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How to Become a Forex Trader & Build an FX Mindset

Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? In this piece we’ll explore how you can become a forex trader, revealing the qualities you need and the processes to follow to get…

Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? In this piece we’ll explore how you can become a forex trader, revealing the qualities you need and the processes to follow to get started and be a consistent trader.

What does a forex trader do?

A forex trader takes long or short positions on currency pairs with the goal of making a profit. A forex trader is strategic, disciplined and always switched on to the markets. Whether focused on a technical or fundamental approach, or both, he or she will be looking to build an understanding of currency pairs’ behavior and set up profitable trades.

Forex trader symbols and currency market rates

In the 24-hour currency market, trading never sleeps, meaning there will always be action, although forex liquidity levels will peak and trough at certain points around the clock. Some traders may wish to operate in unsociable hours to put them in a position to capitalize on international markets.

What it takes to be an effective forex trader, by the DailyFX analysts

So what does it take to be an effective forex trader? From possessing a passion for the markets to having unshakeable discipline and more, here are the traits that will assist you as a forex trader from the horse’s mouth: our top analysts.

1) Have passion

“You must have a real interest – passion even – in whatever financial market/s you are going to trade” – Nick Cawley

Nick Cawley, DailyFX analyst

When trading the foreign exchange markets, you must have a real interest and understanding of monetary policy, one of the main movers of price action. For example, if you are trading GBP/USD you need to be fully in tune with all Bank of England and US Federal Reserve policy moves and speeches – both drive the market. So aim to be on the same wavelength as the central bank/s, but don’t bet against them – they have big pockets and nearly always win.

2) Understand the macro drivers

“It’s vitally important for traders to know that all currencies can have many macro drivers at any given point” – David Cottle

David Cottle, DailyFX analyst

The Australian Dollar is a primary example of a currency driven by a range of macro factors. It is often thought of as a ‘growth’ or ‘risk’ correlated unit – one which is likely to gain when the world feels better about global growth and struggle when the reverse is the case. While this is often true, there are a huge number of other possible drivers. Major commodity prices, Australian monetary policy prospects and localized political risk can all see it move against the general market grain at times.

In these days of highly correlated markets it’s tempting to separate currencies into ‘risk on’ and ‘risk off’ camps but this is far too simplistic.

3) Remember: It takes two to forex tango

Currency pairs are driven by both sides of the equation” – Martin Essex

Martin Essex, DailyFX analyst

When trading currencies, a trader needs to understand what is happening in both relevant territories. For example, when trading GBP/USD, it’s advisable to keep up with the most recent Brexit news in addition to the latest on the US/China trade war. More generally, though, a good understanding of market trading is important, from stop losses to chart patterns; from market psychology to the role of central banks.

4) Exercise proper money management

“You can have the best forex trade ideas in the world and still lose if you can’t limit losses and capture profits” – David Rodriguez

David Rodriguez, DailyFX analyst

Sound money management is the key difference between the hobbyist and the expert trader. To wit, real data from a major FX broker showed that its clients closed EUR/USD trades out at a gain 61% of the time, and yet lost money because the average winning trade was 48 pips while the average loser was 83 pips. That’s no way to make money, and that’s exactly why money management is the difference-maker between a hobbyist and a successful professional.

Read more: The No. 1 reason why forex traders lose money

Traits of Successful Traders

Traits of Successful Traders

Recommended by Ben Lobel

Discover the key traits of traders in today’s market

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5) Have the right mindset

“Strong self-discipline is needed to follow a clear-cut game plan” – Paul Robinson

Paul Robinson, DailyFX analyst

You have to be a self-starter, able to hold yourself accountable and learn from your mistakes; there will plenty of them. A love of markets and the process of trading, not just money, is extremely important – it will get you through the challenging times. Strong self-discipline is needed to follow a clear-cut game-plan, but also the flexibility to adapt to changing circumstances as market conditions are always evolving.

6) Show grit

Grit is highly underrated in most facets of life” – James Stanley

James Stanley, DailyFX analyst

Trading can be difficult. It can only appear easy from the outside because clicking a few buttons to buy or sell isn’t very difficult. But it’s not easy to consistently beat the crowd, and almost anyone on this path will, at some point, face challenges. Grit is what enables success in those challenges, and a lack of grit is what makes it easy to quit for whatever reason.

The Ultimate Checklist to Become a Forex Trader

Now you know what qualities you need, it’s time to understand how to be a forex trader from a practical standpoint. Here’s the checklist:

1) Find the right broker

Choosing the best forex broker will make all the difference when it comes to benefiting from quality of user experience, reliable client support and competitive pricing.

2) Know how trading capital works

As a forex trader you must understand margin and leverage. Margin allows a trader to open leveraged positions, meaning greater exposure to the market with smaller capital outlay. Newer traders often look at unused margin as buying power and therefore tend to be too aggressive on their position sizing. Leverage maximizes gains and losses making your account equity quite volatile. Regardless of the amount of leverage your broker offers, we suggest using little or no leverage in your trading.

3) Start with a demo account

Practice with a demo account to familiarize yourself with the markets. From here, you can build and refine a trading strategy, get comfortable with your chosen platform and build the confidence you need to trade real money.

4) Take the plunge

Trade small with your real money account at first, and work your way up. Trade with risk management protocols in place, using stop losses, and only trade when you have undertaken in-depth analysis, whether trading fundamentals or technicals, or both.

5) Never stop building your knowledge – and character

Winning traders never stop learning and building their expertise on key markets. You should know your selected currency pairs inside out, which technical factors are relevant, and how market events shape the movements of certain pairs. Recording your trades in a trading journal will help you assess your performance and be in a position to constantly review and reassess your approach.

Master forex trading with help from the experts

Ready to start your forex trading journey?

  • Download our free New to Forex Guide for a basic introduction to the forex market and how to trade this asset class.
  • Take our DNA FX Quix to discover what kind of forex trader best suits your personality.
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RoboForex adding EOS Cryptocurrency

RoboForex adding EOS Cryptocurrency

RoboForex announced today adding EOS, a cryptocurrency which is now available for trading with the broker on both MT4 and MT5 platforms.

Roboforex added EOS CryptocurrencyCurrently, RoboForex clients have 7 crypto instruments to choose from.

RoboForex keeps expanding its crypto portfolio.

The latest addition is EOSUSD, which is already available to the clients through MT4 and MT5, alongside with six other crypto pairs:

BTCUSD, ETHUSD, BCHUSD, DSHUSD, LTCUSD, and XRPUSD.

The EOSUSD trading conditions are the following:

  • minimum lot size: 100,
  • minimum increment: 0.01,
  • leverage 5:1.

EOS is a cryptocurrency that was introduced in 2017 and is based on blockchain and smart contracts. Its key features are scalability, decentralized apps, and huge throughput (a few million transaction per second).

This is another step towards developing our crypto portfolio.

Our clients do value the flexibility and state of the art technologies we offer them As for us, our mission is meeting their expectations and constantly improving the trading conditions by opening the door to new instruments and opportunities.

says Denis Golomedov, ;Marketing Director at RoboForex.

Roboforex and Cryptocurrency

This Broker has been on the forefront of crypto trading on the Metatrader 4 and Metatrader trading platforms from the beginning and pushing for more and more trad-able assets to be added to their offering .

it took this broker a little bit of time but now that they got them selves into the cryptocurrency trading arena they come to lead the pack. this in combination with their the trading platforms they are offering makes this a broker to take notice of.

as yet there are not enough brokers that offer metatrader 5 and especially one where you are able to trade bitcoin ethereum, litecoin and now also EOS.

About RoboForex

RoboForex is a brokerage company catering to clients from various countries. The broker’s focus is providing the traders with access to its own financial market platforms.

RoboForex Ltd is a licensed company (License No. IFSC/60/271/TS/17).

 

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Local bitcoin Trader Jailed for Money Laundering

Indicted: Local bitcoin Trader Jailed for Money Laundering

Local Bitcoin trader, Theresa Lynn Tetley, also widely known as Bitcoin Maven has been indicted for indulging in illegal bitcoin-for-cash transactions. According to the Central District of California, the LocalBitcoins.com trader has been sentenced to 12 months in prison.

She has also been handed a three-year supervised release and a $20,000 fine. A former real estate investor and stockbroker, the court ordered her to relinquish $292,264.00 in cash, 25 assorted gold bars, and 40 bitcoin.

money launderingTetley pled guilty to one count of operating an unlicensed money exchange business, and another related to money laundering. Her case is the first of its kind in the Central District of California.

Tetley was procedurally supposed to register her business with the Financial Crimes Enforcement Network, an agency of the United States Department of the Treasury.

The agency is responsible for analyzing transactions to curb money laundering and related financial crimes. She also failed to implement standard anti-money laundering protocol, including reporting of certain financial sources as per the requirements of this type of business.

Tetley is said to have traded over $6 million for clients within the United States and charged higher rates as compared to other traders within the LocalBitcoins platform.

Also noted in the court documents was that Theresa Lynn laundered bitcoin for a customer who had been suspected of having acquired the cryptocurrency through illegal activities, including drug sales on the dark web.

She also carried out a bitcoin to cash transaction for an undercover agent who had explicitly declared that his bitcoin was tied to narco-trafficking operations.

According to the report, Tetley’s service was responsible for fueling the growing use of cryptocurrencies to launder money and supported a black market system set up purposely to circumvent the law.

The organizations involved in her investigation included the IRS Criminal Investigation and the Drug Enforcement Administration.

Just One of Many

That said, the government has been committing significant resources to counter the crypto – dark web menace, and earlier this month, a major sting operation was carried out against a major money laundering network. Thirty-five suspects were arrested.

One individual, identified as John Edward Monette, was charged with Conspiracy to Distribute a Controlled Substance. He was also alleged to have carried out numerous bitcoin for cash exchange transactions on the dark web, most of them in 2017 and totaling about $19,000.

Another dark web vendor busted during the operation, Ryan Farace, 34 was indicted for being involved in an alprazolam tablets manufacture and distribution scheme.

He sold the drugs on the dark web, with all transactions being made in bitcoin. Additional digital currency money laundering transactions were made to conceal the sources.

Article Originally Published:

By ELIZABETH GAIL at Coincentral

 

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Why You Need to Get Onboard With Blockchain!

Why You Need to Get Onboard With Blockchain!

Blockchain tech – so revolutionary in nature that some are calling it the “new internet.” It has applications in just about every industry, and has completely altered the way we think about internet security, the processing of information, and the speed of transactions.

Blockchain is the technology that supports the digital currency  or cryptocurrency called Bitcoin –

however this is not what it is really about as it has a far wider scope of applications and is being commercialized in a growing number of areas.

It has generated much interest in technology circles and beyond, because of the new possibilities it opens up in financial services, the public sector and other areas.

According to sites like BitFortune.net, blockchain tech is definitely worth keeping an eye on due to the myriad of benefits it provides.

Blockchain and Bitcoin are not the same thing – Bitcoin is implemented using blockchain technology, but blockchain technology can be used in contexts much wider than Bitcoin or other cryptocurrencies. so when we are talking about the blockchain we are talking about a combination of a number of technologies, these including:

  • Distributed ledgers.
  • The blockchain data structure.
  • Public key cryptography.
  • Consensus mechanisms.

Part of what makes it so exciting is that it is completely open source. As a result, there are already a number of interesting blockchain apps, and the number is growing daily.

The technology is so secure that it is already being used by DARPA to secure military data. Various governments around the world are working on ways to use the tech to protect their own data.
The tech is tamper-proof, and the data stored within it is permanent. It cannot be erased or altered, and this is what makes it so enticing to those needing more secure networks.

But there is more, folks. (Okay, so that sounds a bit like an infomercial, but the benefits are real nonetheless.) Transactions can speed across the network – taking only as much time as it takes for them to be authorized.

The blockchain cannot be described just as a revolution. It is a tsunami-like phenomenon, slowly advancing and gradually enveloping everything along its way by the force of its progression.

William Mougayar

The system runs without the need for an intermediary, and this reduces the time it takes to execute transactions. This, and the unique way that the tech works, means that costs are significantly reduced as well.

What makes it so revolutionary is that the information is spread across every computer within the network. With Bitcoin, that means the data is securely “backed up” over thousands of computers.

Now, it is unlikely that banks will entrust their data to a public network in the same way, but they have been working on creating networks of their own instead.

The potential savings in terms of cost and time are extensive. If you want to learn more about these savings, check out the infographic below.

 

Why You Need to Get Onboard With Blockchain!


Why You Need to Get Onboard With Blockchain!


Visit bitfortune.net . for more interesting Infographics

Guys did an amazing job and was allowed to share.


 

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