Tips to Finding a Good Forex Broker

Eduardo Montero

Author: Eduardo Montero

Last Updated on March 30, 2022

One of the first things you need to address in Forex trading is what sort of money management rules you will employ.

Forex trading is a risky business at the best of times. For this reason it is important to do everything possible to protect your investments and get qualified advice. One way of doing this is by finding a good Forex broker.

A quality Forex broker will give you all kinds of information about how and where to invest your money with foreign companies. Although Forex brokers are not readily available everywhere there are many places to find them.

Some of the best places to find Forex brokers include places such as:

  • Large commercial firms
  • Large banks
  • Internet

A Forex broker will also be able to help you learn more about Forex trading such as how and when to invest and how much to invest into a specific system. They will also be able to tell you what the minimum investment amounts are.

It would be advisable to check with several different companies before choosing one as each one has different minimum investment amounts ranging anywhere form $5-$500.
Every company also has their own fees and these fees vary from one company to another just like anything else. These fees are generally based on the type and size of whatever transaction you are involved in. Typically the largest fees are invoked when moving from one fund to another or one account to another but it is advised to always be sure you understand exactly what those fees are and how much they are. Remember that fees is how Forex brokers make their money so make sure you know what you are paying and how much.

Remember that this is a person you should feel comfortable placing your trust in. always be very aware of any Forex broker that tells you to place large amounts of money very quickly. A true quality broker will give you the necessary information and allow you time to review it and make an educated decision. Watch out for anyone that seems to be too impatient as they may not have your best interests at heart.

Remember that it is your money and you have the final say about where and how it is invested and how much is invested. Your broker should only be concerned with giving you sound advice not making your decisions for you. Any broker that tries to make the final decision for you should be avoided at all costs.

The Benefits and Risks of Swing Trading

Eduardo Montero

Author: Eduardo Montero

Last Updated on March 30, 2022

Swing trading is a style of trading in which a stock is held for a length of time ranging anywhere from as little as two or three days up to as long as two or three weeks. This particular style is usually used by beginners however more advanced traders have also been known to profit from it.

This type of trading is dependent on short term variations in the market and traders must be able to react to these changes quickly. Swing trading relies more on stress price patterns than actual stock value.

Swing trading is kind of a middle ground between day trading and trend trading. Day trading focuses on the trader holding the stock for no more than a day whereas with trend trading it can be as long as a few weeks or months.

With swing trading the trader does not wait for the price of a stock to hit bottom when buying however he also does not wait for the highest prices when selling either. They focus more on the short term fluctuations in the market. Those engaging in swing trading also do not usually have to worry about competition for large traders.

If a person wants to be successful with swing trading he needs to know how to pick the proper stocks. This usually includes the ones owned by large companies. A swing trader will generally follow a rising stock for a few days and then when it turns downward they simply change over to a different stock that is on an upward swing.

This type of trading is most profitable when markets are stable. Swing trading however is not very successful during times of constant rising or falling with very little fluctuation in stocks as this projects instability in the market making it a much higher risk.

In order to profitably engage in swing trading it is extremely important to understand the different fluctuations and rises and falls in the market and what it all means.

It is very foolish to jump in and try to compete in this market without at least doing a little research first to know which trades might be profitable and which ones will be too risky to be attempted. By knowing this you not only increase your chances of making a profit but you greatly reduce your risk of losing major amounts of money making the risk much less likely to be a waste of time and money.

Important Guidelines to Successful Forex Trading

Eduardo Montero

Author: Eduardo Montero

Last Updated on March 30, 2022

Before you even think about venturing into the world of trading there are some important things you need to know. Knowing (or not knowing) these things can dramatically affect whether or not you are successful in your trading endeavors. Following simple guidelines can go a long way in determining your success or failure and let’s be realistic if you are entering into the trading world your goal is to make money.

Have a Trading System

Having a trading system is important and can greatly increase the chances of your success. Generally when trades create a system they think in an unbiased way since no money is at risk. If no money is at risk then there is therefore no chance of losing money. This allows the traders to be more open to possibilities thus finding lower trading risks. Never approach trading randomly as it is almost certain to lead to financial disaster.

Stick With Your System

If you have determined a system and have it in place follow it. Being disciplined and following the system that you have created will help increase the chances of your success using the trading opportunities you have discovered. Failure to remain disciplined and follow your system will almost surely end in the failure of your investments and the loss of money.

Get Educated

In order to be a successful trader in the Forex market you have to be educated. By doing this you have the possibility of gaining the knowledge and experience necessary to be successful in the Forex market. Read everything you can about the market and check into training programs as well as study historical charts. All of these things will go further into making your success a reality and not just a dream.

Money Management

The main goal of money management is to keep from losing money. One way money management does this is by boosting your profits and letting them grow. By not employing good money management techniques you could lose everything very quickly.

You Can’t Win Them All

A good trader knows that you can’t win every trade. Not only is it unrealistic but it is also unnecessary to think you can win every single trade. Even if you only win half the trades you attempt you can still see a profit.

By following these guidelines you can greatly increase your chances of success in Forex trading and not only break even but make a nice profit.

Photo by Isaac Smith on Unsplash

What is social trading?

Eduardo Montero

Author: Eduardo Montero

Last Updated on March 30, 2022

Forex trading, as you undoubtedly already know, is generally based on the use of several types of analysis such as technical analysis and fundamental analysis, but have you heard of social trading?

If your answer is “no”, it is time for you to learn about what social trading actually is and why it is considered superior to other, more traditional apprenticeship methods.

Social trading: What is it?

Social trading is a practice born following the advent of online trading. Indeed, whereas before traders had to use communication methods such as the telephone and fax, today everything mainly takes place online through the internet. The flow of information available to all has radically changed the investors’ methods of trading; they are no longer alone to take decisions but rather can exchange information and advice freely with other traders, both more and less experienced.

With this growing “socialisation” in the trading world, some brokers such as eToro decided to participate and generate automated social trading.

The changes implemented by online trading

Due to what is commonly known as web 2.0, traders can now share their operations with the entire world and can also consult the trading methods of other investors, both individual as well as professional.

The fact that all information has become transparent and can be studied and analysed, then used by everyone, allows a type of mutual assistance between investors from which came a communal trading through online discussion forums to give one example.

The different operations completed on the Forex can in this way be explained by their instigators and so help other traders to understand why one investment succeeds and another fails.

Social trading: A truly different trading tool!

Following these positive results, certain brokers decided to implement tools allowing the use of social trading directly from inside the trading platform. The first to implement this system was the broker eToro who launched OpenBook in 2010. The principle of OpenBook is in fact entirely based on social trading as each subscriber that trades on the platform can share their trades and consult the trades of other investors, without communicating the amount of money invested or gained.

Thanks to this flow of information, it is easier to know how to adjust positions in accordance with the positions of more experienced traders. These adjustments can be made manually through spotting interesting trades and using them to implement your own strategy, or completed entirely automatically by making the same trades as another trader judged more experienced or profitable.

What is the point in social trading?

Although social trading can be useful for more experienced traders, it also offers beginner investor a unique chance to make profitable investments quicker while learning about Forex trading in a practical manner by following trades completed by expert investors. In this way, it is in fact easier to understand how and why the experienced traders place their orders with only a very basic theoretical understanding. In addition, traders can communicate among themselves and ask questions or advice from other investors on the platform.

It is important to indicate that the first results communicated by the broker eToro are highly encouraging as the gains recorded overall by the traders using OpenBook are vastly superior to those generated through traditional trading.