February 10, 2014

Trade Forex And You Can Make Your Fortune

Trade Forex

One of the more interesting aspects of trade forex is the fact that anyone who is an adult and has at least $50 can open up an account to trade forex. While these accounts have many names (e. g., “micro” or “mini”), the most salient fact is that the leverage ratios provided are the same – in most cases – as those given to holders of “standard accounts”. From a purely financial point of view, this is absolute gold (because as long as you have a profitable trading strategy, it doesn’t matter whether you start with $50 or $50 million, you are going to be a successful trader).
So, sign up for a “demo account” as soon as you can and start practising your trade forex moves. You don’t need to worry that anyone is going to put your money at risk. “Demos” use “virtual money”. However, they’re real in every other fashion. This makes them great teaching tools. Since no 2 are alike, go kick some tires and put the pedal to the metal.

Who Can Trade Forex And Achieve Success?

Anyone who is a legal adult in their country of domicile can trade forex. All you have to do is go on the internet and apply to either a forex-related bank or a broker. Many offer micro and mini accounts that can be funded with very little upfront cash (e. g., some brokers offer micro accounts for as low as an initial $50 cash deposit). However, before you get to that point, you may wish to spend some time practising on a demo account. Demos are real accounts, albeit they use virtual money and not your own. Through using a demo, you can perfect your ability to launch (and retrieve) a trade and to modulate the amount of leverage you’re using.

Tactics To Trade Forex And Make A Fortune

If you’re in a hurry to make a lot of money trading forex, then specialise in 1 or 2 currency pairs, trade only in the mornings of Tuesday, Wednesday and Thursday, using no more than a leverage ratio of 50:1 and a 20-period exponential moving average as your stop loss marker, with a 15-minute chart of your favourite currency pairs. For trading signals, use a pair of weighted moving averages (e. g., an 8-period with a 20-period; or, an 8-period with a 32-period) plus a “20, 9, 9 SMI Ergodic Indicator” for trade signal confirmation. Never “front run” a central bank monetary policy meeting or press conference; always remember that the trend is your friend; and, when in doubt, get out.

Choosing The Right Broker To Trade Forex

There are many different kinds of forex brokers available via the internet. Since it may not be readily apparent exactly what a broker can and cannot do, proceed cautiously. Shop around; keep some tires. Some advertise low spreads; but, is that really the case? Some advertise very high leverage ratios; but, what are their margin policies? And, what about stops? Not everyone has trailing stops, for instance. Another area of concern is trade tracking and recording. In this regard, accept no errors – ever. For all these reasons and more, it might be wise to open up more than 1 brokerage account, deploying a minimal amount of cash until you are sure of the firm that you are working with.




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