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Five tips to avoid losing money in forex

Forex’s popularity allures foreign-exchange traders across all levels, from newbies who are just discovering the opportunities in the forex market to well-prepared experts. Despite how natural it is to trade forex – with non-stop sessions, access to critical leverage and generally low costs – it is likewise exceptionally easy to lose cash exchanging forex. Here are seven…

Forex’s popularity allures foreign-exchange traders across all levels, from newbies who are just discovering the opportunities in the forex market to well-prepared experts.

Despite how natural it is to trade forex – with non-stop sessions, access to critical leverage and generally low costs – it is likewise exceptionally easy to lose cash exchanging forex. Here are seven different ways that traders can avoid losing cash in the highly competitive and risky forex market.

Find a reputable broker

Unlike many other financial markets, the forex market has much less oversight. Hence, you may find yourself working with a less-than-reputable forex broker.

Before you delve into the forex market fully, ensure you are working with a broker you can trust because the overall integrity of a broker is essential to the safety of your deposits, as well as your chances of hitting it well in the forex industry.

A good way to start is to check whether or not the broker you are choosing is registered. Each country has its own regulatory body with which reputable and legitimate brokers will register. If your dealings are within the UK, ensure you are doing business with FCA forex brokers. 

Keep your charts clean

As a trader, once you open an account, it may be tempting for you to utilise every technical analysis tool offered by the trading platform. However, what every trader should keep in mind is that – even though many of these indicators are best suited to the forex industry – it is still crucial to keep analysis techniques to a minimum so that the techniques might be effective eventually.

For instance, a very common practice is when traders use multiples of the same types of indicators – say, two oscillators or two volatility indicators. What you should note is that, when you combine multiple indicators like these, they become redundant and this can even give opposing signals.

Protect your trading account

While everyone’s focus in the forex market is channelled into making money, it is also vital to learn and know how to avoid losing it. Proper money management techniques are a vital part of any successful trade, and many forex experts would agree that you can enter a position at any price and still make money.

It’s not always about how you go into the trade, but how you exit the trade that matters. Think carefully about when it’s time for you to move on from a loss.

A good practice to consider is using a protective stop loss, which is an effective way of making sure that your losses remain minimal and reasonable. You could also use a maximum daily loss amount, beyond which no new trades would be initiated and every position would be closed until the next trading session. 

Use a practice account

Some might argue that you don’t need a demo account. However, if you are really interested in raising your level of alertness and cutting out the possibility of losing money in forex, you need to start practising with a demo account.

Virtually all forex trading platforms offer a practice account, which is sometimes called a demo account or simulated account. The catch here is that you get to trade hypothetically with a zero-funded account. Perhaps the most important perk of a simulated account is that it permits you to become adept at order-entry techniques.

There is nothing more damaging to a trading account than pushing the wrong button when entering or exiting a position in forex. Unfortunately, these events are not uncommon. For instance, it is not uncommon for a newbie trader to unknowingly add to a losing position instead of exiting the trade. Events like these are what a practice account prepares you against. There are other ways to monitor foriegn tradeing events by using tools like XE.com

When going live, start small

Once you’ve fully equipped yourself with all of the tips above, it may be time to go live – that is, go into trades with real money. However, it is crucial to note that no amount of demo trading can exactly simulate real-time trading. Hence, it is very vital for a forex trader to start small when going live.

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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.

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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

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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

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