving into books.

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Investing Isn’t the Same as Gambling

Many people believe the myth that gambling and investing are pretty much the same. Planning and strategy play a much bigger part in investing than gambling though. Gamblers have no real control. But investors can shift their money, track investments and sell up at any time. On the other hand, gambling is pretty much all to do with luck. That’s not the case with investing. When you learn all the ins and out of investing, as I discussed above, you can make the right decisions. You have a lot more control than most people realise, so don’t rule it out on that basis.

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Investing is Better than Saving Right Now

At the moment, interest rates are at historic lows, and that makes it very difficult for you to see your money increase. That’s why so many people are not turning away from savings accounts and investing more of their money instead. It allows you to increase your money, and that’s something that nothing else will allow you to do. You should, of course, invest carefully because you could always sustain losses. But if you don’t take a few risks, then you’ll have to accept that your money simply won’t grow. If you ask me, investing is the infinitely better option for most people right now.

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You Can Take a Break At Any Time

It’s much easier to take a break from investing in stocks and shares than it is with other forms of loans. For example, if you invest in properties and have a large portfolio, you can’t just drop it and take a break. You have a commitment to look after those properties and the people renting them out. Whereas, when you invest in stocks, you can sell them up and leave the stock market behind for a little while. There is no need to make any big long-term commitment. So, if it gets too much for you or you decide it’s not for you, it’s easy to sell up and leave it all behind.


A helpful trading platform at EzTrader FC

The world of binary trading oezffers many exciting opportunities for investors. If you are looking for a good introduction and some helpful information on how to start trading, then the EzTrader platform provides a very solid starting point. For those who already have experience in this area, the site also offers advice on managing risk strategies and optimising a wider portfolio in order to maximise returns.

Binary trading with a football twist

The EzTrader experience is distinctive because of the level of educational support that it offers. It also stands out because it is presented through the concepts and images of football. This makes the trading process very easy to understand and it also helps to give users the confidence and motivation to reach their goal. Competitions are offered through EZ Trader’s partnership with various international football clubs. Prizes such as tickets to key matches can be won. You can even trade on the outcome of specific world events including elections and referendum results. Trading on binary options has never been so much fun!

Plenty of bonuses and special promotions

When you sign up for the EzTrader experience, you receive an initial ‘EZ Kick Off Pack’ full of helpful information and tips for success. There is a welcome bonus that can be as high as 100%, and there are further binary options trading bonuses, free trades, cashbacks and lots of special promotions. The platform aims to give you option trading made easy, and with these perks and pointers, it really does deliver what it promises.

Guidance for beginners and experienced traders

The introductory video offers a useful overview of the three easy steps you have to follow: first you choose an asset. After this, you just set an amount and then execute your trade with a single click. It couldn’t be simpler, and EzTrader does all the work behind the scenes to ensure that the trades are executed in good time and payouts are posted swiftly into your account. There are also very clear explanations of key terms, and straightforward definitions of the different kinds of options available. The website offers some detailed advice on how to build successful strategies for various option classes and adapt them for different market conditions.

There are also various trading tools which provide a very helpful insight into the deeper complexities of binary trading. This is a very valuable asset for those who want to learn about the wider binary trading market and understand the factors that influence rising and falling trends. These tools include ebooks and videos, webinars and other data. It naturally takes a little time and effort to become familiar with these extra learning tools, but there are significant advantages in having this kind of extra knowledge. You don’t have to make use of these tools, but they are provided so that you can hone your skills and improve your results.

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The 1-2-3 Method for Forex Trading

The 1-2-3 Method for Forex Trading

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The 1-2-3 method is a trading strategy that is used across nearly every investment market there is. Futures traders use it, stock traders use it, and now, forex trading is benefitting from this particular strategy. When it’s used correctly, this method offers traders the ability to predict entry levels with a great deal of accuracy.

The Bottom Line

Most often, when searching for how the 1-2-3 method works, investors are simply shown a few candlestick graphs with certain points circled for emphasis. That might work for some visually-minded investors, but others may not understand the point of the strategy simply by looking at a chart, so here it is:

The point, or bottom line, of 1-2-3 trading is to predict the end of a prevailing trend.

That’s it. You’re simply using data to get a clue as to when a trend is headed for a reversal. This is very well suited to the Forex market, because there are trends for the same assets across a variety of time frames, all of which can be analyzed and exploited to make the best trades possible.

Example: Down to Up

Let’s say you’re watching a downtrend in a particular currency’s value. First you need the most recent low, and the most recent high. Now, if the downtrend were to continue steadily along it’s downward path, the next high after the most recent low would be lower than the most recent previous high.

So, if you see that the next high is higher than the most recent previous high, that is your first hint that the downtrend is ending. This where the name “1-2-3 method” comes from in forex trading. The strategy is named for the three data points you need to get a hint that the trend is trading: the recent low, the recent high, and the next high.

In order to trade wisely, the next thing you need is confirmation. Watch for the next low: if the next low is lower than that most recent low you started with, the trend is likely continuing, and you just witnessed a little bump. However, if the next low is higher than your original recent low, you’re looking at a confirmed trend change.

Now What?

Once you’ve confirmed that a trend has changed, you still want to be sure you’re trading safely. The best thing to do is wait for the next high after your confirming low; if that high closes at a price greater than the third point in your 1-2-3 method, you’ve got a winner. Most forex traders would utilize the strategy now to trade long.

The 1-2-3 method can be used in reverse for uptrends. Simply watch for an overall downward pattern with the three data points. As traders get more and more comfortable with the market, they can eventually begin using this forex trading strategy to get in the door even sooner, which means their profit margins can be even higher.

Choosing the best strategy for trading can pay off big time with a little practice. Of course, no forex trading strategy works all of the time. The forex market is often considered one of the most volatile, so predicting trends isn’t always an exact science. But as far as methods go, this one has withstood the test of time throughout almost every trading industry, making it a go-to for most traders.

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Meta Title: The 1-2-3 Method for Forex Trading
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Meta Description: Learn what the 1-2-3 method is, and how to utilize this time-tested forex trading strategy to see higher returns and more confidence in your trading.


The Importance of Research in Investing and Trading

The Importance of Research in Investing and Trading

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You may have heard from someone that the economy is really strong right now. Or you may have heard that a particular industry is a sure-win game at the moment. Whatever you’ve heard, you shouldn’t just go into investments all guns blazing.

Successful traders didn’t make their money by making blind investments. Before investing in a company or completing a particular trade, traders will do some thorough research. This is what will help you find success in trading.

Of course, all the research in the world won’t guarantee you a hefty profit from all of this. Investing is always a gamble of sorts. The trick is to make it less of a gamble by making sure you go in with as much knowledge about your pursuit as possible.

What do the company do?

This is stock investing 101. You shouldn’t just be investing because you’ve seen a bunch of nice colors and big numbers. You may have heard the company’s name in the news a lot recently. You may even own one of their products. But that’s not enough. You need to know exactly what it is they do, as much of it as you possibly can.

You should also be looking into why they do it. What’s their actual purpose? What are they likely to do in the near future? Smart traders know the answers to these questions.

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Relying on first-hand information could be your downfall

Are you getting all of your information from the company itself, or from a representative of the company? Are you getting your information from an advisor who wants you to invest in them? People often trust the information they get from these parties. But they’re the parties who want your money! Smart investors and traders get more information from an independent party. The Internet will provide you with plenty of new information sources about any company.

The asset at hand

Of course, not all investment in a company will take place over stocks. You may be giving them money directly to aid in the development of a new product. There might be alternative forms of trading with company assets such as binary options. Whatever the asset or trading method, get to know it a bit more. If you’re being offered binary options, for example, seek out expert advice on binary options. People who go into this without knowing much about the investment method could find themselves losing money in the confusion!

Dancing with the enemy

Okay, so you’re liking the look of this company so far. But how much do you know about the field in which they work? This sort of thing is what you should have been researching earlier. If you know a little about their particular industry, then you’ll be able to locate their competitors with ease. You should compare the company with its competitors to make sure you wouldn’t be better off investing in their enemy.

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Being careful about history

The price-to-sale ratio history of a particular company may give good indications about what their stock may do. But smart investors take care not to take predictions made from this too close to their heart. After all, the history of a company’s stock can only tell you so much.


Online Trading: A Look at its Possible Future

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According to experts, online trading will be very different from what it is now in 25 years from now. That time when even the middle-class investors will have full-time personal investors is not far either. And, no we aren’t talking about humans here. We’re talking about deploying artificial intelligence as our personal financial advisor. Here’s what we need to know about the top trends ruling the world of online trading and a bit about its future.

The advancement of forex: The importance of computerized symbols will magnify in the coming years

The innovations introduced in the measurement of monetary data make for the most notable change in the world of online trading. The prospect of forex trading, for instance, has increased by leaps and bounds – thanks to these innovations. As you are definitely aware, forex trading employs computerized symbols that help traders chase down exchanges with noted exactitude irrespective of the conditions in which you are trading.

Get ready for some serious crowdsourcing taking the world of online trading by storm

It has also been predicted that crowdsourcing will be a common practice for small cap stocks. According to reports, Securities and Exchange Commission (SEC) had already been considering crowdsourcing as a means of raising funds for smaller companies. As of now, there are definite concerns surrounding fraud and investment suitability. However, it is believed that these issues can definitely be dealt with. There is little or no scope for them assuming the shape of insurmountable odds.

Forex will become more popular

Talking about forex, let us tell you that it has started gaining huge popularity across the globe – thanks to its robust exchange patterns, making the entire proposition a lot more feasible for traders. The recent years have witnessed a 50% increase in the proposition of online trading from what it was earlier.
It has also been opined that with its 24-hour premise forex has successfully avoided the stillness engendered by the boring and disorganized theories. The market duly pays attention to the zero democracy trade while obtaining the ratio of capital inertia as well. The 24-hour capital movement ensures fast track exchange of money from one hub to the other.

Digital avatar!

The amount of information made available to you will literally explode. With better availability of financial information, trading itself will become more complicated but experts are still hopeful about your trading future since your digital avatar (as is already mentioned, they do believe that around 20 or 25 years down the line it’s your digital avatar which will do most of the trading on your behalf) will hunt down trading opportunities on your behalf, and that too, as per your specifications.

To find out more about online trading please visit easymarkets.com. What changes do you think will go on to revolutionize online trading in the years to come? As of now, the gradual evolution of artificial intelligence turns out to be the most talked-about possibilities in the world of trading. Online trading, we’re sure will start “looking” different in twenty five years from now as well. What are your predictions?


Forex: All you Need to find out about PAMM

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PAMM or Percentage Allocation Management Module refers to a trading account used by one or more investors. There is a dedicated manager looking after a particular PAMM account whereby different traders are invited to invest funds. It is the dedicated manager who carries out trading on the investors’ behalf. One of the biggest advantages of this particular account is that even novice traders can initiate their careers – knowing full well that an experienced manager is there to take care of their funds. The manager cannot withdraw his capital unless his fund is liquidated thereby guarantying the due safeguard to investors that they deserve. PAMM is backed by a very simple investing process. Given below are further details of PAMM. Please read on.

PAMM: How it works

A PAMM account is started by a fund manager. He is the one who invests in the account at first and then puts forward his proposal or invitation for other investors. The proposal put forward by him includes several details including the ones mentioned below:
? Minimum Capital Account
? Success fee

Minimum Capital Account and Success Fee

Though you can well understand that the Minimum Capital Fee is the minimum amount of money that one needs to invest in order to start the PAMM account and that the success fee is the charge spelt out by the manager for the profits generated by him- if you are really eager to initiate your career in PAMM then you need to know more about the same. Those who choose to invest in PAMM accounts are mostly not professional traders but have a certain degree of interest in investing. They are mostly involved in day jobs and other activities that keep them from online trading. Here are further details.

The Minimum Capital needed is the minimum capital that you need to invest in order to be a part of the PAMM account. The minimum amount required is $500.

The Success fee is the fee which is calculated on the basis of High Water Mark. In order to have a clear understanding of the success fee you need to understand what High Water Mark exactly is. High Water Mark refers to the peak value of the funds touched during a month. The High Water Mark ensures that the fund manager is only paid when he has delivered results for investors. This acts as a definite safeguard for you. Not to forget that the fund manager will not receive any money until your fund reaches the high watermark level during a month.

Benefit

One of the most notable benefits of PAMM accounts is that it spells a win-win situation for both the investor and the fund manager. While the investor can still dream of being a part of online trading without really being acquainted with its finer details (they capitalize on the skills of the fund managers), the fund managers can expect to compound their profits. To find out more about PAMM, please click on this ‘link’ and stay informed.


Top 5 trading pitfalls that hinder success as a trader

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Getting success in future trading needs avoiding several pitfalls as much or more than it does seeking out and performing thriving trades. Even professional traders don’t have any particular trading methodology that ensures success as a trader though there are certain rules to which you can strictly adhere to keep yourself ‘in the game’ long enough to get success. Be it forex or future market, with the widespread of Internet, today’s traders use future or forex automated trading tools depending on their requirement. But whatever you use, you must avoid getting into any pitfall that would restrict your chance to succeed as a trader.

Here are 5 of the most prevalent mistakes traders generally make in future trading.

  1. Failure to have a plan – Failure to have a winning trading strategy in place prior to a trade is being executed. If you don’t have your own plan of action in place upon getting entry into future trade, you won’t know when and where you need to exit the trade or about how much money you can make or lose.
  2. Insufficient trading asset or improper money management – It obviously doesn’t take a fortune to trade in future market with success. If you have less than $5000 in your trading account you can and do your trade successfully. But if you have more in your account, you can and do even huge loss in just a heartbeat. Part of your success boils down to proper money management and not running after highly risky ‘home-run’ type trades which involve too much money at one time.
  3. High expectations, too soon – Being a new future trader if you expect to quit your ‘day job’ and make a good living trading future in your first few years of trading, you may get disappointed. You must avoid expecting to become successful in the first couple of years of trading. It needs a lot of smart and hard work, calculations and of course firmness to get success in any field and endeavor, and trading in future market is no different. Trading in the future is not that easy and so ‘get-rich-quick’ scheme hardly works out.
  4. Failure to use protective stop – Using protective buying stop or sell stop upon entering into a trade provide you with an effective idea of about how much money you is risking on that specific trade, should it turn out to be a loser. A protective stop is an excellent money-management tool though not perfect. There is plenty of money – management tools in future trading that you can use to achieve success.
  5. Lack of discipline and patience – Though over-worked and often mentioned when determining what a successful trader lacks, even the most veteran traders won’t argue with the merits of these virtues. It is always recommended that you don’t trade for the sake of trading only. Let an opportunity of ‘set-ups’ come to you and then you act upon accordingly in prudent and proper way. The market will go in its pace and you can’t control it.

These are some of several mistakes that traders, especially the newbies make while in the market. Avoiding such mistakes would give you the prospect to become a successful trader.


New Investors: Read This Before You Start Trading!

Different people see investment and trading in different ways. For some people, it’s not much better than playing roulette. For others, it’s a fine science, and has absolutely nothing to do with luck. If there’s one attitude you don’t want to have, it’s that trading is an easy way to make money! so many rookies get chewed up by the markets by making ill-informed mistakes. Here are a few you should be aware of.

One of the most damaging mistakes you can make is thinking you have a sixth sense for trading. Okay, maybe you do have a certain amount of intuition when it comes to business and economic changes. However, you won’t have much success in trading if you go with your gut instinct on all big decisions. Some traders can come off as cocky, I know. Don’t let this attitude make you think that they’re all winging it though! For the best start in trading, you should be relying on logic, solid information, and proven strategies. Sure, you might come across a small up-and-comer once in a while who’s worth investing in. Just make sure you’re making decisions based on evidence, and not emotion.

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Source: Wikimedia

Another big mistake is starting to invest before you know enough about it. Let’s say worked as a higher-up at a business for some time, and watched certain markets explode and crash. In this position, it can be easy to think that you’ll pick trading up as you go along. Believe me, you’d have to be extremely lucky to jump right into trading, and still get good returns. One of the most important things in trading is having a good understanding of how it works. If you want to go into Forex trading, then start learning how to study charts and make predictions. If you’re going to be trading in dividends, then start reading specialised blogs such as dividendmantra.com . The more you know about your market, the easier it will be to profit from it.

Finally, don’t take too long to close the trade. Countless rookies invest some money, watch it grow, and then stick with it without keeping up-to-date on the asset. Sometimes it’s down to belief in their own intuition, on thinking that the stock will continue to rise in value indefinitely. Whatever the reason, this usually ends up with the newbie learning a hard lesson, and losing all their invested capital. Starting finding out about how assets plateau, and how you should act according to shifts in the market. If you hang onto an asset that goes into a nose-dive without you noticing, then you’ll be in for a nasty shock! After a big loss, some newbies panic and immediately re-invest in a poor stock, which takes us back to my first point. It feels great to win, I know. However, it’s extremely important to know when to close a trade.

 


What does a Forex broker do for you?

ForexWho is a Forex broker? Most of the traders out there will tell you that the broker is the link between you and the huge currency market. The broker is the one who provides you the trading platform and the trading tools that can be utilized optimally to rake in profits. However, let us tell you that a broker is much more than just your connection to the currency market. A broker acts as your personal mentor throughout your trading journey.

More about the broker

The broker plays a major role in the life of a trader- especially if he is still new in the market. A broker is the one who identifies the best of investment opportunities for traders and helps them generate profits accordingly. The Foreign Exchange makes for one of the biggest financial markets in the world. The dynamics working behind the market might as well end up overwhelming newbie traders. As such it is extremely important to select brokers who can assist you multiply your profits. The market is throbbing with a number of brokers out there. However, not all brokerage firms out there are equally dependable. Listed below are a few cardinal rules that you must follow while you’re looking for a forex broker.

Choosing a Forex Broker: Things to keep in view

It is extremely important to understand that you just cannot look up the internet and choose an online broker just because the firm is charging you much less than others. Costs should never ideally be your sole criterion for choosing a broker. Here are a few factors that you should keep in view:

Regulation:

Find out if the forex broker whose services you are considering is duly regulated or not. Different countries have different governing bodies regulating the respective currency markets. It is important to find which regulatory body is operating in your country and if the broker you’re considering is regulated in accordance or not.

Trading platform:

Check out the trading software offered by the broker. The trading platform should be backed by the much coveted combination of an intuitive interface and innovative trading tools. If you are willing to access your account via your iPhone or iPad or Android device then make sure that you are checking out whether there’s room for such access or not.

  • Professional charts
  • Totally automated operation without any interruption from the dealer
  • Cash rebates for high volume traders
  • Substantial risk management functionalities

The aforementioned features make for just a few ideal aspects backing a forex platform.

Demo Account:

The demo account makes for a very important tool which helps the trader hone his trading skills. He can practice with fake money under real trading conditions– so that he can experiment with all his trading moves without the fear of losing money.

Looking for a dependable name in this regard?  And, do not forget to keep the aforementioned factors in view! Best of luck! Your choice should be the ideal combination of cost and quality.


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