Do You Want To Start Trading? Read The Instructions

Many people are attracted to trading. After all, it’s one of the few ways that you have to belong or to be a part of a huge company. Even if you only have money to buy 1 Apple share, you’re still considered a shareholder. And this is something that not everyone can say. However, trading, either stocks, futures, Forex, or any other financial instrument, is not as easy as you may think and each one of these particular markets has their own specifications and terminologies. When you’re a good stock trader it doesn’t automatically mean that you’ll be an awesome Forex trader or a great commodities trader.

Are You Considering Trading Online?

When you’re serious about trading online, the first thing you need to decide is about what you’re going to trade. You can choose between stocks, futures, Forex, CFDs, options, and so many other financial instruments.

Usually, when people refer to trading they are usually referring to stocks. If this is your case, you should go for it. You need to make sure that you read and understand all the terminology behind this specific financial market and then decide the strategy you’re going to use to trade. You can either choose between fundamental analysis or technical analysis or use both. You can prefer the quick trades that are usually riskier but tend to offer higher returns like day trading, or you may simply want to give your savings a chance to make money on their own. In this case, you’re going to opt for a longer-term strategy, more specifically, based on stocks that pay high and consistent dividends.

As you can see, it’s not only about making the decision about the market that you’re going to trade on. It’s a mix of decisions that should be based on your personal preferences and on your own personality as well. If you like to risk, go ahead for day trading. But if you’re a more conservative person, then you should rather choose swing trading or an investment (long-term) strategy.

What About Forex?

The Forex market is not new anymore. However, due to the low amount that you’re required to open an account with a broker, it’s usually one of the preferred choices among new traders. This combined with the fact that it is open 24 hours a day, gives you a lot of flexibility to trade, even if you have a full-time job.

There’s no question that the Forex market is attractive. The leverage (although it was better a few years ago it’s still better than the stock market, for example), the margin, there are countless benefits of trading this market.

However, you need to be careful with one thing. What may seem an advantage in the first place, may not work as well when you’re trading by yourself. Let’s take the fact that the market is open 24 hours a day. If you already got the chance to open a chart for any specific pair, you’ll notice that despite there are times within the day that the currency pair has a huge transactions volume, on other occasions it just remains almost flat. The fact is that when you’re trading the Forex market, you’ll need to look for the time where the currency pairs you want to trade have more volatility. This is how you’re going to win money trading the Forex market. And this schedule may not be compatible if you work and can’t access your broker platform during the day.

So, What’s My Final Advice?

My advice is that you need to choose a financial instrument that you feel comfortable with. Despite the disadvantages that I focused above about Forex, you can place automatic orders that will be filled if the price of the currency pair you are trading reach a determined price. So, you’ll still be in control, at least, in some part.

In what concerns stocks, there’s a lot to say about them. You need to think about using or not using indicators, which ones, the kind of orders you’re going to place, among so many other things.

The thing is that there’s not a perfect market. The best market is the one that you feel most comfortable trading on.

Scams: It Pays Off To Be Alert

Unfortunately, there are many scams out there. Both on the broker’s side as well as on the strategies people try to sell you as amazing and that will only make you lose money.

Make sure that you do a good due diligence before you open an account with a broker. And in what relates to any possible service that can provide you with signals for the best stocks, commodities, or currency pairs, make sure to test them on paper first. Don’t commit your hard-earned money without even knowing how good this company is.

Author: Editorial staff of 70 trades reviews blogĀ 


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