Be a Profitable Trader
Post on: 8 Июнь, 2015 No Comment
3 Pillars of Strength of a Profitable Trader
1. Proven strategy for entering and exiting the market. Many people mistakenly believe this is all that is necessary to succeed, and they go around looking for this holy Grail. Strategy is important, but its only one part.
2. Solid money management plan. How much of your capital do you risk on any one idea or trade? Even if you were right 99% of the time, and nobody is, if you risked all your money on each trade, you would lose it all on that one trade gone terribly wrong. If you risk fifty cents to make a dollar, youll break even if youre right 34% of the time.
3. The third essential pillar of strength is your own self-management and self-mastery. Your trading strategy plus your money management, multiplied by your own clear thinking, personal courage and discipline equals your trading results.
Be a Profitable Trader
Our mission is to take you right from the begin to being fit for the demo trials, and only then, you will be ready for the first real maiden flight of live, real trading.
The crisis has deepened due to negative investor sentiment. The global economic crisis affected markets and economies worldwide and has made financial markets unstable. Most investors are pulling their money out of the deteriorating stock markets and look for alternatives for investment. Many investors have found the forex market.
The Forex Market Cannot Crash
In the forex market, the investor bets in a currencys value relatively to another. The investor buys and sells at the same time. An investor can profit when one currency weakens against another just as much as if it were strengthening against the same currency. Volatility in the forex market, despite perhaps making it more risky, provides greater opportunities for profit. The sharper the swings, the more forex traders stand to profit.
How Forex Works
The foreign exchange currency market (forex, FX or currency market) is a global, worldwide-decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a range of different types of buyers and sellers around the clock, with exception of weekends. The foreign exchange market determines the relative values of different currencies.
The currency exchange rate is the rate at which one currency is exchanged for another. It is always quoted in pairs like the EUR/USD (the Euro and the US Dollar). Exchange rates fluctuate based on economic factors like inflation, industrial production and geopolitical events. These factors will influence whether you buy or sell a currency pair.
Why Trade Currencies
a) Forex is the largest trade market;
b) No commissions. Traders pay for the bid/ask spreads;
c) Its a 24 hour trading market;
e) Traders can pick from a few currencies, not 5000 stocks;
f) Traders do not need a lot of money to get started.
Trade on Forex far from Finance Centers
Trading on Forex market is rather simple. However, not as easy to earn money as it looks. If you can predict the rates movement. your trading activity will be successful and profitable. If you feel that euro will lose its cost, then you buy dollar in EUR/USD currency pair, i.e. you put SELL order and finally get profit or, lose if your intuition was wrong. However, we described trading with intuition (120 Trading Tips!) which can often bring profit, but it does not make you a professional trader, as you cannot draw up any exact forecasts. You do have a 50% chance to win on Forex, as you have a 50% chance to face a loss .
Professional traders use different tools for trading: mass media information (fundamental analysis. technical analysis. statistical analysis ) to indicators and expert advisors. As of today, a trader operates in a market of 4 trillion-dollar scale. There is no need for a certificated financier or analyst, logical thinking and some patience will do to study the trading mechanism, recognize patterns and regular functioning of stock markets.
One of the market advantages with foreign exchanges is leverage. A small amount on an account can advance by 100 to 600 times. Traders can get a real sum, make big trades and high dividends so long they never forget about the ways of capital risk and money management. A professional trader keeps a RRR (Return for Risk Ratio) of 3 to 1.
Trading forex involves a high degree of risk and is not suitable to every investor. The high level of leverage can work for investors as well as against investors. Before deciding to invest in forex, investors need to consider investment goals, market knowledge and appetite for risk. BellsForex does not include solicitations or offers to buy and sell any specific currency nor equity or financial instruments and services. Please note that the past performance of an investor does not pre-determine the outcome of future performances. Other Broker Websites. easy-forex | eToro | AVA Trade | Plus500