The two main currency bargaining methods we will describe in this article are as follows:
Use of leverage
Take the property
Once a reasonable amount of experience and knowledge has been won on the currency exchange market (Forex), it can be very profitable to combine both methods. Here are the main features of each:
1. Use a lever effect
Beginners in currency trading will usually find an online broker, open a free demonstration account, read a manual or take a tutorial and start practicing speculation skills based on technical indicators.
Thanks to the online broker, they are able to use a leverage, so they decide to open a mini account, a leverage of 100: 1 means that with $ 1, they can participate in the market with $ 1,000. If in time, they are graduated to a regular account, 1 $ 10 trading can be operated by the broker so that $ 100,000 can be exchanged for another currency.
Many newcomers from the commercial currency are focused on small profits, entering and coming out of the trade quickly, taking up more than just a few hours. The trading of the day requires learning to read the candle graphics, to recognize the schemes and to anticipate when the price will be likely to go.
As many new traders find when they were traded on currencies for a while, it is possible to have a succession of losers’ negotiations and without an appropriate management of equity, their account can be blown to require another injection. cash to allow them to negotiate.
A series of blown accounts can be added and to see this as part of their commercial education expenses.
Alternalizing between a demonstration account and a mini account can reduce the cost so that the new currency merchant can regain confidence in the demonstration before returning to live negotiation. Finally, the hope is that the merchant will develop a coherent trading model so that more transactions are won than losing their equity increases gradually.
2. Take the property
This method of bargaining foreign currency always requires a learning curve, because you have to anticipate market movements and recognize graphical models. Unlike the use of leverage however, the risk of financial loss is smaller and you can not “blow your account”.
It simply means that you create a portfolio with the funds you want to engage in currency trading and open bank accounts in each of the currencies you want to trade.
For example, you may want to open bank accounts for one of the following:
American dollars
Pound sterling
Euro euro
Yen Japanese
Swiss franc
Of course, more substantial sums of money are needed to make this method of trading in useful currencies after taking into account the bank transfer fees.
However, if you have x 000 dollars or euros or one of the five major currencies to engage in currency trading, this method certainly is worth considering.
After studying the technical indicators and the learning of support and resistance calculations and Fibonacci, you will soon recognize the main key diagrams on the graphics of upper hour frames. The use of daily and weekly maps will bring your attention currency pairs that are in a trend or even downstairs or decline pairs that appear to be complete or reaching a high or low strategy.