trading-on-forex.com

Can I make money trading forex.


      You are asking the question, can I make money trading forex with a broker? Yes, absolutely you can. Most new and even experienced traders rely on a brokerage to help them manage their trades. A good brokerage will allow you to leverage your account (buy more foreign currency than you have in your account to cover losses) and use stop loss orders.
     When you are considering brokers try to find out what their track record has been. Be careful because some less than honest brokers will claim that they have traded successfully for you, when the truth is that they never did. You need to do some digging to determine how successful they have been in recent years. Try to find out from other traders who use their services. Forex brokers must follow regulatory guidelines to remain registered with the Commodities Futures Trading Commission. This information should be easy to obtain from any website dealing with forex brokerages or they can be obtained directly from the CFTC.
     The trading platforms are essential to making profitable trades in the forex market. There are many different types of platforms that you can use and all of the major currency pairs have their own trading platforms. It is important for you to select the platform that best fits your style of trading forex.
     Most importantly, you need to find out how the forex broker rates its winning trades. A good winning rate should be at least 95%. It is a simple concept that a trader's wins indicate how successful the trader is at trading, so the higher the win rate, the better. If you win a lot of trades and the win rate is low then your chance of making consistent profits will be lower.
     Some other key points to keep in mind when looking to trade for are the set up costs and the maintenance costs. Forex brokerages charge a setup fee, which is generally nominal and will be required to open an account. Some trading platforms also charge a maintenance fee for conducting trades on a daily basis. These fees can accumulate quite a bit over time if you are not careful and can start to make you lose money.
     You also need to decide what your potential earnings are going to be and what your standard range is going to be. This is an important factor in deciding which platform is best for you. Some traders prefer to make trading their bread and butter, so they focus on the win rate and the per trade margins. Others may have more aggressive plans and are looking for more potential earnings on each trade.
     The one thing that all successful trading strategies have in common is discipline. There are some day traders who make a lot of money on small transactions, but it is usually on very large transactions. Both strategies can be successful, but you must understand which strategy is the most effective for you. For example, some day traders will use technical analysis to determine which way an asset will move and will place their trades accordingly. Other day traders like to use momentum and price movement analysis to find more volatile markets where they can make more money with less effort.
     Both of these strategies can be very effective, and many traders have seen great results using them. If you are still trying to figure out what your approach should be, consider hiring a professional currency trading mentor to help you determine which method you should be using. They have the experience to answer any questions you might have and can even help you find other profitable currency pairs to trade in as well. A mentor will not only help you become a more profitable trader but will help develop your consistent strategy.

trading-on-forex.com


Copyright © trading-on-forex.com. All rights reserved.