Things A Beginner Forex Trader Should Remember

Know Yourself as a Trader

As a beginner in forex trading, it is quite essential to assess yourself properly first to know your tendencies as a trader. Most experts agree with the idea that in order to know the market, you need to learn more about yourself first. One of the most essential responsibilities you should deal with is to ensure that your capital allocation and risk tolerance are not either lacking or excessive.

Have a Precise and Well-Planned Goals

Before engaging in the forex market, make sure that you have a precise and well-defined goal in mind. Once you are completely knowledgeable of what exactly do you want to achieve from forex trading, you will be more able to properly devise your plans. So, ask yourself, what exactly do you want to get from trading? Are you financially dependent on trading, or are you just using it to generate extra income? Once you are able to answer these things you will be more capable of achieving success in forex trading.

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Start With A Small Amount of Funds

When starting your journey as a forex trader, it is important to start off with a smaller amount of money. Make sure that your trading account is continually growing by organic gains and not through larger deposits.  Some traders believe that having a larger amount of investment gives a better chance of making larger profis. However, you should also consider that having a greater investment means having a greater risk of losses as well.

Carefully Choose Your Forex Broker

This is probably the most important thing a beginner trader should know. It doesn’t matter how knowledgeable you are with forex trading, but choosing a bad forex broker can nullify all the hard work you put through in trading. You should ensure what your broker can offer perfectly fits your trading personality. Assure that your broker’s software suits your requirements perfectly. Before investing any amount of money with a broker, you should take enough time to practice with their demo account and review the company. A reliable and dependable customer service is also a must-feature of a quality forex broker.

To learn more about the forex market and to fully understand what is forex, you could read the articles posted on our official blog sites. Learn who the best forex brokers are, visit Wibestbroker.com to find out!

Preparing Yourself For Forex Trading

The popularity of the foreign currency exchange market has grown steadily over the past few years, and the presence of the online forex brokers has also seen a significant increase in number. Most of these forex brokers let their clients use their trading platform with no additional cost, and they even offer a free trial so that the clients will have the chance to test the system before opening an account.

As a result, entering the forex market has been such an easy task to do. Because of that, many people were encouraged to start trading in forex, and since you are reading this article, I assume that you are a beginner in forex trading too.

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As a newbie in forex trading, you might be unsure about which path you should take to reach your way to success. Don’t worry, if you’re reading this article it means you’re on the right track to a successful trading experience.

In this article, we will discuss about the essential things a budding trader should prepare to be a successful forex trader.

Get Educated About Forex Trading

Entering the foreign currency exchange market without acquiring enough knowledge about the forex market first is a surefire way to lose all your investments. Before you start trading in forex, make sure that you fully understand all the basics and have all the essential knowledge to become a responsible forex trader.

Accumulate Enough Funds to Trade With

In forex trading, you won’t be able to make money without money. Of course, you should first have to have a sufficient amount of money to trade in forex. Before you invest in the forex market, make sure that you have enough excess money to put at risk. Your trading money should be separate from the money that you use for your household budget, as trading in forex is not a guarantee that you will always win your trades. And you won’t put yourself at risk just to end up having nothing to eat for the whole month, would you?

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Come up With a Trading Plan

Would you fight a risky battle without first coming up with a plan? No, right? Trading in the forex market is just the same.  You should have the right tools and the right strategy in order to achieve success in forex trading. You should develop a solid and dependable strategy to increase your chances of success and minimize your losses.

Learn How to Minimize Your Risks

Even if you have the most effective trading plan, if you have not taken the time to develop a sound trading risk management in your trading plan, you will end up exposing your trading account to considerable potential losses that could have been readily avoided.

So before trading in forex, you should identify the risks associated with it so you could prepare and develop a sound plan to avoid those risks.

Educate yourself more about the forex market and further understand what is forex by reading our educational blogs. See who the best forex brokers are, visit Wibestbroker.com to find out!

Is Binary Options Trading Regulated?

Binary options trading has only existed in the forex markets for quite some time, and it was only until recently that it was offered by a number of forex brokers, catching the attention of the regulators.

Unlike the spot forex trading, which is already supervised by the CFTC, NFA, and other foreign regulatory agencies, there aren’t yet a lot of regulatory bodies that are supervising binary options trading at the present time.

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Due to the growing popularity of the binary options trading, the process of creating regulations for this new trading method has already started. Cyprus Securities and Exchange Commission, or also known as CySEC, was the first-ever regulatory body to recognize binary options trading as a financial instrument back in May 2012.

In the United States, the Banc de Binary – considered as one of the biggest and most popular binary options broker, made an initiative to seek regulation from the FTC for its operations. It is expected that other binary options brokers will follow the same pattern.

So, if you’re thinking of opening a binary options account, you must verify that you’re doing it with a regulated broker. Usually, regulated brokers are held to higher operating standards, and trading with a regulated broker will ensure that you will be backed up when something goes wrong and if you do have issues (such as problems with trade execution, withdrawal of funds etc.).

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In spite of the fact that not all unregulated brokers are considered as scammers, trading with those kind of brokers carries a significant number of risks such as lack of assurance that the broker’s operating funds are segregated from client funds. Plus, no other higher authority will be able to back you up in case something goes wrong.

For more articles related to forex trading, you can read the articles posted on our educational blogs. Find out who the best forex brokers are, visit Wibestbroker.com to see!

Binary Options Trading vs Forex Trading

So you’ve heard about the foreign currency exchange market and learned a few things about how it works and how you can earn money from it. However, despite all the knowledge you’ve acquired about forex trading, you’re still unsure about one thing—which is better, binary options trading or forex trading.

So, how do they differ with one another and which would be more profitable for you?

First of all, let’s differentiate them from one another.

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In the traditional forex trading, you are exchanging your base currency for another currency in hopes that the other currency will rise in value against another. Once the “counter currency” increases in value against your base currency, you will earn a certain amount of profit once you traded back to your original currency.

For example, if you are trading the EUR/USD pair at its current value of 1.2, then you’ll have to pay 120 USD to buy 100 Euros. Once the Euro rises in price against the dollar, and the EUR/USD pair went up from 1.2 to 1.4, you will be able to trade your 100 Euros for 140 US Dollars. Doing so will earn you a profit of $20!

On the other hand, binary options works in a different manner. In the binary options trading, you only have two options – Call and Put. In binary options, the trader will need to determine if the security will rise or fall in value within a specific given timeframe. Say for example, if the trader expects that the USD’s value will rise in value on March 19,2017, then you will need to place a “Call Option”. But, if the trader expects that the currency’s price will fall in value, then he will need to place a “Put Option”. If the trader’s guess is right, then he will make profit equivalent to a certain percentage of your investment. However, if the transaction goes the other way and you’ve unfortunately guessed it wrong, then you will lose your investment

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Truth is, it depends on your personality and your trading strategy. If you’re more of a gambler type of trader, then binary options might work best for you, as you will just need to place your bets on your prediction.

However, if you’re more of a strategic trader and looks for different factors before making a prediction, then forex trading might work better for you.

Before entering the forex market, make sure that you fully understand the risks associated with it so you won’t end up losing all your hard-earned money in the end.

Learn more about forex trading and fully understand “what is forex” by regularly reading our forex educational blogs. See who the best forex brokers are, visit Wibestbroker.com to find out!

How To Spot Forex Scams

If you are relatively new to the currency trading market (forex market), then you might have come here for one reason – to earn a lot of profit. However, due to the existence of frauds, scams and other illegal practices, you will lose money instead if you’ll let yourself caught off-guard.

Despite the existence of a lot of reliable forex brokers, the fraudulent ones are also rapidly increasing in numbers.

Forex Scam

Forex scams are often hard to distinguish, and it’s very difficult to differentiate the fraudulent brokers from the reliable ones. However, by following these basic guidelines, you will be able to easily spot which brokers are dependable and which should you never trust.

Stay Away From The Advertisements Which Sounds Good to Be True

Admit it, when someone or something promises us instant gratification, we often fall victim of easily believing these things without first confirming its authenticity.

Most fraud companies provide irresistible and surprisingly attractive offers which sound too good to be true, and they use this as a bait to take advantage of unsuspecting victims. So be careful once you encounter these kind of deceptive offers, and carefully examine and verify them to see if they are really authentic.

Don’t Deal With Anyone Who Doesn’t Want To Give Their Background

Before entrusting your hard-earned money to a forex broker, you have to make an extensive research about the company first in order to ensure their reliability.

A reliable forex broker has a well-crafted company background and information that is displayed and is easily located on their website.

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If the background of the broker seems suspicious, or if the broker refuses to provide any information about the company, then you should avoid them at all costs as they might just steal your hard-earned money from you.

The foreign currency exchange market is full of risks of which you can easily deal with as long as you are knowledgeable enough in the forex market. To learn more about the forex market and to fully understand what is forex, you could refer to our educational blogs and articles. See who the best forex brokers are, visit Wibestbroker.com to find out!

Three Types of Forex Charts

The foreign currency exchange market is a very lucrative way to invest, but it’s complicated enough to understand and difficult enough to master. Despite the countless ways of predicting the movement of currencies, the importance of the Forex charts is still often emphasized.

There is a total of three (3) different types of Forex charts in the foreign currency exchange market, each of which is useful in predicting the movement of the currency. Today we will briefly discuss each one of them to give you a brief idea of what are they and how do they work in the forex market.

Line Charts

It is the most basic type of chart. It is made up of a series of dots which are connected by a line.

Sample Line Chart

The line chart draws a line from one closing price to another. When strung together with a line, it will show the general price movement of the currency pair over a period of time.

Bar Charts

The bar chart is a little bit more complicated. The bar chart shows the opening and closing prices, and also the highs and lows. The bottom part of the vertical bar chart illustrates the lowest traded price for the given time period, while the top part of the bar signifies the highest price paid.

Sample Bar Chart

Candlestick Charts

The candlestick chart is pretty similar to the bar chart and shows the same price information as the bar chart, but is presented in a more attractive way. The candlestick chart consists of a rectangular body accompanied by one vertical line on the top part and another line on the bottom part of its body.

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We’ll further discuss each one of these Forex charts in our future articles.

Read more articles related to forex trading and further understand what is forex by reading our educational blogs and articles. See who the best forex brokers are, visit Wibestbroker.com to find out!