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How To Trade In The Forex Market For Beginners: These 5 Crucial Tips Will Save You

Easily the largest financial market in the world in terms of trading volume, the global forex market trades at about $5 trillion per day. Given that figure, there is much to gain if you decide to venture into this world. But, it is also competitive, ruthless, fast-paced, and if you’re not careful, you could lose a ton…

Easily the largest financial market in the world in terms of trading volume, the global forex market trades at about $5 trillion per day. Given that figure, there is much to gain if you decide to venture into this world. But, it is also competitive, ruthless, fast-paced, and if you’re not careful, you could lose a ton of money.

Its competitive allure is exactly what attracts traders to the market every day, which ranges from the professionals that make trading their bread-and-butter, to the people that have little to no experience but still have the guts (and the money) to give it a go.

computer-3033135_1920 For the unexperienced, the Forex Market can be scary and ruthless. Photo: Photo by Pixabay (CCO)

As challenging as it is, mastering the forex market is not an impossible task, and learning it can spell all the difference between winning big and losing all your money as a trader.

We’re here to give you a few basic tips to point you in the right direction, and hopefully help you land the success you desire.

Note that there are high level risks to trading in the market. It’s best to consult with an expert market analyst before making a decision to invest as you may sustain losses. International Business Times is not liable for any loss or damage.

Why Do People Lose Money In Forex?

Understanding why a lot of forex traders lose their hard-earned money in the market is crucial in order to make sure you don’t end up the same way. So why does it happen?

lack of understanding about the market and how it works contributes a lot. Unlike most highly skilled professions, there is no barrier to entry in the forex market, and anyone can open an account and start trading. Unfortunately, this means a lot of people without the know-how immediately jump into it without first doing the legwork.

Another factor is the lack of preparation, because even the best traders in the world can immediately lose money in the market if they go in without any preparation. Not knowing anything about trading psychology is also a common reason, and there are many pitfalls to it. Then there are trading fees, which a lot also don’t take into account.

So now that we’ve tackled some of the common reasons that result in big losses for traders, it’s time to take a look at some crucial lessons and tips you need to learn if you are to master this competitive space, or at least be smart enough to keep playing the game.

1. Learn Before You Start

When it comes to doing something new, knowing is half the battle, and this holds true especially in the world of trading. Especially for one that’s so easy to join like the global forex market.

Thankfully, it’s easy to avoid the pitfalls by simply educating yourself about the ins and outs of the industry that you want to enter. While there are countless resources on the internet to help you, it’s also easy to get information overload, leaving you more confused than you were at the start.

Forex 1 Forexmentor is an online platform and community that will help you master forex trading. Photo: forexmentor.com

This is where having mentors that are experts on the subject come in handy, and you can find some of the world’s best in Forexmentor. Founded by veteran trader and educator Peter Bain back in 2003, Forexmentor was established to help address the misinformation young and budding forex traders get online.

Now, Forexmentor has massively grown to support a community made up of thousands of members, trainers and mentors that all help contribute world-class education to those that still don’t have the knowledge and tools for the trade, be it through live training services, one-on-ones or comprehensive video classes and courses.

Forex 2 Two teaching platforms from Forexmentor that will both educate you about different aspects of the market. Photo: forexmentor.com

Forexmentor can be extremely beneficial for new traders, and can give you the edge and knowledge you need before entering its choppy waters. You can, for example, join Coach’s Corner, the longest-running forex coaching program offered by former broker Vic Noble and price action expert Darko Ali.

Started back in early 2006, Coach’s Corner offers real-time insight and training, giving you an integrated approach to trading that will teach you trading psychology and market environment, among others. Live webinars composed of QAs are also held monthly, while premium members are given access to the 24/7 live trading chat lounge where you can interact with other like-minded individuals.

For those who want something more basic, you can join options expert Lennox Chambers’ Simple 1-2-3 forex trader program where you will learn a simple and rule-based trading system that you can use to enter and exit each trade with confidence.

Forex 3 Besides webinars and courses, Forexmentor also offers home education materials. Photo: forexmentor.com

Forexmentor also provides home study courses that you can study at your own pace.

With all this, Forexmentor hopes to cover everything that you’ll ever need to not just survive in the forex trading markets, but thrive and find continuous success.

2. Find Yourself a Reliable and Reputable Broker

Now that you have the know-how to navigate the volatile and fast-paced waters of the forex world, it’s time to find a broker. But not just any broker. Remember that this is your money you will be trading, so work with a broker you can trust.

For security measures, make sure that you only open accounts with brokers that are registered with the National Futures Association. Remember to trust your money only to firms that are verified, and don’t hesitate to contact your broker or their representatives if you have questions.

Know and understand as much as you can, you’re paying them for it.

3. Practice, Practice, Practice

Before you can be good at something, you need to be bad at it first. This is also true with forex trading, especially if it’s for your first time. Thankfully, you don’t need to do all of that in the open, as it’s common to open a demo/practice account before actually trading money.

You’re in luck, as virtually all forex trading platforms offer practice accounts where you can trade hypothetically without using any real money. The idea behind this is to let you become adept at order-entry techniques and other skills that you need in the real trading floor.

It may sound unfortunate, but instances of newbies sticking to losing position instead of accepting paper loss are very common. Practicing with a demo account will let you avoid that and master the techniques that you’ll need without using real money. So take your time with this, and make sure you put in the hours.

write-593333_1920 Despite being competitive, arming yourself with the right materials and knowledge will help you find success in forex trading. Photo: Photo by Pixabay (CC0)

4. Start Small

Once you’ve mastered the necessary techniques using your practice account, it’s time to make a real one and actually trade money. But don’t go all-in just yet, and start with just a small amount of money. Let go of your desire and emotion to win big for now, and familiarize yourself with the playing field.

With small money, you can become an expert trader without losing big. Gain experience, and start growing from there. Take your time as well, you’ll thank yourself later. Patience is the name of the game.

Additionally, don’t be nervous when you lose, because chances are, it will happen a couple of times (hence starting with small money).  Maintain your cool when you win, and don’t be too hasty to withdraw. But also remember to pull out of the market when it’s unfavorable to you.

5. Develop a Strategy

Much like soldiers that plan before going to war, make sure that you develop a plan and strategy as you keep trading forward. One good strategy is to protect your account via a protective stop loss, which is effective at making sure that your losses will stay minimal and reasonable at best.

Another one to consider is to keep your charts clean, either by keeping analysis techniques to a minimum or avoiding multiples of the same types of indicators.

Lastly, keep a record of your wins and losses as you can learn from them in the future. Include your history of trading activity, dates, profits, instruments and such, as those can be useful in helping you become a more experienced trader.

These crucial tips can help increase your chances of becoming successful in the forex market. It may be hard, fast-paced and unpredictable, but following these tips will help you become a better trader than your counterparts. Good luck!

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Neteller Launches Cryptocurrency Exchange Service

Neteller Launches Cryptocurrency Exchange Service

Neteller  one of the most known Digital fiat currency wallet provider , has started allowing its users to buy, sell, and hold cryptocurrencies including BTC, BCH, ETH, ETC, and LTC.

They do this on the large scale with a pilot in 10 countries and soon another 50 countries to join . They understand that if you do this effort it will only succeed if you can do this on a global scale.

Neteller and Cryptocurrencies

Neteller is a service which is operated by Paysafe Financial Services Ltd.,

paysafe

paysafe

founded in 1999, Paysafe Financial Services entered the market with the mission to provide an online alternative to the known traditional payment methods.

Most of the traders aiming us now neteller as one of the companies through which we made our deposits and if we had any profits also our withdrawals. A couple of years ago they left the Forex and Binary industry behind since the charge-back issue became just too expensive.

But as any companies knows, if you do not adept you die. The binary option market is all but dead and the Forex industry has moved also into the directions of the cryptocurrencies. thus, neteller understands that this is where the future is.

So Lasts week they announced that they are now offering a wallet with buy and sell cryptocurrency options.

As of today, Neteller users can buy, hold and sell cryptocurrencies via a recognized cryptocurrency exchange including bitcoin, bitcoin cash, ethereum, ethereum classic and litecoin, purchased using any one of 28 fiat currencies available in the Neteller wallet.

It may not seem so exciting but for many users that love this service it actually is. More and more currencies will be added making them an true exchange in the near future.

Now one is able to fund their neteller account through many different means (Mobile, Epay, Paysafecard, local bank deposits, and bitcoin)

We think that will make the threshold for many people, who would want to buy or sell cryptocurrencies, lower. This in return is a good thing for the overall acceptance of the cryptocurrencies in the mainstream of every day life.

Conditions for buying and selling cryptocurrencies through Neteller

The rates offered are somewhat in the lower middle of the current market making them go for the save route. The average market rates on the major cryptocurrency exchanges differ all in all not that much anyways, as this is not the main reason to choose to buy Bitcoin through Neteller

The minimum cryptocurrency purchase or sale amount is “approximately equal to 10 EUR,” the firm clarified, adding that the maximum amount depends on the transaction limits associated with each account.

When You open an account with Neteller you have to choose your default currency. This is of course for most people in accordance on their geographical locations, people in Britain will go for the pound most Europeans go for the euro and pretty much the rest of the work goes for the US Dollar, thou other currencies are available

The fee is 1.5 percent for purchasing and selling cryptocurrencies from wallets with EUR or USD as the default currency.

The fee rises to 3 percent for wallets with other default currencies.

Neteller  | Why is this a good move for neteller and one that we should expect from other online Payment providers as well ?

At this moment till last week Neteller users can pay, get paid on thousands of sites, and send money around the world through their system.

The company claims to have “millions of point-of-sale, ATM and online locations” for users to withdraw or spend their cash.

Last July 25, Paysafe ( which as you remember is the company that owns Neteller and Skrill)  announced that another digital wallet provider in its group, Skrill ( formerly known as moneybookers), started allowing customers to “instantly buy and sell cryptocurrencies, including bitcoin, bitcoin cash, ether and litecoin, using any one of the 40+ fiat currencies available in the Skrill wallet.”

We could now see that this was like their test run on this concept.

We do not know the numbers that Skrill produced since they offered this service but it must have been encouraging enough for Paysafe to include their flagship brand in this endevour.

We will see where this leads but we are hopeful that this is the next step in global acceptance to the cryptocurrency revolution. Let me know what you think

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The basics of trading that one should know

The basics of trading that one should know

Things you should be aware of before you start

The currency trading industry and now also the cryptocurrency trading industry have gone through enormous volatile times the last couple of years. Now with trump and its trade wars. The fast rise and somewhat recline of the cryptocurrencies and the fast pace of international politics and economies that create high rises and steep fall of the currencies.

So what does it all mean and what can you do before start to trade on these news headlines.

Good brokers like LegacyFX and UBCFX provide the traders with the latest market news and updates on a continuous basis but if you are new to trading you still have no idea what to do with this.

You start by understanding that the involves a high degree of risk, including the risk of losing you hard earned money. Besides the ones that were lucky enough to have bought Bitcoin a couple of years back and cashed in in the end of 2017, most people don’t get rich overnight.

You have to understand that you only trade with money that you are able to lose, going hungry because you want to open a trade is not the right wy to go about it.

So, What is Forex?

You should by now understand that the value of currencies goes up and down every day.

This in general becomes apparent the moment you go on vacation and what you bought last year with your money now is not the same amount you get today at the exchange.

This is on a large scale, what a lot of people do not know is that there is a foreign exchange market – or ‘Forex’ for short – or “FX” for even shorter, where you can potentially make a profit from the movement of these currencies.

The most known Trader is George Soros who made a billion dollars in a day by trading currencies. This is of course on a scale that we are not able to reach and you need a huge amount of money to begin with. Still he made a billion in one day!!

The internet has played a huge part in making trading in currencies accessible for the masses. You also do not need huge amounts of money to actually do this. Now keep in mind that if you make 10% profit on your investment but the investment was just $50 you basically just end up with $55. still no bank will give you 10% interest on your money.

Many people and I am talking millions are now trading every day, most do this on the side and don’t do this as a full-time job, but there are today enough people that are full time traders and making enough money to live comfortably.

Retail forex market needed Brokers

The Forex market for the retail market was born, it started around 15 years ago to become more serious as technologies advanced and the stream of information became almost instant, this is important for trading as one second can make the difference between profit or loss.

So, the moment the technology was there the people that wanted to trade were there all that was needed were the Forex brokers that offered the platform for trading.

There are latterly hundreds of companies of not thousands that offer this service and there are good ones like LegacyFX and there are scams (these tend to not last long)

Forex explained in short

The Forex market is the largest financial market on the planet and has been for many years now.

Its average daily trading volume is more than $4 trillion. (just let that number sink in for a second). Of this total amount around 5% is the retail market meaning traders like you and me. Still 5% of 4 Trillion is still a number with a lot of zeros behind it.

If you compare that with the New York Stock Exchange, which only has an average daily trading volume of $55 billion. You truly see the size.

To give you another example:

if you were to put ALL of the world’s equity and futures markets together, their combined trading volume would still only equal a 25% of the daily Forex market. Insane right?

Why does this even matter?

It matters because there are so many buyers and sellers that transaction prices are kept low. To explain how trading the Forex market is different than trading stocks, here are a few major benefits.

  1. Most Brokers don’t charge commissions – you pay only the bid/ask spreads.
  2. There’s 24hour trading – you decide when to trade and how to trade.
  3. You can focus on your currencies and become experts in only those pairs that you follow instead of following and selecting out of 5000 stocks
  4. You can trade on leverage, (something to be very aware of as it can magnify potential gains but also your losses).
  5. Forex is accessible for almost everyone– you don’t need a lot of money to get started
  6. In the Forex market you can trade on Demo accounts to learn before you commit your money

How is Forex traded?

The mechanics of a trade are virtually identical to those in other markets. The only difference is that you’re buying one currency and selling another at the same time.

This is also the reason as to why the currencies are quoted in pairs, like EUR/USD or USD/GBP.

The exchange rate represents the purchase price between the two currencies.

Example:

The EUR/GBP rate represents the number of GBP one EUR can buy (relevant now with all the Brexit issues going on) . If you think the Euro will increase in value against the British Pound, you buy Euros with British Pounds. If the exchange rate rises, you sell the Euros back, and you cash in your profit.

Now the same works for strading Bitcoin, ethereum, Litecoin or other cryptocurrencies. this has become an entire new market and has introduced many people to Forex . you should here be also aware that trading cryptocurrencies is like regular trading so you will be able to lose great sums of money.

the Best thing i found about trading cryptocurrencies is that the Leverage by default tends to be very low which makes the risk of losing it all much smaller.

Sounds simply enough?

Why does not everyone Trade.

The same could be asked as to why not everyone plays poker, you can make money. The comparison between the 2 is actually closer than you might think.

All traders that are successful will tell you that 80% of successful trading is psychology and the other 20% is research. It takes time to get the research down, but it can take a lifetime to master the psychology.

People tend to do things differently when real money is on the line and are accepting losses in the hope that the trend will reverse or taking out profit too early because they don’t want to lose what they just have gained. In short, the psychology is the hard part.

One should be aware that you can loose real money and a lot of it very fast if you don’t know what you are doing.

Now most Good Forex brokers offer some educational tools, some more than others that will teach you how to trade. There is also something that is called social trading that will allow you to follow other traders and see what they are doing in order for you to learn and make money at the same time.

So here are some ground rules for those that look to start trading

  1. Get involved in the market, watch read and listen to the news to understand what is happening
  2. Go through a trading course ( a good one is here)
  3. Open a demo account and trade at least a month (my advice to do this even longer)only on this before you even think about trading with real money.
  4. Check out social trading, there are some options for this, this broker offers this also.
  5. Try with an amount that you are able to afford losing. See this as your tuition money.
  6. Take it slow, don’t become greedy and follow the basic rules

Basic Rules (there are many more but start with these)

  1. The trend is your friend
  2. Don’t add money to a losing position
  3. Don’t trade on too many different currency pairs
  4. Trade only with a good broker
  5. Don’t open to many positions (no one needs 100 positions a day)
  6. Develop your strategy and stick to it.
  7. Know that NO ONE is 100% of the times right, everyone loses some.
  8. Last but not least, don’t trade with money you cannot afford to lose.

Now all that I want to say is good luck.  😊

 

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Wanted Cryptography Experts in China

 Wanted Cryptography Experts in China

The sooner we get to the official launch of China Digital Money. the more Cryptography Experts are needed.

it almost is surreal as they pushed against this from the beginning but now S China digital money may soon be a reality.

The Bank of China (PBOC) is hiring cryptography experts by the masses as reported by the South China Morning Post (SCMP)

this is the latest in the Chinese efforts to have a state controlled cryptocurrency for its own means.

The institution is one which worries a lot about the effect of investor activity in the cryptocurrency market. this in great contrasted to the directive issues in 2014 by the PBOC  that Bans any activity related to the cryptocurrency market.

Yet the Central bank of china started to build their own work force for building and developing their crypto in 2017.

something like if you can beat them , copy them.

in 2017 the Yicai Global reported that this targeted workforce would work from central Beijing as was to be names the  digital currency research institute

This research institute would primarily focus on the latest in digital currency technologies and all the different applications that would benefit from cryptocurrencies.

the former deputy director of the PBOC’s science department, Mr Yao Qiann would be in charge of the overall project

since then they are expending with opening a new research institute expanded in Nanjing . the idea for this center is to create more interest n the technologies and its possible applications.

the pilot programs are to be implemented by state controlled banks and academic institutions which should result in blockchain hubs that would attract new developing talent and additional capital to further develop the cryptocurrencies.

“Beijing’s ideal digital currency must ensure the smooth running of monetary and financial stability policies and at the same time protect consumers.”

Apparently, the ultimate goal for the Digital Currency Research Institute (DCRI) was to clear the path for a national cryptocurrency. Reports indicate that the fintech hubs will serve a purpose higher than initially believed. Reportedly, the hubs will serve as testing ground for China digital money. Here, the currency will undergo tests from prototype phase to future mass production.

and thus we get to the point that they are looking aggressively for new talent in the cryptographers and computer scientists sectors. now that more and more student have said good bey to the united states in the last couple of months after feeling they were less welcome this drive for finding new employment has only intensified and is answered by the large amount of brilliant young people coming back to live in chine after their education abroad.

The salaries are even higher then what they would have earned if they would stayed in the US and gone of to work in some of the companies in the Silicon Valley.

So we could expect that China is now also looking to become a world player in this industry as they have become the leaders in so many other fields.

 

 

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