Posts Tagged ‘brokers’

Why Scalping Forex Doesn’t Work


31 Oct

Tags: , , , , , , , , , ,
Posted in Forex | No Comments »

If you visit currency exchange forums you will certainly hear folk talking about scalping foreign exchange. Some swear it is the only real way to trade, others say that it’s a mad technique that has no hope of making money.

In this article we will look at some of the explanations why that happens, so that you can make an informed decision about whether or not to try scalping forex. This will give yourself the highest probability of earning profits with currency trading as you are likely to start out with something that has a good potential for noobs.

So we start with the awareness that it is possible to earn income with scalping techniques but there are specific things you will need. The first is a broker who accepts this strategy of trading. Do not waste time setting up demo accounts with market makers who likely will not let you scalp because they’ll lose money if you make it. So ask the question before you even look at their trading platform.

Ways to Find The Best


08 Jul

Tags: , , , , , , , ,
Posted in Forex | No Comments »

The choice is important, and yet many folks don’t get it right first time. Having the right broker can actually make a difference to your profit or loss. So what do you have to look for in a forex broker?

1. Investment Level

Look for a brokerage service that’s directed at clients at your investment level or a little higher. They vary widely from a $25 minimum right up to $10,000 or more . Don’t go for the forex broker with the lowest minimum investment unless you are going to invest the minimum. Each company’s spread and services will be different, and you need a service that’s a good match for you. Regulation

Check their membership of regulatory bodies. Keep in mind the regulators will rely on the country in which the company is registered. The main US regulators are the Commodity Futures Trading Commission ( CFTC ) and the nation’s Futures organisation ( NFA ). Foreign brokers may not be registered with them but will have other alternatives. Platform

Take a look at the software platform. Unless you plan to subscribe to a separate technical analysis service, you’ll need something that offers good charts. Some foreign exchange brokers also offer financial reports alerts which can be useful. Don’t forget to test the order process is clear and simple, to avoid mistakes.

Drawdown and Dealing with Losses


08 May

Tags: , , , , , , , ,
Posted in Forex | No Comments »

In back tests you’re unlikely to pick up the worst possible eventuality and so most times a forex trading course will counsel at least doubling the drawdown that you find. In this situation that would come to 70% so the account would survive. However, if a run three times as bad occurred, our account would be wiped out. Whether things are likely to be this bad relies on how inclusive the back testing was and whether it covered a stable or an unstable period in the market. Reduce that, either by moving the stop loss or reducing the number or size of lots, and you will scale back the losses during the bad run. Naturally you may also reduce profits that way but there’s no point taking large hazards to make enormous profits if the result will be that sooner or later your profits and your original investment is wiped out. It is better to make smaller profits but keep on profiting and always get over the bad times. This forex trading course article helped you do that with the concept of drawdown.