Connect with us

Industry News

6 Tips to Improve Forex Trading

Like many other financial markets, the forex market has experienced a huge turmoil in recent months, following the Covid-19 global events. This situation brought a lot of interest to the market, with experienced traders trying to leverage their knowledge to take advantage of the situation and new traders looking to enter the market.

Like many other financial markets, the forex market has experienced a huge turmoil in recent months, following the Covid-19 global events. This situation brought a lot of interest to the market, with experienced traders trying to leverage their knowledge to take advantage of the situation and new traders looking to enter the market.

This article tries to offer both new and seasoned traders with some trading tips to improve their forex trading activity.

1. Work only with Regulated Brokers

Regulatory authorities ensure that brokers are fair, transparent, and protect the funds and privacy of their traders.

Some of the major regulators in the financial industry include CySEC in Cyprus, FCA in the UK and FSCA in South Africa. When a broker is regulated by one of these regulators, they ensure fair and ethical business behaviour.

2. Choose your Trading Option Wisely

To be involved in the forex market you can choose standard spot/cash transactions but you can also use other trading options that allow more flexibility. Choosing the right vehicle for forex trading can make a substantial difference in a trader’s performance, so choose wisely while considering your needs, trading goals and risk appetite. Here are some popular options:

ETFs – Exchange-traded funds (ETFs) are investment instruments consisting of a collection of securities. They allow diversification without the requirement of placing trades on individual currencies.

Futures – Currency futures are contracts between buyers and sellers to buy or sell a specific amount of currency at a specified price on a future date without owning the actual currency.

Options – Options are similar to futures as they allow traders to trade on the price of a currency without owning the actual asset. Options differ from futures by giving buyers the right or “option” to buy or sell the asset at a specific price on the date that the option contract expires.

CFDs – Contracts for difference (CFDs) are a popular form of derivative trading that is available over the counter. They allow trading on the rising or falling prices of currencies without owning the underlying assets.

3. Follow Economic/Political News

Since the value of a country’s currency is closely tied to the economic and political situation of that country, it is very important to follow financial, political and general events, news and central banks decisions related to the country and other related global economies.

4. Use Expert Analysis and Tools

The internet is a huge source of information and expert advice, and it’s always a good idea to look at what experts are saying and the way they analyze the situation before making any trading decisions.

Some online brokers feature on their website a special market analysis section that contains articles with market overview and outlook, economic events coverage and analysis, economic forecasts, trading strategies, and other topics, all of which can help an investor make more informed decisions.

Some brokers also offer a Trading Central section which offers analysis tools like trading indicators, preferred trading strategies, pivot price points, support and resistance levels and more.

5. Use a Demo Account

Many online brokers offer a demo account for new users that allows them to get used to trading before trading for real money. Besides being a great way to become familiar with all the features, using a demo account gives traders a feel for how their strategies will play out in a real trading environment.

Demo accounts also help experienced traders test their techniques in volatile and/or novel conditions. Since most demo accounts look exactly like live accounts, this makes them a useful tool for traders of all levels.

6. Use Margin Trading Wisely and Responsibly

Margin trading is the practice of obtaining credit from a broker in order to place larger trades. While this technique can magnify profits, it can also create massive losses.

With this dynamic in mind, it is typically advised to keep margin activity at a manageable level, while taking into account your risk appetite and your ability to withstand considerable losses.

Final Word

While the tips in this article will help traders upgrade their forex trading activity, they don’t guarantee profits. That’s why it is always important to trade with caution and only with money you are willing to risk.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the risk of losing your money.

Continue Reading

Industry News

School4Trading Review – How to Spot Possible Forex Broker Fraud

School4trading Review

School4Trading Review – How to Spot Possible Forex Broker Fraud

In this School4trading Review, we will look at the features of the software, as well as the customer support. First, let us look at the interface. The design is simple and easy to navigate. It also provides a chatbot, which helps you to communicate with the broker. The customer service is warm and inviting, which is a hallmark of a good broker. In contrast, a fraudulent broker will use cold and impersonal customer support to lure people in.

Another problem with the system is that the login process is not always intuitive. You may have to retype your password several times to get in. Then, you may experience difficulties withdrawing your funds or accessing your account. In such cases, you might have to wait for days or even weeks before you can withdraw the money you’ve invested. This is not a good sign. It’s better to choose a different trading platform altogether.

If you’re having trouble logging in, you should also check the legitimacy of the broker. Whether the broker is licensed by a reliable regulatory body or closed down, you’ll want to be sure it’s legitimate. If the broker isn’t licensed by the right body, don’t trust him. You shouldn’t waste your time with an inexperienced company. This will only cause you problems in the long run.

The next factor that should be checked is the licensing. A legitimate broker will have a license from a high regulatory body. However, a broker without a license will be unreliable. Moreover, a reliable regulator will take away the license of a scam broker. As a result, a trustworthy School4Broker/Profittrade review should mention fees, account rules, and contract terms. A scam broker will be unable to operate legally.

Secondly, look for warning signs. The broker should be licensed and regulated by a reliable regulatory body. It should be regulated by a high level. If it doesn’t, it’s a scam. Lastly, it should have a website that lets you easily access your account. Moreover, you should not hesitate to check the contact information. If you find any information that seems suspicious, you should reconsider using the broker.

In summary, Forex trading isn’t easy, but it doesn’t have to be complicated. It’s not as difficult as it seems if you’ve heard about the program. You’ll learn everything about the basics and how to become a professional. But if you’re still unsure about whether this program is right for you, don’t hesitate to contact a school4trading’s website.

The most important thing to remember when it comes to Forex trading is that it’s not easy. While it’s important to have a strong background in trading, there are a number of factors that can affect your success. Having a proper plan is vital in the long run, because you will be trading with real money. And, the platform should be reliable. Otherwise, you’ll end up losing a lot of money.

As we’ve mentioned, Forex is not easy. Investing isn’t something you can do in the comfort of your own home. You need a proven system. There are no free trials, so you’ll have to find a way to do it yourself. This isn’t a scam, and it’s a great way to make money without any help. A Forex system can help you learn the intricacies of the market.

Although the process of learning Forex isn’t an easy one, it’s certainly not impossible. Fortunately, there are many people who are willing to take the time to learn how to trade. But, even the most experienced trader needs to be aware of the risks of the market. While Forex trading isn’t easy, it can be done with the right knowledge. The software’s user-friendly interface is key.

Continue Reading

Daily Financial News

Don’t Count On JPY Correction; Staying Long GBP/JPY

The path of the potential pace of the JPY decline may still be underestimated by markets, which continue trading the JPY long.

While the 10% USDJPY advance from September lows looks impressive from a momentum point of view, it may no thave been driven by Japan’s institutional investors reducing their hedging ratios or Japan’s household sector reestablishing carry trades.

Instead, investors seemed to have been caught on the wrong foot, concerned about a sudden decline of risk appetite or the incoming US administration being focused on trade issues and not on spending. Spending requires funding and indeed the President-elect Trump’s team appears to be focused on funding. Here are a few examples: Reducing corporate taxation may pave the way for US corporates repatriating some of their USD2.6trn accumulated foreign profits. Cutting bank regulation could increase the risk-absorbing capacity within bank balance sheets. Hence, funding conditions – including for the sovereign – might generally ease. De-regulating the oil sector would help the trade balance, slowing the anticipated increase in the US current account deficit. The US current account deficit presently runs at 2.6% of GDP, which is below worrisome levels. Should the incoming government push for early trade restrictions, reaction (including Asian sovereigns reducing their holdings) could increase US funding costs, which runs against the interest of the Trump team.

Instead of counting on risk aversion to stop the JPY depreciation, we expect nominal yield differentials and the Fed moderately hiking rates to unleash capital outflows from Japan.The yield differential argumenthas become more compelling with the BoJ turning into yield curve managers. Via this policy move, rising inflation rates push JPY real rates and yields lower, which will weaken the JPY. Exhibit 12 shows how much Japan’s labor market conditions have tightened. A minor surge in corporate profitability may now be sufficient, pushing Japan wages up and implicity real yields lower.

JPY dynamics are diametrical to last year . Last year, the JGB’s “exhausted”yield curve left the BoJ without a tool to push real yields low enough to adequately address the weakened nominal GDP outlook. JPY remained artificially high at a time when the US opted for sharply lower real yields. USDJPY had to decline, triggering JPY bullish secondround effects via JPY-based financial institutions increasing their FX hedge ratios and Japan’s retail sector cutting its carry trade exposures. Now the opposite seems to be happening. The managed JGB curve suggests rising inflation expectations are driving Japan’s real yield lower. The Fed reluctantly hiking rates may keep risk appetite supported but increase USD hedging costs.Financial institutions reducinghedge ratios and Japan’s household sector piling back into the carry trade could provide secondround JPY weakening effects

Continue Reading

Daily Financial News

Mexico raises interest rates, cites Trump as risk

The head of Mexico’s central bank says U.S. Republican candidate Donald Trump represents a “hurricane” sized threat to Mexico.

Banco de Mexico Gov. Agustin Carstens told the Radio Formula network Friday that a Trump presidency “would be a hurricane and a particularly intense one if he fulfills what he has been saying in his campaign.”

Trump has proposed building a wall along the border and re-negotiating the North American Free Trade Agreement.

Mexico’s central bank raised its prime lending rate by half a percent to 4.75 percent Thursday, citing “nervousness surrounding the possible consequences of the U.S. elections, whose implications for Mexico could be particularly significant.”

Mexico’s peso had lost about 6 percent in value against the dollar since mid-August. It recovered slightly after the rate hike

Continue Reading