Forex Trading Rookie? Here’s How To Stop Losing Money And Start Being Successful!

Posted on Oct 31 2016 - 8:55pm by Editorial Staff

The foreign exchange or “Forex” currency market is an important one. Millions of individuals and companies invest money in it each year, with the hopes of making a profit. Forex trading isn’t just for high-flying city traders; folks at home can trade too. All you need is a computer and an Internet connection!

One of the advantages of Forex trading is you’ve got a wealth of tools and trading options at your disposal. It’s so easy to get started; however, it’s even easier to lose all your investments! In a sense, Forex trading is a bit like betting. You put your money on a particular outcome happening in the future, and if you’re right, you make a profit.

Of course, even professional traders don’t always get it right. So, what chance do the “retail” or home traders among us have? Retail traders don’t have the wealth of experience that city traders have, right?

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Well, the good news is that even those of us that trade from home can remain profitable. The following tactics will show you how to invest in the Forex market from home. What’s more, you’ll learn the basics of how to do so without losing lots of money! Here is what you need to know:

Choose the type of Forex trading that is most comfortable for you

As I mentioned a moment ago, you’ve got plenty of options when it comes to Forex trading. There is no definitive right or wrong way to trade; each trader has their own style.

When you do Forex trading on a regular basis, you need to feel happy with what you’re doing. Before you invest your money in the Forex market, think about the right type of trading for your needs.

The standard Forex market allows you to execute trades on many popular currency pairs. Examples include EUR/USD, GBP/USD, USD/CHF and more. You can leave your trades open for a day, a week, a month or even longer!

If you’re a day trader, you might wish to consider binary options trading. It’s different to conventional Forex trading in that you’ve got fixed end times/dates. You also know exactly how much profit you will make if your trade is ITM (in the money). Binary options are perfect for day traders or “scalpers.”

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Plus, if your trades are ever OTM (out of the money), you never lose more than your original stake. Take a look at binaryoptionsexpert.net to find out more about this exciting way to trade!

Research the best broker for your trading needs

There are hundreds if not thousands of Forex brokers out there that you can use! Each offer different options and rules including but not limited to:

  • Minimum deposits;
  • Commissions;
  • Leverage;
  • Currency stock pairs; and
  • Deposit/withdrawal methods.

You should also be aware that they aren’t all regulated by the same groups or governments. It’s important to choose one that best meets your needs. Above all, it is crucial you select a broker that is regulated by one or more bodies. Otherwise, you could end up having trouble withdrawing your profits!

Another thing to consider when choosing a broker is latency. As you can imagine, you need to make trading decisions as fast as possible. Latency refers to the connection speed delay between you and the broker.

If you have a low latency, that means your connection is fast. High latencies are bad news, especially for binary options trading! There are two ways to resolve that problem. First of all, choose a broker whose servers are in the same country as you. Second, you could use a VPS that offers a “hosted desktop” service.

The latter is inexpensive, and you don’t have to pay for things like Windows licenses or hardware. Plus, many Forex-oriented VPS companies will even install your trading software for you! One example of a good VPS is commercialnetworkservices.com.

Technical analysis is the way forward

You might look at a currency chart and just trade with what you see on your screen. But, it’s important to use technical indicators to guide your decisions. Most traders go with the trend and make their trades accordingly. Still, you need to learn how to interpret when a trend starts or ends.

Software like MetaTrader 4 is ideal for Forex trading, and it allows you to make trades within it. That means you don’t need a separate browser window open and logged into your broker’s site. Take a look at youtube.com/watch?v=i_ayM2z77mQ to see MT4 in action.

Last, but not least, all you need to do is devise a good trading strategy, and you’ll soon have a high ITM rate. Be sure to test any strategies you develop on a broker’s demo account before you trade with real money.

Good luck!

About the Author
Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.