Ethnic newspapers and television ‘infomercials’ are sometimes used to attract Russian, Chinese and Indian minorities. Sometimes these ads offer so-called ‘job opportunities for account executives to trade foreign currencies’, whereby the recruited ‘account executive’ is expected to use his own money to trade currencies and would often time be encouraged to recruit members of their friends and family to do the same.
Seek Out The Company’s Background
Most investors who trade Forex stocks use a broker. A broker is an individual or a company, who buys and sells stocks according to the investor’s wishes. Brokers earn money by collecting commissions or fees for their services.
You should check that a broker is registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud or abusive trade practices. A Forex broker also needs to be associated with a financial institution, such as a bank in order to provide funds for margin trading. Picking the right Forex broker for you will take some work on your part. There are brokers who charge a flat fee and some that charge commission. It may be a good idea to talk with friends and business associates about their brokers. You may get some good leads, and you’re certain to hear who to stay away from. There is nothing like word of mouth advertising.
If you are thinking of investing online, you could choose several online brokers and contact their help desks. Seeing how quickly they respond to your questions could be key in how they will respond to their customer’s needs. If you don’t get a speedy reply and a satisfactory answer to your question you certainly wouldn’t want to trust them with your business. Just be aware that as in other types of businesses, pre-sales service might be better than after sales service.
Before you choose an online broker gets a copy of their online demo account. What features are included? Is the software reliable? Does it offer automatic trading? Are there extra software features that cost more?
Before setting up an account with a Forex broker you will need to do further investigation. How quickly will these brokers execute your buy/sell orders? What is their policy on slippage? What are the transaction fees? What is the spread, fixed or variable? What are the margin requirements and how are they calculated? Does the margin change with currency traded? Is it the same for mini accounts and standard accounts?
Don’t forget to ask about minimum account balances and interest payments on account balances. Make sure that your funds will be insured.
Check any information you receive to be sure that the company is who they claim to be. If at all possible, try and get the background of the people operating the company. Do not rely solely on oral statements and promises made by the company’s employees.
If You Are In Doubt, It Is Not Worth Risking Your Money
As 2015 draws to a close and we all get ready to carry out our respective holiday traditions, it’s a good idea to take some time and review your trading performance for 2015 and take an honest look at what you did right, what you did wrong and most importantly, how you can improve as a trader.
The most frustrating part of trading is not having a losing trade or missing out on a good one, it is the feeling of knowing you did something wrong that you knew was wrong at the time you did it, but you did it anyways. This consistent inability to fix trading mistakes that you know how to fix is usually the biggest reason most traders struggle and fail to make money. So, as we close out 2015 and begin the new year, it’s time to take stock of things you can control in your trading, things you can’t control and tweak your trading plan to get and stay on track for the new trading year ahead.
Don’t trade over the holidays
It’s wise to take some time off from trading around holidays like Christmas and New Years. Markets are usually very quiet anyway around these times and liquidity is low, so there can be a lot of gapping or ‘strange’ / erratic price action. I always steer clear of the markets a couple days before Christmas and right before New Year’s as well.
If you’ve had a rough trading year, taking a couple of weeks off at the end of the year is usually the best ‘medicine’ for coming back recharged and clear-headed in the new year. The only way to put an end to a bad run of losses in the market that were caused by emotional trading is to simply stop trading for a while, and the end of the year around this time is a great opportunity to do that.
It’s also a good time to reflect on your 2015 trading performance and develop a plan to improve in 2016, which the following exercises should help you with…
Take stock of what you did right this year
I’m sure 2015 wasn’t all bad for you in the market. Take note of the things you did well in your trading this year, don’t forget what they were and how you did them.
Make notes of what you did right and pat yourself on the back for those things. Staying disciplined in your trading over the course of a full year is very difficult, and it’s a big reason why it seems so hard to make consistent money in the market. So, if you did stay disciplined, even with only certain aspects of your trading approach/plan, make sure you acknowledge that and continue to do it in the new year.
I would suggest putting a check market or a star next to those parts of your trading plan that you feel confident in and that you stayed true to all year in 2015.
Take stock of what you did wrong
Now, here’s the key; what did you do wrong in your trading over the course of the last year that you can try to fix in 2016?
A wise old professional trader once told me, “Focus little on your losers and even less on your winners”. It wasn’t until some years later that I began to understand what he actually meant. What he meant, was that because each moment in the market is unique and no two trades are ever ‘exactly’ the same, it makes no sense to think about winning trades or get excited about them, because the next time you see that same setup, the result might be different.
With losses, the same thing stands; the next trade may not be a loss, so don’t focus excessively on the ‘loss’, but you may be able to learn something from a loss if it was one that you could have avoided. Read this article to learn the difference between losses you can avoid and those you can’t.
So, the point is the things that you did wrong in your trading over the course of 2015 probably led to losses that you could have avoided. That should be your goal for 2016; correcting emotion-induced trading errors that lead to losses which you could have avoided through proper trading practices.
Traders don’t fail from sticking to their trading strategy if they are using a sound trading strategy (like price action), they usually fail from making the same mistakes over and over and not learning from them. I know you know what I’m talking about here, so you have to decide to make the change for the new year. A lot of getting on the right track with trading is about just making a decision to change; to stop trading based on emotional impulses like greed and fear and stick to that decision over a long period of time.
Formulate a plan to improve
You need to always be moving forward and progressing, not moving backward. Commit to ending those repetitive trading errors that you know you can fix; errors like trading with no signal present, risking more than you know you should, adding to positions just because they are in profit (being greedy), etc. It’s these errors of human desire that typically cause traders to fail.
You desire to make money fast, with little effort, yet that simply isn’t how the world works, and that includes the markets. The only way to make money trading is by having a trading strategy like my price action method, making a trading plan from it and having the discipline and mental strength to stick to it over a long enough period of time to let your winning trades offset your losers.
However, if you don’t stick to your trading plan and you know you’ve faltered, now (the end of the year) is the best time to take stock of what you did right, wrong and figure out how you can improve, because whatever you do, you don’t want to be sitting there in the same position a year from now; wondering where your trading went wrong and why you didn’t make any money this year.
The following is a rundown of things to remember to help you abstain from being a casualty of a trick:
Avoid Opportunities That Sound Too Good To Be True
There are individuals who may have quite recently gained a lot of cash just and as of late are the same and are looking for safe venture vehicles. These may incorporate retirees who have entry to their retirement reserves. It is justifiable why retirees would be attracted to ‘exceptional yield, okay ventures’. This is additionally what makes them exceptionally defenseless. On the off chance that you distinguish yourself to be one of these individuals, be watchful. A lot of beguiling characters is after your cash. Besides, just assign a small measure of your cash to exchange until you can begin developing it. Not all individuals can exchange effectively, so it is an endeavor you ought to go up against heedlessly. It is your life investment funds at danger.
Evade Individuals Or Organizations Who Claim To Predict Or Guarantee Large Profits
Any type of exchanging is hard. Exchanging monetary forms is the same. Be careful about explanations that make it sound simple. Explanations like:
“Whether the business sector climbs or down, in the cash market you will make a benefit”;
“Make $1000 every week, consistently”;
“We are out-performing 90% of local speculations”;
“You’ll make returns of 70% a year”;
“Here is a no-danger methodology”.
On the off chance that they could make such returns, why might they significantly try telling you about it?
Be Wary Of Companies Who Downplay Investment Risks
Hold your wallet tight and hurdle up your satchel when organizations say that composed danger exposure assertions are standard customs forced by the legislature. Keep an eye out for proclamations like:
“With a $10,000 store, the most extreme you can lose is $200 to $250 every day”;
” We guarantee to recoup any misfortunes you have “.
Be Wary Of Companies That Claim To Trade In The ‘Interbank Market’Once you enter the Forex exchanging the world you will promptly see the need of utilizing specialized investigation as a part of request to discover patterns when taking a gander at the forex outlines furthermore the significance of monitoring when they first grow so you can ride the pattern until it closes. The outside trade business sector is an extremely solid slanting business sector, heaps of high points and low points in brief timeframes, and it’s, in this manner, a spot where specialized investigation can be exceptionally compelling.
In any case, you ought to never forget that the pointers are just giving you a high likelihood conduct the business sectors may indicate when you are exchanging, yet will never let you know the conduct of the cash costs with aggregate conviction.
In the event that you need to end up a gainful forex dealer, you should use the greatest number of specialized pointers as you can, or make a customized exchanging technique taking into account a blend of these markers, to perceive with an ideal precision the pattern. At the end of the day, an expert forex merchant will attempt to distinguish the real pattern, the halfway pattern, and the transient pattern and afterward develop his exchanges that heading in light of to what extent their principles permit him to hold a position.
The forex markets are continually changing, that is the reason you ought to dependably have an open foundation when utilizing your specialized pointers. Markets will change and diverse mixes of pointers might be required with time keeping in mind the end goal to have the most exact, most noteworthy likelihood, expectation of future coin value practices.
In the event that the activity of the business sector demonstrates your judgment to be right, then you should consider staying with the business sector’ and search for the most extreme benefit on every exchange, as indicated by your danger to-prize/value administration rules. In the event that you happen to be in an awful day and the business sector conflicts with you, the savvy broker will remove benefits and get from that exchange. In a slender business sector, when costs are not going anyplace, but rather move inside a restricted reach, there is no sense in attempting to foresee when the following enormous development will be.
Thus, you should dependably be ready and open to use the same number of and as various pointers keeping in mind the end goal to stay tuned with the business sector and turn into a productive broker by the day’s end.