Is Forex a Good Choice for a Side Job - All the Information

In the last few years, we have witnessed the ever-faster development of technology. Therefore, we have seen the growth and creation of some entirely new, interesting online businesses on the Internet which can change our lives.

The opportunities for earning money in the virtual world are significant and should not be missed. One of those profitable businesses that we will pay attention to in the following text is Forex trading.

We will explain to you in detail what it is and why Forex can be an ideal occupation for everyone who wants some additional source of income.

What is Forex?

Forex is short for the Foreign currency exchange on the. Currently, the biggest decentralized financial market globally is called the Forex market. The market is available to traders 5.5 days a week, non-stop.

Currencies on that market are being traded in pairs such as EUR/USD, USD/GBP, USD/JPY for tourism, trading, commerce, etc. Traders are making money once the currency they bought increases compared to the currency they’ve sold.

Get to know the role of a Forex broker.

The role of the Forex broker is to provide traders secure access to trading platforms for Foreign currency exchange. Since the Internet is filled with scam brokerage websites, it’s crucial to read quality reviews such as the HubbleBIT review and check relevant brokerage forums.

In that way, you’ll make sure that you’re not dealing with fraudulent brokers that may steal your identity, money, or other critical personal data. The Forex broker needs to be regulated by a financial regulatory body to offer 24-hours customer support, free educational material, and excellent account features.

Why should you consider Forex as a side hustle?

What many people, who are just getting acquainted with the world of Forex trading and all its benefits, are interested in is why choose this business? Are there outstanding earnings? Does it disrupt a full-time job from 9 to 5, which they are not ready to give up?

There are several reasons, and they are straightforward. Therefore, we will point out the top three reasons. Forex trading is your perfect side hustle!

#1 It’s flexible

The most common reason people choose Forex trading as their second source of income is flexibility. We learned that the working hours of the Forex market, which has a daily turnover of $ 6.6 trillion, are 24 hours a day, five days a week.

And hence flexibility, which means that everyone can choose when and how much time they want to trade.

#2 You are your boss

There is nothing more beautiful in the business world than not having a superior to whom you will have to justify yourself and constantly fulfill his orders. In the Forex Market, you are your boss responsible for your every success.

#3 It does not require much prior knowledge and investment

Perhaps the most substantial reason for the vast majority is that Forex trading does not require significant prior knowledge or significant investments. All Forex information is available online, and most are free. Also, only $ 100 is enough to start this type of business.

Conclusion

Of course, to successfully deal with Forex, even as a side hustle, takes time, dedication, and perseverance. Therefore, find out a lot about Forex before you open your account, practice for a while with a good Forex strategy, and do not give up even when the period of crisis comes. Good luck!

Investing in 2020: Forex or Bitcoin?

Just as any investment plan goes, there is no exact answer as to where your cash should be injected. In fact, it’s a gamble. Either you are lucky or you’re not. But there are means of improving the investment choice you make. One of the most obvious ways to improve investment returns is to know more about what you are investing in and what the market looks like.

Come 2020 there are bound to be many more investment opportunities. We take a look at where your money would best be invested, Bitcoin or Forex. Anything far and in-between is up to you, naturally.

While a number of online businesses are adopting Bitcoin as a payment option and other sites like novibet.co.uk evolving to make Bitcoin more mainstream, it's natural to wonder which would be a better investment.

But with two of the biggest markets in competition, if you had to choose, where would you invest your hard-earned cash? According to financial evaluators, either or bears their own risks but here is what we know so far.

Forex Trading Advantages

The advantages to Forex Trading, according to professional analysts, is that the market is an open one. It is easy to access and opposed to Bitcoin, investors, and trade through their brokers on a ledger where transactions are recorded and tracked. Being recognized globally far longer than Bitcoin also works in favour of Forex trading. 



For those unfamiliar with Bitcoin, Forex seems like a safer investment, which in some ways puts Forex in an advantageous position. Forex, unlike Bitcoin, is liquid and can be accessed immediately without any need of wallets or middle ground. Investors can freely move cash from one account to the other.

Bitcoin Trading Advantages

If we reflect on the history of Bitcoin, in its short its existence, the cryptocurrency has had a quick claim to fame, fallen just as fast as it rises, and has made a steady recovery. 

Nevertheless, people have been wondering how 2020 looks in terms of investing in the coin and despite negative feedback from less than 30 percent of users, it would appear Bitcoin has restored its reputation and investors are siding with Bitcoin investment.

If you needed proof, you could say the proof is in the pudding. Most of the new online companies dealing with merchant vendors and peer to peer sales are adopting Bitcoin as a payment option. 

In fact, there have been a number of online companies based solely on Bitcoin transactions to have been developed in 2019. With this being said, we can see and feel the strong presence of the crypto, leading us to believe that come 2020, Bitcoin will be as strong as ever.

While both trades have their pros and cons, the future of trading and investing may just be in favour of Bitcoin. But for now, it remains a gamble, Forex being as popular as ever and Bitcoin drawing in admirers from around the globe. All that remains to be seen is which of the two will be a better investment in 2020.

Emotion in Trading Results in Big Loss

If you want to ensure a reputed trading career in Forex, emotions must be avoided. The trading plans will be the most important to execute trades efficiently. If you fail to find an effective trade setup for decent profit potential, you will lose money. Instead of gaining pips, you will experience a potential loss. 

If your emotions are dominating the trading strategies, they will increase more from a loser. So, you will lose control over your trades gradually. The most important factor of emotion-based trading is losing your account. It will not take long to blow up your account balance and ruin your trading career. 

Being new to the Australian trading community, try to avoid getting emotional in the trading business. Instead of the emotional dilemmas, concentrate on the executions of the trades. Thus, you can easily make sure a decent profit potential from the trades.

It will be even better when you are curious to develop an efficient trading plan before joining the industry. So, stop wasting your capital doing live trading and spend more time on improving your trading skills. Practice your plans and strategies to improve your trading quality.

You need to make concrete decisions

In the case of currency trading, a solid plan is needed to execute the trades. At the same time, a secured money management plan is important for the safety of your capital. And due to the high volatility of the marketplace, you need to take a concrete decision for the trades. 


But emotional conflicts will not let you make solid decisions for the trades. It will always bother your trading mind with immature ideas. Many traders lure into overtrading and micromanagement due to emotional dilemmas. None of those strategies as safe for the trading business. They increase the potential losses of your trades.

So, you need to improve defense against the emotions related to Forex trading. If there is a loss, strictly use it as a learning instrument. Correct the errors of your trading edge then improve your strategies. It will be efficient to improve your trading quality. Thus, you can also avoid losing money and quality trades in the Forex trading account offered by Saxo.

Trade with a calm and calculative plan

Before deciding on a trade, you need to find the right position for the trades. It is not so tough when you have a calm and calculative trading mindset. You just need to do an effective market analysis to time the trades precisely. With fundamental elements and technical calculations, you can understand the market volatility. 

Moreover, you can also ensure a decent profit potential from the trades. Because the idea is to find a suitable trade setup that can be used to execute your trades. The stop-loss and take-profit will be utilized for the trades as well.

It is appropriate to find a suitable market condition to place your trades. But without concentration, you cannot study the markets. Therefore, you will lose the chance of executing a trade securely. As it is not appropriate to worry about losses, you should stop doing that. The frustration and regret of losing money should be avoided as well.

Concentrate on improving skills

Accepting the losses, you need to move on and try to improve your trading edge. As mentioned earlier, you must avoid the trading losses and look for mistakes in the trading plan. That way, you can improvise your trading edge efficiently. You can ensure a decent profit potential within a very short amount of time after joining Forex. 

It will be even better when you can use the demo account to improve your trading strategies. Because you will not lose your money but will improve your trading skills to ensure positive trading performance.

So, instead of the frustration, focus on the market analysis. Try to improve your skills to study the markets properly. Utilize fundamental and technical analysis to find perfect spots for opening and closing a trade. It will reduce tension because the potential losses will decrease with time.

How to Master the Art of Forex Trading Profession

This is one of the most popular articles on the internet but sadly no one gives you clear information to learn to trade the market. 

But if you read this article very carefully you will understand how to make a huge profit from this market without losing your investment. As an investor, you need to follow some basic rules. Trading is often called as the most complex business in the world. 

You need to fight with your emotions to execute the best trade at the most extreme market conditions. Now let’s learn about the key steps which will help you to become a profitable trader in the Australian trading community.

Do you really want to become a trader?

This is is the most important question you need to ask yourself? There are many challenges you need to overcome to become a successful trader. 

Can you really take this heat? If so, trading is the right profession for you. Though 90% of the traders are losing money there is nothing to be afraid of. 

Those who trade the market with 2% risk factors will never blow their account. But there a slight change to the universal 2% rule of risk management. Instead of risking 2% per trade you need to risk 2% per week. 

By this way, you will be able to stop overtrading the market. Focus on quality trade execution in the higher time frame.

Find a professional trader

Finding a successful trader is very hard. But if you want to become successful within a very short period of time you need to find an expert Aussie trader who will guide you the initial path. 




Things are really very easy in the Forex market but if you don’t trade with discipline it won’t take long to blow your account. This is where the professionals will help you. 

Forex trading is nothing but dealing with your emotions and managing your trades in a very organized way.

Demo trade the market for six months

You need to use the demo accounts for at least six months. Those who start trading with real money doesn’t really understand how this market works. 

Learning from your mistakes as a new trader by losing money continuously is very hard. But if you simply use the virtual dollar you can trade as long as you want. This is just like your practice field where you can learn about the complexity of this market. 

Some professional brokerage firms have limitations on the demo accounts but this is absolutely fine. Demo trade the market with the average brokerage firm to learn to trade. 

Once you develop a stable trading strategy switch back to your real account and start executing quality trades with managed risk.

Stop being a trade addict

You need to stop being a trade addict or else you will never succeed. Some traders always stick to their chart and things this will help them to better understand the market. 

But in reality, this things always make things worse. You have to trade in an organized way. Follow a trading routine and you will be able to learn the details of the market. 

Majority of the traders don’t know the importance of different trading sessions. They are always taking a huge risk at the wrong time. But if you chose the correct pair in the correct trading session you will have higher chance to win trades.

Forget about EAs and bots

Last but not the least you need to forget about EAs and bots. No bots have the capacity to predict the price movement with 100% accuracy. Those who will guarantee 100% profit, stay 100 feet away from them. 

Try to learn the manual trading strategy as it is one of the best ways to find good trades. Be a conservative trader and you will see significant improvement in your trading system.

What is Forex and How to Get Started?

Benefit from Forex

There are various trading platforms which an investor can employ in order to try and maximise profit when they deal in investments. One of these is forex/FX. Forex refers to the foreign exchange market and is by sheer volume the largest market for trading in the world, with the big international banks as the main traders. 

Private individuals as well as companies are also assisted by non-bank forex entities. Essentially, Forex is about trading currencies whereby one currency is bought and another sold, simultaneously. 

Speculation is often at the heart of forex deals, meaning that the buyers/sellers often have no intention of taking delivery of the currency they are trading in; the whole idea is to speculate with the currency and to try and make it worth their while that way.

Getting Started

When you want to start using forex as an investment tool forex as an investment tool, there are certain ways to go about the process – free webinars or you can attend seminars, which will be of great benefit. Often big companies will lead you through the process by showing you the ropes by way of a risk-free practise account. 

 The internet is also a very helpful tool to get you started and of course, well-known names in the world of investment markets will give great information. Some advice: Remember that past successes never guarantee success/profit in the future. Forex, like all monetary vehicles, depends on current conditions in the market, and should be viewed as such.

Trustworthy Brokers

To help you to get going, it is a good idea to choose a trustworthy broker such as CMC Markets that will offer you lower ‘spreads’ (i.e. the difference between buying and selling currency), someone who is registered with a reliable body that oversees his/her/their activities according to internationally accepted procedures and support as far as news and data are concerned.

Know the Terminology

Before you start trading, make sure you understand some basic terms such as ‘Ask Price’ (the price at which you can buy a currency) and ‘Bid Price’ (the price at which you can sell the currency) and ‘currency rates’ (the rate at which one currency trades against another, e.g. the rate at which the British Pound trades against the US Dollar).

These are available online, and with the help (if necessary) of a reliable broker, you should be able to get a good grasp of the terminology and processes before you commit. 

Once you begin, you will be able to follow which economies are strong and which are not; you will want to get rid of those currencies which are perceived to be weak and, vice versa, you will want to acquire the currencies of those stronger economies. On a daily basis follow the trends and ask for advice from the specialists when necessary.

Tips

As you are starting out, remember the following: Do not gamble, i.e. do not commit to trade more than you are willing to sacrifice. Make sure you have a reputable broker and search the internet for basic terms and their meaning before you start trading. Once you have a basic grasp of the process, start slowly until you feel comfortable to trade more aggressively.

The FAQs of Currency Trading

Exchange Money Conversion to Foreign Currency (Photo credit: epSos.de)

Trading currency in the foreign exchange market is literally a trillion dollar business. And it used to be only large financial institutions and very wealthy people could take part in the trade. Now, with the advent of the internet, the average person can trade on the market with the click of a button. If you’re interested in getting started in trading currency, here are some frequently asked questions that might help you get going.

What is the Forex?

“Forex” is a moniker for the foreign exchange market. You may also see FX.

What is a liquid market?

You will often hear the Forex referred to as the most liquid market in the world. A liquid market is one filled with liquid assets, or assets that can be sold instantly with almost no loss in value. You car, for example, is not a very liquid asset. Although you could probably sell it very quickly, you would have to lower the price. In order to find a suitable buyer willing to pay a suitable price, you’d likely have to wait a while.

In the Forex, because currency is such a massive asset, it can be traded almost instantly. The sheer size of the Forex (it’s a worldwide market) also means that no key players or institutions, no matter how large, can control the price of currency. This makes the Forex the most stable market in the world.

Who trades in the foreign exchange market?

Like I said, it used to be mostly large financial institutions, central banks, hedge funds, international corporations, and massively wealthy people who traded on the Forex. Now more and more individual people are able to take part. 

How is money traded on the market? Is physical money traded?

No. Most often money is simply traded virtually. In fact, there is no centralized market in the Forex. Trades take place between traders all over the world through the internet. The Forex is open 24 hours a day, five days a week (closed on the weekends), across all time zones. This means that as the market closes in the U.S., it’s opening somewhere else in the world, so the market is active at every point in the day.

How do you make money in the Forex?

Currencies are usually traded in pairs on the Forex. To make money, you basically have to correctly predict which currencies will gain and lose value. For instance, one popular pair of currencies is the U.S. dollar and the euro. Currently, the exchange rate between the dollar and the euro is .73 dollars to one euro. That means it takes about 1.3 dollars to equal one euro. In order to make money in the Forex, you would have to predict when the dollar would reevaluate or when the euro would devaluate, and buy currency accordingly.

What currencies are traded on the market?

Although some retail traders deal in less-known currencies, the most popular currency pairs are:

• EUR/USD (euro/dollar)
• USD/JPY (dollar/Japanese yen)
• GBP/USD (British pound/dollar)
• USD/CHF (dollar/Swiss franc)

As well as the three “commodity pairs.” The commodity pairs are so called because they are from countries that include a large amount of commodities. That means these pairs are highly correlated to changes in commodity prices. They are:

• AUD/USD (Australian dollar/U.S. dollar
• USD/CAD (U.S. dollar/Canadian dollar)
• NZD/USD (New Zealand dollar/U.S. dollar)
• 
  

What is “leverage” in the Forex?

Leverage is using borrowed capital to get a higher return on your investment. Let me unpack that phrase for you. Basically, leverage is borrowing money in order to trade more than you have. If you have a mortgage on your home, you are already leveraged.

In the Forex, there are often many high leverage opportunities, sometimes up to a 100:1 ratio. That means if you had a dollar in the Forex, you’d be able to leverage that dollar to trade one hundred dollars. If you have a thousand dollars, that amount goes up to one hundred thousand. This high leveraging makes it easier to trade large amounts of currency and keep the market moving.

What is carry trading?

To understand carry trading, you have to understand that each central bank determines the interest rate on currencies. Carry trading is all about funding the purchase of a currency with a high interest rate with a currency with a low interest rate.

For example, in 2005, many people bought New Zealand dollars (whose interest rate was 7.25%) with the Japanese yen (whose interest rate was 0%). In this interaction, because there was such a huge difference in the interest rates between the two currencies, carry traders were making money in the trade alone, without having to wait for the money to gain value. 

What does “long” and “short” mean in foreign exchange?

Because currencies are traded in pairs in the Forex, you are often “long” one currency and “short” another. For instance, if a person traded 100,000 dollars for yen, she would be “short” the dollars she just traded, but “long” the yen she received.

This is just the beginning of the Forex! It’s a very complex, but exciting market. If you’re interested in learning more about the trade, I’d visit Investopedia, as they have a lot of great resources about the fundamentals of the Forex.

Mary Kremer writes content for Dinar Daddy, the number one source of information for trading the Iraqi dinar.

Getting the Most Out of Your Savings

money (Photo credit: 401(K) 2013)

Getting the most out of your savings seems to be harder than ever these days. With interest rates incredibly low and bank fines high for any mistakes that you make, it is easy to believe that you’re not actually saving money at all. Before the financial crash, cash ISAs and savings accounts were used by everyone, providing a solid (although not astronomically high) rate of interest that rewarded savvy, money conscious savers across the globe. However, the crash changed the entirety of the world’s financial outlook and now; the way we save is entirely different, with people struggling to accrue any interest whatsoever. Due to this, people have started looking for alternative investment strategies to ensure they get the most out of their savings; here are just three ways you can do just that:

Start an eBay Business

Technology continues to play a greater and greater role in our lives and, because of this, a number of business opportunities have emerged. Recently, we’ve seen online shopping site eBay become the epicentre of the online retail world. A place where you can buy anything from golf clubs to new cars, eBay has something for everybody; all at an affordable price. With over 14 million active users, a prospective audience for your products is huge and, because it’s all online, you don’t even have to leave the house to start earning a profit. Start small with unwanted home items and then build up to business level.

Trade Forex

Another way that you could potentially make money online is by trading forex. Much like you do when you go on holiday, forex is the process of changing currency from one to another, exploiting the exchange rate to make a profit. The markets are difficult to navigate and it takes a great amount of research to ensure that you limit the risk of losing your money. However, unlike an eBay business, the set up cost is low and all you’ll need is a Metatrader account. Very high risk, the rewards for forex traders are high, but there is always the potential you could lose a great deal of money, too.

Invest in Stocks and Shares

The world of forex is very immediate, and if you’re looking for longer term investments, then stocks and shares may be your thing instead. Of course, this is also a potential investment minefield, and it will take a copious amount of research before you begin. But, when you’re all set up, you can monitor your trades without even leaving the house. Something that is ideal for many of us.

To conclude, savings accounts at banks accrue far less interest than they used to and, to get more out of their savings, people have started looking elsewhere. Starting an eBay business, trading forex and investing in stocks and shares are three ways that you can do just that. But, don’t be restricted to just these three things, the world’s your oyster, so have a good look around and invest wisely.

Use Price Action Strategies And Signals And Know The Best Time To Trade

Forex trading involves the trading of currencies on different trading platforms. Many factors affect the currency market. And, you want to trade currencies, you need to adopt a host of analysis and strategies to strike the best deal and reap maximum benefit. These strategies help in assessing the market well. 

With these strategies, you can gain a competitive edge over other traders in the global market. Learning these strategies will contribute to your success in trading. By following the simple three methodologies, you can interpret the data well and trade at the appropriate time. Trading a new market can be intimidating at first. That’s why you should try a MT4 demo account from Hantec Markets first – a safe environment to practice and experiment before you commit.

Data at your fingertips

The term price action trading implies to the methodology of laying down all data required for trading on a price chart. There is no scope of confusing data in this procedure. These charts capture data related to global data during the stipulated time. The resistance and support zone, as well as the ranging market, is also depicted in the chart. 



The movement of price in the market, the actions of the brokers in the specific period the time is reflected in the chart. Global development and other economic updates affect the market, but as a trader, you need not analyze those. This news is automatically reflected in the price action chart.

Pin bar strategy

You can follow a few trading patterns to succeed in the Forex market. Pin bar setup is one such price action pattern used for trading. These bars can be generally located in the resistance, and support zones provide accurate structures. 

They indicate the trend and the rejections, as well. These bars can also be used in the context of the trending market. Depending on the movement of price, these bars can be categorized as a bearish or bullish pin bar.

Indicates the market trend

Another strategy or pattern used for Forex trading is fakey strategy. This generally indicates the rejections in the global market. There are times in the foreign exchange market when the market seems to move in one direction only and then turns reverse. These conditions lure amateurs a lot as the experienced traders push the price in the opposite direction. 

Depending on the fakey setup, you can really take some bold steps in the Forex market. The last one is Inside Bar Setup. This can be used as a continuation signal as well as a turning point one. This setup is best used in weekly and daily price charts. It denotes the combination and also the recent trend of the market.

Spot the favorable time

Forex market is dynamic; the information or the trend that it leaves behind is also referred to as footprints. These footprints, also known as clues, help in determining the pattern of the market. Well, these clues are also known as signals of price action trading. 

The best time to enter the market depends on these signals. Along with this signal, another factor is a hot point that also decides this time. This point is also called confluence, which is the intersection of more than two levels. Traders generally look for areas where two or more level conglomerate. These can be assessed with the use of different tools.

These setups and strategies make Forex trading easy and reduce complications. If you have mastered the use of these strategies, then the trading will be really easy for you. When the market is bound by range, then trading in the consolidated is the best option. Following these strategies, you can trade according to the trend of the market. 

From the daily chart, you can spot the time which is most favorable for trading. A daily chart gives the actual depiction of the foreign exchange market. Knowing the basics of price action strategies is essential for successful trading.

Author Bio: Neil Hyden writes blogs on Forex trading. He writes a great deal on strategies and signals used in price action trading and elucidates how it helps in trading as a whole.

Tens Ways in Which Forex Trading is Superior to Playing the Stock Market

English: A view from the Member's Gallery inside the NYSE (Photo credit: Wikipedia)

James Sheffley fancies himself a Jack-of-Some-Trades in the finance game. After graduating from the University of Chicago with a degree in economics, Sheffley began his incredibly lucrative career writing for e-econ blogs. As a sideline, he enjoys a marginally successful career as a stock and forex day (and night) trader. When not firmly ensconced behind his keyboard, Sheffley can be found following in the footsteps of his hero, Sudhir Venkatesh, tracking underground economies.

When the average self-respecting, cash-hustling, prospective Master of the Universe considers or mentions “playing the market”, chances are excellent that the market being referred to starts with an “s” and ends with a “tock”. And for laymen, “play”-able markets that aren’t the stock market are rarely, if ever, considered. That’s an unfortunate state of affairs, because the foreign currency exchange market (Forex) is in many ways superior to the stock market as an investment opportunity for average people. How so? Well, read on.

1. You Don’t Have to Worry About Middlemen

One of the primary benefits of forex trading is the trader’s ability to do so without a proxy. Traders, from hobbyist amateurs to seasoned pros can interact directly with the currency pairs being traded.

2. Saving Money on Every Trade

And what is perhaps the chief benefit of bypassing those middlemen (or middle-women)? Saving money. There are no commissions that need paying, no exchange, governmental fees and generally not even a cut from your pocket to a retail trader if you use one. Those guys are generally paid via the bid/ask spread.

3. Forex Offers Greater Liquidity than the Stock Market

The stock market is big- about $22 billion is traded on the NYSE a day. That’s not chump change. The currency market, however, is roughly 2500 times bigger than that. That’s $5 trillion a day. That’s “trillion” with a “tr”. With that much money being traded, you’re pretty much guaranteed to have someone on the other end of your currency trade willing to buy what you’re selling or vice versa. That’s definitely not the case with the stock market. 

4. The Market that Never Sleeps

When the closing bell rings in New York, the stock market slows down significantly. Not entirely of course, but significantly. However, the currency market is pretty much a non-stop party. There are certainly times when that party is particularly jumpin’- when the Forex markets in New York and London overlap, or those in London or Tokyo, you get some hotspots. However, even in the middle of the night for you, that guy on the other end of your currency exchange in Kyoto, Japan or Sydney, Australia might have just had his first cup of coffee.

5. There Are No Fixed Lot Size

The non-Forex market which perhaps most closely resembles Forex in the way it operates is the futures market. (I have a lot to say about Forex vs. futures). Those futures are purchased in lots, like 100 ounces of gold for instance, and there are futures contracts that determine the size of those lots. Not the case with Forex. You can trade with $25 or $25,000,000.

6. No Cornering the Market

Another benefit of the currency market’s incredible size is that no one (or more) facet of that market can be “cornered” by a very wealthy person, collective, corporation or even giant bank. Cornering a currency market would pretty much be the literal equivalent of buying a country.

7. Begin Trading with Less Money

Just like that more monetarily liberal lot-allotment can facilitate trading with less capital at your disposal, it also allows an entry into the market for less wealthy people. Currency trading, more so than stocks, can be accomplished without risking large sums of money. That means a lower “barrier to entry”.

8. Great Leverage

You may be asking, “Great, so somebody can open a forex trading a count with as little as $25. Why would anyone want to trade with $25?” Well, the answer is a two-parter. Part one: leverage. Forex brokers can, to a large degree, determine their own leverage ratios- like 50-1 for instance. So while $50 could net you $1250 in trading funds, kicking in $1000 or $5000 starts adding up to real money.

9. Real Time Preparation and Free Stuff

Another excellent bonus of the whole Forex-trading sphere are the free preparatory tools, demos and perks offered by the forex brokerage services. Demo accounts, forex tracking in real-time, forex news and more, all of which can be had for free. And not only is it convenient to take advantage of those tools, anyone planning on forex trading should get themselves a demo account and be consistently making (virtual) money before they start playing with real dough.

10. All of This Makes Forex Trading More Democratic

Demo accounts, a lower necessity-threshold for middlemen; a reduced or nonexistent threat of getting entirely rolled in some market-cornering coup; lower barriers to entry; the lack of fees, commissions, government taxes, etc.; far greater liquidity and the other benefits to forex trading both mentioned and missed here, all contribute to foreign currency market’s greater availability to the average consumer than the stock market.

Good luck and good trading.

Top Reasons Forex Traders Fail

What is Forex? Is it an animal? Possibly, in the way that it behaves. Is it a corporation? Perhaps, many can fall from a bad investment. Simply, Forex is an abbreviation for the foreign exchange market. 

Forex does not possess the glitz and glam of the stock market, but it is the granddaddy of them all. On the outside, Forex might seem for everyone, independent of age, gender, location. You can even be retired and still try Forex. If it works for you from the start, then you are lucky. If it doesn’t work, here are the reasons why that might happen. 

More Details about Forex

On average, 4 trillion positions are traded daily. Currency is bought and sold on Forex. Forex runs 24/hrs in the major markets, of New York, London, Tokyo, Sydney, Zurich, Frankfurt, Hong Kong and Paris. With such a great opportunity, and the advent of technology, anyone can join the Forex market, and there in lies an inherent problem.  

Forex at one time was left to large corporations and individuals with large amounts of money, however, with the boom of the internet and online futures trading, anyone can open an account and trade online- average Joe. The allure of great wealth and prosperity seems attainable, but beware there are some great pitfalls of why Forex Traders are not successful. 

No. #1: Lack Of Discipline

Having passion for your industry and your field is an admirable quality. Emotions, have garnered some of the best speeches: "I Have a Dream," "Gettysburg Address," and "Kings Speech,” Each of these speeches were given in times of great anarchy, political identity crisis and personal failings. 

When trading, there is a constant motion, say if you will be organized pandemonium that is meant for principled, level-headed tradesmen. Successful traders, land enormous wins, but suffer a great deal of loss. Some of these losses are consecutive and will test the mettle of a skilled trader. 

Conversely, a series of great gains, can leads to greed. Moreover, it is how you react and address these collective opportunities that can define your character as an online investor. With two sides of the spectrum, most traders do not possess the focus and the wherewithal, to see the sensible way to approach the Forex market, which leads to a lack of vision.

No. #2: Poor Planning

Trading plans are the blueprints to success and failure. If we think of Target, Coca-Cola, each of these companies, had a distinct DNA that led to a path of success. Inexperienced traders, do surface research and ascertain a general idea of assets, risk management, without projecting for returns on investments (ROI). 

In addition to planning, some will create a detailed synopsis with charts, projections, but will not adhere to the proposed investment strategy, because a bigger asset seems to be lurking.In trading, usually the tortoise, not the hare wins the race. Without perspective, it can be confounding to adjust, to trends in the marketplace. You could be easily, pouring cement around your feet, waiting for it to dry and eventually you are- stuck. 

No. #3: Not Adapting To The Market

In order to survive in this Darwinist ideal of business, you have to adapt. Being a chameleon is an advantage, but most traders with experience, see a certain way to follow. Accepting differing points of view, you gain a broader understanding of how specific financial sectors operate. What may trade well in Hong Kong, maybe worth miso soup in London? 

There is no full-proof plan for success in trading. Granted there are indicators, but trying to apply every type of financial model to the financial markets, is like putting a round peg in a square hole. In planning, and trying to align with markets, there has to be a backup, for the backup, for the backup, so that if there is quick pivot, it's not a surprise, it is a pause to position oneself to power. 

Simply, stay rooted, you plateau. Online futures trading truly can be rewarding, risky venture that takes great fortitude, skill and planning. Principally, you want to have enough capital to truly make your investment worthwhile. Consequently, discipline is essential, because you would have studied and gain an apt understanding of the metrics needed to begin creating a solid investment plan. 

Being under-capitalized (simply not enough money to conduct business), will hinder efforts to make a successful and profitable gain, in the world of global trading. Moreover, planning and making ready adjustments are hallmarks to truly finding success in online futures trading. If your investment plan is sound, when changes eventually emerge, they are not surprises; it just becomes part of the larger plan. 

Overall, become a student to other traders, and to the various markets you intend to invest. Allow time to pass, before making hasty decisions. Gettysburg concluded strongly, by saying that government is for the people, by the people, if you then think, the markets are for the people, but its success truly lies in your hands.

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. 

Top 5 Best Investment Ideas and Tips for Beginners

New to investing? Learn about various investment tools here and find out how to start investing your money.

As a beginner investor, navigating through the many different investment options available out there can be very difficult and a scary experience. Different types of investments carry with them varying amounts of risk and reward. There are a large number of potential investment pitfalls that can befall the unwary, first-time investor. To make things easier for you, here is a list of the top 5 best investment ideas for beginners. 

Top 5 Best Investment Ideas and Tips for Beginners: 

Real Estate

Despite the recent falls in property prices, real estate remains a good investment. It’s actually one of the well-protected investment options that keep on thriving and flourishing, even in developing nations. Real estate lets you combine the huge benefits of leverage with property value appreciation over the long term. 

The value of property typically increases over time, resulting in increased equity and creation of wealth. Also, the growth in value your investment experiences is sheltered from tax until you liquidate the property. Additional tax benefits can be realized through value-added tax deductions such as ability to deduct operating costs and cost of financing. 

Gold

As a beginner investor, it’s wise to invest in gold. This is simply because it provides an excellent hedge against inflation. In times of economic crisis, the government typically prints more currency. This results in increased money supply, which in turn causes inflation and ultimately decreased value of currency. Investing in gold provides a great way to secure your investments, as when the true value of currency decreases, the value of gold invariably rises. 

Today’s interconnected world economy means the economies of major countries are intrinsically linked. When the economy of one major country suffers, there is a knock on effect and major stock markets suffer as well. When stocks and shares fall, majority of investors usually choose to buy gold, which causes its prices to rise.

Forex

Forex investing offers the best return on investment. But the risks are higher compared to other forms of investments. Conventional investments, such as stocks, mutual funds and bonds, provide a good way to earn money from one’s savings. However, forex trading is more profitable compared to these investments. It’s also much less complicated and demanding but as profitable, if not more. 

With forex trading, you don’t have to monitor hundreds of stocks or wait for months to realize profits. You can make money huge amounts of money from trading in just a few currency pairs within a very short period of time. This is because the Forex market trading hours are a 24-hour, commission-free market that has no short-selling restrictions. 

Insurance

Investing in insurance products is a great way to ensure that you’re well taken care of in times of emergency as well as during retirement. Insurance policies that come with an investment feature offer significant tax benefits, as the earnings on the plan are not usually taxed. These policies also provide a wide range of investment options, such as stocks, mutual funds, bonds and money market accounts. 

Additionally, they offer unmatched flexibility, where the plan may be increased with a lump-sum payment or borrowed in the event of a medical emergency or any other pressing financial need.

Your Employer’s 401k

Majority of employers offer a 401k plan through which employees can make their contributions toward their retirement savings. However, many employees don’t take full advantage of their 401k plan. Don’t be like them, as there are many benefits that you can accrue from investing in your company’s 401k. 

Contributing part of your salary to your employer’s 401k plan will allow you to enjoy a number of benefits, such as a tax break, tax-deferred growth, and a possibility of a matching contribution from your employer. To get maximum benefits, consider contributing approximately 20% of your income to your 401k, and avoid tapping into your 401k to meet your immediate cash-flow needs.

Conclusion
Lastly, it’s important to note that there is no guarantee that you’ll make money using any of these ideas. To succeed, you need to take the time to learn about the fundamental principles of each of these investment options as well as the right strategies that can help you make money. Also, remember you don’t have to invest in all of them to succeed. Just choose one or two options that you are most comfortable with and stick with it.

Price Action Trading - The Most Successful and widely used Forex strategy

There are a number of strategies that are used by traders to maximize their profits in Foreign Exchange (Forex) market. For instance, some make use of various technical indicators such as RSI, Stochastic Oscillators, Bollinger Bands etc., some observe MACD and Moving Average Crossovers while others solely rely on fundamentals. However in my opinion the best way to succeed in Forex market is to use a combination of different strategies and one such combination is known as Price Action Trading. Traders from all over the world have been using this combination for many decades and practical experience has proven it to be a very reliable and successful strategy.

Key components of Price Action Trading

Price Action Trading is based upon following components: 

• Support & Resistance levels 
• Trendline 
• Psychological Numbers 
• Fibonacci Levels 
• Confirmation Bars 

Let us discuss each one by one.

Support & Resistance levels. Support & Resistance is one of the most fundamental concepts in Forex Trading. A level that prevented price to go up during any period of time in past is known as Resistance level. Whereas, a level that stopped price to slide down during any time period in past, is called Support level.

Chart Source: http://www.rightline.net/education/support-resistance.gif
The above chart clearly highlights the support and resistance levels.

Trendline

Trendline is drawn on a chart by joining the key resistance and support levels. Have a look on the following chart.

In this chart, a trendline is drawn by joining two support and two resistance levels. According to this trendline, the price of EUR/USD will face a strong resistance at 1.3895, thus traders will tend to sell EUR/USD at 1.3895 to 1.3900 region. Similarly, if the price of EUR/USD falls and eventually hit the lower trendline, that point of lower trendline will act as a strong support level and the price will most probably be bounced back. Therefore, traders will tend to buy EUR/USD from that support level. 

Psychological Numbers

Psychological numbers are the round numbers that are easy to remember for instance 1.5900, 1.6300, 1.5500, 1.8300 etc. A resistance or support level close to any psychological number is comparatively more significant. In our EUR/USD example, we will consider psychological number 1.3900 a very major resistance level as it is close to trendline resistance 1.3895. 

Fibonacci Levels

Leonardo Fibonacci was the founder Fibonacci levels. These are the points of possible reversal or trend change in price. In order to draw Fibonacci levels you can make use of an MT4 tool, follow the following command: 

Go to: Insert >>>>Fibonacci >>>> Retracement

Now insert the retracement tool at the nearby lowest or highest level on an appropriate timeframe such as One Hour (H1), Four Hour (H4) or Daily (D), now fully stretch the retracement tool by moving your cursor in opposite direction as shown in the following chart.

Chart Source: http://farm5.static.flickr.com/4098/4752860472_6e3bced684_b.jpg

You can see that the price showed upward trend upto 68.8% Fibonacci level and then suddenly changed the trend and started sliding down, that means, 68.8% Fibonacci level acted as a resistance and forced price to go down. The most common Fibonacci levels are 68.8%, 50% and 38.2%, the price usually shows a reversal from such levels. 

Confirmation Bars

Confirmation bars are basically candles in candlestick pattern such as Hammer, Shooting Star, Pin Bars etc. that confirm the change in price trend.
Conclusion

An ideal opportunity to enter the market arises when the price is near any major support/resistance level (derived from trendline), and such level is close to any psychological number or Fibonacci level and confirmation bar is also there to confirm the change in trend. This was a brief summary of Price Action Trading.


Author bio:
Egor Prokof'ev is an experienced Forex trader who writes about online currency trading and PAMM investments. He is also one of market analysis experts at FXOpen and economic forecasts writer at TradingPoint.

Forex Trading Demo For Beginners

Forex trading is a speculative business and before you enter this world it advisable that you practice trading by opening a Forex trading demo account. Most of the Forex brokers provide you with free demo accounts but it is important to choose the correct one. The account should have close resemblance with real money accounts and have maximum time limit for operating them. There should be minimum difference between a real and a demo account so that you are not heartbroken when you step into the real world. 

How to open a Forex demo account?

Forex trading demo account deal with virtual money and it is important to look for the amount of virtual money they offer. The more, the merrier. There are numerous Forex demo account providers but it is advisable to choose the one by seeing what brokerage is offering it. You should also look into the trial package it offers along with the charges and mode of payment. The necessary steps in order to open a Forex demo account is quite simple. You need to visit the brokerage website, register your name and e-mail, look at the terms and conditions, and you are all set to trade with your virtual money.

Advantages of trading on demo first:

Using a Forex trading demo account can be worthwhile experience for new budding traders. Firstly, you get a realistic feel of the forex market as the accounts have a realistic touch to them. Secondly, you can learn while you trade and that’s a very good opportunity to newbie’s who wants to get the understanding of the market. Thirdly, there is no real money involved so, a trader can do business without any risk of losing money. Lastly, it provides a good platform to test a strategy. You can always try your creative business mind and see the results for yourself. A Forex trading demo account can be a learning curve for all amateur traders out there.

What drives the Forex market?

Forex market is elastic and changing. It does not follow anyone’s guidelines nor will it follow your set of rules. It is driven by these factors namely- politics, speculators, business transactions and central banks. Political condition of a nation reflects the economic stability. Political unrest forces the investors to sell which results in the fall of currency. The role of central banks in determining the rate of interest also impacts the exchange rate of a nation. Foreign exchange being one of the largest markets in the world boasts of great business transactions. These great transactions often affect the Forex market and the currency of the country as well. As mentioned earlier, that Forex being a speculative business is bound to work on the theories and guess work of the traders. If the traders believe that prices may go high in future, they tend to buy, ultimately impacting upon the prices.

It’s easy to open a Forex trading demo account and quite risk free to trade with fake money. Although it is not serious business when you are trading with your demo account but it should be dealt seriously as it is the foundation stone to your Forex dreams.

Quick Insight into Top 4 Benefits of Online Share Trading

Investing in the share market is a great way to raise capital, given that you do the needed research and make the investment strategically. With the advent of Internet, today people can now easily access the markets and related information online, which were earlier only available through a broker. With such convenience, online share trading has slowly started replacing offline share trading due to its innumerable benefits. 

Online trading has given the modern traders of today the convenience, but this, in no way, means that they are investing in a smarter way. An increasing number of individuals opt to trade online as against offline trading today. People who learn to trade forex online today would never want to go back to the conventional method of offline trading. Let’s take a look at what has been attracting the investors towards this online trading strategy by understanding its benefits. 

Convenience

The first and foremost advantage of online share trading that has been appealing to investors is convenience. Traders can manage their investments online during any time of the day or night, which is extremely convenient to them. Such trading also lets the traders watch out their investments throughout and gain access to info that were earlier accessible only by brokers. Thus, online trading saves money and time by trading according to your convenience. You can trade from the flexibility of your home, office or internet café.

Apart from a computer and Internet access, the only other important thing that you need for online trading is a bank account for all your money transactions from time to time. Once you have the needed money in your account, you have the freedom to purchase your favorite stocks. Your share trading account and bank account will be linked to each other to enable you in purchasing shares online.

Diversity

The next benefit is the diversity of investments and assortments available. Few of the most popular online brokerages are AmeriTrade, Fidelity, and Scottrade. You will gain access to various markets like foreign bonds, and stocks based on the brokerage, which will open up your chances of making more money in the longer run.

Instant Access to Stock Markets

A trader gains instant access to his online share trading account and details pertaining to the stock market with just few mouse clicks. Further, he or she can avoid making decisions in haste since the investor can stay updated concurrently with the recent stock details and latest news about the firm in which they have invested or about any other potential firm they would want to invest in.

No Limit on Trading Hours

One more benefit of online selling and buying is that you can place your orders even during non-market hours. On the contrary, in offline trading buying and selling shares need to be done only during market working hours. The fact that there is no restriction with respect to market hours is an added advantage in online trading.

With these many advantages of online share trading at the fingertip of every online trader, there is no reason as to why any investor would want to ignore the convenience of online trading. So, become a smart trader, and leverage the power of Forex trading today.

Author Bio
Alisa Martin is an online share and stock market trader. She has been using this convenience ever since online trading was introduced in the market, and happens to be one of the veteran traders.