Spot Forex Trading
Swimming with the Sharks!
WELCOME TO FXROGUE
Welcome to the world of Forex online trading. There are various ways to participate in the foreign exchange market. However, we are focussed mainly on the mainstream Spot Forex trading market as well as the fast-growing Binary Options (BO) trading market. Whether you are totally new to online trading or have a few years under your belt, we hope this content adds value to your trading!
Can I Really Do This!?
Binary Options trading is probably the most straight forward and easy-to-understand financial instrument available in the market. Therefore, almost anyone can do this. However, that’s not to say trading BO is dumb-easy! There is a vast array of online trading sites and a plethora of assets to choose from. The trade is to determine whether the closing price of an asset will go up or down by a fixed expiry time. It is called “binary” because there are two options to choose from: up or down. You either think it is going up or you think it is going down, by a certain expiry time. However, there can be three possible outcomes. You can win, lose, or break even. Upon expiry, if you were correct on the direction of the asset, you simply get the agreed return offered by the broker; if you were wrong, you only lose the amount you risked on the trade and nothing more; or if price remained the same, brokers differ, but most will return your initial investment. Expiry times vary from seconds, minutes, or hours, to End of Day. Most brokers even offer end of week/month/year options. Binary Options are also known as Digital Options, All-Or-Nothing Options, and Fixed Return Options (FROs)
How To Become Succesful In Forex Online Trading
Well renowned to be the backbone of global investing and international trade, Forex trading refers to the exchange or conversion of a specific currency for another at a price that is agreed upon in the foreign exchange market. Forex, which is an acronym for foreign exchange, is vital in the support of exports and imports as it enables companies worldwide to trade in diverse currencies thus augmenting global economic growth. Furthermore, investors who seek to internationally diversify their securities and assets utilize the foreign exchange market as currencies are also viewed as an asset class. Trading in foreign currencies poses a potentially profitable opportunity due to the facts that the market is open and accessible round the clock, and traders can act promptly based on information received from global events and news.
What is Forex? An Introduction to Forex Trading
Characterized by an average turnover amounting to over $5.3 trillion daily, the forex market is most notably the most traded market globally. The trade of currencies takes place on a global platform/ network made up of individuals, banks and businesses, which effectively connect sellers and buyers. Forex trading is commonly done bilaterally or electronically.
The vast majority of forex trading is founded on speculation and traders sell as well as buy currencies on a short-term basis, and their actions are established on any immediate fluctuations in the market prices. It is worth noting that the prices within the forex market tend to appreciate or depreciate as a direct result of global geopolitical and economic factors. As such, the key aim of all forex traders is to create profits through actively making speculations on how these factors will affect the price of currencies against each other in the future.
Online Trading Software
There are numerous automated trading systems or software that allow for the input of precise exit, entry and money management rules to monitor and execute forex trades. Online trading software allows trades to occur once definite criteria, set by the trader, are met. The criteria set for trade entry or exit can be founded on basic to complicated trading strategies and once set, the market price fluctuations are monitored by a computer. Any established sell or buy opportunities that meet these trade strategy specifications are acted upon automatically. In the characteristically fast moving forex market, online trading software is considered to constitute the difference between a catastrophic loss and an insignificant loss, should the trade change against a trader when they are not vigil.
How to Become Successful in Forex Online Trading- The Importance of Forex Trading Strategies
One’s success or failure in forex trading depends on the clarity of the trading strategies employed throughout all processes. This is because it is through these strategies that one’s capability to utilize data that is attained from technical analysis is enhanced. Therefore, it is worth noting that in order for trading strategies to result in augmented profits, they need possess the capability to take care of the following forex trading aspects:
Determining when to withdraw or exit from a trade- It has been noted that this particular element of forex trading poses the greatest challenge for most traders. Concise trading strategies effectively enable one to adequately specify and limit the quantum that they, as traders, can afford to lose when in any given market placement.
Determining when to realize profits- It is common for traders to prematurely exit from an attractive or profitable market position as a direct result of their personal emotions regarding the trade. Specific trading strategies within the forex market which cover the emotional aspect of trading allow a trader to prevent losing out on additional potential gain.
Determining when to enter into a trade- Specific trading strategies allow traders to determine when they should engage in a short or long trade. Specifically, these strategies stipulate the currency pair quantity that requires be selling or buying. Thus, the importance of proper trading strategies is to aid the trader in the process of determining the probability of failure or success of trades, particularly in relation to the length of trading.
3 Tips for Successful Online Trading
Lack of proper organization during forex trading is well known to be the culprit of large losses during the exchange process. Thus, it is vital that one observes the following three interrelated tips to ensure success.
1) Only select currency pairs that lie within the risk parameters
There are several currency pairs that are volatile and are considered to pose great risks to novice as well as professional traders. Volatile currencies tend to fluctuate often throughout a 24 hour trading cycle and require that traders remain keen in order to notice slight changes in these fluctuations and act on them. Only after thoroughly thinking through the set risk parameters, can a trader decide on which currency pair best suits their trading strategy. Closely related to considering the risk parameters, is the issue of setting position targets that is, planning an exit strategy. Questions one should ask are which rate one is willing to cash out or the rate at which one will cut their losses.
2) Closely follow Forex Charts and the Forex Market
News regarding the forex market as well as charts based this information constitutes the most vital tools in forex trading. This is because they provide traders with the technical information that help in the speculation of how their positions are likely to be affected. More often than not, one is required to make a payment. Nonetheless, it is noteworthy to mention that one well-placed trade founded on the information acquired from these chart analyses is enough to cover all these expenses and still allow for a profit to be made. Forex news is also a powerful tool that helps in the process of speculation as recent one is well informed on political events and economic reports that influence their position in the currency market.
3) Keep a well-organized Forex Diary
The importance of keeping a forex diary cannot be undermined as it enables one to keep account of which strategies lead to failure and which lead to success. As a result, one cannot make the common mistake of repeating a strategy that has proved to cause losses.