Can You be Part-time and Successful in Forex Trading?

It’s the age old debate between traders, is part time trading really beneficial? Say, you’re a businessman along with being a committed family man and simply do not have the time to constantly be checking on the market and being a full time trader- would that mean that you’re not able to trade at all? Absolutely not! A lot of people tend to trade part time, as a hobby or to gain some benefits, however the question that arises is - could part time trading possibly be more beneficial than full time trading?

Moral Obligations 
Having something to do on the side is almost a necessity, most full time traders don’t realize that by being a full time trader and letting their time slip away by continuously being fixated on a chart and giving it all the importance in the world can have a serious negative impact on their lives.

Taking Time out of Their Schedules to Trade 
Contrary to what most people believe- traders don’t spend all day, gazing at charts and figures (at least most of them don’t) Good part time traders only need around 30-40 minutes each day to trade successfully by only focusing on the daily time frame. Part time traders need to also make sure they look at the daily closing price because through their analytic skills, traders can detect hints or signals from the market that might point towards desirable trade conditions for them, time really isn’t a making or breaking point in trading.

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Mental Forex Accounting

In plain terms, mental accounting is derived from the term ‘mental accounts’ which refers to some people’s method of categorizing money in different capricious classifications and based on those classifications, they decide on the best ways to spend their money.

Mental Accounting in Forex Trading
At times, investors might be hesitant to sell an investment that once had huge profits attached to them but now have only minimal gains up for grabs, during an economic boom, people tend to get accustomed to plenty of profits and when the market correction deflates investor's net worth, they're more cautious  when selling at a smaller profit margin. They create mental compartments for the gains they once had, causing them to wait for the return of the same or more amount of profit.

Advantages and Disadvantages of Mental Forex Accounting
Needless to say, mental forex accounting has the potential to be harmful to the trader as when the trader is constantly subconsciously categorizing all the money he might be making through trading, he might be restricting himself from making use of the money in ways that he wishes to. For example, it might cause the trader to classify inherited money in the ‘windfall revenue’ mental account and would choose to spend it more liberally than the money they put under their ‘paycheck’ mental account, in this way traders tend to treat their money with discrimination while investing.

In conclusion, mental forex account is undeniably a smart method of properly managing your money as a trader and understanding what money belongs where, rather than seeing it all as something that can and should be risked on trade. However what the trader must remember is that no matter what mental account you put a certain amount of money in, there will be no impact on your wealth, because mental accounts are just that- mental.

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How to Make the Most of Stop-loss Orders

When deciding or contemplating about a stock buy most traders tend to forget to pay attention to the little factors in the trade that have the ability to make or break them. The stop loss order is a perfect of example of such a thing; it is a tool that when used effectively can be beneficial to anyone for various different reasons.

What Is a Stop-loss Order?                    
A stop-loss order can be defined as an order that is made with an agent or broker to either buy or sell the stock as soon as it hits a specific price, this is done to do as much damage control to the loss of the investor’s as possible in a small time gap. For example, if you set the stop loss order at 5% percent less than the price you bought your share at, the stock will limit your loss to just that 5% and not any more than that and as soon as at it hits that low, your share will be sold at the going price in the market.

Advantages of a Stop-loss Order
However, no commission price is charged until the stop-loss order has been reached and the stock is ready to be sold, this makes it very much similar to a free insurance program, now you can’t tell me that that doesn’t sound like the best thing in the world.

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Trends are Gifts to Traders

Let’s get one thing straight, if the market had a gender it would be female and it would be a very independent female. It does not belong, answer or yield to anyone for any reason. She does what she wants and the consequences taking place by her actions are beyond her reach and care. No matter how close you think you have gotten to breaking her, she will always throw you an unpredictable turn, whenever you think that you can feel safe by her side, there will always be someone else thinking that they are safer but in reality none of you are. The market has one weakness though, she, like most females, is attracted to shiny things.

Things that seem to be sparkling even momentarily draw the market to them, and those glistening peaks are what traders refer to as trends. It is common sense to know that when a trend is occurring in the market, it creates an attractive trading environment. However, what should also be common sense is that much like a woman’s enthusiasm it won’t last too long. A sensible trader knows how to move around a trend line and make a note of the parts that are important because he knows that just because the line is facing upwards it does not mean that it won’t go down as soon as he click the trade button.

Sensible traders are those actually investing time to get to know how the market works and how long her attention span lasts and are the ones who get far. These traders and investors are looking for business, they understand that dealing with the market isn’t just a way of making some easy and fast money, for them it’s work. Worthwhile traders take the time and study the trends, they know past trends and try to figure out any pattern connections of those trends appear again. They know that when new trends appear they should look into other similar trends and what their outcomes where. Successful traders are recognised by one thing, their analysis.

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What time should you trade Forex?

Traders and investors are often surprised when they realise how many variables forex trading is compiled by. An outsider and very often an actual trader believes that in order to trade in the online forex industry all you need is an account and a trading platform. Some of you may find this as a slightly ridiculous thought to miss whilst others might be asking themselves ‘Well, what else could you possibly need?’. Successful forex trading is only achieved when the trader comes to terms and works with the different variables involved in the game and one of these variables is time.

Everyone is familiar with the phrase ‘time is money’ and in forex trading this couldn’t be any more true. Knowing that different markets are open at hours is basic, knowing what time these markets are mostly affected is what distinguishes professional traders from the average.

To begin with, each trader regardless of whether they are interested in the certain market or not, he is compelled to know the forex trading hours of each, especially because some markets often overlap each other’s and these small windows often open the biggest trading opportunities:

New York 8am to 5pm EST (1pm to 10pm GMT, 3pm to 12am EET)

Tokyo 7pm to 4am EST ( 12am to 9am GMT, 2am to 11am EET)

Sydney 5pm to 2am EST ( 10pm to 7am GMT, 12am to 9am EET)

London 3am to 12pm EST( 8am to 5pm GMT, 10am to 7pm EET)

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Understanding Fundamental Analysis

Fundamental analysis is used in the equities market in order to gauge the true value and to make investments based off of this calculation. Fundamental analysis is also used in the forex market. However, in the forex market, traders generally evaluate currencies and their respective countries in order to decide whether an investment is worth it. Economic announcements made in any country often have a direct impact on the true value of a currency, which is why fundamental analysis is used.

How Does It Work?
A prudent trader generally factors in a variety of different news reports, economic announcements and international factors in every single one of their trade. Political events, economic announcements and other news often leave a very strong impact on certain currencies. Therefore, calculating the true value of a currency is not easy. Obviously, it should be known that the values tend to change with the passage of time. For instance, factors such as economic growth and the financial strength of the company both have a major impact on the true value of a currency.

A trader who follows the fundamental trading strategy will consider these factors when planning his/her approach. However, you should know that there are practically unlimited forex fundamental strategies that are used in the market today. Extrapolating the concept of a fundamental analysis directly on to the forex market is not easy.

Many of the factors and indicators that fundamental analysts use in the stock market are non-existen in the forex market. Moreover, you are not trading stocks with one another: you are trading economies. In every single economy that you trade, there are hundreds of companies trying their best to maximize their profit potential. Therefore, analyzing the statistics of a single company doesn’t provide much insight in to whether an economy is faring well or not.

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Things Successful Traders Avoid Saying

Becoming a successful trader in the forex market is not easy. You need to have a certain amount of discipline, ingenuity and a penchant for identifying trends if you want to become successful in the forex market. Most traders in the market often find it difficult to generate profits, simply because they look for big rewards in the short term. Becoming a successful trader in the forex market is all about developing a sense of discipline. However, if you want to take a look in the mentality and mindset of a successful trader, you need to figure out the things that they generally avoid saying. To give you a brief idea, here are some of the statements that a successful trader will never say:

"I don’t take losses"
No successful trader will ever say that. What most people don’t realize is that losses are likely to occur. They are a part of trading. Successful traders know that a major loss is more than likely to wipe out their account completely sooner or later. Therefore, they are always prepared for this. However, what separates a successful trader from an unsuccessful one is their ability to win rather than lose. Successful traders know that losses are a part of trading, and while they try to avoid them as much as possible, they don’t shy away from losses.

"You don’t need to manage money"
You will never hear a successful trader say that they don’t need to manage money while trading. Money management is an essential part of long term trading, and you need to be very careful when deciding the amount of money you are willing to risk on every trade. It is vital to the long term success of your trading portfolio.

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Is Forex Trading Worth It?

Anyone who has ever gotten even the slightest glimpse inside the world of forex always ends up asking himself or herself one very important question, Is Forex trading worth it? As professionals we have been doing this for a long time, we have grown and become part of the industry but we can still never offer a clear answer to this question. The only true and honest answer we can provide you is this: It depends on who is asking.

It’s understandable that this might not cut it as a straightforward helpful answer but it’s the truth and let us explain why. Forex trading isn’t a decision that can be made in a day nor is it a career or pastime path that can be taken easily. Yes it can be taken by anybody but specific skills and characteristics must lie within the person in order to not only come out alive from the market but to come out on top.

From one point of view Forex trading IS worth it. It’s worth it because it’s a completely different arena than anything else you have experienced before, the sheer adrenaline that rushes through traders and investors daily as they monitor the market movements is unmatchable. It’s also worth it because of the abundance of new found knowledge you are instantly supplied with. The market works globally therefore a trader is opened to various cultural events and insight without even knowing it, interacting daily with numbers, figures and people from all over the world.

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Forex VPS and Hands Free Trading

Online forex trading is no longer stuck inside the trader’s computer screen. As the industry grows, trading technology is advancing with it in order to give traders unlimited access to their trading anytime, anywhere instead of forcing upon themselves a routine set of hours which they can work. VPS is one of those liberating new methods. Forex VPS is a essentially a form of service which gives you, the trader, the power to allocate your expert advisors (EA’s) on an independent server that will be running non – stop on your behalf. The VPS ensures that no interruptions will occur with your trading regardless of any motion taking place on your own computer.

VPS is increasingly becoming popular with traders as it provides you with an undeniable sense of liberty. The VPS requires you to have an interaction with your computer up until the setting up process but after that your trading becomes hands free. Even for some traders who are still not familiar or even keen on mobile trading devices, the forex VPS system can connect to your broker’s platform and from there you can either access and work alongside the system or simply just check what is going on with your trades.

Another big issue for traders that you may also have come across with, is that your trading depends solely on an energy source. Whether you are using your home computer or even your mobile platforms there is always the danger that there might be a power cut or you run out of battery unexpectedly and all your trades get lost. A successful trader always has a backup plan, which is why many have turned to VPS because the system will still go on with its daily business no matter how long you may be sitting in the dark for.

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Trading Forex News

Over the years, foreign exchange trading has become more and more popular. Today, the forex market is worth billions of dollars. Currency pairs are traded on the market round the clock among traders from all parts of the globe. Many traders use a litany of different strategies in order to maximize their profits. Like any other financial market, the forex market is also highly volatile and reacts violently to news from different parts of the globe. While the influence on the market is relatively little from other parts of the globe, the market’s biggest movers come from the United States.

The reason for that is pretty simple: the US economy is the biggest in the world and the Dollar is the reserve currency used by world banks all over. Forex news trading has become a viable strategy for many people who are interested in trading the news and looking to make quick money. However, before we consider different forex news trading strategies, it is important to highlight the news events that are even worth trading on.

Remember that news trading is only done due to increased volatility in the short term. Therefore, it stands to reason that most people only trade on news events that have the highest amount of moving potential. Now, according to statistics and previous studies, you will need to pay attention inflation reports, talks between central banks as well as geo political news from different countries. For instance, war, political instability, unrest, natural disasters and elections can all have a significant impact on the forex market.

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Automated Forex Trading Systems - Do They Work?

Nobody minds generating a considerable income on the side. Compared to other investment opportunities, the forex market proves to be a very compelling option for most people. However, many novice traders who enter the forex market often transpire with huge losses and end up leaving the market very quickly. A cursory search about the forex market will reveal to you the many different programs and robots that you can use. Almost all of these programs come with stellar reviews about how they have helped traders generate large sums of money in such a short span of time.

Needless to say, this attracts the attention of the ordinary investor. After all, you can just do your job throughout the day and leave your automated forex trading systems running in the background. When you come home, they will have generated a sizeable profit for you. What could go wrong? Plenty, it seems.

Most people don’t realize that a large number of robots and other automated forex trading systems are simply useless. They are just designed to grab money for customers and to popularize a certain product. What many people don’t realize is that you just can’t get rich without having to lift a hand on your own. Now, that’s not to say that all Forex robots are useless. There are several robots and automated Forex trading systems that can help you make some good trades, but one thing is for sure: they aren’t as effective as they are hyped up to be.

Most automated forex trading systems can help you make a few good trades, but they can’t replace human intuition. You will need to spend time on your computer in order to observe the market and highlight trends. While robots and other Forex trading systems can help you make some decent trades, you should know that they are not an effective replacement for humans.

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What You Should Know About Leverage in the Forex Market

Two of the most important concepts that traders need to know are leverage and margin. If you want to become a profitable trader in the market, you need to know about these terms. A margin is the loan given by your broker that allows you to put up your funds and the securities in your account and use them as leverage in order to engage in larger trades.

However, in order to get approval for using margin, you will need to open a margin account. The collateral for the loan is the securities and cash that you deposit in your margin account but the money you borrow to use as margin doesn’t come for free. You will have to pay an interest on the amount that you borrow. In general, you can expect to pay interest rates of anywhere between 5-10% on the margin.

Just like margin, you should know about leverage as well. You can use the margin in order to create more leverage. Simply put, the additional buying power afforded to margin account holders is known as the leverage. In layman’s terms, you will be able to pay less than the full price of any trade, thus making it easy for you to enter much bigger positions, which would not be possible if you were simply using the funds in your account. If you were to talk to a forex broker, they would generally express the leverage in a ratio.

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The Trader’s 5 Deadly Emotions

A trade will always have an outcome, it’s a fact. Regardless of whether the outcome is positive or negative the trader or investor will always have a set of feelings that will come out as soon as the outcome occurs. Feelings are somewhat unavoidable and at the same time are destructive for the trader’s future if not handled and understood correctly. No matter how many risk management manuals or trading strategies you go through it’s the human part of a trader to feel the result, the good and the bad. At the same time a lack of feelings from the trader can be as equally destructive.

It’s not enough for a trader to know all the ins and outs of an effective trading plan but what is also key is that the trader or investor can harness and control their emotions at all times as trades running on emotions have repeatedly resulted in devastating losses.

In the world of online forex trading all traders and investors have at some point come across and were taken over by one of, several or all of the trader’s 5 deadly emotions.

#1. Greed
People in the business are forever witnessing traders and investors falling hard from their high pedestals because of this emotions. The nature of the field makes it understandable and expected that traders and investors are money minded and that’s how they should be if they are going to keep on pushing themselves to reach higher. What is deadly though, is trying to push higher and higher in one day. A success has the habit of making the trader get carried away and seek for more and more, but that is how he or she will eventually stumble into a grand loss. The key to controlling Greed? A daily trading plan. Traders must always set limits for themselves and exercise enough discipline to not break them and stray away from what they had set out for on that specific day.

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How Do Forex Islamic Accounts Work?

If you are a Muslim and wish to trade on the Forex market, there are plenty of options available to you. Most practicing Muslims often try to avoid the Forex market due to the interest rates. However, many brokers that deal in Forex accounts and binary options have begun to provide their customers with the option of opening Islamic accounts. In order to understand how Islamic forex accounts work, you need to develop a sound understanding of the Sharia law, which is the law followed by most practicing Muslims.

The Sharia law provides detailed guidance about different parts of life, and has a whole section pertaining to banking and finance. According to the teachings of the law, a Muslim is prohibited from accepting interest or any loan fee in monetary or other form, whether the payment is floating or a fixed amount. In Islam, this is known as riba or usury.

As of today, there are more than 1.6 billion Muslims in the world. By 2009, more than 300 banks and 250 mutual funds across the globe were using the Sharia law. Just last year, that figure rose to represent around 1% of the total world assets, equaling an amount of just around $2 trillion in funds. It is important to note that not every Muslim practices Sharia law firmly. According to Ernst and Young, only a small percentage of Muslims follow the law. However, Islamic banking has grown considerably in the past few years (at a rate of 17.6% annually between 2009 and 2013). If projections are to be believed, Islamic banking will grow at an accelerated rate of around 19.7% per year until 2018.

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What is Trade Execution Speed?

Timing matters significantly in the world of forex trading. For example, if you are trading based on the news, you will need to act quickly if you want to increase your revenue. Most forex traders generally have to be very proactive if they want to make quick trades. When you first decide to make a trade, you need to call in your broker in order to make the trade. However, most trades take a bit of time to go through. If you are working with a broker who has a reputation for being slow in the market, you will end up losing a lot of your trades.

Trade execution speed plays a vital role in determining whether your trades are likely to yield good results or not. There are millions of people all across the globe that have set up their trading plans based on real world events. As a result of that, it is important to gauge the trade execution speed of your broker before you decide to sign up with them.

How Does Trade Execution Speed Affect My Performance?
The values of different currency pairs in the forex market change rapidly.  The price of one pair of currency can change by the time you place an order and by the time that order is executed. As a result, if you are making a larger trade, you may end up losing a considerable amount of money. Your order needs to reach the market as quickly as possible if you want to get the rates that you expect.  Many brokers often set up complex algorithms and intelligent order routing processes in order to make sure that the orders placed by clients reach the market as quickly as possible.

Timing plays a vitally important role in the forex market. If you really want to make your trades work, you need a broker who has a powerful routing system to get your trades on the market as soon as possible. The most important thing that you need to keep in mind about forex trading is that proper timing could play a major role in your overall profitability.

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Online Broker Reviews: Constructive, Informative, Valid

Some things should go without saying especially regarding how a forex broker review should be handled. Reviews serve both the brokers and interested clients looking to sign up with a new firm. It’s important to know how to conduct a useful review whether it is negative or positive in order for it to have the impact the trader or investor is looking for. A review is an honest statement about your experience with a certain firm and therefore there is an amount of power that comes with it. This power means that what you write can alter a number of things regarding a broker that’s why each word should be carefully thought of and true.

Here are some things that a trader should keep in mind when putting together an online broker review:

If You Don’t Have to Say It, Then Don’t
Reviews can be one of two things, either constructive or informative anything else is simply unnecessary. If you as a trader are reviewing a broker positively then you need to express your experience in detail and point out the aspects that contributed into pleasant results, a simple ‘this broker is good’ will not suffice as it does not give any real insight into the broker and it actually doesn’t even seem real. On the other hand, when putting together a negative review the trader must make his or her point clear. Again, a simple ‘this website is one of the worst’ is not helpful to either the broker or the other traders reading as it doesn’t give any specific information about the unpleasant experience nor any concrete reasons that the broker can adjust and fix.

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Famous Quotes from Professional Traders

Trading is all about possibilities and sometimes you'll win, sometimes you'll lose or sometimes you'll be losing for so long that you get frustrated. People assume that a trader's life is full of pros but ask a real trader and they'll probably laugh at that assessment. In reality, sometimes they just want to quit because of it but rest assured, after this article, quitting will be the last thing on your mind. Take it from the people who've been doing it for years and got big:

1. “In this business if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” -Peter Lynch

The possibility of a good trade or a bad one can not be forseen and instead of getting emotional about just think of it as part of the game.

2. What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower.” -William O’Neil

The message here is to understand the dynamics. Some of them might seem appealing but are actually not or viceversa.

3. “It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffett

Usually what happens is that after a good winning streak and a great trading strategy, sometimes one move can ruin it all. This domino effect is usually brought on by not calculating your risks carefully. Once a trader feels like his streak has ended, they start making bad decisions.

4. “In investing, what is comfortable is rarely profitable.” – Robert Arnott

5. I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have” – Paul Tudor Jones.

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