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Learn how to trade in the Forex market – COMPLETE GUIDE

Would you like to know how to invest or trade in the Forex market?

Certainly when searching the Internet has seen several traders sharing their luxuries and their achievements, but let me confess something, the financial market is not a sea of roses, requires a lot of study and practice.

The advantage that exists today is that you don’t have to spend your fortunes on an online Forex course to learn how to trade.

In the blog how to make money, you will learn not only about what Forex is, but also how it works, totally free and without complication!

First, and before we explain how to trade in Forex, see our Forex Glossary, where you will find the meaning of immense Forex Market terms and concepts! It’s easy, fast and effective!

Also know that the forex forex market online is accessible to everyone and you can make your first Forex investment yourself after realizing how to invest in Forex.

Learning how to trade Forex is not a seven-headed critter as you can imagine and you can start your journey with only €200.00 at most brokers on our list!

Yes! You can trade Forex CFD anywhere! But be careful: trading in the foreign exchange market is a risky activity and therefore you should always know what you are doing.

For this reason, in this Complete Forex Trading Guide we will cover, among others, the following topics:

  • What is Forex ?
  • What is Spread Forex ?
  • How to Learn Forex Trading ?
  • What are the bases of Forex Trading ?
  • Forex for Beginners
  • Why Use Leverage in Forex Trading ?
  • How to Trade Forex Trading ?
  • How to choose the best Forex platform ?
  • Why should you become a Forex Trader ?
  • How to make money on Forex ?
  • The Forex Trading Plan
  • O Money Management Forex
  • How to read a Forex chart ?
  • How to analyze Forex ?
  • What are Forex Signals ?
  • What are the best Forex pairs to trade?
  • How to use forex economic calendar ?
  • What are the best Forex indicators?
  • O Scalping Forex
  • O Forex Day Trading – Intraday
  • O Swing Trading Forex
  • How to Create a Good Forex Strategy ?
  • How to choose the best Forex demo account ?
  • O Backtesting Forex
  • Invest in Forex or other CFD markets ?
  • How much money to invest in Forex ?
  • How to Be a Better Forex Trader ?
  • Forex Partner
  • Forex Scam – How to Avoid Scams in Forex ?
  • Forex Trading – Conclusion

What is Forex Trading- Foreign Exchange

The Forex market, or Foreign Exchange Market, is the currency exchange market, where currency pairs are trading.

The currency market, i.e. the FX Market, represents the respective values of the currencies in relation to the others. Depending on this value, you can exchange currencies.

The foreign exchange market brings together many forex market agents, including professionals and individuals.

What are the advantages of Forex?

In addition to forex liquidity and large volumes in the foreign exchange market, real-time Forex trading is done 24 hours a day, 5 days a week. This is a day and night market, allowing Forex traders from all over the world to trade the Forex pairs they want.

Good liquidity means the ability to enter and exit the Forex market at any time!

The euro and the US dollar are at the top of the list of the most traded currencies!

In particular, the foreign exchange market has reduced rates, which makes it very accessible for a beginner trader and has several features such as leverage, spread and the size of the CFD contract.

In FX trading there is a whole Vocabulary of Forex to learn, such as the word Pip, for example.

To better understand what Forex market is like, let’s get into the details of this explanation.

The exchange rate of a currency is calculated using a base currency.

To understand how Forex trading works, it is also convenient to know what it is and how the law of supply and demand works.

And to understand the foreign exchange market, let’s see how trading works with an example of Forex investing:

  • Imagine that a country’s economy is bad. It is logical to think that the currency of this country could lose value. You can then speculate about the decline of that same currency through a currency pair.
  • So, following this example, if the country in question is the United States of America, then it is a matter of betting in some way on the decline of the US dollar, depending on another currency.

So how does online Forex work?

You have two options in online FX:

  • You can buy a pair of currencies, such as the EURUSD CFD, for example
  • Or you can short-sell a currency pair, such as the USDJPY CFD, for example

But to learn Forex, you also need to know what a Forex quote is.

What is a Forex Quote – FX Trading

Here is a Forex explanation to better understand currency exchange rates!

A quote is the price of one currency compared to another currency.

The first thing to know is that currency pairs are composed of two currencies. So whenever you look at the price of a currency pair, remember that this is one currency’s price compared to the other.

But where does the term “quote” come from in Forex Trading?

It is very simple: each currency has an acronym, such as EUR for the euro.

But how to know the value of Forex quotes? And how to read a quote on Forex?

Let us take the example of the British pound. The chart for this pair will represent the value of the euro against the British pound in real time.

A quote of 0.8860 – 0.8862 represents the value in euros for each British pound for purchase (0.8860) and for sale (0.8862), respectively.

Now the other important point to understand forex quotes: spread!

What is spread in FX Trading – Forex Trading

Spread is the difference between the buy price level and the sales price level. It all comes down to the difference between supply and demand. Spread also represents brokerage fees.

Did you know that it is possible to trade on a Forex account without a spread?

The best Forex Spreads or the lowest CFD Spreads are highly sought after by Day Traders and Scalpers. This is because low spreads allow them to enter profitable positions more quickly.

In our example, the spread is equal to 2, since 0.8862 – 0.8860 = 2.

Spread is measured in Pips in the Forex market, especially at the level of the fourth decimal place. Some brokers use quotes for 5 decimal places, but don’t worry, this doesn’t change the spread!

But what is the purchasing currency at a quote or exchange rate?

To understand Forex and quotes, let’s look at this particular example:

  • If you buy EURGBP, you buy the euro and sell the pound.
  • If you sell the EURGBP pair, you sell the euro and buy the pound.

It is also important to know how to distinguish direct and indirect quotes from currencies!

And now that you know what Forex is what is it that is missing to know? Exactly: know what Forex Trading is!

This speculative activity is accessible to everyone thanks to a low minimum trading deposit.

The study of Forex Trading is really very exciting! It is a matter of understanding the behavior of the market, because the oscillations visible on a Forex chart simply reflect the actions and reactions of market agents, i.e. of all Forex traders, whether they are professionals, individuals or even banks. .

How to Learn Forex Trading – What is Forex

“How to learn Forex” is the question that all beginners ask. Many novice traders lose a lot of money in expensive Forex courses, but in reality there are other alternatives to learn about Forex.

As a rule, there are two solutions to train and learn trading:

  • Learn Forex from experience, i.e. alone
  • Learn from a Forex trading training

It is important to know how to understand Forex before risking your money!

Now there are free Forex courses. Choose the Free Forex Course that best suits you!

We invite you to download the MetaTrader 5 trading platform, so you can learn and test your knowledge directly on a professional platform!

What Are the Bases of Forex Trading – What is Forex Trading

The basics of trading are essential because they represent the basis of your knowledge to become a good Forex CFD Trader. It is therefore essential to answer questions such as:

  • What is Trading?
  • What is Forex spread?
  • How to trade Forex trading?
  • Who participates in online trading?
  • What are the differences between Swing Trading, Day Trading and Scalping?

The main terms of Forex can be learned, as mentioned above, using the Trader’s Glossary on our website.

But don’t you know if you need to learn the basics of Forex?

So do this simple test: do you know the answer to this question?

“What is Forex Swap?”

If you don’t know, here’s what the Forex Rollover – Foreign Exchange Swap is!

What is Forex Swap – What is Foreign Exchange Swap

Forex Rollover is also known as Forex Swap, or Foreign Exchange Swap, and represents interest paid for positions that exceed 24 hours, or that are held overnight.

To calculate the cfd foreign exchange swap rate, there are easy-to-use online calculators.

Foreign Exchange Swap also opens the door to very specific trading strategies. There is even a very famous Forex Swap strategy in the world of finance. This foreign exchange swap strategy is referred to as “Carry Trade”.

Once these basics are acquired, it’s time to really get started on Forex!

Forex for Beginners

We’ve all been novice traders, and the difference between novice traders is the way to learn: would traders prefer to learn in a Forex course or learn from a Forex Demo Account by trial and error?

To get started on Forex it is necessary to understand the nature of the foreign exchange market in the first place.

To learn how to trade, it is often easier to see Forex as an investment, but remember that the foreign exchange market is a risky market!

Forex trading for beginners, so you start by accumulating knowledge about the foreign exchange market to answer questions such as:

  • Why Forex?
  • How to trade Forex for beginners?

It will also be necessary to realize that profits never come lossless in Forex, and the sooner you understand this, the faster you will progress!

Once you take this first step, you can learn how to analyze Forex.

There are 3 types of Forex analysis:

  • Fundamental analysis
  • Technical analysis
  • Fundamental analysis and technical analysis combined

This choice defines a part of your profile as a forex trader!

The other part of this profile will be completed with the trading style you decide to use. The most popular are:

  • Intraday scalping
  • Day trading
  • Swing trading

Swing FX trading for beginners is often the best choice to start well because there are fewer positions and much more time to analyze the market before making a trading decision.

Once you choose your trading style, you start building your trading plan, being that as a Forex trader you will need to have an efficient money management strategy.

The process of learning Forex for beginners is a period of euphoria where the novice trader discovers the functioning of the Forex market, FX indicators and concepts related to all financial markets.

With all the information, one of the biggest difficulties of the beginner trader will be to maintain a simple approach.

Here’s a part of the guide for Forex beginners:

  • Anticipate price movements
  • Follow the trend, as they say “The trend is your friend”
  • Don’t forget that a trade is open until it is closed
  • Put it all in writing
  • Do your own strategy research
  • Finance your trading in a smart way

To get off to a good start in FX trading, you need to know the financial products that are traded every day!

What is Forex CFD – Forex Trading

Here is cfd trading explained by Admiral Markets.

First, “CFD” comes from the English “Contract For Difference” which means in Portuguese “Contract for Difference”. It is a derivative product applicable to almost all financial products, such as:

  • Stock exchange indices
  • O Forex
  • Raw materials

A CFD allows you to speculate on the rise and fall of the value of a pair of currencies, a stock index or even gold, for example.

CFD trading is therefore useful for all types of traders, be it scalpers, day traders or swing traders.

Forex CFD gives access to major most traded currency pairs with differential contracts that obviously include euro dollar CFDs.

CFDs and Forex have as many differences as the recommended similarities before learning Forex. Leverage is one that deserves the most attention if you want to learn how to become a successful CFD Trader!

What Is Leverage in Forex Trading – All About Forex

Forex leverage, or Forex leverage, is not always well understood, but let’s be simple and straightforward!

The leverage of Forex available by brokers allows you to increase your ability to speculate on the Forex market without needing more equity.

Pay attention to the following example, to more easily understand how leverage works in Forex:

  • A leverage of 1:500 makes it possible to invest in the euro dollar the equivalent of 100,000 euros with only 200 euros of own margin in a trading account!

Right now you’re wondering: what level of financial leverage to use?

Here’s a simple piece of advice you can always follow: the longer you plan to keep your position open, the lower your leverage should be.

It is important to remember that the incorrect use of leverage is the cause of many “bankruptcies” and failures of Forex accounts.

Access to greater capacity for speculation in financial markets should not be a destructive temptation, but a means of taking advantage of trading opportunities that would be impossible to take advantage of without leverage.

It’s not always good to use maximum leverage in Forex!

But is it possible to trade Forex and CFD without leverage?

The trading of leveraged currencies is, in fact, possible. To do this, just use a leverage of 1:1, so as not to “borrow” money to speculate with more money on Forex.

This inevitably implies a lower return on investment, but also a much lower risk, which may be more appropriate for you!

The Forex Calculator – Forex Market

Need to calculate the value of a pip, have access to a CFD margin calculator or calculate the size of the Forex position?

You have at your disposal a Trading Calculator and an Online Forex Earnings Calculator, even on your MT4 and MT5 trading platform with the exclusive MetaTrader 4 and 5 Supreme Edition plugin.

You can also find several examples of margin calculations in the FX market.

How to Trade Forex Trading

You’re probably asking yourself, “How to start forex trading?”

Here are the most important steps to start trading Forex:

  • Trade with a regulated broker
  • Select the broker according to its quality of execution of orders
  • Choose the type of trading account that best suits you
  • Choose good leverage, suited to your profile and experience
  • Fund your trading account only with money that you can be able to lose
  • Choose an intuitive and robust trading platform
  • And finally, start trading in the foreign exchange market and the Forex market

And for that, you have to choose the right trading platform!

How to Choose the Best Forex Platform

The trading platform is an essential element in your trading, being your main working tool.

We all know that the best Forex tools have an impact on results.

Just like in a race, you’ll always get a better score in a sports car than in a city car.

In trading is the same!

Certain elements are indispensable:

  • The free Forex technical analysis platform MetaTrader 4 and 5 Supreme Edition, includes:
  • The MetaTrader Trade Terminal, a professional trading software;
  • The MetaTrader 4 Mini Terminal, a scalping trading, day trading and swing trading software;
  • The Maxi Terminal of the MT5 Supreme Edition, which allows, among others, to put buying and selling scenarios faster than ever, but also automatically identify the last highs and lows.

The Maxi Terminal:

  • The Forex economic calendar, a Forex analysis software essential to keep track of economic announcements
  • Market sentiment
  • The Forex Correlation Matrix

At this time, the best Forex trading platform is probably metatrader 4 or MT5 Supreme Edition.

But what are the differences between MetaTrader 4 and MetaTrader 5 ?

The differences between MT4 and MT5 are found at the level:

  • From the visual, with:
    • New time units available
    • A history of automatic orders directly on the chart
  • From the automatic tester, which has greatly improved
  • Server performance and order execution
  • From fundamental analysis tools with an integrated economic calendar
  • From the combination of MT5 indicators

Need a personal trading assistant?

MetaTrader 5 Supreme Edition incorporates the ideal tool: the Admiral Expert Advisor – Connect.

This professional EA gives you, for example, access to:

  • Fully customizable free Forex Reviews
  • A customizable Forex calendar with free alerts
  • Trading opportunities according to forex trader profile

However, it offers more than one Forex Trading platform.

Webtrader MetaTrader, for example, is also available, as is the MetaTrader 4 and 5 Forex application for Android or the Iphone Forex platform and the Mac MT4 and MT5 Forex platform.

Why You Should Become a Forex Trader

Why should you start trading Forex online?

Here are the main advantages of Forex Trading online:

  • You can organize your schedules according to your personal life
  • You can take advantage of the appreciation of currencies and their devaluation, sometimes the biggest gains are also on the side of the decline!
  • You don’t need to invest a lot of money in Forex Trading
  • Costs are minimal: it is only spread due to the absence of commissions
  • You benefit from financial leverage to invest the equivalent of amounts greater than your equity
  • You will have no concern of execution related to lack of liquidity because Forex is the most liquid market in the world.

If you don’t know what to do to learn Forex trading, here’s how to trade Forex online in 3 steps:

  • Choose a currency pair
  • Analyze the market – identify the Forex trend
  • Don’t you know how to identify the trend in Forex? To find the Forex trend you need to know how to read a Forex chart.

A very simple first step is to look from right to left if the price goes up or down.

Then, to better understand trends, you can use trend indicators or even draw trend lines by linking the peak points to a downtrend or minimum points between them for an uptrend.

  • Finally, open a position on the exchange rate

In particular, you need to pay close attention to your risk management represented by the distance between your entry point and your negative exit point in the market, to make money in the Forex market!

How to Make Money in Forex Trading

Many people wonder if it is really possible to succeed and make money with Forex Trading.

Some people say no, while Forex Traders manage to achieve financial freedom through FX Trading.

What about you, huh? Have you ever wondered how to earn on Forex with little money?

We also asked this question and gave you the answer:

  • How to Make Money on Forex with Little Money?

We found the answer, and share with you some Forex Trading tips!

5 Tips for Investing in the Stock Exchange Safely:

  1. Get to know yourself
  2. Invest only money you can lose
  3. Start with one currency pair at a time
  4. Control your emotions
  5. Keep a trading journal, pointing everything out

The Forex journal should be a mandatory part in any trading plan!

The Forex Trading Plan – Being a Forex Trader

A Forex trading plan is defined as planning your activity as a private trader.

A good Forex plan includes:

  • Smart trading objectives
  • A method of analysis of Forex Trading charts
  • A trade management plan
  • A risk management method

But why is a trading plan important?

A complete FX trading plan allows you to:

  • Addressing market conditions and defining approaches
  • Identify the best trading opportunities
  • Help manage emotions
  • Help manage risk

Now that you realize how important the trading plan is to your success, let’s see how to build a complete trading plan!

It is then necessary to:

  • Get to know yourself well
  • Establish concrete objectives
  • Choose the type of trading that best suits you
  • Determine which market is best suited to your trading style
  • Find and improve your trading strategy

Here are the three most important improvements to the trading plan:

  • Your Forex trading system
  • Your capital management
  • Controlling emotions in Forex

Yes, it’s true: capital management is a topic you should master! So see the next section to learn how to become a good money manager in Forex.

All About Forex – Money Management Forex

In short, Forex money management is the method by which you will manage your profits as well as your losses.

Money Management Forex is a facet of trading not to underestimate. It is not uncommon to see losing trading strategies become positive after applying proper capital management.

Here are the 10 Forex Money Management Tips you have listed for yourself:

  1. Money management: learning in Demo
  2. Use a capital management tool
  3. Manage your money, calculate the size of your position and take your profits
  4. Trade only with the money you can lose
  5. Manage your risk: use a stop loss and beware of leverage
  6. Control your emotions for better results
  7. Have a trading plan
  8. Understand the risks
  9. Money management strategy: be realistic and optimistic
  10. Money management technique: don’t be greedy

How to do money management in Forex?

There are many possibilities for capital management, so the best choice for you will depend on the rest of your Forex Trading strategy.

It is best to test the various combinations of money management in Forex to see how these different scenarios have affected your past results, both positive and negative.

Now, let’s talk about Stop Loss in Forex!

Stop Loss and Take Profit Forex – FX Trading

Stop-loss allows you to limit your potential losses in the FX market. This is the level of prices at which you wish to withdraw (limit) your losses if the trade does not progress in your favor.

There are several types of Stop Loss orders, such as:

  • Stop Loss Order Guaranteed
  • Stop Loss Order Not Guaranteed
  • Trailing Stop
  • Stop Loss with minimum distance

It is essential to know how to place a stop loss order on Forex. Similarly, knowing how to use a trailing stop is vital to improve your trading!

Gaps in Forex, caused by Slippage, are often a risk in relation to stop loss. This risk can be managed through guaranteed stop loss orders available in the Volatility Protection Settings.

Not everyone perceives stop-loss the same way. Some think it is essential to protect your capital and manage your risk. Others argue that it serves only to move out of position before the market progresses in the expected direction from there.

Stop Loss Advice: in reality everyone will give their own opinion.

It all depends on where to put the Stop Loss and how to put Stop Loss on Forex!

You can use many methods to place the stop loss:

  • According to Forex Structure Levels
  • Depending on Forex MT4 indicators
  • According to the number of Pips
  • Depending on technical analysis (trendline)

For those who lean to the side of traders who do not like to use stop loss, remember that trading without stop loss is strongly discouraged because there is no strategy without a simple stop loss!

Now, let’s see when you can trade on Forex.

What Are the Times in FX Trading – Best Hours to Trade Forex

You already know that the Forex market is open 24 hours a day, 5 days a week.

But does that mean your strategy works well at any time of the day or night?

The answer is probably not, because even if Forex is open almost all the time, foreign currency prices are influenced by the opening and closing of stock exchanges around the world, as well as by institutional professional traders and large banks.

It is in this context that an in-depth study of Forex schedules is useful!

The idea will also be to trade less time and with the highest effectiveness and profitability, because there are certainly hours of Forex trading to avoid.

Do you think the study of Forex hours is the only element to be taken into account?

The answer is no. It is also important to analyze the best days to trade Forex. It is not uncommon to see trading strategies that work better on some days of the week than others.

What if you increased your profits, reduced your losses and got more free time?

Wouldn’t it be worth investigating why this happened?

Let us take this opportunity to remind you that profitability in Forex depends not only on the profits generated, but also on the time spent on trading activity.

Enjoy the demo account you have to offer! It’s totally FREE and risk-free!

A trader who trades only 2 hours a day with an average return of 2% per month will be more profitable than a trader who spends all day trading FX to generate 4% per month.

It depends on everyone, of course, but don’t forget that the Forex Trader who spends only 2 hours to trade can take advantage of the rest of the day to do another profitable activity or test new Forex strategies or simply do another activity he likes.

That’s why it’s important:

  • Focus on your available trading hours
  • Find the best days of the week to trade
  • Find the best months to trade Forex

As you realize, the Forex market every hour will have an impact on your results and your lifestyle as a Forex Trader.

Many novice traders are waiting for the forex market opening time, but the Friday closing time on Forex is perhaps more important than the Forex opening hours on Sunday night for traders who want to close all their current positions.

Finally, we remind you that economic announcements, which are often part of the most volatile trading heights, should also be taken into account!

When To Trade FX Trading – Forex Trading Online

So it’s logical to think: what time of day is the most profitable in Forex? When to enter the Forex market?

The answer to these questions will depend on your trading strategy and your availability, which are personal parameters, but here are the elements you will have to consider anyway:

  • Liquidity in Forex
  • Volatility in Forex
  • Trading sessions on fx market
  • The intervention of the participants, as causes of volatility

What is Forex – Volatility in the Forex Market

Forex volatility is known to all traders, whether they try to exploit it or not.

In the CFD Forex market, the most volatile currency pairs are the most popular trending ones. It is true that the most profitable currency pairs are often the most volatile.

There are tools to measure the volatility index, such as the FOREX ATR indicator.

This Forex Volatility indicator calculates the range of each candlestick as a 1-period parameter. If you place 15 periods, the indicator will average the intervals in the last 15 candles of the Forex chart you are on.

The impact of volatility on trading is considerable, especially for trendforex traders.

One last word about volatility in Forex: do not confuse volatility with increased risk, because more volatility does not mean more risk in the market, but rather more potential profits for more experienced Forex traders!

To identify periods of high volatility, you also need to know how to use a Forex chart!

How to Analyze a Chart in Forex Trading – Forex Market

The Forex chart represents your working tool in trading. It is important to manage your resources, such as updating the chart in MetaTrader 4 or displaying chart information.

Technical analysis is widely used among professional traders as individuals. This Forex graphical analysis involves interpreting market movements without considering the fundamental context, only based on Forex charts.

For this Forex analysis, technical indicators are added that help traders understand the current state of the market.

Here are the 3 Forex charts in MetaTrader by default:

  • Forex Charts Online as Curves
  • Real-time Forex charts in bars
  • Free real-time Forex charts on Japanese candlesticks

To interpret a Forex chart, it is clear that there are other types of representations, for example:

  • Forex Charts in Tick
  • Renko Forex Charts

These advanced Forex charts and many more are available in MetaTrader 4 and MT5 Supreme Edition. Several tools exist within this improved version of MetaTrader, such as the Mini Chart, to view multiple units of time.

The Time Frames of the Forex Chart – Forex Trading

If you don’t know how to display timescales in MetaTrader 4, read the following topic carefully!

To show the time units in MetaTrader, it’s really quite simple, and just use:

  • The temporalities in MT4 with the time unit bar
  • Time scales with abbreviated periods
  • Or the Admiral Markets Mini Chart indicator

Do you want to have a single Forex chart and multiple units of time?

Now it is possible thanks to the “Admiral Mini Chart” indicator!

Needless to say, time-based analysis allows you to understand the exact context of the market and get an overview of a pair of Forex in order to make the best possible decisions.

And that’s not all!

In addition to being able to have multiple units of time on a single chart, you can add to each of these charts an indicator of your choice from a wide variety of indicators in MetaTrader 4 and MT 5, such as the Bollinger Band or an exponential moving average MME.

A study on various time units can help you predict the Forex market!

How to Predict Trend – Forex Trading

We all know that the biggest profits are made in trend movements. For this reason, traders spend so much time trying to figure out the best way to determine the trend of a Forex market.

Here are 2 ways to determine the trend in Forex:

  • Perform a fundamental Forex analysis to predict the underlying trend. This way of predicting the valuation of a currency involves reading, understanding and interpreting economic data such as monetary policy, interest rate or economic growth in a country.
  • Predict the Forex trend using technical analysis, trend indicators such as the moving average or macd, which are among the best known. However, there are many other Trend indicators MT4 and MT5.

The Forex forecast is just a prediction. No one can say for sure what the Forex market will do in a year, but this type of technical analysis is based on identifiable recurring behavior in the foreign exchange market from year to year. This is how we can try to predict/guess Forex and take advantage of market movements.

The Graphic Patterns in FX Trading

A Forex figure or pattern can be leveraged in the foreign exchange market if it is well designed and interpreted by the Forex trader.

Here are some examples of Forex chart figures:

  • The figure “shoulders and head”
  • The figure of the “triangles”
  • The figure “double top”/”double bottom”

These Forex graphic figures serve as a reference for interpreting the market context and predicting what may happen after the breakdown of your widely used technical data among Forex traders.

How to Analyze Forex Market Sentiment

Have you heard of Market Sentiment Forex?

Admiral Markets, through MetaTrader 4 and 5 Supreme Edition offers a new widget: Market Sentiment.

It is a visual tool that reflects current market conditions to indicate the most likely future movements.

Forex market sentiment has undeniable advantages that will complement your market analysis!

And for those who don’t already own MetaTrader 4 or 5 Supreme Edition, you can get a sample of this advanced tool in real time through our website!

Learn how to Analyze Forex Charts – Forex Trader

Every morning, we offer a live webinar on our YouTube channel, which you can use as a free Forex technical analysis tool daily, delivered by an experienced analyst and FX trader from Admiral Markets.

Every Tuesday, Thursday and Friday from 14:20 to 15:50, you can also find technical analysis in real time and ask all your questions during real-time trading sessions with Admiral Markets.

Once forex analysis is done, it’s time to learn the different ways to enter the FX market!

What Are The Types of Orders in FX Trading

There are many ways to position yourself in the Forex market. Let’s take a look at the different types of Forex Market orders.

You first have the option to place a market order with:

  • Buying on the market for speculators from rising markets
  • Selling on the market for speculators in declining markets

The second possibility is to place a pending order. This type of Forex order means that you only enter the market if the price reaches the price chosen at the time of placing the pending order.

Thus, there are 4 pending orders:

  • Buy Stop if you want to enter the buy at a price higher than the current price
  • Sell Stop if you want to enter the sell at a price lower than the current price
  • Buy Limit if you want to enter the buy at a price lower than the current price
  • Sell Limit if you want to enter the sell at a price higher than the current price

When it comes to orders in MetaTrader, we have to mention those that are probably the most important orders:

  • The Forex Stop Loss that limits your losses per position to a reasonable value if properly configured. Forex without stop loss is of course not recommended!
  • The Forex Trailing Stop MetaTrader, which protects current gains in your Forex trades
  • As well as the Take Profit MetaTrader which will be useful for you to have profits at strategic levels

These are the different orders that will allow you to act when a Forex signal appears!

What Are Signals in Forex Trading

A Forex signal indicates a trading opportunity.

Trading signals are categorized into two parts, i.e.

  • Key signs, according to the economic calendar news
  • Reliable technical Forex signals, based on indicators or technical analysis of Forex charts

But that’s not the only distinction you can make! We can also distinguish:

When it comes to free Forex signals, it is important to ask the right questions!

The best is still you can generate free Forex signals using technical analysis indicators by yourself. Thus, you will understand perfectly the forex signals trade you have generated!

Do you want some examples?

  • Admiral Pivot: a free Forex signal among the best known!
  • High-Low Trading Indicator: MT4 and MT5 Low Top

MT4 and MT5 Supreme Edition trading platforms can help you generate a personalized free Forex signal with the help of professional trading tools.

But the tools are not enough! Its ability to interpret candlesticks and its settings remain essential.

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How to Interpret Candlesticks in Forex Trading

Knowing how to read a candlestick chart on Forex is very important in FX trading.

A Japanese candlestick is based on 4 elements that provide valuable information to traders who know how to interpret them:

  1. Opening level of Japanese candle
  2. Maximum level reached
  3. Level of the lowest point reached
  4. Candlestick closing level

What is the candlestick in Forex:

In fact, it is a “Japanese candle” that serves to read the price action using the 4 information mentioned above.

To give a simple example, if a candlestick approaches its highest point, what conclusion can be drawn from it?

The most logical conclusion would be that there is strong interest from buyers in this candlestick, whether on a 5-minute, 1-hour chart or on a daily Forex chart.

As you can see, having the skills to read candlestick charts can be very helpful in your online investment.

Here is 3 more information you need to know about trading with candlesticks!

  • The size of forex candle, from high point to low
  • The relationship between the opening price and the closing price of the Japanese candle
  • The relationship between the candle shadow (wick) and the candle body

According to the settings of all this information, Japanese candlesticks are differentiated from each other. Among the best known are:

  • The Marubozu
  • The Hammer
  • The Shooting Star
  • The Executioner
  • The Piercing Line

More than a trading strategy based on Japanese candles can be profitable, just apply these numbers in the right areas of the market and not anywhere!

The list of Japanese candlesticks trading is of course much longer and each corresponds to a particular signal that traders can try to take advantage of.

As we always advise, it is best to test the signals even within your existing trading strategy or for a new Price Action trading strategy.

In addition, you can find better results on some Forex pairs, which can also lead you to select the best Forex pairs to trade with your strategy!

What Are the Best Forex Pairs to Trade

Do you want to know how to invest in Forex?

First, learn the difference between the quoted currency and the base currency using the following example:

  • In the Euro Dollar CFD, EUR/USD, the base currency is the euro and the quoted currency is the US dollar. It’s as simple as that!

But should you start trading Forex on major currency pairs?

Yes. This is really recommended for beginners in Forex Trading. The first trades are often held on Forex pairs like the euro dollar or the British pound.

More what are the best Forex pairs?

In this area, the consensus tends to say that the best currency pairs to trade are the most liquid, i.e. those that are the most traded in the Forex market.

This greatly reduces the list of FX pairs to just a few, in fact:

  • Major Forex pairs include the euro, US dollar, British pound, Japanese yen, Australian dollar and Canadian dollar.

But is it must trade smaller pairs and exotic currencies?

The answer is yes, especially for fundamentalist FX traders or swing traders who have the patience to see a medium to long-term scenario.

The most profitable currency pairs also depend on you, your profile, how currency pairs and the strategy you use in the Forex market understands.

Exotic Forex Pairs – Forex Trading

Do you know what exotic pairs are in Forex?

There is a huge variety of currency pairs in the Forex market and one of the categories are exotic currency pairs, which includes a fairly long list of exotic currencies.

Very briefly, the advantage of exotic currencies in Forex lies in potentially larger moves in some of the Forex major pairs.

The disadvantage is clearly the spread, which is necessarily higher, and the potential lower liquidity, since fewer exchanges occur in these assets.

How to use the Economic Calendar in the Forex Market

Investing in Forex with the economic calendar helps to better understand the periods of market stability as well as the sudden moments of trend change.

How to use the FX economic calendar?

First, we should be aware that published data is not always interpreted logically in Forex, as in the stock market.

3 scenarios are possible at the time of an economic publication:

  1. No reaction, which means the market had anticipated the news
  2. A strong movement according to the economic data made public
  3. A strong movement against economic news

If you are wondering how to trade Forex with real-time economic news, keep in mind the following approaches that can help you:

  1. Anticipar results
  2. Establish a buy/sell scenario
  3. Follow the impact of news and results
  4. Wait until the market reacts and enter the movement started

How to analyze an economic announcement in trading?

To understand the Forex calendar, it is essential to know the news that moves the financial market.

Here are 7 of the 11 economic indicators that have the greatest impact on the Forex market:

  1. Gross domestic product (GDP)
  2. The employment rate outside the agricultural sector
  3. The unemployment rate
  4. The industrial production index
  5. Exports
  6. Imports of durable goods
  7. The interest rates of the European (ECB) or American Central Bank (EDF)

You can find all this data on the Forex calendar Portuguese on our website admiralmarkets.com/pt.

Being aware of these economic indicators allows you to stay in tune with sometimes violent market movements, following the expected publications in the Forex economic calendar.

What are the Best Forex Trading Indicators

There are many free MT4 Forex Indicators on the predefined trading platform. These indicators are among the best known and robust, each with a proven track record in the past.

Here are the best MT4 indicators rated by traders who use them!

  • The MACD
  • The Bollinger Bands
  • The Stochastic
  • The RSI
  • The ADX

Other types of FX indicators are now available, and these are the best indicators of Admiral Markets’ MetaTrader 4 Supreme Edition:

  • The economic calendar in the MT4 Admiral Calendar
  • Contagem regressiva de candlesticks MT4 Admiral Candle Countdown! Do you want to buy or sell the market in the closing of Japanese candles? Find out immediately how to know the point of entry into the FX market!
  • The Stock Exchange Indicator Donchian Channel MT4 Admiral
  • High-Low trading indicator: Low Top MT4 Admiral
  • The Admiral Mini Chart Indicator – Mini Chart MT4 that allows you to view multiple charts in a single MT4 window
  • The Admiral Points Pivots indicator
  • The MT4 Admiral Information Indicator, which allows you to gather signals from multiple indicators in a single window for quick and easy trading analysis!

Now let’s dig a little deeper into the nature of the indicators!

Let’s start with trend indicators MT4 and MT5. Most traders are Forex trend traders, so there is a strong demand for indicators that can detect an FX trend more quickly.

Among the indicators to identify the Forex trend, you will find the following:

  • The Average Directional Movement Index MetaTrader
  • The Bollinger Bands – Bollinger MetaTrader Bands
  • The indicator Ichimoku Kinko Hyo
  • A Moving Average MT4 – Média Móvel

Another family of indicators that exists, more conducive to trading, are the oscillator indicators MT4 and MT5.

MetaTrader 4 oscillation indicators are:

  1. Probably the best Forex indicator, the average True Range MT4
  2. The best MT4 indicator, Commodity Channel Index MT4
  3. The Momentum MetaTrader 4 indicator
  4. The Stochastic Oscillator MT4

In a result, there is more than one Forex indicator that could be the most reliable and effective Forex indicator for you.

These are some of the best Forex indicators that work, such as:

  • The Forex Simple Moving Average
  • The MACD Forex indicator
  • The Free Bollinger Bands Forex Indicator
  • Or the Fibonacci retracement analysis tool

But Price Action FX Trading is perhaps the best Forex indicator ever! Everything will also depend on your trading strategy.

In case you don’t already know, Price Action represents price action, and is the most direct indication we have when it comes to interpreting what the market does on our Forex charts.

Price action can be interpreted by some indicators such as:

  • The Fractals indicator
  • The Renko indicator

Forex Trading – Scalping

Now let’s address the different methods and types of trading available to Forex Trader!

Let’s start with Scalping, or Scalping Trade, certainly the riskiest method and adored by the most exciting traders!

Forex Scalping is the most speculative trading method because it involves trading in smaller units of time and thus takes advantage of small movements in the Forex market in a short time.

This approach requires forex scalper:

  • Experience
  • A solid strategy tested
  • Perfect control of emotions

For those wondering how to scalping profitably, here are 4 of 7 Scalping tips that can help you get started:

  1. Trade in times of high dynamics and volatility
  2. Use Stop Loss in each position
  3. Have realistic and attainable goals
  4. Have a well-defined trading strategy

You can also find more than one free Forex Scalping strategy, among which:

  • The Stochastic Forex M1 Scalping Strategy
  • The Forex Fractal Scalping Macd Strategy
  • The Forex Price Action Scalping Strategy
  • The Scalper strategy 1 minute
  • The Stochastic M1 Extreme Forex scalper strategy
  • The Scalping Forex Alligator M5 Strategy

Scalping in Forex in Portugal and Brazil is growing and we must not forget that spread is a very important element in Scalping Trading, because each point counts.

That’s why you need to choose a Forex broker that:

  • Be Regulated to Scalpwith Low Spreads
  • That you have the Best Execution of Orders

Forex Day Trading – Intraday

Let’s see a slightly more conservative approach, intraday Forex trading!

Intraday Forex trading is strictly done during a trader’s trading day and is always closed before the end of the day.

If you are interested in finding the best Forex Day Trading strategy, you will definitely want to read more!

Here is an overview of the most used systems in Day Trading:

  • The trading of intraday retracements (reversals), which often uses Fibonacci tools
  • The Daily Forex Day Trading of Daily Pivot Points
  • The Momentum Trading

You can also find more than one free Day Trading FX strategy, with some examples of intraday strategies:

  • Intraday HA
  • Bollinger bands with RSI

Forex Day Trading allows the Day Trader to end the day without open positions, which for some people is much more comfortable than leaving positions open at night as a Swing Trader.

The Forex Day Trade, when you are a beginner trader, can be essential, and you must put the knowledge acquired into practice! It is important, then, that the Forex day trading strategy you apply matches you and that you trust this approach!

Here are two tips for day trade:

  1. If you are a beginner, start by day trading on a Forex simulation account
  2. Don’t forget to trade in high-impact news hours and not at the time of the economic announcement

Finally, please note that for all accounts over €20,000 on Forex, Admiral Markets offers individual and personalised trading terms!

Swing Trading Forex – FX Trading

Let’s now discuss the most conservative and perhaps the simplest method of trading: Forex Swing Trading!

This type of trading requires little time in front of trading charts, it is also a method that guarantees a return on investment over time and not on the day itself.

Positions tend to last longer than a day and can last several weeks. The goal is to take advantage of the movements or fluctuations of the Forex market.

The Swing Forex Trader should be able to keep his positions open overnight because in reality he will only look at the Forex market a few minutes a day.

In fact, swing traders mainly trade the extended time units of H4 for the daily charts.

So it’s a perfect style for someone who has a full-time job!

To summarize, the three main benefits of a Swing Trade strategy are:

  1. You can maintain a main activity and become a Swing Trader
  2. You will have less risk because currency pairs are more directional in the daily chart
  3. Indicators are more effective than for Scalping or Day Trading

There are several Swing Trading strategies at your disposal, such as:

  • Perhaps the best forex strategy in the long run, bollinger daily strategy
  • The Ichimoku SAR strategy, dynamic with its signals in the H4 time unit
  • The Price Action Inside Bar and Outside Bar strategy

How to Create the Best Strategy – Forex Trading

Developing a trading strategy is an essential step towards becoming a forex trader.

The ideal is to have a simple and effective strategy, which allows you to trade more and more easily than if you had to execute a complicated and difficult strategy to implement. Also, a profitable strategy is often quite simple!

In order to create this type of FX trading strategy, traders generally rely on well-known principles such as using a simple moving average to define the market trend or even as a moving average trading strategy.

It is important to remember that trend identification is a common denominator for the most profitable trade strategies.

Examples of Forex CFD strategies are available on our Youtube channel!

You will find more of a short-term trading strategy and perhaps, in your opinion, the best free Forex strategy!

Hedging – Forex Trading

You’ve probably heard about Forex Hedging (FX coverage), but you may not know what it is.

What is Hedging anyway?

Hedging serves as cover! The principle is as follows: you take an opposite position (buy in case of sale and sell in case of purchase) to the previous position assumed in the market, and the two positions must be equivalent to the level of the risk.

You can assume this hedging position on the same currency pair or another highly correlated pair.

But why hedging in a trade?

The hedging compensates for adverse movements on a currency pair.

Is it possible to win forex with hedging?

Be aware that there is more than one hedging strategy and certainly many Expert Advisor hedge on the Internet. You can even use Options in your hedging strategy.

And for manual traders, what tools to use for hedging?

There are, of course, several tools, but Admiral Markets has a correlation matrix available in MetaTrader 4 and 5 Supreme Edition that can be very useful to you!

Martingale at forex market

Is martingale forex strategy familiar to you?

Trading with a martingale strategy in the FX market remains a risky practice, know that!

The purpose of this approach is to double the risk in each losing position in order to recover previous losses from the upcoming profits, implying that the positions that recover losses have to be much larger and riskier positions.

How does the martingale strategy work in trading?

Very quickly, you increase the size of your position with each loss, it’s as simple as that. The double Forex martingale is an advanced strategy that requires special management, not recommended for beginners!

Let’s talk now about the Grid Trading FX strategy.

Grid Strategy – Forex Trading

Very briefly, this Grid strategy tends to keep pace with market movement without having to identify the trend. That is where the main advantage of this approach lies.

That is why there are many Grid Trader EA. Without a tendency to define, it is easier to code a Grid trading strategy.

The only elements of this strategy focus on:

  • Predefined purchase and sale entry levels
  • Very complex risk management

As you can see, the implementation of the Grid trading strategy is not as simple as it sounds.

A Forex grid strategy requires an in-depth knowledge of risk management!

Forex Market Arbitrage – FX Trading

Have you heard of Forex Arbitrage and would like to know how to make an arbitrage strategy?

Here are our explanations to clarify you about the arbitrage in the foreign exchange market!

Arbitrage in trading consists of buying and selling at the same time an asset in several Forex brokers in order to exploit the difference that exists between the prices of the different brokers.

To make arbitrage on currencies, it is necessary to have accounts in several brokers. The use of an arbitration strategy is not ideal for beginners because it requires patience and the ability to act without hesitation.

Be careful because you can also find more than one EA Arbitrage on the internet, which does not mean that you will make money!

Let’s talk about the concept of correlation now!

Forex Correlation – Forex Trading

Correlation is a phenomenon carefully studied by a large part of professional traders.

Trading with the exchange rate correlation can increase your chances of success in an amazing way! But let’s first look at the definition of financial correlation for those who do not yet know it.

This is the numerical measure of the relationship between two variables. It should be known that changes in the correlation of currency pairs can occur. In some years you may notice strong correlations between currency pairs and, in other years, an absence of this same correlation between these two currency pairs.

But the correlation is not left by the coins. There may also be a correlation between raw materials and currency pairs!

What is the correlation between Forex and stock or commodity markets?

To identify this phenomenon, there is a correlation calculator, which is a tool present in MetaTrader 4 and 5 Supreme Edition of Admiral Markets, in the form of a currency correlation table.

This tool, as well as the other assets of Supreme Edition MT4 and MT5, is very useful for trading with the FX correlation chart.

The Elliott Waves in Forex Trading

Do you know Elliott’s wave analysis?

If this is not the case, answer the question now: What is Elliott Wave Analysis?

Elliott’s theory in the Forex market is very simple, and materializes the idea of impulse movements and corrections of financial markets. The basis of this theory is that the foreign exchange market repeats the same behavior over time.

The latter being the representation of 5 waves, such as:

  • 3 upward impulse movements separated by 2 corrective movements down respectively after the first impulse and the second
  • 3 downward impulse movements separated by 2 high correction movements, respectively, after the first impulse and the second impulse

If you like Fibonacci tools, you might want to know: how to operate with Fibonacci and Elliott waves in fx market?

It’s very simple: Elliott waves are like a map, you just need to apply Fibonacci to impulse waves to identify where the next corrective wave will likely end, so you try to take advantage of the third wave, that is, theoretically the largest.

There are many Elliott Wave strategies, whether for Swing Trading or Scalping, but any strategy must be tested on the Forex demo account!

How to Choose the Best Forex Demo Account

As we just mentioned, it is possible to trade Forex without money and practice without losing a single cent!

Let’s be honest: there aren’t many areas that open up great perspectives where you can start investing without money!

In financial markets, this is possible in a demo trading account!

For this, you should choose a good broker with the best Forex simulation account.

The demo trading account, or stock exchange simulator, is an online trading platform that allows you to trade for free.

The best Forex Trading simulator will necessarily be an advanced trading platform, pictured with MetaTrader 4 and MetaTrader 5!

The strengths, respectively, of these two trading platforms are:

  • MetaTrader 4 Supreme Edition allows you to paper trading outside of Forex hours, leaving you the choice of time you want to trade in a demo account to train in real conditions!
  • MetaTrader 5 Supreme Edition has advanced tools to easily position and calculate the lot size automatically in forex simulation (Mini Terminal also present in MT4). This version of MetaTrader allows faster and more detailed backtests than in the previous version.

The ideal is then to start learning how to make money on the stock exchange with your free virtual wallet, without taking real risks before trading on a real account.

But be careful: you should avoid making too many trades on the FX demo account. You have to know when to stop and start in real life to face the psychological obstacle of the real account trader.

Here lies the key to success in forex trading and simulation.

Backtesting Forex – FX Trading

As you understand now, Forex CFD trading is a professional activity that requires serious learning.

Like any professional, it is necessary to use quality tools. That’s why using the best Forex backtesting software is essential!

For those who don’t know what backtesting is here’s an overview.

Backtesting is, of course, an English word, which in Portuguese means testing, in this case, a cfd trading strategy on historical data. This method is very widespread among professional traders and unfortunately a little less with individual traders.

Why should backtesting be used in FX trading?

The Forex backtest lets you know if your assumptions made during the construction of your strategy are correct, i.e. whether they are profitable or simply disastrous. It is also a path to automatic Forex!

Are you asking what is the best FX backtest software?

Our answer is clear, it is trading software:

  • MetaTrader 4 Supreme Edition, with the possibility to test manually in real conditions and even outside trading hours, your strategy
  • MetaTrader 5 Supreme Edition, with a professional-worthy execution speed to test EAs and find out which automatic strategies can work or not in the long run.

Investing in Forex or Other CFD Markets

When it comes to investment, we always refer to long-term investment in the medium term and not short-term speculation. That’s why investing in Forex naturally corresponds to long-term trading like:

  • Swing trading where you can hold open positions over several weeks and months
  • Trading positions in which positions are taken to last from several months to several years

So how to invest in Forex trading?

The first step is to invest in yourself, train your risk control over your investments and find long-term investment best practices.

Next, you have to develop a long-term trading strategy that you can test to make sure that this approach is correct.

There are many long-term trading strategies, but each has strengths and weaknesses.

Learning to trade in the long run is even easier than Scalping.

You’ve had the opportunity to see more than one example of long-term Foreign Exchange strategies when we talk about Swing Trade in this article.

But what are the risks of investing in the Forex market?

The risk depends entirely on you. The foreign exchange market gives you the opportunity to risk exactly the amount in euros you want for each trade. You can invest in currencies with little money and not suffer excessive stress.

But are you in the dilemma: investing in Forex or investing in the stock exchange (investing in stocks)?

Let’s briefly review a few points:

  • Forex or stock exchange – these markets do not have the same accessibility, the foreign exchange market is still easier to access for particular individuals.
  • Stock market or FX market – it’s important to talk about margin and leverage. Here again, Forex has an advantage with leverage effects of 1:10 to 1:500.
  • Forex vs Stocks – trading 24 hours a day is only possible in the foreign exchange market. Whether it’s good or not, that fact is indisputable.
  • Investing in the stock exchange or foreign exchange trading – variety and versatility is another point that marks a clear difference between FX CFD and the stock market. In this respect, the stock market gains with a considerably larger variety of companies to buy stocks.
  • Forex or Stocks – taking the opportunity to trade up or down gives points to the FX market that allows you to take advantage of the market’s downfall movements, often giving rise to big profits!

In the end, it all depends on you and your investment goals. Some are more familiar with the stock market and its operation, while others prefer the many advantages and benefits that Forex investing offers.

Let’s see concrete examples!

How Much Money To Invest in Forex Trading

When we talk about Forex deposit and especially the minimum capital needed to start trading, we often expect it to be affordable without investing too much money.

So how much to invest in FX trading?

If you are a beginner trader, the best thing you should do is start slowly, thanks to Admiral Markets CFD trading accounts, you can open an account for a minimum value of €100.

If you are an experienced professional, then you know how much to invest in Forex according to your risk and your return.

Are you interested in an FX deposit bonus?

Many FX brokers offer deposit bonuses because they know that novice traders wish to trade online without deposit. Unfortunately, these are often scams.

You need to be careful and favor regulated brokers with whom you can start with a small account and have access to unlimited demo accounts to open a real Forex account.

How to Speculate in the Foreign Exchange Market – Forex Market

To speculate on Forex successfully, it is necessary to:

  • Have good money management. We have already mentioned, good capital management can make the difference between a losing strategy and a winning strategy!
  • Have a good management of emotions and a foolproof discipline.
  • Diversify the portfolio by not putting all the eggs in the same basket.
  • Track Price Action, being the closest indicator to price movements.
  • Take into account the economic calendar.
  • Use good trading tools.
  • Learn about the functioning of the money market. Learning how to become a trader is like everything in life: you need to practice to acquire the knowledge and experience you need.

Do you want to know how to make money on the online stock exchange?

But do you wonder what are the profits of Forex trading?

Speculation leads to a lot of talk on the Internet… On the one hand we have fx trading skeptics who think it is not possible to make money on Forex, and on the other side of traders who consistently earn large profits in the foreign exchange market.

This is reality!

Most professional traders have an average monthly forex yield of 1 to 10 percent.

The big profits we are talking about depend on the amount of capital invested, 1% of €10,000 is not comparable to 1% of €120,000, of course.

The key to success also depends on Traders’ Psychology!

The Psychology of Forex Trader

Psychology in trading is an essential part. Therefore, self-assessment is a key element that you must master. The risks associated with a Trader’s psychology are as follows:

  • Believe that makes the market
  • Accommodate, forgetting that anything can happen in the market
  • Search for excessive confirmation
  • The fear of losing

Psychology and negotiation are two inseparable elements. The psychology of trading can make the difference between a winning strategy and a lost strategy!

How to Be a Better Forex Trader

We always learn from the success of others!

So do you know who is the best Forex trader?

When it comes to the best traders in the world, some names appear at the top of the list, among which we highlight:

  1. George Soros
  2. Paul Tudor Jones
  3. Jesse Livermore

What do they all have in common?

The common points of these traders:

  • Large capital under management
  • Huge profits
  • Sometimes big losses
  • Self-control and good risk management

Want to know more about what is the best trader of all time?

The best Forex trader in the world is arguably George Soros. George Soros and Forex, it’s an amazing story! He is the only trader to have earned £1 billion after several short positions in the GBP in 1992.

Are the richest traders always winners?

As surprising as it may seem to you, most of the best traders in the world, extremely rich, lose more than they earn from Forex, but the secret lies in the profits made. Here, we use risk and reward to know the risky amount compared to the expected earnings.

The most successful traders in trading are typically traders who have good positions only 40% of the time, but with a win rate of more than 2 times the amount invested!

Warren Buffet and Forex Investing

Warren Buffet is known as the best investor in the world. If you write on Google “Warren Forex Buffet”, and you will find many articles that detail your unusual journey.

Here’s 10 tips to invest in the stock exchange given by Warren Buffet:

  1. To get rich, don’t save money in the long run
  2. You want to know how to get rich? So invest in yourself
  3. Investing in stock indices is always profitable in the long run
  4. Avoid credit, especially credit on the credit card itself
  5. Don’t forget the snowball effect and think long term
  6. The best investments are usually the simplest
  7. Risk and volatility are not the same thing
  8. Making money on the internet is possible, just invest in the stock market at the right time to become rich
  9. To get rich, you have to know how to be patient
  10. Finally do not hesitate to assume your losses

Warren Buffet was in fact a superb traditional trader.

But other traders are turning to automatic online trading!

Automatic Trading with Forex Expert Advisor

The foreign exchange market, such as the stock market or the commodity market, is increasingly subject to automatic trading systems. This automatic trading is possible on the MetaTrader 4 and MetaTrader 5 platform thanks to Expert Advisors (EAs)!

These are Trading Robots encoded in the MQL4 or MQL5 programming language.

In this way, the backtesting in the strategy tester is done automatically and still allows to launch optimizations with the values of the desired parameters of the trading robot.

And if you have an Expert Advisor that must be active 24 hours a day, 7 days a week to trade currencies, you can use a virtual private server (VPS).

Obviously, there are advantages and disadvantages of Forex Robots actually. As you’ve seen, the automatic trading software allows you to:

  • Test a strategy automatically on the MT4 or MT5 tester
  • Optimize certain strategy parameters simply and easily
  • To trade the forex market 24 hours a day
  • Not having to stay all day in front of your computer

On the other hand:

  • You need to know how to program in MQL4 or ML5 or have the help of a programmer.
  • The robot will perform only the tasks associated with it and will not be able to analyze as a trader the complexities present in the currency exchange market.

How to choose the best trading robot?

If you come to choose an EA, do not make the mistake of just looking at profits, be careful to observe periods of losses, and the relationship between gains and losses by positions, in order to be better prepared for difficult periods, because any system will have a drawdown period!

Forex CFD Broker

How to choose the best Forex broker? What is the best trading site?

It is often a complicated choice.

Here are our ideas on the subject!

First of all, let’s remember the nature of online brokerage, also called online broker.

A broker is a financial intermediary who will transmit your orders directly to the market. So you realize the importance of choosing the right broker!

So how to choose the best Forex Trading broker?

Here are some of the things to consider in brokers to get to choose the best broker for you:

  • Security – should be a Regulated Forex Broker, ideally Brokers in Portugal or Brokers in Brazil, to ensure that the security of your funds is ensured
  • The quality of service – especially the execution of orders
  • The quality of the tools available – mainly the trading platform and the features it contains
  • The available financial markets – it is necessary that the market you want to trade is obviously available on fx broker

The best online trading site should also have other features available to you, such as:

  • Leverage and margin, consistent with your trader profile
  • Spreads and commissions, ideally brokered with low spreads and no commissions
  • The minimum deposit for a trading account, Admiral Markets offers a minimum of only 100€
  • One or more Forex course to discover and learn how to invest in CFDs before you even start trading

But how to find a reliable broker on the internet?

Here is an overview of the tips for finding the best CFD broker:

  • See fca or ASIC register
  • Pay attention to the information on the broker’s website
  • Pay attention to bank details
  • Pay attention to the phone requested in trading
  • Don’t receive investment advice from CFD brokers

How to Open a Forex Account – FX Trading

You can open a trading account in a few minutes!

For example, to open a trading account at Admiral Markets, there are only 5 steps to follow:

  1. Register in the Trader’s Room
  2. Click Open a Real Account in the Account Management window
  3. Apply to open a trading account
  4. Submit supporting documents of identity and address
  5. Deposit to CFD account

Forex Account ECN STP – Forex Trading Online

When opening your account to trade Forex, you should be aware that you have a choice between two styles of brokers:

ECN Broker Forex & No Dealing Desk Broker Forex

Let’s first talk about ECN trading!

ECN stands for Electronic Communication Network. In fact, it is an automated system that corresponds to purchase and sales orders.

ECN offers many advantages, including:

  • Trading with micro-lot quotation
  • A lack of minimum commission
  • Access to Admiral Markets’ main liquidity providers, for example, with Deutsche Bank, Goldman Sachs, Barclays Bank, to name a few
  • Quick execution of orders
  • No requotes with our execution at Admiral Markets

Now let’s talk about the FX No Dealing Desk account.

Also called NDD, the No Dealing Desk account represents an execution mode in which an order is placed in an external portal connected to a stock exchange or other liquidity provider.

It offers direct market access to customers as their orders are executed directly at market prices.

An Islamic account is a ‘Forex Halal’ account offered to Quran believing clients who wish to invest in the stock market while following the principles of finance and Forex Islam as defined in Sharia.

There are undeniable advantages to investing with a Muslim account:

  • No swap rate, which allows Swing Traders not to see their long-term profits reduced with the usual swap rates, including advantageous access to exotic pairs!

Cfd Forex Contests – All About Forex

Trading contests are primarily held in demo accounts and very rarely in real accounts.

However, these competitions, where several traders compete, generate creativity and competition, sometimes leading to big surprises, including the recognition of other traders.

What are the advantages of trading competitions?

  • No real risks, stock market orders are approved with virtual funds
  • Prizes are awarded to contest winners – often for the top 3
  • The free trading contest has no costs and everyone can participate
  • It is also a way to learn how to exchange currencies, because the contest allows you to socialize with other participants and exchange trading tips and strategies.

And what are the disadvantages of an FX trading contest?

  • Sometimes the winners are inexperienced traders who have no trading strategy
  • In the stock exchange contest, there is no psychological factor, because the money is fictitious and participants will not have the same stress as they would have with a real trading account.

Forex Scam – How to Avoid Scams in Forex Trading

Illegal Forex schemes are numerous on the internet, and we invite you to consult the CMVM (Securities Market Commission) website to keep you informed about these cases.

How to detect illegal brokers?

A simple clue: most of the time it is brokers who offer a no deposit bonus, because in a serious context, no one gives anything to anyone without receiving something in return!

Forex Advice – Tips for Forex Trading

While learning, it is always good to know the most common mistakes in trading:

  • The error in trading – Lack of knowledge
  • The error in trading – Ignore the trading plan
  • Trader error – Poor risk management
  • Trade error – Setting wrong goals
  • The frequent error – Losing sight of the overall goal

Here is an element to remember: the importance of discipline and patience in trading.

This essential element governs several disciplinary negotiation rules, such as:

  • Characteristic elements of the trading plan
  • Stop Loss, which is not an option, but a must
  • Time of use, i.e. the time you can devote to trading
  • Patience, which increases your potential

Now, let’s see 10 of the 20 stock market tips and tricks you need to know!

  1. Choose a regulated broker
  2. Use an online broker with good trading conditions
  3. Define a trading strategy
  4. Trade less, but better
  5. Managing emotions in negotiations
  6. Practice, practice and practice
  7. Knowing that nothing is guaranteed in trading
  8. Know that the trend is your friend
  9. Use Stop Loss and Take Profit
  10. Always analyze previous trades

Comments on Forex

You may be looking for opinions on the Forex Market or you are asking yourself: how can I make money with FX Trading?

Here are some tips for making money in the forex market:

  • Don’t look for profits after quick wins
  • You should not trade all the time
  • Keep in mind that no one wins every time
  • You have to organize yourself, choose the right strategy according to your profile, depending on your availability, your results in backtesting, etc…

Good tips for investing are hard to find. There are many forums, but few give investment advice advised and shared by professionals.

Forex Trading – Conclusion

The forex market is, as you saw, accessible to everyone. But this does not mean that everyone can invest in Forex successfully. You have to be ready to be fully involved and not stop at the first obstacles!

Training is the first step, and you can’t neglect it, because you can save a lot of money with all that knowledge! The same is for the practice of trading and its strategy. The process is more important than the immediate results, which is why the most profitable traders pay close attention to all this!

Take advantage of a demo account to start learning and training today without taking any risks!

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