news

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…

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.

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.

Table of Contents

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?

A 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.

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.

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.

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.

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!

news

Forex Trading Knowledge Questions and Answers

Table of Contents

Forex Trading Knowledge Questions and Answers

What Is A Demo Account?

Demo accounts enable new investors to test their ideas and learn how to use trading technologies without risk. Users can use the demo account to trade with simulated money and see what their returns would be if they traded with real money. Demo accounts are often used in schools and universities to teach investing and compete in trading competitions.

Demo accounts are commonly used by stock traders, currency exchange traders, and commodities dealers, but not by long-term investors. A demo account is less effective since the longer it takes to produce earnings from an investment, the more time it takes away from compounding real money.

How Does A Demo Account Work?

Using demo accounts, investors can practice trading on a platform without putting their own money at risk. You will not be exposed to the dangers associated with live trading platforms on a demo account. As a result, you can learn how platforms work without putting your money at danger.

A demo account guarantees that you will not lose money, but it also guarantees that you will not make money. To reduce risk when trading on the real market, traders must learn discipline and establish techniques.

How to Open A Demo Account?

In general, opening a demo trading account is pretty simple. Choose a Broker – Most brokers provide demo trading interfaces to help you become acquainted with the features and create techniques. Choose which broker to use initially.

Registration is necessary, and you must provide your personal information. Name, address, and financial information will be requested. Your identification will almost certainly have to be validated as well.

Once you’ve decided on a broker, you can install MetaTrader4. Once you have decided on a broker, you will require a trading platform. MetaTrader 4 and MetaTrader 5 are the most popular trading platforms.

You will obtain login details after registering with a trading program. You will be able to open an account.

How Long Do Demo Accounts Last?

Traders can use a demo account to test out a program for up to three months before deciding whether to purchase the complete edition. The three-month term is basically offered to guarantee that the prospective buyer has enough information to make them desire to buy.

Why Is It Necessary to Open A Demo Account?

What Are Advantages of A Demo Accounts?

Demo accounts are an excellent method to learn about various trading tactics and software. Paper trading is a lot safer way for a beginner investor to make technical mistakes than real trading. Investors can benefit from the customised trading software provided by each firm.

A demo account lets you to test methods without risking any money, whether you are a novice or an experienced trader. Trading on a demo account allows the trader to test the approach before trading with real money.

Even though many traders begin with equities, commodities and Forex can be profitable. The same strategies, however, may not be applicable in all three asset groups. A demo account allows experienced traders to experiment with several asset classes.

The Differences Between Demo & Live Accounts

A forex demo account is distinct from a genuine account in that it is utilised as a training account for traders to practise trading without putting real money at risk. Real accounts, on the other hand, use actual money, and traders put their own money at risk. A demo account enables users to trade with fictitious money in order to imitate the earnings they would receive if they traded with real money. Demo accounts are often used in colleges and institutions to teach investing and compete in trading competitions.

However, studies have shown that even if a person has obtained extensive trading expertise through the use of virtual accounts, things may turn out differently when real money is involved. Because you are not putting anything at risk is more accessible when dealing with virtual money than when trading with actual money.

Can I have Multiple Forex Demo Accounts?

You may be able to open up to five demo accounts depending on the broker. Some, however, provide up to 19 demo accounts. There is no way to predict how many demo accounts are available at any particular time. All brokers do not limit the number of demo accounts.

If your broker has a demo account limit, you can contact their customer service via email or live chat to request more demo accounts.

There are brokers who will only allow you to open one account of each type per email address.

As a result, you are not able to establish any additional accounts until you give them with another email address or open a new account. Traders do not benefit from this practise because it requires them to spend their resources on opening new accounts rather than allowing them to open as many as they like.

In most circumstances, you won’t need more than five accounts, and depending on your plan, one may enough.

In any case, you should practise on a demo account until you are really proficient.

Is A Demo Trading Account Free?

Demo platforms are usually free. There is no risk of losing money because you will not be dealing with real money. As a result, there are no deposits, withdrawals, or training fees involved.

How to Choose Forex Accounts?

Different accounts have different settings. Before you open a trading account, you should answer the following questions:

How much money do you want to put down? You should keep in mind that trading with money you cannot afford to lose is not a good idea.

What is your level of risk tolerance? If you are a cautious trader, you can open a micro account and trade micro-lots. However, if you wish to trade more aggressively, you should open a regular account.

Do you require any specialised equipment? Many forex brokers provide their best trading tools to its professional clients, which may include cutting-edge news analysis or access to a diverse set of indicators.

Once you’ve determined what kind of trader you are, your trading objectives, and your risk tolerance, you’ll be able to choose which account is best for you.

Can I Take Money Out of a Demo Account?

Unfortunately, the answer is no. Demo accounts are only for practise purposes. You do not deposit anything because the account is not funded with real money.

As a result, any profits you would have made would be ineligible for withdrawal.

Forex Trading Knowledge Questions and Answers

news

AvaTrade introducing 3 new crypto pairs

AvaTrade introducing 3 new crypto pairs – updating 3 others

AvaTrade has yet again improved their cryptocurrency trading offering.

AvaTrade is introducing three new cryptocurrency pairs: NEOUSD, EOSUSD & MIOTAUSD in addition to the 15 crypto assets already on offer.

These new pairs have been available since July 1st, 2019 and provide an excellent opportunity to diversify your clients’ portfolios and increase their exposure to this vibrant 24/7 market.

Asset	Typical Spread	Leverage	Margin	Min Nominal Trade Size
NEOUSD	1.5% Over-market	2:01	50%	10
EOSUSD	2% Over-market	2:01	50%	10
MIOTAUSD	1.5% Over-market	2:01	50%	10

To unify their cryptocurrency instrument labels, They are relabeling their existing Ethereum, Ripple & Litecoin instruments, by replacing the existing instruments with new USD labelled ones:

Asset	Old Symbol	New Symbol
RIPPLE	XRP	XRPUSD
ETHEREUM	ETH	ETHUSD
LITECOIN	LTC_Mini	LTCUSD

These new pairs have also been available since July 1st,

The trading conditions for each one is identical to those of the older respective assets they replace.

Effective immediately, new positions are only available on the new pairs.

Avatrade Clients will not be able to open new positions on the old assets, but those already open will remain unaffected until July 29th.

Existing positions on XRP, ETH and Litecoin-mini that remain open on July 29th will be automatically replaced with corresponding positions on the new pairs, , at the same opening price and at no cost to clients.

as any broker that values their clients would do , Avatrade makes sure that the clients will not be affected by the change.

Visit Avatrade NOW

news

Neteller Launches Cryptocurrency Exchange Service

Table of Contents

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

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