On Top of Forex

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  • Day Trading Forex Currency: 5 Tips For Making Money

    Day trading forex currency is becoming a more and more popular way to make money. Forex is the foreign exchange market where trillions of dollars worth of currencies are exchanged worldwide every day. Money is made by exchanging one currency for another when you think that the values will change, and then exchanging them back at a profit if this was successful. Day trading systems involve opening and closing trades within the same day, although many day traders work on a much shorter timescale of just a few minutes.

    Some people become involved in forex day trading because they only have a short time available to trade. One advantage of the forex markets is that they are open 24 hours Monday through Friday, so you can hold down a job and trade in the evenings. Other traders become successful enough to do this full time. The fast and furious atmosphere provides a big rush, and although it is risky, there is the potential to make a lot of money very fast.

    Of course you cannot just jump in and make tons of money. You will need to know something about currency trading and have a profitable system that tells you when to open a trade, when to close it and how much profit to aim for.

    Here are our top 5 tips to help you make the most from day trading foreign currency.

    1. Choose your broker carefully.

    Some brokers do not like day trading and will close your account if you make money this way. Others are fine with it. Check this out before you open an account to save yourself a lot of time and frustration.

    2. Start with a demo account.

    Most brokers will provide a free demo account and you should start implementing your system with this. This will help you get to know the trading platform thoroughly and understand how to the make the most of your system before you ever risk any real money.

    3. Plan your trading time.

    You cannot be sure of having a trading opportunity right when you want it so it is important to be prepared through all of your potential trading time. Arrange not to be interrupted and minimize distractions by switching off your email and phone. See what is happening in the market including major world news. Check whether any financial reports are due during your trading time. A report being released when you did not expect it can lead to disaster!

    4. Improve your analytical skills.

    The fast moving world of day trading almost always relies on quick and accurate interpretation of charts and financial data. You do not need to be a math genius because most of the calculations are done by the software. You just need to understand what you are seeing and make confident decisions based on the data.

    5. Stay level headed.

    All forex trading relies on maintaining calm judgment, without being swayed by our hopes and fears. The fast pace of day trading makes this even more important. You must be able to apply your system patiently and consistently without being carried away by greed or panic.

    Remember that day trading is risky and money can be lost as well as made. Be sure you have your system tested and these tips fully mastered if you want to make big money by day trading forex currency. There is a solid method that major banks have used to make outrageous money in the forex market for years. Check out ChartsForex.org Here!

  • Forex Trading Broker – Chosing One

    International Money Pile in Cash and CoinsAn account with a forex trading broker is something that you must have when you are beginning currency trading. You always have to have a way into the market and your brokerage company will provide software so that you can control your trades online. They will also give you leverage so that you can trade on margins and control much larger sums that you have yourself.

    There are several things to take into account when choosing a forex trading broker. Here are some of the most important points to consider.

    1. Reliability

    Finding a broker that you can trust is not as straightforward as you might think. The forex market operates worldwide and there is no global regulatory body, so some brokers are unregulated. Check where their business is based and what registrations and memberships they have. American brokers should be registered with the Commodity Futures Trading Commission (CTFC) and/or the National Futures Association (NFA). Other countries have other associations.

    You can usually see if a broker has a big problem by checking forex forums for user feedback. However, be sure to get several views. Do not accept one person’s point of view as fact. That person may have personal or financial reasons for praising or criticizing a broker.

    2. Services provided

    The forex is a 24 hour market, five days a week. You will want your broker’s trading software to be live online all of this time (most are). You may also want to check if they have 24 hour customer support Monday through Friday.

    Check that they cover all of the major currency pairs, that is USD against EUR, JPY, GBP, CHF, CAD, AUD. They should also offer at least some cross pairs of the major currencies, that is two of the other currencies not including the US dollar.

    All brokers will offer charts and technical analysis. Check that these meet your needs. You will also want to check whether they offer instant execution of orders at the displayed price without slippage.

    3. Charges

    Forex trading brokers generally do not charge a fee or commission. Instead they make money from the spread, which is the difference between the bid and ask prices of a currency pair. Spread is usually in the range of 1-3 pips, depending on the broker and the currency pair, but it can vary at times of volatility.

    The size of the spread can make a big difference to whether you make profits in the long term. If you know which pairs you are likely to trade most often, the spread on those pairs will be more important to you than others.

    4. Minimum account and lot size

    The minimum investment will be an important factor. Some brokers only offer standard accounts where the minimum investment could be $10,000 or more. Mini forex trading accounts have a much lower minimum account balance, often$250-$1,000. These are better for almost all beginners.

    5. Leverage

    Leverage is the factor that determines how much you can control with the money that is in your account. You can often control a lot that is up to 100 times the money that you actually put in, with your broker covering the rest. Some brokers offer even higher leverage but be aware that the higher the leverage, the more you are risking on each trade.

    You can also look at a prospective broker’s rollover percentages and other policies. However, the above 5 points are the main factors to take into account when selecting a forex trading broker. Click here to get more information about how to trade like a broker at a large bank.