Forex trading has its advantages, but beware of ads and brokers that offer instant wealth, especially if you can trade major currencies such as US dollars and euros.
There are procedures that regulate forex traders. Unfortunately, not all are industry registered. Although not completely illegal, many unregistered brokers enter the financial market. Additional precautions are recommended when individuals and businesses trade with forex brokers.
The United States passed his Commodity Futures Modernization Act of 2000, a federal law. This empowers the Commission to investigate suspected fraud in transactions.
Forex trading scams
Forex trading scams have telltale signs and you should be aware of them. An experienced forex broker will tell you that forex trading is not a risk-free business and only those with real analytical methods can succeed in this area. There is no way to say exactly how strong a currency is against a factor of . So be careful with anything that promises big wins regardless of the economy.
Most brokers require margin investments. If you don’t know exactly how this works, don’t dare. In the long run, you may lose more than you earn. Also, be aware of the “interbank market” your broker may be offering. In reality, only large banks, corporations and investment institutions have access to this loose network of Forex dealers.
To check a broker’s credibility, take a serious and detailed look at their profile and company background. Please adhere to the final list of companies registered with the Commodity Futures Regulatory Commission.
Profitable forex strategies
Making money in the Forex market is never easy. However, with a little education and market knowledge, it becomes very easy to profit in the forex market. Most traders eventually learn that it is the simple system that creates wealth. Overanalysis and overthinking can affect your trading methods and strategies.
The trading method described here will probably frustrate you a bit and go against everything you’ve been taught about Forex. However, you have to remember that this is my personal strategy and I make money off of it. Taught me how to make money.
During your forex training, you may have heard a trader tell you to always trade with a stop loss if he doesn’t know what the loss is, ask the broker when to limit the loss. It’s a simple order to convey. I do not trade with stop loss periods. How is it? How can you make money without using stop loss? I think the forex market giants like to push this market in a certain direction to eliminate stop loss positions for other traders. In order for a bank to make money, it needs to receive money from other traders and execute stop loss orders in the market. I personally do not allow banks to do this.
Second, try to make only a few pips on each trade. In some cases, this is called market scalping. On each trade I am only trying to win 3-6 pips.
The next question might be, “How do you know when to enter or exit the market?” I use a variety of indicators combined with detailed analysis of trend lines and channels. Indicators tell you when to enter and exit, while trendlines tell you the general direction of the market over the next month and years. Knowing where the market has been going over the years allows you to determine whether you are in buy or sell mode on a daily basis.
How to survive without stop loss?
Quite simply, don’t risk a lot of money in every trade. You only risk 1/10th of your account balance per transaction. For example, I only trade $1 lot on a $10,000 account. This means you cannot use stop loss. If the market moves 200 points, no problem. By the time the market moves 200 points, I have already made 100 trades, each profitable at 3-6 pips. If the market continues to deviate from me, I will continue to trade daily and win, eventually offsetting and eventually overwriting a few losers. Trades turn into profits every time.
Related:
Forex – List of World Currencies
Factors Affecting Forex Trading
Forex Trading Tips for Beginners
