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Dealing 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.

It 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.

Many 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 Investing Goal. You’ll also find other reviews on the Investing Goal 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. If you don’t want to make all the investing decisions yourself you can always use a copy trading platform to make things easier.

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.

Many people are already aware of the fact that accounting plays a vital role in any startup. You need to be very careful when dealing with accounting affairs as this can affect your business to a great deal. Many just pay attention to finding their website and getting a brand name but they pay very little attention to the numbers which actually matter in order to survive in this big market. If you will not pay attention to the finances and important accounting matters then you will be at a loss without even realizing. Small Business Administration has helped people by providing a list of reasons which will eventually result in their losses of several businesses out there.

Hiring small business accountants

Many people and other business owners think that they can handle the accounting by themselves. This option is a very great option if one holds an accounting degree or a solid background in this finance field. Otherwise, it will be suggested to get small business accountants for this cause. Before planning out your business strategies just question yourself whether you will be needing a bookkeeper or not.

Bookkeeper’s job

If you are wondering what is the task of bookkeeper and how one can affect your business then they are really vital in any startup situation. Why? Because they will make a complete sense out of complicated situations and help your startup to grow eventually into a great empire. If you are wondering that what they actually do when they are not only responsible for handling the financial transactions per table also keep a record of all the systems and other statements.

Accountant’s job

You must also get the help of an accountant as an accountant will provide you with a layout for the business. You can also choose to hire additional employees for a great impact on your overall structure. Many people go for part-timer because they are a great source of help when they have a limited budget. If you have a very small company then the cost of hiring a full-timer will be really expensive and it can cost you your whole budget so that is why many prefer freelancers. This is a great way of actually hiring people only when they are needed rather than paying them for full time.

Accounting methods

Many people are not yet aware that there are only two genuine methods for accounting which is cash accounting and other is accrual accounting. As far as choosing between the two is concerned and small businesses prefer to get accrual accounting rather than the cash one. You must get the help of any professional in the finance field to see the requirement of a business and whether you should go for cash method or the accrual one. If you are wondering that what is accrual method then it basically shows you a real-time account of the finances and with the help of all the packages it gives a true picture.

In today’s digital age and globalized world, long gone is the 9-5 business day that used to be standard for most workers. While today’s fluid work environment offers an incredible amount of flexibility and creative options for both employers and employees, at the same time, there is increased urgency, pressure and expectations that work get work done and delivered fast, at the highest quality and at the lowest cost.

Companies of all sizes need to be able to provide their clients with what they want and need quickly – because if not, someone else will. While large companies with deep resources may have on staff enough employees of a varied nature to satisfy client demands for quality, speed and cost, it is a bit trickier for smaller businesses with more limited resources.

Imagine a situation in which a client approaches your business with a lucrative project that requires a graphic designer who specifically has expertise in animation. Although this project is a great opportunity for the business, it probably doesn’t make sense to hire another graphic designer with these specific skills (when you already have a great designer on your team) and to invest in training and paying benefits when this is a one time project. At the same time, though, the small business owner does not want to turn down this opportunity.

What is a small business owner to do?

One practical and cost effective solution is to hire a freelancer or independent contractor. Although this may deviate from the way the small business is used to operating, there are some major benefits to be gained by hiring out.

Save Money

It is well known that oftentimes full time employees are not actually working all of those hours they are being paid for. On the other hand, freelancers only charge you for the hours they work so a business may end up spending less money for the same work, even when taking into consideration a higher hourly rate. Plus, there are great apps out there to help keep track of freelancers’ hours to guarantee that an hour worked is an hour paid. Some to check out include Toggl, RescueTime, Harvest, Hubstaff, Time Doctor and Timely.

Save On Time

If a freelancer accepts a job chances are he or she is highly motivated to get the project done on time and done well. Since most freelancers’ business model relies on repeat customers, freelancers can be counted on to get the job done promptly, maybe even before deadline.

Save On (Office) Space

Hiring a freelancer means you don’t need to find space for another person to sit in your already cramped office. Not needing to find a larger workspace means business owners will save money on rent. The freelancer will work from home, from the coffee shop, from another country – it doesn’t matter as long as the job gets completed.

Get More Experience

Experienced freelancers have done their time working with a variety of different companies and many come well equipped with a toolbox of eclectic skills that will benefit your company and impress your client.

Gain Access to Global Candidates

Hiring a freelancer allows you to transcend borders and timezones. They can work while you are sleeping and even on weekends, helping to speed up a project or free up time for salaried employees to work on other priorities during the workday.

Overall, hiring a freelancer can give your small business the advantages of motivation and fresh skills, while saving your business valuable resources – time and money being two critical resources that all small businesses owners are seeking to maximize.

One word of caution, however. Both employers and workers need to be clear on who, according to the law, is classified as a freelancer. Sometimes, there are situations in which employers may classify employees as independent contractors when in fact the law sees them as employees. If this is the case, these workers may be eligible to make claims for employee rights and benefits. To prevent any misunderstanding or legal issues down the line, it is best for a worker and employer to execute a written contract that defines the relationship prior to beginning any work.

Lee Madison writes about financial topics relevant to small business owners. She is director of content at Yellowstone Capital LLC.