Review Category : Brokers

Quiz The Broker

broker

You may be using a broker to make your currency deals for you, but how can you be sure your money will be handled as you expect? Check a few details with your broker to make the picture clear.

1. Bigger is sometimes better

You need to know how large a firm you are dealing with to assess its financial clout. FX markets are about volume, and the more trading an institution does the more it benefits from economies of scale when it comes to trade prices, the advantages of which get passed on to you, the client.

2. Opening hours

Forex markets run on a 24 hour basis. Does you firm offer 24 hour facilities? If not, you could be missing out on valuable market action.

3. How are rates quoted?

If your broker works through a dealing desk, he will be pricing and executing your trades himself. The result is usually fixed spreads, which tend to be above the average variable spread, however there may be limitations placed on trading while news is being released or major economic events are occurring. If these are key trading periods for you this could be a problem. On the other hand, your broker may not go through a dealing desk, relying instead on bank streaming for pricing and trades. This method is usually unaffected by restrictions during news or economic events.

4. Does your broker use Fractional Pip Pricing?

Traditionally FX brokers have rounded prices up and down to the fourth decimal place, or Pip. Modern brokers are starting to use Fractional Pip Pricing, which allows a tighter and more accurate spread by adding an extra decimal place or Pip.

5. Does your broker scalp the market?

Scalping means to place an order within a spread. However what makes profit for the client makes loss for the market maker, so not all brokers will use this strategy. Scalping can be profitable but carries a high risk.

6. Does your broker offer Positive Rollovers?

Interest gained or paid on FX trades held overnight are called rollover. Quantities vary on a daily basis and rely on fluctuating interest rates. If you sell a currency paying a higher interest rate than its pair, you are subject to a Negative Roll, where you have to pay that interest. A Positive Roll actually earns you interest from a currency purchase that pays a higher rate. Negative Rolls are standard, but Positive Roll are only available from certain brokers.

FX trading can be a risky business, so consider carefully your investment aims before choosing foreign exchange and only invest what you can afford to lose. Quiz your broker carefully before laying down any funds and if you are not happy with his responses, consider finding another broker.

 

 

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How to choose a Forex Broker

Forex Broker

Anyone who is looking to venture into the world of the forex trading will probably be wondering how on earth they go about finding the best forex broker. Of course they all say that they can make you money, but how can you be sure that you are dealing with someone reputable? There are a few things to look out for when it comes to finding the right forex broker for you.

Check their credentials

Security is absolutely essential when it comes to finding a forex broker and if you are going to hand over money, then you want to be sure that you aren’t trusting the wrong person. Fortunately, checking whether a broker is reputable is relatively easy as they have to register with the relevant regulatory body. If you are looking for a broker in the UK, they will need to be registered with the Financial Services Authority as they oversee all financial professionals and help protect their clients.

Work out their rates

As with any transaction, using a broker will attract fees but sometimes it isn’t as simple as a flat cost to you, so you need to be sure that you understand the fee structure for any transactions you enter into. Some forex brokers charge a commission on any trade you enter, whereas some will expect you to pay for the spread the difference between the bid price and the asking price so you need to ascertain which is the best for you and make sure that you have a full understanding of how you will be charged.

Platform particulars

The digital age has made the process of forex trading a lot easier than it used to be and most forex brokers offer their clients a trading interface which they can use to keep track of their investments. It is always worth checking out the interface offered in order to ensure that it suits you and learn whether their reporting tools are easy to use. Whether you can understand the system enough to have confidence in your trades will be a good indicator of whether any given broker is right for you.

Go with your gut

To some extent, assuming you have done all the checks about the reputability of a forex broker, your instincts could be the best indicator of whether a broker is right for you. You need to feel as though you can trust your forex broker and that you will get good customer service otherwise every trade could leave you feeling uncertain. There is no point in being able to make the trades you wish to if you can never get hold of your broker when you need to, can’t raise any queries you might have or feel as though you’re being brushed off.

 

 

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Forex Trading Systems in Kuala Lumpur

Forex Trading Systems

Kuala Lumpur might not be on your radar as a trader, but Malaysia is trying their best to get your attention in their most populous city. A forex announcement Friday 20 September, 2013 certainly opened up doors for those looking at exotic currencies to think about adopting forex trading systems that might allow the trade of Malaysia’s ringgit. Before you do, consider the news update Kuala Lumpur provided and some of its economic data.

The Ringgit Future

The ringgit is not the most prominent currency in forex trading systems. You might have luck in Australia and many parts of Asia finding the currency in pairings. Some of the USA retail dealers may also offer the USD/ringgit for trading. To date it has not been the biggest currency on the market to even consider; however, Malaysia is certainly trying to change this. Many things are helping in terms of economic outlook. Before launching into the latest news update consider the economic data.

The National Bank of Malaysia or Bank Negara Malaysia oversees the economic condition in terms of currency. It also houses the securities commission that helps regulate forex trading systems. Malaysia is working very hard to become a part of the globalisation movement even developing better infrastructure like their newer international airport, multimedia corridor and Port Klang. The Bursa Malaysia is also a recent edition to the country offering the Malaysian Exchange for currency and stocks. Market capitalisation for 2013 is in the billions. There has been an average growth rate of 5.9 per cent, which is extremely good compared with other small nations trying to emerge into the new millennium. Income is up as are job sectors with a lot of financial positions and tourist jobs available. Another area of help for Malaysia has been foreign investments from outside countries looking to get a bite of the growing tourist industry, as well as find affordable investments. Kuala Lumpur also has 66 shopping malls, which are contributing to Malaysia’s overall economic outlook. It is the epicentre of the country at this point.

Forex Trading Systems: Ringgit in the Market

Unlike some of its close neighbours with currency rates above 10.000, the ringgit is actually in the 3.00s against the USD. The local quote for the ringgit was 3.1625 and 3.1665 for investor trades against 1USD. This was up from the previous day with USD/ringgit prices at 3.1470 and 3.1500 for the buy/sell respectively. The trouble right now according to one local dealer is investor interest. There is not a lot of news for Malaysia, so locals are holding out investing with their forex trading systems. The local currency is declining against most of the majors like USD, AUD, SGD and others. The SGD and JPY actually had more favour towards the ringgit than the GBP and USD. It also declined against the Euro.

Despite the depreciation of the ringgit there is hope it will start to be recognised by more than local traders as a possibility. Malaysian officials certainly wish to get their currency stronger.

 

 

 

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How To Make The Most Money Possible From Foreign Currency Exchange

foreign currency exchange

One of the most difficult things to do, when you’re trading foreign currency exchange, is follow your trading signals to the end of the line (i. e., “ride your profits”). This is particularly difficult when you already have a relatively large profit already in the bag. For instance, during the month of September 2013, the AUD/JPY daily chart had formed a classic, bearish “head-and-shoulders” pattern, indicating a downside target of AUD/JPY 89.0000. By the end of the month, the poor thing was already down 350 pips (representing a 100% profit, if you were leveraged at 50:1 or more), but all of a sudden, starting moving upwards due to scheduled issuance of the Reserve Bank’s monthly monetary policy (interest rates) statement on October 1st. Take the money and run (or hang tough until AUD/JPY 89.0000 is reached)?
Technical indicators can help you deal with such decisions. There are over 50 of them and some of them (like “Fibonacci retracement arrays” or a “Know Sure Thing” momentum oscillator) are exceedingly accurate.

Is Foreign Currency Exchange Success Related To Luck Or Experience?

Becoming a successful forex trader is all about preparation, practice and actually taking advantage of opportunities as they present themselves. The reason that you have to prepare is that forex is an extremely large capital market with its own complex rhythms and jargon. You cannot learn everything that you need to know overnight; there’s just too much. However, you can get there, particularly if you sign up for a “demo account” and practice trading – in a stress-free environment that doesn’t use your money – until you are making profits on 6 out of 10 trades. Finally, you actually have to trade, in order to profit from forex. Sometimes, it’s altogether too easy to just stand by. Get involved; follow your trading signals.

Necessary Actions To Become A Better Foreign Currency Exchange Trader

The most critical part of becoming a successful forex trader is the development of a trading strategy that works time and time again, under almost all conditions. It doesn’t have to be fancy. It just has to be good. In this regard, “trend trading” is a bit easier. For example, open up a “demo” and try the following strategy on for size. Bring up a daily chart of your favourite currency pair and place a Know Sure Thing (“KST”) indicator on it, noting what part of the KST curve the current pricing action is on. Using a very low leverage ratio (i. e., 30:1 or lower), enter into a trade either at the KST “low crossover” or the KST “high crossover”.

Getting More Money From Your Foreign Currency Exchange Trading

A “day trader” is better off with using a pair of moving averages, plus some sort of momentum indicator, to pluck profits from a currency pair’s situation. For instance, the AUD/USD appears to work very well with a 15-minute chart and an 8-period exponential moving average in combination with a 20-period exponential moving average, plus an “Awesome Oscillator” (to gauge momentum) and a “Fisher Transform” (to confirm the crossover signals being generated by the exponential moving averages. Depending upon how much volatility is in the marketplace, you could use a leverage ratio of 100:1 or higher. Given the trading patterns of the AUD/USD, this type of trading strategy seems to work best in the mornings of Tuesday, Wednesday and Thursday.

 

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Australian Forex Brokers AxiTrader and ForexCT

Australian Forex Brokers

Each of the Australian forex brokers will have differences separating them from their competition. It is the job of the following to show you some of the key differences of two companies: AxiTrader and ForexCT. The following may not compare all things about the company. Furthermore, facts do change as brokers try to keep up with the competition. It is your job to conduct due diligence in order to separate out the differences here and ensure they are still current. You may also want to do a more indepth comparison to determine if there are more differences or more advantages to one company versus the other as named below.

Australian Forex Brokers through AxiTrader

AxiTrader is an ECN, which means it has no dealing desk. This company supplies English and Mandarin pages for traders. It is regulated through the ASIC. In recent news on Australian forex brokers and market share AxiTrader was touted to have at least a 7 per cent market share versus other brokers available to Australian traders. This can change overtime and quickly so you may need to check if they held their market share.

In terms of account details you are able to trade with MetaTrader 4, Web, or PowerTrader through this company. Additionally they offer 400:1 leverage, an account size of $200 in terms of deposit, and a EUR/USD spread of 1.5. Again this is the data found at the time this article was drafted and it can change. Some Australian forex brokers provide live chat; however, their system indicates that option is not available. Besides spot trading your account can be used for hedging, scalping, futures, oil, silver, and gold trades. This last lot may not matter if you are only interested in spot transactions for forex.

Australian Forex Brokers with ForexCT

This brokerage firm is a market maker, so it has a dealing desk. It also has live chat since there are brokers on hand to answer questions. Like AxiTrader the account has Chinese and English languages available and is regulated through the ASIC. The only trading platform noted online was Web. It is unclear if they have other options; however, you can check directly with the brokerage firm.

The leverage option is the same at 400:1. A standard account requires at least $5,000 deposit and a micro account is $500. For the EUR/USD spread on both accounts it is 4 pips. Lastly you cannot hedge or conduct scalping with the account, but you can trade silver and gold.

You should have noticed some differences by now for these two Australian forex brokers. To sum it up both are ASIC regulated with gold and silver transactions as well as spot transactions. One is a dealer with a desk and the other is electronic only. You also have different account sizes and deposits required although the maximum leverage is the same. In terms of the spread or fee charged it is higher with ForexCT; however, you need to check if it is a fixed rate and if other rates are just as high. Sometimes a company might offer lower spreads on the EUR/USD and expensive spreads on other pairs.

 

 

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Australian Forex Brokers Alpari and FXDD

Australian Forex Brokers

Recently a news announcement for Australia indicated about five Australian forex brokers have a large market share. There are still dozens of other brokers that can offer you a trade platform that might have only a 1 or 2 per cent market share compared to 7% and up to 20%. With the competition increasing as indicated in the news article you have plenty to choose from. Finding the differences between brokers is essential in order to make a good decision. Brokers are not always as different as black and white, night and day…well, you get the point. It is still in your best interest to assess any differences you can find in order to choose the company that is the best fit for your goals. Early on in forex lessons you learn to write out your trading goals to help you stay on target and develop discipline, which is why the comparison is offered below between Alpari and FXDD.

Australian Forex Brokers Alpari

Alpari accepts Australian clients in their Tokyo office, but it is not a regulated Australian broker. Alpari is mainly headquartered in the USA with numerous offices throughout North America, Europe, and a few in Asia. It was founded in 2006 with regulatory agencies CFTC, NFA, and RFED checking on them. While not regulated as Australian forex brokers are by the ASIC it is a potential choice for you. They provide 40 pairs to trade with a demo account and windows mobile platform. Desktop platforms include Alpari Direct, Dirext Pro, JForex, and Meta Trader 4.

In terms of account details leverage is low at 50:1, with a standard account deposit at $500 and a mini account at $250. The standard spread is 1.6 and 1.7 for a micro account on the EUR/USD pairing. Further account options include scalping. The dealing desk is STP and ECN. They are not a market maker.

FXDD Not Regulated Australian Forex Brokers

FXDD is not regulated by the ASIC making it technically not part of the Australian forex brokers line. Like Alpari they do operate for Australian customers. It is important to be very clear about regulatory agencies. A company can operate for countries without the local regulatory agency being involved. It takes an offshore account. Australia is not known for blocking offshore accounts. It can be difficult to protect your assets with a non ASIC regulated company; therefore, it is not recommended in this article to go with companies not ASIC regulated, but again it is your choice.

In terms of offerings FXDD provides 30 currency pairs on Windows Mobile, iPad, iPhone, and Android mobile platforms. You also have access to Swordfish, Mirror Trader, MTXtreme, PowerTrader, VikingTrader, and Meta Trader 4 platforms.

Leverage is 200 to 1, with a standard account at $2,000 and micro at $250. The spread is the same for both types of accounts on the EUR/USD at 2 pips. As a broker they provide gold, silver, oil, hedging, and scalping accounts. They are a market maker and STP dealer. Remember, they are only two companies acting as offshore Australian forex brokers, not regulated under ASIC.

 

 

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Forex Brokers Provide Your Trading Software

trading success in forex

In the world of foreign exchange trading, the brokerage account you choose from the many available forex brokers is essential to guiding your experience as an individual forex trader. The brokerage environment you go with provides you with a means to an end for placing physical trades of currency, which is obviously entirely necessary if you want to trade. But beyond that, they also provide you with a space in which to engage with the facts of currency trading. A place to evaluate data, compare currencies, scan for trends, and compare incidents to results. This is the trading software component of the brokerage account and it is critical that the individual trader feel comfortable in this environment.

When trying to select a forex brokers brokerage account, many prospective clients will utilize what’s called a demo account. This allows a potential investor to play with the trading software so that they can become comfortable before they decide if that space is right for them. The trading software that a forex brokerage account provides you with is your portal into the world of currency exchange, so it is critical that an investor be happy with the interactional element.

Different Forex Brokers Platforms

Different forex brokers brokerage accounts have different types of platforms. Some can be far more simple than the others. This can be ideal for the casual trader looking for a simple and easy to use environment. Other platforms are far more complex and excessive ball. Nowadays, it is very common for platforms to be available across devices. Many investors can access their portfolios and place trades from their desktops, smartphones, and even tablets.

Why Forex Brokers Platforms Can Have A Big Impact On Your Trading Performance

Some forex brokers platforms are simply easier to use than others. They provide you with a customizable screen of content that can compare information for you, allow trades to be placed with a few clicks, and show you the data that’s relevant to your current and upcoming trades. Investors deserve an environment that makes sense to them. Many of the more sophisticated and elaborate forex brokerage accounts allow investors to customize their home screen so that they can see all the information that’s truly relevant to them. Being able to trade in an environment that offers a high degree of comfort is critical to the success of a forex investor.

Different Types Of Forex Brokers Platforms

Many different available forex brokerage accounts offer a variety of access types. Some platforms only have access to certain currency pairs, so an investor will want to research this before they dive in. Obviously, you’ll want to ensure you can trade the currencies you’re looking to work with. Other platforms have different restrictions. Some will only allow U.S. residents, while others will forbid U.S. residents, as an example. But often, the most substantial difference is the degree of access. Many different forex brokerage account platforms offer mobile software in addition to their web accessed or desktop software.

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How To Trade Forex If You Have No Experience

If you have no investment experience, you still can trade forex successfully. You’re just going to spend more time researching the industry and practising your moves with a “demo account” – before you launch into “live trading” – than most others. But, who cares? Once you learn how to trade forex well, you’ve learned one of the most important skill sets that life can provide you. And, in the future, all you’ll need is an internet connection and a computer (or mobile) to make money. So, get on the internet and start reading everything you can about the monetary policies of central banks. Then, go visit the websites of some large commercial banks (like Barclays or Westpac), reading what their research departments have to say about current and future forex rates. Finally, spending some time with “stockcharts.com”, learning more advanced charting techniques.
Then, when you’re feeling a bit more comfy with all this information, sign up for a trade forex “demo”. It’s a great way of practising forex trading without any monetary stress.

Trade Forex As A Newbie

Forex is the Olympics of investment venues. To get in shape for your trail runs, you need to do some serious research. If you already have a background that includes higher level international finance or economics, then go to “Chart School”, at “stockcharts.com”, learning from the man who many consider the father of modern technical analysis, Mr. John J. Murphy – for free. If, on the other hand, you feel that you need a refresher course in modern central banking, go visit the websites of the Reserve Bank (“rba.gov.au”), the Bank of Japan (“boj.or.jp/en”), the European Central Bank (“ecb.int”), the Bank of England (“bankofengland.co.uk”) and the US Federal Reserve (“federalreserve.gov.us”), paying very close attention to any related to “monetary policy”.

Trade Forex With The Right Market Research

Then, go sign up for 2 or more demo accounts and starting practising your moves. Learn how to launch (and retrieve) the “perfect trade”, using a not-too-volatile currency pair, very volatility-sensitive leverage ratios and astutely-placed stop losses. Turn the charts on your trading platform into guided profit missiles, complete with “Ichimoku clouds” for a fine trading day. Figure out how your profits are recorded and whether or not someone is making a mistake. Finally, do the same trade, at the same time, on all demos, checking what kind of prices and fills you got. This will go a long way in telling you whether or not an account is worth turning into a “real account”, when you’re ready to “go live”.

Pay Attention To Risks As You Trade Forex

You need to pay attention to 3 kinds of risks that can crop up. First, there is the risk that you have structured your trade incorrectly. For instance, not knowing any better, you just wedded a very highly leveraged GBP/AUD position to a 2-day “swing trade” strategy with a 10-pip trailing stop loss. Ah, what non-logical ratiocination! (If only you had used an “Average True Range” indicator, on a daily chart of the GBP/AUD, before you launched the trade.) How long do you think a tight stop loss is going to last on a pair known for travelling of almost 300 pips/day? 1 hour, maybe. Next, there’s the problem of market risk. Basically, London mainlines the GBP – not the AUD. Follow these rules mentioned in order to trade forex better.

 

 

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How Foreign Exchange Can Help You Grow Your Capital Amounts

For an international investor with a traditional investment portfolio, trading foreign exchange can provide a welcomed modicum of geographical, volatility- and duration-related diversification. Forex is the most global capital market in the world. Operating through all major banking systems, the industry processes approximately $5.3 trillion every 24 hours. Since more than 80 currency pairs are involved, a wide range of volatility patterns are available, including regional variations that can be arbitraged rather effortlessly. Trades as short as 1 minute can be made – or, as long as “forever” (i. e., a buy and hold, carry position). Since there are no fees or regulations against short positions, all types of hedging transactions can also be arranged. Better yet is the fact that this marketplace bears almost no correlation to any other asset class in the world.
In order to trade forex effectively, you have to come to grips with the issue of leverage. For day foreign exchange trading, high leverage (i. e., 100:1 or more) is needed. For medium-term or longer-term trading, it’s not.

Leverage In Foreign Exchange

In foreign exchange, the term “leverage” means borrowed money. Most trading accounts will offer you leverage of “100:1”, which means that if you have $1 in cash, you can control $100 of a forex contract. Some accounts will allow you to go up to 200:1 (where $1 in cash controls $200 of a forex contract). Theoretically, the more you borrow (i. e., the higher the leverage ratio), the faster your profits should pile up. Realistically, however, the only traders that should even attempt to profit by using any leverage ratio in excess of 100:1 are “day traders”, who are zipping in and out of the foreign exchange market in as little as 1 minute. For most, higher leverage ratios are simply too dangerous.

How Foreign Exchange Can Make You Money

If you want to try to make a profit, using a very high leverage ratio, you are going to have to resort to working off of a 5- or 15-minute chart. For example, the EUR/AUD’s weekly chart has a bullish “inverse head and shoulders” on it, but taking advantage of such a situation implies shorting the AUD (a very expensive proposition beyond 23.99 hours). Enter day trading! On a 5-minute, EUR/AUD chart, use a pair of 10- and 20-period exponential moving averages plus an “Awesome Oscillator” (to gauge momentum) and a “Know Sure Thing” indicator (to confirm entry and exit points that the crossover of the 10-period moving average is signalling). Use as much leverage as you feel comfortable with.

Watch Out For Foreign Exchange Downside Risks

In forex trading, risks come in 3 basic flavours. First, there’s structural risk. This is the risk that you didn’t structure your trade correctly and the poor thing is doomed to fail (e. g., using a 200:1 leverage ratio on an overnight trade of a very volatile currency pair, like the GBP/NZD). Second, there’s market risk. This is the risk that something in the market is about to make your trade potentially terminally ill, such launching a trade in the highly illiquid conditions before Auckland opens up. Lastly, there’s “event risk” (also, sometimes known as “economic risk”). This is the risk that an expected event doesn’t happen or an unforeseen event happens (e. g., the assassination of a country’s president).

 

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Foreign Exchange Trades That Can Make You Money

Trading foreign exchange can be relatively easy – and rewarding – provided that you’re willing to put in a lot of time into researching what you want to do and how you want to do it, plus practising on a “demo account” before you go “live”. In forex, knowledge is power. So, spend some quality time on the internet building up your power to trade successfully. Visit the websites of the world’s top central banks. Learn why changes in monetary policy can turn a currency pair around in a hurry (or, propel it even higher heights). Check in on some forex “market makers”, like Deutsche Bank, Barclays or UBS, and read their latest currency-related forecasts and trading recommendations. Last but not least, attend “Chart School” – at “stockcharts.com” – and learn why a properly drawn chart is like a laser beam at midnight.
Newbies should use a “demo” and practise with the following trade. Use a 1-hour AUD/USD chart with a “Williams Alligator” and a “Know Sure Thing” indicator for foreign exchange trade signal confirmation.

Use Your Foreign Exchange Research To Find The Best Trades

In foreign exchange, the more research you do before you start any live trading, the better off you will be. This is because forex is the world’s largest capital market, is far more complex than it looks, and is populated by highly experienced bank dealers who know exactly what they want and when (in other words, the “other side” of your trade could be one tough cookie). So, get online and read up about the monetary policies of all major central banks. Check out the foreign exchange research departments of forex’s “big 5” (i. e., Deutsche, Barclays, Citi, UBS and HSBC), reading their forecasts and recommendations. If you have any time left over, go to “Chart School”, at “stockcharts.com”, for free.

Technical Analysis Can Help Uncover Foreign Exchange Profits

Technical analysis takes the emotion out of foreign exchange trading. It can show trends, momentum, support and resistance lines, overbought/oversold conditions, volatility levels – just about anything, actually. There are approximately 50 key technical indicators. The more of them that you know how to manipulate, the most successful you will be. For instance, all of the following should make your trading more profitable: “Fibonacci arrays”, “Stochastic RSI”, an “Average True Range” indicator, “Bollinger Bands®”, “Keltner Channels”, an “Awesome Oscillator”, moving averages, a “Fisher Transform”, an “Ichimoku Cloud”, a Know Sure Thing indicator, a “Linear Regression” channel, a “Momentum” indicator, “MACD”, a “SMI Ergodic Indicator”, Williams Alligator and a “Zig Zag” indicator. Typically, you only need 3 to point the way to profitability.

Which Foreign Exchange Positions To Trade To Make Money

If you’ve never traded on a leveraged basis before, open up a “demo account” and practise trading there before you venture into “live trading”. “Demos” provide a risk-free environment to fine-tune your trading strategies. So, stay with your demo account until you are making a profit 6 out of 10 trades, with minimal losses in between. If you want, start off with a 1-hour chart of the AUD/USD, using a Williams Alligator and a Know Sure Thing indicator for trade signal confirmation. The Alligator is composed of 3 moving averages and when the shortest one crosses over all the other ones, you should trade in the direction of the crossover. Be smart: use reduced leverage (i. e., 50:1 or lower).

 

 

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