Forex: top 5 topics to check before to start trading

So, you’ve been practicing on your Forex demo account and the results have been good. It seems that you’re finally ready to trade on a real live account. However, you still have some questions that are kind of tormenting you.

So, here are 5 things that you need to know before you start trading Forex on a real live account.

#1: Your Biology:

We are programmed to be averse to risk. We tend to be less averse when we win and more averse when we lose. However, the aversion is always there.

Let’s say that you just had 5 winnings in a row. In the next trade, you feel a lot more confident. However, if you just lost 5 trades in a row, you’re starting to feel that it will go wrong so you better trade with less money, even if you’re looking at the perfect trade.

All you need to know is that there are times that you will win and there are times that you will lose. As long as you keep the losses controlled, you’ll be able to learn from your mistakes, from your losing trades. And these can be the more precious lessons you can ever get.

#2: You Love Trading:

In case you simply don’t love trading, you might as well give up now. Trading Forex successfully is not easy and if you ‘re not completely committed to it, if isn’t something that you truly love, there’s no point in continuing.

#3: Online Brokers And Platforms Are Not All The Same:

Many things have already been said about Forex brokers. And unfortunately, most of them are true. Despite there are still trusty and reputable brokers out there, the vast majority is unscrupulous.

In what concerns with the trading platforms. most brokers offer you the MetaTrader platform. Despite it’ free, it’s actually pretty good and works well. Some other brokers have their own exclusive platforms that they might want you to buy or pay a monthly fee to use them. Make sure that you know exactly with who you’re dealing with before you open an account with a Forex online broker.

#4: You Don’t Have To Be Right All The Time:

The notion that most people have before they enter in Forex trading is that they just need to be right to make a killing in Forex. However, these are the types of individuals that will easily lose all the money they had in their trading account.

Trading Forex and having some winning trades has nothing to do with being right all the time. If there’s someone or something that is right all the time, this is only the market. Not you, not me, not everyone.

#5: Keep Your Trading Strategy Simple:

As a rule of thumb, you can’t explain to a 10-year old our trading strategy it’s simply because it’s too complicated. The more complicated the strategies, the worst they tend to be. So, make sure that you simplify your strategy the max you can.

Author: Editorial staff of 70trades reviews blog


Is The Online Trading A Scam?

When you want to start trading online, either Forex or stocks, you need to know that it isn’t a scam. You can make consistent money from either the Forex market or the stock market. However, you need to be careful with scams. Here are some of the things that you need to be aware of in order to avoid scams:

#1: Research:

When you are just starting, it really pays off to do your own research. Don’t just buy EUR/USD because someone told you so or sell short Google because your friend told you that they will be reporting bad results. Even though you might listen to the people who gave you this information, make sure that you verify it before you commit your hard earned money.

#2: Trading System:

When you’re about to start trading, you need to have a trading system. You need to know where you’re going to enter the trade, when you’re exiting, or when you’ll need to sell it on the stop loss. Without a good trading system, you’ll most likely fail.

#3: Trial Period:

If you just got an email promoting a stock pick service or a Forex signals service, if you’re interested, you need to make sure they have a trial period. This way, you can freely test the service and if you don’t like it, you won’t pay a cent.

#4: Recognize Ponzi Schemes:

Unfortunately, for one Ponzi scheme authorities get, there are 10 or 100 more out there simply waiting for the next victim. Some red flags that might indicate you’re looking at a Ponzi scheme include:

– difficulty in receiving payments;

– unregistered or unlicensed sellers;

– promise of high return with no risk;

– extremely complicated strategies.

#5: Back-Tested Results:

Seeing back-tested results on a website is pretty much the norm. However, when you’re trading Forex for some time, for example, you know that one of the best trading platforms – the MetaTrader – allows you to do back-tests for any strategy you want. However, despite a strategy may have worked pretty well in the past, it doesn’t mean it will continue to work out well.

When you want to get a profitable trading system, you need to actually see real-life trades.

#6: Read Testimonials:

A great way to avoid trading scams is to read testimonials. However, avoid reading testimonials on the main website that is trying to sell you a product or service. These can easily be made up and you don’t even have a clue. So, try to find other testimonials on other websites, social networks, or even on online trading forums.

Author: Editorial staff of 70trades reviews blog


How much is important in the Forex to stay updated with the financial news?

When you just happen to be looking at a currency pair chart and you suddenly see an abnormal movement, this usually means that there was a news release.

Any currency in the world is affected by several different news. They can be either political, social, economic, among others. The fact is that a country’s currency is affected directly by the different financial news.

This is why it is so important for Forex traders to be aware of the different economic indicators as well as of the different news events that may come out during the day or week.

Here are the 5 market news events that usually increase the Forex market volatility:

#1: Central Bank Rate Decision:

Every single month, each Central Bank meet to decide whether they will maintain, increase or decrease the interest rates. While an increase of the interest rate usually gives a bullish sign for the currency, a decrease of the interest rate gives a bearish signal and it should decrease in value

But the announcement of the new interest rate is much more than that. This is when the Central Bank of each country provides a general overview of the economy as well as their vision for the future. Now, depending on how traders and investors interpret their words, the currency can either go up or down.

#2: GDP:

The GDP is one of the most important indicators that measure the health of a country’s economy. So, when the GDP report is below the market expectations, the currency tends to fall; when the GDP is above expectations, the currency is likely to rise.

#3: CPI (Inflation Data):

The CPI (Consumer Price Index) is the most widely used indicator in terms of inflation. Usually, when inflation is seen as moving beyond a determined target, interest rates will tend to rise because they are used to counter inflation.

#4: Unemployment Rate:

A country’s unemployment rate is one of the most crucial data for the market since it refers to the economy’s health. Usually, higher employment rates tend to lead interest rates to rise.

#5: FOMC Meeting:

In the world economy, all countries are equally important. However, if there are any financial news that only concern to a country that tends to affect all the economies all over the world, this country is the United States of America. So, when there is the FOMC meeting, which happens once a month, the rates are set. Plus, there are also the speeches about how the economy is, what’s good, what’s bad, and what suggestions the FOMC has.

Author: Editorial staff of 70trades reviews blog