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    • Month: May 2017

    What Makes Forex Trading so Different?

    Do you wish to make profits? Are you thinking of investing? Are you wondering whether to invest in stocks, bonds or currency trading? If yes, then don’t worry! This article will help you invest in the right market and choose the right investment tool.

    Stocks and bonds are the two most traditional investment methods to make profits. However, over the years forex has made its place as a hot market to raise capital with low risk and high returns. The high-value proposition is attracting investors worldwide to engage in forex trading.

    The Forex Market

    Unlike stocks that offer ownership stake and bonds that are interest paying financial investment tools issued by a company, the forex market works differently from the two. In forex, you trade currency pairs. The key to ensuring profitable currency trading is to research currencies of different countries and their economic trends and then formulate a good investment strategy accordingly.

    Now let’s take a look at how trading forex is different from stocks and bonds:

    Commissions

    In the bond market, trading through a bond broker means that you will have to pay a commission to the broker on the purchase of every bond. However, when you trade in the forex market through a forex broker, you don’t have to pay a commission; instead, the forex broker is remunerated through a bid spread on every trade. This enables you to take more on transactions as compared to bonds without a negative impact on your returns.

    Liquidity

    Whether it’s the stock market or the bond market, the forex market is a lot more liquid as compared to both. With more than three trillion dollars volume every day and the power to buy and sell whenever you want, you can engage in several profitable trades online.Furthermore, if you are trading forex online, you can also set automatic close position controls. It automatically closes your trading position at

    Furthermore, if you are trading forex online, you can also set automatic close position controls. It automatically closes your trading position at the desired profit level as stated by you and even when a trade is going against you. This cushions you from loss.Outstanding Leverage

    Outstanding Leverage

    Professional forex traders acknowledge the leverage they enjoy in this trading market as compared to the stock market. When trading forex you can control a large total contract value with a small deposit margin. The forex market gives traders the leverage to raise capital while keeping the risk low. For example, a small margin deposit of $50 with a leverage ratio of 200:1 enables you to engage in trades of $10,000 worth of currencies.

    Freedom to Go Long or Short Anytime

    Currency trading is more flexible and is not bound with as many limits and regulations as stocks trading. Forex traders can go long or short anytime, anywhere.

    More Trading Hours

    Since there is no centralized exchange in forex trading, it can be done 24/7 for 5 days a week. It is only closed on the weekends. This offers investors better opportunities to trade as compared to stock and bond markets that have limited trading hours.

    So, choose a wise financial instrument to engage in profitable trading today!

    Start trading with your favorite IMMFX broker right now. IMMFX offers Demo Account so you can play and learn without spending a cent. For more details, please visit IMMFX Demo Account.

    Why Use the MetaTrader 4 Platform?

    The MetaTrader 4 platform is regarded as the most popular forex trading platform in the world. Packed full of unique features, it is used by millions of people from across the globe to tackle the market with efficiency and precision.

    If you are interested in online forex trading on the MetaTrader 4 platform then you can easily register with your favorite IMMFX broker that offers this particular trading platform.

    Getting Started on the MetaTrader 4 Platform

    The MetaTrader 4 platform, also known as MT4, is a downloadable platform fully equipped with all the tools needed to trade the financial markets. It is completely customizable ensuring a bespoke trading experience, and aside from trading forex, traders can also trade CFDs and futures on the platform.

    Analyzing the Markets

    MT4 Forex trading is extremely straightforward and you can analyze the market with the full selection of analytical tools provided. The platform comes with nine timeframes for each financial instrument, as well as more than 50 built-in indicators to make your life as easy as possible during the analytical process. Such variety of indicators ensures that effortlessly you can spot trends and establish entry and exit points. Finally, the platform offers live quotes, in-depth news, and real-time charts.

    Aside from the above, traders can also choose to print the charts of any financial instrument if desired. Although technological advancements have enabled complex analyses to take place with ease on a computer, some traders may occasionally prefer to perform ‘on paper’ analysis.

    Implement Expert Advisers

    MT4 Forex trading also lets traders implement Expert Advisers if preferred. Expert Advisers are specially programmed software that is integrated with the MT4 platform. They allow automated trading to take place using MQL4 language, meaning that you can simply sit back and relax while the software monitors the market on your behalf and handles all of your trades.

    Different Trading Orders

    The benefits of the MT4 platform do not stop there. This fully customizable interface meets the needs of every type of trader, whether you wish to immediately execute traders or prefer to place pending orders. You can also place trailing stops and stop loss and take profit orders, which are all expedient features helping to minimize risk. Whatever type of trader you are, your needs are sure to be met using this professional and advanced online trading platform.

    Find more about IMMFX MetaTrader 4 platform and its features HERE.

    Forex Trading with Your ideal pair

    It’s well known that trade in Forex market is done with the money. Thus, money here is both goods and means of payment, so the main trade instrument on the market is currency pair.

    Quite a vital issue for traders is choosing a currency pair for trade.

    A code of 3 Latin letters is used for notation of currencies – usually, the first two letters stand for the country of the currency origin, and the last one – for the first letter of the currency name (USD, where US – United States, D – dollar).

    As Forex trade is always done in currency pairs, the notation of a full financial instrument consists of two code designations of currencies divided with a slash – for example, EUR/USD. The first currency is base, the second is quote currency. Operations are done with a base currency whose price is measured in quote currency. In other words, in USD/JPY pair a trader buys or sells dollars for Japanese yens.

    There are most popular currency pairs whose trade volume is very high in Forex market – these are, in particular, EUR/USD, USD/CHF, GBP/USD and USD/JPY. Each currency pair has its features that a trader has to know in order to carry on effective trade.

    EUR/USD pair is the most traded both among novice and professional traders. For confident trade with this pair, a trader should keep track of what’s happening in the political and economic life of Europe and America.

    USD/JPY is the second by popularity, trade in this pair is especially active during Asia-Pacific trade session. GBP/USD pair takes the third place – this instrument may be quite difficult for novices, as uncontrolled volatile movements are common for it.

    USD/CHF and GBP/USD pairs are considered to be the lowest in liquidity. Thus, for example, low liquidity of USD/CHF pair is quite attractive for hedge funds, and also for traders whose goal is to make maximum profit in a short period of time.

    There is no universal answer to the question: which currency pair should be chosen for trade? However, it’s known that the optimal choice for a trader is the pair for which he can predict movements. Novices are recommended to choose their trading strategy first, and then choose a currency pair considering the specificity of the strategy, volatility and time of trade sessions.

    Volatility is currency pair price fluctuations in a certain period of time. Currency pairs have different volatility level – for example, GBP/JPY and GBP/USD are pairs with high volatility for which price jumps are common, thus trading in them is recommended to professionals or speculators who have a special strategy tailored for sudden price changes. Pairs with the lowest volatility are EUR/CHF and EUR/GBP.

    I hope this short article will help you understand the basics of forex currency pairs. If you make a little research on these major pairs, their volatility periods and the events which influence these pairs most, you will eventually find your ideal pair to trade with.

    Curious to know which currency pairs does IMMFX offers? Well, you must know this before trading with us. Read more about our Tradeable Instruments to find which Currency pairs you can trade with IMMFX.

    Learn Foreign Exchange Market Tricks Here!

    It can be very difficult to develop a full-proof business strategy in the present economy. Starting up your own business, marketing and selling products require a ton of work and ongoing capital investments. These are the reasons why Forex trading is becoming more popular. Read on to learn how you can try your hand at forex trading.

    1. There’s no place for emotions

    Don’t make emotional trades if you want to be successful at Forex. This will reduce your probabilities of taking any bad decision based on impulse. Though your emotions always influence the way you trade, it is always best to make trading decisions as sensibly as possible.

    2. Bots are not so helpful

    Robots are not the best plan when buying on Forex. Software like these can be greatly profitable for sellers, but buyers or retail traders will hardly find that beneficial for them. It is better to make your trading decisions self-sufficiently without utilizing any tools that take control of your money out of your hands.

    3. Do some market analysis

    You should determine your trade positions following your own market research and analysis. People can still make mistakes no matter how many successful trades they have accomplished. Use only your trading plan and signals to plot your trades.

    4. Set a goal for yourself

    Select goals to focus on, and do all you can to achieve them. If you choose to start trading in forex, set a goal for yourself and a schedule for achieving that goal. Give yourself some room to make mistakes. Assess your own available time that can be dedicated to the Forex trading process, and remember that research is a crucial element.

    5. Demo or Live? Choose wisely

    Your choice of an account package needs to reflect how much you know and what you expect from trading. You are unlikely to become an overnight hit at trading. It is widely accepted that lower leverages can become beneficial for certain account types. Practicing on demo account can serve as a light-risk beginning. Take the time to learn ups and downs of trading before you make larger purchases.

    6. Maintain a daily Journal

    Good advice you might frequently hear from successful Forex traders is to keep a daily journal of trading and other pertinent information. Track every trade, including both wins and losses. Keeping a journal can give you a visual tracking system so you can analyze your results which in turn can help you reach profit gains.

    7. Forex is not a Game

    Forex is a very serious thing and it should not be taken as a game. Traders must be aware of that it is their own real money they are investing and trading. If people are looking for that kind of excitement, they should opt for gambling at a casino.

    8. Limit your trading instruments

    Basically, many forex traders, mostly beginners, should limit their trading to only a few major currency pairs or instruments. Use major currency pairs for trading. If you try to trade in multiple markets, you’ll just end up confused. Over-trading can lead to recklessness, which is bad for anyone who wants to succeed in the market.

    9. Scalper or Day Trader? Determine yourself

    As a beginner in Forex, you must determine what kind of trader you wish to be and select the time frames that suits you best. For instance, a rapid trade would be based on the 15 or 30-minute charts and completed with a maximum time frame of 3 hours. Scalpers use the five and ten-minute charts in which they enter and exit in a matter of minutes. However, it is recommended for beginners to go with the higher time frame like 1 day or weekly because longer trades are secure than short trades.

    10. Make use of Stop-Loss order

    Always be sure to protect yourself with a stop-loss order. Stop losses are like free insurance for your trading. If you don’t have a stop loss set up, you can lose a ton of money. Your capital can be preserved with stop loss orders.

    11. Never trade against Trend

    Those trading on the currency markets should trade according to market trends unless they have a specific long-term goal that requires them to trade against the market. Novice traders should totally avoid trading against market trends, and skilled traders should be very careful about doing so since it usually ends badly.

    Conclusion

    If you think you were well prepared before reading this article, you are much better off now! Hopefully, these tips will help you begin to trade currencies like a professional. Start trading with your favorite IMMFX broker today, make money at home.

    Forex market losing and winning, a detail insights

    Forex market although is a sure place to make money, it is also a place where losing money happens every now and then. While in the past, the hopes are too high that this lucrative market would make each one of us richer but suddenly this once a bright money-making idea has a changed scenario; the many tales of traders losing a great sum of money. Although the blames are on the many factors that surround the market, traders themselves share a common factor that may have in many ways trigger the harrowing tales of losing in the Forex market.

    With many of them frustrated over their losing experiences, traders have set aside dreaming of making millions overnight and are now more on hoping to stop their losing streaks. In order to do this, first, the traders must realize and accept that their losing trades were greatly attributed to the mistakes they have done in their past trades. Instead of blaming others they must first assess what they did in the past that have made them lose money.

    Here are some questions that may help you assess your trading mistakes:

    Do I have a trading plan?

    You must. You must have one and had in some ways perfected it. One of the mistakes of traders is to look for fancy indicators that they hope would make them rich faster. They go for the method that leaves nothing for them to do except to count their money. This is not true in Forex market and no matter how good the sales talk is, doing nothing isn’t the way of getting rich in Forex market. You must have a trading plan and you must learn this method, use it and perfected it. There isn’t a method that would give an overnight success (Although some may claim their method can) as gradual success is better than losing all at once.

    Am I an all-day chart watcher?

    Don’t count yourself among the traders who commit the most common mistakes of being an all-day chart watcher. Watching the chart isn’t the one to blame but by doing so, traders are tempted to do actions that may trigger wrong trade decisions. They’re open to entering trades when it isn’t the best time for them to do. This is also similar to taking trades when they’re not supposed to. They also tend to take profits when they’re not allowed to and tighten stop that aren’t allowed either. Watching the chart all day is not a bad habit as long as traders do nothing and just allow his method works for him. Watching the chart once is better that spending all day watching it only to make them susceptible to doing no recommendation trade.

    Am I only a lower time frame trader?

    There is nothing wrong in doing trade when the time frame is lower, however, it best if you can also learn how to trade when the chart goes for the higher time frame. The reason for this is the extra time on the daily chart and when both signals are compared, the higher time frame is more reliable in terms of signals than those of the lower time frame chart. If you want to turn around your trading, try to learn the higher time frame trade.

    Do I risk money more than I can afford?

    Don’t fret if you only have a hundred dollars in your account; it is just alright. It is also best if you have mini and micro accounts where you can risk a few dollars on a single trade. This will allow you to gather enough trading experiences and continue to carry over the correct money management that your micro account had instilled in you before actually getting into the real trade. You can also build up your account by the savings you’ll be making with each practice trade.

    Do I have the correct trading mindset?

    Let your mind work over your trading. You must understand the psychology side of Forex trading as it is not all about winning or losing money. If you allow your trading to be purely based on how you approach the market and on how you think about it, it is easy to make mistakes. Traders who have committed themselves to Forex trade must also commit themselves to the battle that has to be won. Correct mindset is the only way to win over your battle against break -even trading. It is not impossible to turn your small account into a big hedge fund if you only knew when and how to act. Thinking Forex in the correct manner will likely scope you out from losing.

    Conclusion

    Forex market is a neutral one that is not out to favor or go against any trader nor it is there to make everybody feel better or happy. Everything that happens inside the Forex market is part of it. No matter what other people think about the Forex market, it remains to be a good way to make money and that is hard to disprove. If one wins or loses, it is the results of his actions based on his thinking about the market. As you keep on winning there’s no one who deserves most of the credit but you. Professional traders may brag about having secrets of their success, however, most of these are the open knowledge that needs not to be discovered. Playing your trade plan and trading with a plan is what most of the times takes you to the path of success.

    Why forex market is so different?

    Compare to other trading markets, forex trading is the most liquid and fluid existing market. Trading is done all day, 24 hours and without interruptions. The gaps in price rarely occur and thus making profit is at the highest leverage.

    While it is true that you cannot trade in stock markets without a broker, it is almost the same with forex market. A broker acts as an agent in every transactions made. Brokers take order from the client to exchange and perform the order accordingly to clients instruction.

    Doing the task, the broker gets or charges commission on every successful trade. However, forex trade does not charge commission and only get profits through the bid-ask spread. It is also the duty of the broker to help traders overcome the bid/ask spread and helps in making forex scalping more easy. The broker helps initiates the trade for the traders who find forex scalping difficult.

    In Forex market, investors are not allowed to buy on the bid or otherwise sell the offer. When you buy on the bid, you sell for the ask price. The trading is done with currency pairs unlike in other exchange market. While in other market, traders have profits minus the commission while in forex trading all gains or profits made go to the investors.

    Unlike other exchange market, Forex market is purely based on speculation. When buying, or selling, there is no actual buying or selling of currencies as all trades are but appear to be computer entries and are calculated and netted out simply based on the market price. All trading are in dollar values that go directly to the traders account.

    At IMMFX we give you the option of trading with over 50 currency pairs that have tight spreads. Go trade.

    Three Powerful Strategies in Forex Trading

    There are several types of forex traders and each one of them has to adopt techniques and methods to fit the strategies. Each trader needs to find their own unique trading style based on the frequency of trading and selected assets.

    Overall, forex trading strategies can be classified into three basic categories focusing on range, trade or breakout techniques. Below are each of the main strategies you can find in trading:

    Range Trading

    With range trading, you need to get up-close-and-personal with technical analysis and, more precisely, with the sideways moving markets.  The idea of range trading is to find the horizontal price pattern between support and resistance area. As soon as the area in question is located, traders can take advantage of the moment. The range is known for its low volatility and is perfect for profit making.

    Breakout Trading

    A breakout can be spotted when a price movement overcomes support or resistance level. Once the breakout occurs, you can anticipate increased volatility and volume.

    The breakout strategy focuses on buying an asset when the price is breaking through resistance line and selling when the price is breaking through support line.

    An experienced trader will catch the signs of breakout and adopt to take advantage of the next market move. The beauty of breakout trading is in the fact that you do not need to be in front of your PC in order to make profits. Entries can be set automatically once the price reaches the specified level.

    Retracement Trading

    Another strategy that cannot be overlooked is the retracement method. Retracement gives you the percentage increase or decrease in market movement in the same direction after reaching a new high or low.

    Trend traders seek advantage in strong market movements. Retracement method is one of the favored methods among traders, which requires patience and persistence. With retracement, you have to wait for a pullback of a trend and enter into the market.

    In order words, after an advance, a retracement can be defined as a decline that continues the path of a portion of the previously witnessed advance. After a decline, a retracement is an advance that retraces a section of the previous decline.

    Risk Management in Forex

    Risk management is the only way to survive during volatile market conditions and protect your account balance from crashing down.

    You have joined forex trading community in order to make money. In order to make consistent flow of profits, it is important to have a plan to manage the risks involved in currency trading.

    Without any money management system in order, trading turns into gambling and the odds are definitely against you. With money management, you will not only protect yourself from unnecessary risk, but also will lose less on losing trades, meaning that when things go against you, you will be able to get out of a bad trade with minimum expenses.

    How much to start with?

    When you start trading, it is important to figure out with which amount you are comfortable starting with. Obviously, if you are a beginner, it is not a great idea to put down all of your money in hopes you win big time and right away.

    Learn to Trade Forex

    Getting proper education is also crucial for your success and risk management. Get to know the basics and technical and fundamental analysis, necessary for decision making and understanding of the market. There are a lot of free resources online which provide reasonable information about trading and strategies.

    If you have some cash to spare, you may consider enrolling into trading courses. If not, don’t despair. Be disciplined and push yourself to learn new thing every day. Don’t give up when it gets tough. Seek answers via google, forums, blogs and even your forex broker.

    Demo Trading is Awesome

    Demo trading is a fantastic way to practice fundamental and technical analysis and overall strategies. Once you have a proper training under your belt, it is time to figure out how much money to invest. To open a Demo Account with IMMFX go through this link: https://my.immfx.com/account/demo

    There are plenty forex brokers to choose from with different features, trading conditions, and minimum deposit requirements. At IMMFX, you can start with as little as $50 with micro accounts and go all the way up to $5,000+ accounts. It depends on your management techniques, financial situation and ability to learn.

    How much loss can you Bear?

    The key of risk management is deciding on how much you can lose on each trade. If you think that in order to be successful every trade requires being successful, you are greatly mistaken. There is no trader that has 100% winning trades.

    Get comfortable with the idea that you will lose several trades in a row, and that is a normal thing. What is important, though, is to keep an eye on the percentage of your losses.

    If you, for example, risk losing 10% and your starting balance is $1,000, in case of 5 lose trades in a row, you will lose about $500.

    If you choose to risk less, let’s say 2%, and with the balance of $1,000 and 5 lose trades in a row, you will lose about $96.

    Losing around 10% of your account balance is definitely better than losing more than 40%! Besides, keep in mind that regaining those lost 40% is very difficult and might take several days (especially if there are more lose trades on the way)

    Conclusion

    Risk management is essential to your trading success. You have to protect your account with good logic and risk management because winning the lost money back is much harder than protecting what you already have.