Posted on 13 March 2009
Tags: Day Trader, end of day trader, End Of Day Trading, Forex Day Trading
Do I have to day trade Forex is one of the most common questions asked about trading the Forex markets.
Day trading Forex is very widespread, but most people cannot commit the time to day trading because it requires that you watch the markets on a to-the-minute basis. Another approach, however, is trade the forex on an end-of-day basis.
Trading on this basis will require significantly less time, impose less stress and provide profit potential no different than day trading. You will need to identify a good trading method which is specifically designed for end-of-day trading as many of the rules governing day trading will not necessarily be applicable to end-of-day trading methods, or they will differ in unique ways.
Traders, especially those who are new to Forex, should recognize that if you cannot make money trading Forex on an end-of-day basis you will not fare any better in a day trading environment. This is due to the time pressures needed to make instant decisions on order entry, immediate placement of stop orders and profit targets — all of which are extremely stressful and demanding.
If you consider any of the six major pairs and look at longer term charts of each pair, you will clearly be able to identify long-term trends which could have generated significant profit over time. Day traders need to make fast, small profits; end-of-day traders can have the patience to take longer, larger profits.
So don’t believe that the only way to trade Forex is in a day trading environment. You can do as well or better trading Forex on an end-of-day basis.
Posted on 08 March 2009
Tags: Broker Myths, Day Trader, Forex Broker, Forex Broker Myths, Forex Brokers, Forex Trader, forex trading, Volatility
Like with modern urban legends, when it comes to Forex Brokers, a lot of people – even a lot of retail traders – believe in quite some Forex Broker myths.
Time for a little demystification of 3 “popular” Forex Broker Myths
1. Forex Brokers Hunt Stops
Absolutely not. They just don’t need to.
Most forex brokers are market makers – this means that they win when you lose. They know over time that an average of 96% of traders will blow their moneyanyway and that’s great odds if you’re the dealer.
They don’t need to try and get the forex trader to lose; he can do that all on his own. Instead of blaming their broker, the forex traders should look to improve their way of trading (forex trading method, forex ) trading system.
In addition they earn from the spread with any trade you make, no matter if you lose or win.
2. Demo Accounts are Great Way to Learn Forex Trading
Learn what exactly?
Perhaps how the mechanics of orders work, or how to apply technical indicators. But they are of no use whatsoever in helping you trade, because the most important part of the trading experience is absent – your money!
It is trading money that creates pressure and you can’t get that from a demo account. Try trading real money and it’s a lot harder.
So when a broker tells you they can help you trade successfully with a demo account, don’t believe them.
Most traders that make money with demo accounts, burn their money in lifer accounts.
So besides practising with a demo account, you will need a proper forex educatiuon to succeed with Forex.
3. A Forex Broker Can Give You Advice
Never ever take advice from a broker and have a broker assisted account.
Why not?
If brokers could assist you in making money, they would do it for themselves and wouldn’t need a salary! They would all be traders instead. Trading success comes from how you trade - only you are responsible for profits and your currency trading success – don’t let anyone tell you any different.
