Zum Inhalt springen


Best Finance Network
Get the best connectivity about finance.


April 2, 2019

Three commons mistakes of the novice traders

traders infoDealing with the currency trading industry is one of the most difficult tasks in the world. You might be a successful businessman but this doesn’t mean you will be able to make consistent profit in the trading industry. There are many things you need to consider before you can make a living out of trading. For instance, those who trade the market with emotions are always blowing up their trading account within a very short period of time. So if you want to survive in the investment business, you must learn the perfect strategy to control your emotions.

Though trading is a very tough profession, by following some simple rules you can easily make a decent living. New traders in Hong Kong are doing relatively well in this business since they learn about the most common mistakes in this business. Let’s learn the three most common mistakes for which the retail traders are struggling in this profession.

Addition to the trading industry

Trading can be an extremely addictive profession. New traders always want to stare at their trading chart to find quality trades. However, if you become addicted to this market it won’t take much time to start over trading the market. The movement you become addicted to this profession is the very moment you risk your entire investment. This will eventually lead you to over trade the market which is one of the major cause to lose money. You might think by placing more trades, you will be able to earn more money. But do some simple math and try to learn from the experienced traders in Hong Kong. You don’t have to execute tons of trades to secure a decent profit at the end of the month. Just stick to the basic rules of investment and focus on carrying out quality trade executions.

Not having a risk management policy

Without following strict money management rules, you will never become a successful Forex trader. Professional traders never risk more than any amount they can afford to lose. So, it’s very obvious you need to know about your risk tolerance level. As a new trader, you might feel comfortable by risking 3-5% of your account balance but this is nothing but a suicide mission. You should never risk more than 2% of your account balance in any trade even though you have the best trading system in the world.

Winning or losing doesn’t really matter as long as you trade with proper money management. Some of you might think you can easily make a huge profit by increasing your risk factors but you have think about the worst case scenario. Always be prepared to lose trades or else you will never be able to execute quality trades in this market.

Ignoring the high impact news

During the event of a high impact news release, the market becomes extremely volatile. Being a new trader you should never trade such markets since you might lose a big sum of money. Always remember, trading is all about finding quality trades with low risk. It’s true that you can easily make a huge profit by trading the high impact news but if you do some research, you will understand why the professional traders avoid trading the high iMac news.

The majority of the new traders learn technical analysis to trade the market. Once you master the art of technical analysis, you can easily execute quality trades but you will never know the proper way to assess the strength of the market trend. To do so, you must learn fundamental analysis. Once you master the art of fundamental analysis, you might feel fascinated with a news trading strategy. This is where you need to keep your emotions in control. Never try to make some quick profit from this market based on high impact news trading. Follow the conservative trading technique as it will save you from blowing up your entire trading account.

Tags: , , , , , , ,
March 29, 2019

Long term trades help the traders to maintain performance

trading aspectsIt is good to spend some time on the trades before executing them? Well, the traders will have to think about keeping their trades organized for the right placement. Actually, the trading edge will be doing that. You will just have to be patient and work in the right order according to a proper trading edge. Another thing is, you will have to create the right trading edge. All of those talks may seem a little hard to the novice traders. They can hardly imagine making the trading edge and continuing the business at the same time. It is necessary for the right improvements to be made in the business. The traders will have to be right with their trading approaches. There will also be some time required for the right improvements to the trading processes. So, why not extend the trading approach based on time? It will be good for traders to think about their works properly before placing a trade. Then the right time will also be available for the traders to improve the strategies and plans for the business.

It is needed for thinking about the trading edge properly

We are talking about the long term trading process in this article. It is really helpful for the improvement of the trading edge. Think about managing the trading approaches and improving your strategies at the same time. It would not be good without thinking about the proper management of both of the works. For that, there will be some proper time needed. That is where the swing or the position trading system comes handy. The day trading system is also considered as a long term trading process. For the novice traders, it would not be good. So, now that you have learned about the right time management of both of the works, it is time for making out the mind on either one of the two proper trading methods. We would suggest you follow the swing trading method for your business. It is very good for the right performance in your business.

Riding the long term market trend

The professional traders at Rakuten are making a consistent profit based on trend trading strategy. Though the term fx trading Australia is very popular in today’s world, very few can actually make a consistent profit. Being a new investor you need to focus on the daily time frame. Stop focusing on the lower time frame as you will always end up by placing trades against the market trend.

Try to manage the business with efficiency

In the trading approaches, the traders can have the correct setups. We are talking about the right trading performance with proper setups. There are a lot of things to maintain the right trading performance. Risk management and profit setups will be some of the most important few. The right set of those two will help the traders to maintain the stop-loss and take-profit. From there, a good trading performance is possible for the traders. Well, it can make your business secured from too many losses of course. And that settlement alone can have a good impact on the trading performance. Apart from all of the setups, the most time hungry work which is known as market analysis will get proper focus.

Make the most effective trading routine for yourself

So, we can clearly see that the trading business in Forex will have to be proper with every necessary thing. But without some good trading method, it is not possible to maintain. On the other hand, the improvement of the business will also have to be maintained at the same pace. So, selecting the long term trading process will help you. But without a proper trading routine, it is not possible to manage the business and the improvisation of the edge simultaneously.

Tags: , , , , , , ,
March 22, 2019

The Pros and Cons of Forex Investing

invest in forexMany successful self-taught investors have started with forex investing. Forex investing is a great way to test the waters and start understanding how markets work. However, people who sell forex products often prey on this audience and make them believe that trading forex is the easiest way to make money through investing, which is not actually true.

While for some, forex might be their favourite way to trade, for others, it might not be the best choice based on what they’re looking for. In this article, we’re going to give you some of the pros and cons of forex investing so you can make a more informed decision.

Pro: Forex Trading Allows you to Start for Cheap

Forex allows you to trade with very low costs. There aren’t any real commissions to pay on forex since the majority of brokers will make money off the spread between currencies in the market. So, you won’t have to worry about additional brokerage charges, which eliminates an overhead. With equity trading, commissions will play a huge role in your trading strategy and they will have a major influence on your choice of brokers.

Con: Forex Often Lacks Transparency

Forex is not the most transparent market out there. Sometimes, you’ll only get access to quotes provided by your broker. You also might not know exactly how orders are fulfilled. And in some cases, you might not actually get the best price on a particular currency. Deregulation means that brokers have the upper hand in this situation and pretty much hold all the cards.

However, this can be avoided if you’re going for a broker that is regulated by reputable regulatory bodies. Forex brokers like markets.com, for instance, are regulated by the ASIC in Australia, the CySEC for European traders, and the FCSA in South Africa. If you want to learn more about them and what they have to offer, you can check out this markets.com review from InvestingGoal. You’ll also find other reviews on the InvestingGoal website if you’d like to explore what other options are available.

Pro: Works with Different Trading Styles

One of the best things about the forex market is that it’s open 24 hours a day, seven days a week, and it fits different trading styles. Forex is a great option for people who want to do some short-term trading. And while the markets never stop, you can still monitor when there will be lower activity for certain currency pairs.

For example, night time in Japan is daytime on the US east coast. Traders during this period can take advantage of the lower volatility during these periods to make high volume trades while anticipating movement during on hours. Forex also allows you to go for long-term positions as well and look at long-term developments for certain currencies. This makes forex one of the most accommodating markets out there.

Con: Price Determination can be Complex

A lot of people falsely think that determining currency prices is much easier in forex then with other financial instruments, but they’re wrong. Price determination with forex has to take multiple factors into consideration at once. Global economic and political market conditions can be difficult to evaluate, and most trading is done using technical analysis, which accounts for much of the volatility in the market. Getting the technical aspect wrong is the reason why many trades go south and can be highly cryptic in some cases, making forex one of the most unpredictable markets out there.

Pro: Short Selling is Easy

One point in favour of forex is how easy it is to short sell currencies on the market. Since the market sees so much volume, the chances of getting stuck on a trade at any given time are slim to none, and you’ll always be able to find a buyer or a seller at any time. This will allow you to make money whether a currency is falling or soaring.

Con: Leverage can be a Double-Edged Sword

A lot of brokers out there use leverage as a selling point, and it can be a great option for people with limited capital who want to control larger assets. But with high potential for gain also comes with a high potential for loss. And what’s worse is that while leverage trading is often marketed towards beginners, beginners are much more at risk of incurring huge losses. So, we strongly suggest that you don’t engage in leverage trading unless you have a thorough understanding of it, have a strong grip on your emotions, and know when to cut losses short, and an equally strong capital allocation scheme.

Conclusion

As you can see, while the forex may seem like a great trading option for some, it isn’t for everyone. Make sure that you weight the positives and negatives of trading in the foreign exchange market and see if it’s actually the best option for you.

Tags: , , , , , , , ,
September 21, 2018

The key difference between the pro and novice traders

trading optionsTo be a successful businessman, you have to be a pro in the sector you have chosen. It can be a groceries business or a factory business. What you are working within your business doesn’t matter as long as it is legal. But, how you are working and what results you are bringing out of it, matters. And we can agree on this, for better results, you have to be a good performer. To do so, you also need a good plan for your business. Let’s talk about the same thing in the trading business. You also have to be an efficient performer in this business. But, for some people, it is tough to do so because they might not have any idea about how to work efficiently. We will help you (confused traders) with some necessary qualities of the pro traders.

An effective trading edge

Remember, the most important thing in your trading business is your trading edge or trading strategy. No matter, how successful a trader, you have to understand that the most credit of that achievement of his goes to the trading strategy. Yes, other variables do contribute too. But the most important thing is the trading strategy. But, it was not the same when that trader started in this business. With time it got refined more and more. And eventually, it has reached the position to make a trader pro. So, you also have to work with your trading strategy. Even from the beginning, it has to be made by you.

The concept of trading

The concept of trading greatly varies from traders to traders. The successful Singaporean traders always consider this as their business. They never take any chance based on emotions since every action taken by them has a direct impact on their profit factors. If you get involved in options trading, you will understand the importance of trading discipline. The rookie traders always love to challenge themselves. Knowingly or unknowingly they trade with emotions and blows up their account. They don’t really know the key concept of trading. You are here to save your investment not to make your financial conditions much worse. If you think this as your business, you will be able to understand the structure of the investment business. Try to aim for high-risk reward trade setup as it will help you to overcome your loss. Never trade without having a clear trade setup.

Efficient planning for trades

Now you have made your strategy, it is time for you to make plans for your trades. Because every individual trade needs the care to be executed properly. Otherwise, there will be no good result for you after closing a trade. Right when you decide to make a trade, you have to plan for it. And the plan could be for anything that is related to your trading. Like for example, it can be when you are placing your trade or your trading routine. Or most impotent of them all, it can be the money management of your trade. In fact, this is so important that it can save your trading account from vanishing.

Realistic profit estimation

A pro trader probably has spent a lot of time in this business. So, his or her experience of it will be much more than anyone joining recently. Even that trader will understand when there is going to be a mistake by him or her. Because it is also known to that trader. And, with all those experience there will be no place for a pro trader to think on estimation. The brain of that trader will thing about fact and reality, not imagination. And his or her decisions will always be on what is visual in the price charts. And, that is a really good quality of a pro trader. You should try to motivate your mind on thinking about it too.

Tags: , , , , , , , , ,
August 4, 2018

Placing trades with a strong confirmation signal

trading timeMany people simply put their money at stake in Forex by listening to their mind. They do not feel the necessity of analyzing the chart or looking at the pattern and simply place a trade. If you are one of them, you need to read this article. This article will tell you how you can place your trades with confirmation. The confirmation that we are telling is very easy to know and you do not need to ask your broker. They are all hidden in the signals, the indicators and even in the chart you use. All you need to do is open your eyes and you will realize there are many signs that indicate if a trade is good to place or not. Traders ignore them and they trust their inner voices and they lose their capital. We believe you will not do the same mistake and we are going to tell you the signs that can assure you that it is the right time to place your trades.

Learn price action signal

Using the price action confirmation signal is one of the most effective ways to place a trade. The new traders at Singapore often say they have the perfect skill set yet they are losing money. But do you think they are using price action confirmation signal? You have to learn price action trading to trade the market with confidence. The experienced price action traders are always one step ahead in Forex trading profession. They can easily trade the market with tight stop loss without risking a huge amount of money.

Use of multiple time frame analysis

Multiple time frame analysis is another easy way to filter out the best trades. If you do some research, you will understand trading CFDs is nothing but finding the best trades in the random nature of this market. The aggressive traders might have some edge but they will never succeed in the long run. You have to do some hard work and develop your edge. Never let your emotions take control of you. Emotions have no place in the life of a Forex trader. Always believe in your skills and try to keep yourself updated with the latest news release. Never ignore the power of fundamental factors in the Forex market.

The trends are stable and dominant

One of the key indicators of confirmation of a good trade is the trends are stable and dominant. Traders are always advised to place their trades with the trend because the trend appears when there is money. If you simply place random trades, you cannot get to make your profit. You have to analyze the chart and use your skill to find out when it is the right time to place your trades. You also need to check if the trends are dominant and they are showing on the chart for a long time, indicating they will not go away when you place your trades. It is also important that the trends are dominant and they are not some weak movements by the brokers. The next time you are thinking to place your trades, analyze the quality of the trends and to will know for yourself if it is a good decision.

The market does not have a schedule for any major news release

The news release can unstable the market and it can affect your profit growth. If you want to avoid this risks, check the schedule and finds out if there are any major news planned to release at your expected time. A good trader not only practice their own strategy but they also know the news release and the information. The release of major news creates unexpected volatility and changes in trends that are not predicted and may cost money if traders place trades. Only trade when there is no schedule of the news release and the price movement is steadily changing.

Tags: , , , , , , , , ,