Tuesday, February 7, 2017

What are the advantages of doing Forex trading?

The Forex currency market is the largest financial market in the world and attracts more and more investors from all over the world. In this article we will analyze what are the main reasons for this growth and what are the advantages that you can take advantage of by doing Forex trading:

- Schedules

The schedule of the Forex market is one of its main attractions. As the phrase in the famous movie Wall Street says: "Money never sleeps," in Forex is fully realized as it is an active market 24 hours a day where there are always moves.

Due to the different time zones, whether it is 11am or 11pm, somewhere in the world, there are always buyers and sellers negotiating with currency pairs. (See article Best Forex Pairs to Invest in Forex).

While it is true, there are moments of greater movement coinciding with the 3 main trading sessions (Europe, Asia and the United States) and others with less that can be less advisable like the weekends. (See article Time to invest in Forex).

The flexibility of Forex schedules allows you to perfectly combine both your learning and your work as a trader with your current professional activity and do not need a dedication. This is more complicated when investing in stocks, indexes, since the sessions, for most people, usually coincide with their working day.

The fact that there are no session closures also results in gaps or price gaps being avoided at the next opening in the event of significant news in the hours that the market is closed.

- Liquidity

Forex is also the most liquid financial market in which more than 5 trillion is traded daily. It is a strong growth market in which it is very easy to enter and exit at any time.

This does not always happen in markets with lower liquidity, such as in the case of stocks. At certain times, you may want to sell a stock and find no buyer or vice versa. In Forex there are always buyers and sellers to act as counterparts to your trades, especially in the major currency pairs.

- Transparency and Security

Manipulation in a market as large as that of foreign exchange is almost impossible.

Any investor, however large, can not significantly influence the price of a currency. Even the relevant decisions of a central bank (which occur infrequently) can affect a currency in a timely manner but after a time will tend to stabilize in the direction taken by the majority of investors.

On the contrary, in the case of company stock prices may become adulterated or "inflated" without the knowledge of the investors, company balance sheets that give an image of the situation of the positive company may have been manipulated or "made up" From one moment to another the real situation is discovered and the stock price can sink, shareholders panic and everyone wants to sell without anyone wanting to buy so that the shares you have may not be worth nothing.

In Forex there is no systemic risk, nor does a currency disappear from day to day, which is why it is one of the safest markets in the world.

- Information to make trading decisions

In the case of investing in shares of a company you must be aware of and follow numerous factors: company balance sheets, presentation of results, changes in management team, situation of competing companies, important news in the sector, changes in strategy The company, important business operations achieved or failed, capital increases, entry or exit of important shareholders.

Much information is needed to make proper trading decisions and the worst thing is that this information does not reach all investors at the same time on equal terms. In many cases there is the exchange of privileged information between managers, main shareholders, who know the situation and important changes that affect the company before the rest.

On the other hand, in the Forex currency market virtually all the news reaches all at the same time, whether big investors, financial institutions, brokers to retail investors. The information you must follow to make your trading decisions about one or several currency pairs is much smaller.

Having a good economic calendar on hand is the best option to keep abreast of this type of news. We recommend that you focus especially on the most relevant ones as there are others throughout the day that will hardly have an impact on prices.

- Opportunities for profit

Although a certain currency is down, there are always opportunities to obtain profits in other currencies or in the same currency trading in the opposite direction.

In Forex you can make profits whether the price of a currency pair goes up or down. If you think the price is going up you can open a purchase position to close it later with a sale (go in long) but if you think the price is going down you can open a sale position to close it later with a purchase in short).

Buy cheap and sell expensive by going long or sell expensive and buy cheap by going short is the goal of the millions of participants in the Forex market. You have many currency pairs in which you can do trading and if you strive to learn and are disciplined you can get significant benefits in the currency market.

- Low Cost

Starting to invest in the Forex market does not require a high capital. You will need to open an account with an online broker who will act as an intermediary in the transactions you carry out. Today most brokers do not demand high initial deposits to open a trading account. You can take a look at this comparative table of brokers and as you can see there are asking for 100 € / 100 $ or even up to 1 $ to start investing.

Many brokers even offer welcome bonuses that increase your account balance by a certain percentage depending on the initial deposit you make: Brokers with Bonuses per Deposit

The Forex market is one of the financial markets with lower cost per operation. Most brokers apply their commissions mainly through a spread, the difference between the purchase price and the sale price. Being a market with a great liquidity this spread tends to be narrowed by supply and demand. Even the larger trading pairs have much lower spreads than less-traded or exotic pairs.

In addition you have a higher leverage for the foreign exchange market than for example that usually offered in shares. This way you can open a position with much more money than you have in your trading account and providing only a small part of capital as collateral. This allows you to maximize your profits but also requires caution as your level of risk also increases in the same proportion.

- Easy to learn and operate

Another great advantage of the Forex market is that you can learn and operate from anywhere in the world simply with an internet connection and a computer, a tablet or a mobile phone. The flexibility is total. That's why this market is so attractive to retail traders and growing day by day.

On the Internet you can find a lot of information to learn to invest, investment strategies, training material, although I anticipate that the most important thing is practice. And the best way to practice is to choose a serious and professional broker forex terbaik di dunia, which is regulated by some demanding body, and open a demo account that will allow you to perform test operations with the same conditions as a real account but without jeopardizing your money.

Saturday, February 4, 2017

How to use a demo account to learn how to trade?

In trading, in addition to the opportunity to obtain benefits with very low costs, one of the main advantages is the facility for anyone to learn how to invest without putting your money at risk from the outset. This is due to the existence of demo accounts.

What is a demo account?

A demo account is a type of trading account, offered by most online brokers (Demo Account Brokers), so you can test the investment platform and make trades with the same trading conditions as in a real account but with money Virtual, that is, without putting your capital at risk. Both the winnings and the losses in a demo account apply to a virtual balance that you have available since the opening of the account.

The demo trading account is also the most advisable way to learn how to invest since you can use it to analyze the market and build your investment strategy. Through the tests you do in demo you can build your own trading system to make it profitable, learning from mistakes and successes, without putting your money at stake.

A frequent mistake of many traders is to start directly with an account with real money or to start with the demo but to move in a rush to the real one without practicing enough. This will make you not clear how and when to operate and end up losing your money much faster than you think.

One thing you should understand from the beginning is that trading is not a game of chance. It is not a matter of "guessing" by intuition in which direction the market is going to move but requires training, experience, discipline and effort. With a demo account you will not invest your money from the first moment but you will have to invest your time and be patient. If you are willing to work to become a profitable trader then we will see what is the correct way to learn to invest with a demo account.

What is the proper way to trade in a demo account?

Based on our experience, these are the 3 main factors to learn correctly to do trading through a demo account:

1. Take the demo account as if it were a real account

The most important recommendation for you to learn how to invest correctly with a demo account is to take the operations you perform as if you were trading on a real account with your own money. Try to forget that the balance of the demo account is virtual and that nothing happens if you lose it. If you would not like to lose your money in a real account then try not to lose it also in demo.

Do operations without control, take on too many risks, open positions without trying to build and debug your own trading strategy, not analyze what works and what not, are the most common mistakes that can end the balance of your demo account quickly , Or worse, take you to waste your time without learning anything and create bad habits that you can repeat in a real account.

Acting with discipline is key. Try to put you in the position that it is your money that is in irrigation and will help you make your decisions with greater caution. When you still do not have the knowledge, the experience and a strategy that has given you a good result, it is always preferable that you try to learn and not "bust" the demo account that try to get great results without knowing how and most likely assuming a risk very high.

2. Open the demo account with an appropriate size

Some online brokers offer their demo accounts with a default balance that can not be changed and others allow you to choose the amount of virtual balance available in your demo account. It is advisable that your demo account has a balance as close as possible to the balance that you would be able to invest in a real account. If the broker does not allow to choose the balance because it tries to count only with a part of the virtual balance similar to the one that would have available in your real account.

If in the demo account you handle for example € 100,000 and then your real account you would only open it with € 1,000, the operations you carry out are not going to be the same size, the risk level will also be different, the impact of the losses or benefits on The balance will also be different and all this will condition the trading decisions you make. If the balances you use in the demo account are similar to those you would use in a real account, it will be much easier to use the same strategies with the possibility of obtaining similar results, control the risks in the same way and take the demo account of one More serious, as discussed in point 1.

3. Unhurried

Do not try to rush into a real account. Try to learn and get good results in the demo account and on a sustained basis over time. So important is that your trading system is profitable as it is consistent and you can make a profit in a sustainable way over time. If this does not happen in a demo account it is unlikely to happen in a real account.

Even if you take the demo as if it were a real account, the psychological pressure you will have on trading your own money will always be greater, mainly because of fear or greed. If the demo results are not yet adequate, you should act with patience, try to expand your knowledge and improve your trading strategy. Do not try to autoconvencerte and open the actual account if you are not ready.

Getting a good trading system is not impossible or extremely difficult, but it requires work, time and patience. Do not go crazy with the rush and do not try to compare yourself with other traders or with results that you can read on the Internet and that can perfectly be unreal. Achieving high returns in a short time is only possible by assuming high risks that can also kill your account in minutes. You have to develop your trading system little by little to make it profitable, a system that you feel comfortable with and that you can replicate perfectly in a real account.

In this comparative table you can see those brokers that we have analyzed and that offer a trading demo account : broker forex terpercaya dan teregulasi