For most rookie traders, it is more important to make profits from the trades. Unfortunately, they do not care for a proper trading plan. They do not understand the importance of executing a trade properly. There are a lot of necessary aspects of proper trading approaches. Just to name a few, you will need proper risk management, market analysis, entry and exit points for the trades. Without a proper plan made with all of the setups and instruments, the traders cannot execute a proper trade. Few individuals may not favor the time it will take to improvise a proper trading plan. Other than trying to improvise the trading plan, it is not possible to cope up with the market conditions. Therefore, you can barely manage any decent profits from the trades.
To improve your senses on the trading plans, we are bringing this article. There will be discussions made based on improvising your trading edge and mindset. The following will contain some segments to let you know about a proper trading plan. You will just need to practice and improvise with demo trading system.
Use every trade setups properly
A solid trade will be executed when the traders have proper trade setups. With risk management policy, you will set the lots and leverage. When the ordering process is done, it will refer the stop-loss and take-profit. To use those setups properly, the traders also need to do a proper market analysis. The supports and resistances are important for the stop-loss and take-profit. To use proper supports and resistances zones, it is necessary to improvise your technical market analysis. To a novice mind, it may be hard to analyze the historical data and create a proper market analysis plan. For those novice traders, there is no other way for the traders to improve their skill with practice.
From time to time, you will improve your edge with proper trade setups. You will just need the interest in the credentials of a winning trade. And always make sure to learn the details of Forex trading Singapore before you consider trading as your fulltime profession.
Improve the market analysis
In the last segment, we mentioned the technical market analysis. The real market analysis does not end only with technical analysis. There is fundamental analysis too. It is needed to understand the possible market condition. The traders will get an idea of possible price movement. Using the news on price driving catalysts, the traders need to assess the situations of the markets. The concept of price correlation is also prominent for those traders who trade with multiple currency pairs. Based on the fundamental analysis, the traders need to use technical skills. To be clear the fundamental analysis is skeptical and the technical analysis is there to testify the possible price change. If you can combine them optimally, the trades will get a proper position sizing.
From there, the executions of the trades will bring a decent profit very easily. Even with a sudden change in the price shift, the trades will not lose too much money. The stop-loss and take-profit will be there to help to close the trades properly.
Test your plans out before executing
Every trade setups and skills needed to be tested with a demo trading account. As there is no hard cash needed to execute demo trades, you can lose uncountable trades. The traders need to use this feature to improve their trading plans. If there is a plan being made, it has to be implemented with a demo trade. Even your market analysis skills need to be tested with the demo trade executions. That way, the live trades will be solid with proper plans. Also, the traders will improvise their trading edge without losing their own money.
Simple plans like using a demo trading account can help the traders to cross the survival stage. It will not take the traders long to manage consistent profits from the trades. If you start from a simple trade setup and grow your plans, it will be very efficient for your business.
When it comes to trading, people are always striving for the best and everyone wants to get superior trading platforms, to trade at the best market prices and most importantly to get the best trading conditions. Millions of traders choose to trade in the forex market because they have come to understand why it is the best market to trade. As a trader, your job will be to explore the market’s potential and seize possible opportunities that could be unlimited.
Trading in the Rakuten forex market is a round-the-clock affair since there is always a market open somewhere. If you are considering investing your money somewhere and you haven’t figured it out yet, here are some reasons why you should consider forex trading.
Ease of entry
With an account as small as $250, you can get started in the currency market. Therefore, you don’t need to have a lot of money to start making great returns on your investments. For this reason, it is important to note that anyone can take advantage of all the benefits being offered by the forex market.
Forex market size
The foreign exchange market is the world’s largest financial market. As an investor, you don’t have to worry about the price jumping too far before your trade is executed because the liquidity that comes from the forex market enable you to easily enter and exit positons. With market this size, it is much more difficult for any group pf people to try and manipulate the forex trade. This means that your supply and demand analysis is most likely to be accurate.
Trading hours
The Rakuten forex market is open 24 hours a day almost seven days a week. Therefore, it doesn’t matter whether you go to school at night, you like getting up early or you work during the day because you can always find time to trade currencies. Remember that different currencies are more active during different times. Therefore, whenever you have time, make sure that you take advantage to trade because something is bound to be happening.
Guaranteed stops
In the foreign exchange market, you have the ability to determine at which price exactly you would like to enter a trade. The same case applies to the price at which you would like to close a trade, these prices are guaranteed.
A stop-loss or stop order is an order you place and it instructs your broker to exit the trade if the price drops to a certain level. Therefore, think of a stop order as a stop sign for your trade. In the event that your trade ever reaches the stop sign, the price at which you would like to exit your trade, it will immediately stop and exit so that you can protect your investment or money.
Profit potential
Profit potential is the one thing that all investors want to hear about. Luckily for you and them, the foreign exchange market is has a plethora of such. In the Rakuten forex market you can make money whether your currencies are going down or up. If you think your currency fair is going down all you have to do is well it. On the other hand, if you think your currency pair is going up, all you have to do is buy it. You see!! It’s quite simple and easy.
No commission
When trading currencies, you never have to pay a sales commission. Discount brokers as well as stock brokers will charge you a commission for each and every trade you place, both for when you get into a position and you want to get out. In the forex market currencies don’t exist. All you have to do is simply pay the difference between the bid and the ask price.
Trading in forex is an interesting, exciting and educational process. It not only educates you on worldwide events but also gives you a chance to make trades online.
If you’ve ever wanted to get into trading, or if you’ve been trading but want to have a change of pace, getting to know your options can be tricky. Not only are some platforms a bit challenging to understand from the get-go, some platforms are outright suspicious and can make you doubtful of their performance. After all, it’s one thing to be a platform designed for trading, but it’s another to be a platform that optimizes your trading. In this article, we’ll look into this Plus 500 review – and what you should know before trading, should you want to choose this trading platform. Remember, it’s important to be one step ahead of your plans when it comes to trading, as you’re taking risks with your own expenses and savings. It’s better to know the tools you might be using, and if they’re the ones for your needs.
Plus 500: What This Review Shows
You can view an Australian Plus500 review,European Plus500 review or Bitcoin Revolution review to understand more about the forex trading platform offered before deciding if this CFD provider is right for you. For instance, it’s important to learn as early as now that Plus 500 is only offering contract for difference (CFD), and it’s not given the authority to provide binary options for clients. This means if you’re looking for ways to trade in binary options, you may want to switch platforms.
However, if CFDs are your game, then Plus 500 will make you feel right at home. In fact, Plus 500 currently has a portfolio with over 2,000 instruments – making it one of the largest leading platforms to trade in CFDs. This also makes Plus 500 one of the quickest-growing CFDs provider amongst trading platforms.
For the uninitiated, contract for difference or CFDs are a kind of contract between two parties, commonly consisting of a seller and a buyer. In these kinds of trades, sellers are supposed to give buyer a payment that’s equivalent to the difference between how an asset is currently valued, to how an asset will be valued by the end of the contract. Should the difference be negative, then the buyer will be paying the seller instead.
Plus 500: Is It Legitimate? Who Regulates It?
Plus 500 Ltd, the company behind the Plus 500 software, is in fact listed on the London Stock Exchange’s (LSE) AIM section. Aside from this, Plus 500 Ltd has actually earned itself quite the reputation in the trading field, as it’s the first to introduce the popular cryptocurrency bitcoin into the realm of CFDs in 2013. By February the next year, Plus 500 Ltd has actually achieved a market value of $1-billion in the LSE.
Being listed under the AIM section of the LSE means not only is Plus 500 legitimate, but it actually has to comply with all the rules and regulations the LSE and its other regulating bodies. This means Plus 500 is also regulated by major financial institutions located in major countries, and these include:
FCA, which is the United Kingdom’s main regulatory body for financial institutions. It stands for the Financial Conduct Authority, and it regulates Plus 500 UK Ltd via FRN 509909 as its FCA reference number.
Australian Securities and Investments Commission, which is a non-profit Australian institution that is also the country’s corporate regulator. Those interested can look for Plus 500 AU Pty Ltd with the AFSL #417727, and ACN 153-301-681.
CySEC, which is Cyprus’ way of monitoring companies and institutions offering financial services to the country and to the European Union. They make sure financial regulations and laws are followed by businesses operating in Cyprus and the EU. Finding Plus 500 CY Ltd can be done by inputting 250/14 as its license number.
Plus 500: How Does The Platform Fare?
Anyone who’s been handling trading platforms before may raise concerns primarily related to the user experience. Just how easy is a particular trading platform to use? After all, regardless of how many features a trading platform has, if it’s not laid out in a careful manner, users will not be able to enjoy it. Plus 500 understands this, and as such has provided a platform that is quite easy-to-use and efficiently laid out.
Interestingly, the Plus 500 platform makes sure everything is easy to access and easy to use. Everything has been labeled clearly in an inclusive screen, and it even has options to look at past trades and your current positions.
Users will find it extremely easy to navigate its software, as a navigation bar on the left side easily allows them to choose the kind of settings they want for their trades. In fact, CFD platforms are easily accessible on the sidebar, allowing traders to pick whether they want to do trades in forex, commodities, indices, or even shares. There’s even a timer option that allows them to show activities or a week, a day, four (4) hours, two (2) hours, one (1) hour, and even 30-minute, 15-minute, 5-minute, and 1-minute options.
You can use the platform both as a software you can download for your computer or laptop, or as a website you can view in a browser.
Plus 500: Are There Mobile Offerings?
For those interested as to just how expansive Plus 500 is as a trading platform, it’s actually one of the very few trading platforms that are offered in mobile devices. Plus 500 has both an iOS and Android version compatible with most smartphones that are iOS7.0 or higher for Apple’s flagship devices. It’s also one of the very few trading platforms available for Windows phones.
The application itself offers a simple-to-use and clean interface that can make it extremely convenient for users to make their trades. Its range of features make the trading platform very handy to use on the go as well.
In fact, it appears the application has stunned quite a lot of customers as well. It’s gained a four (4) out of five (5) star rating in the Apple Store, and it has a 4.2 rating out of 5.0 stars in the Google Play Store. Moreover, its Windows version also earned 3.8 out of 5.0 stars.
Plus 500: Free Trial Offerings
One of the most surprising features of Plus 500 is how you can open an account. Everyone is given an option to open a demo account that they can use to try the system to its fullest. Perhaps what’s most interesting about this feature is that each demo account is provided with $50,000 worth of virtual credits, all of which they can use to try and test the platform as they see fit. They can’t withdraw this in real money, of course, as this is virtual currency.
Plus 500: How Does It Fare With CFDs?
When it comes to its CFD offerings, Plus 500 actually has quite a number of options to offer. As said earlier, it has more than 2,000 instruments to choose from when it comes to CFD, ranging from commodities, to indices, forex, ETFs, and even shares. Before you begin trading, however, it’s important to remember that there’s always a risk of losing a lot of money due to various factors. In fact 74-percent to 89-percent of retail investor accounts did lose money when they trade CFDs, and as such it’s important to have a basic background on the matter in order to assure yourself that you know just where you can trade:
Forex, also known as foreign exchange, is traded using a variety of pairs of currency. In Plus 500, forex is divided into four (4) major categories – there’s Major currencies, which include high combinations such as the Euro-Japanese Yen, and the British Pound-US Dollar; there’s the Majors II, which have other groups of major currency pairs such as the British Pound-New Zealand Dollar, and the Australian Dollar-Japanese Yen; the third group is called virtual currency, including cryptocurrencies such as bitcoin; and the last group contains major-lesser currency pairs such as the US Dollar-Polish Zloty, and the US Dollar-Singaporean dollar.
Commodities, where Plus 500 allows traders to participate in trades in commodities such as oil, gold, and even grain.
Indices, where Plus 500 allows traders to cover indices from various countries in Europe, as well as Hong Kong and the United States.
Shares, where CFDs such as those in Amazon, Tesla Motors, and Facebook can be traded as the users wish.
Options, whereas a wealthy selection of options can be traded via the Plus 500 platform, such as the Deutsche Bank, Apple, and the UK 100.
Exchange traded funds, or ETFs, where Plus 500 allows you to trade them across a wide variety of indices and commodities.
Cryptocurrency, wherein the Plus 500 platform allows you to be able to trade in various kinds of cryptocurrencies such as IOTA, Ripple, Neo, Litecoin, Ethereum, and of course Bitcoin.
Plus 500: Keeping Yourself Safe
Interestingly, another useful feature Plus 500 has is its wide range of risk management tools. These allow you to be able to at least mitigate losses and manage the kinds of risks you’re taking with some automated tools that can be of assistance.
Guaranteed stop makes sure your potential loss is capped at an absolute limit. These are reserved in cases wherein your position is immediately closed should it reach a preferred price, or if the market price suddenly gaps. These are available on certain instruments, which will be indicated upon selection.
Stop limit, where profits gained from an instrument are protected once prices start moving up. The option makes sure your position is cleared when a particular stop limit is reached.
Stop loss, which is a good way of mitigating your losses as it instructs Plus 500 to immediately close the position once prices start moving downwards from your specified value.
The Takeaway: Is The Plus 500 For You?
If there’s anything the above Plus 500 review might tell us, what you should know before trading lies not just in the kind of steps you need to do as a trader, but knowing the right platform for you to use. Just because a software touts itself as “the best platform,” or if you think a platform is impressive, means it’s automatically designed to help you become a smarter trader. Always remember that trading has a lot of complex dimensions, and having a tool that can make it much easier for you to have better and wiser decisions should be the platform of your choice. Remember to always choose wisely in order to get the best out of your equipment, tools, and software.
Michael Harris
Michael Harris is both an entrepreneur and business-oriented writer contributing his financial and business insights to sites such as TransFS. His passion for writing, combined with his business acumen, allows him to be able to write pieces that can not only help readers understand financial and business concepts, but also do so in a way that is both entertaining and enjoyable to read. He understands that finance can be a challenging subject to comprehend, and as such he makes sure he tailors his writing in order to be of use to his readers. He jogs during his free time.
No, this is not some sort of elaborate psychological test or a thought exercise. It a genuine question, do you know why known risk is the best type of risk?
Well, let’s use a hypothetical scenario: you are sitting on a park bench on a cool spring day, what would be more dangerous – a brick falling from an adjacent building that you are completely unaware of or a brick headed in your direction, that you have seen with enough time to avoid.
A risk that is known, is preferable than a risk that is unknown – very simply…because you can avoid risk you know about. This is the genius behind easyMarkets latest product – easyTrade – but it’s not the only feature this innovative and surprisingly smart way to trade offers.
Known Risk, Fewer Problems
Because of the underlying financial product easyTrade is based on – vanilla options – it also allows clients to trade without margin requirements. Margin, if you are unfamiliar is the minimum amount in a trader’s account necessary to trade with leverage – if the account goes below that required amount, trades start closing until it is reached again. This could include profitable trades. Another problem “margin stop out” could create when trading is your position (trades) closing and then shortly after the price recovering.
Another benefit which is similar to the advantage no margin trading offers, stop out is also not needed due to the known maximum risk. Stop out is a risk management tool that allows you to set a level at which your trade will close if you are incurring losses. This carries the same danger as margin stop out though – a change in the price’s direction could potentially close your trade. This isn’t a problem if the rate (price) continues going against your trade, but it can be very damaging if the price recovers. Again, this is due to having known risk and no need for risk management tools you would use if your risk was unknown.
Quickly React
Many traders seek robust ways to trade, that give them immeasurable options and tools. Although these are undeniably robust, they can be a hinderance when you want to react quickly. If you are a trader you know that those slight few seconds are important to make or break a trade. If you aren’t a trader – then let me inform you – markets never sleep, they are in constant flux and a few minutes can make a significant difference to your profit or worse your loss.
Although easyTrade can be used in a sophisticated trading system – as hedging against other trades for example – it is also exceptionally engineered for simplicity. This simplicity can translate into speed when needed. In just four steps – choose what you would like to trade, set the maximum risk you are comfortable with, decide the trade time and then choose if the price will move up or down.
Innovation, Support, Experience
easyMarkets has been in business since 2001. It was one of the very first brokers to offer negative balance protection and free guaranteed stop loss (and still offers it today along with many more tools and conditions), to help customers better manage their risk. A long time has passed since then and easyMarkets has managed to remain relevant through its constant innovation and true dedication to its clients.
Its latest innovation easyTrade which offers no margin requirements, high leverage (in a way that is still regulator compliant) and known risk is yet another great and beneficial tool offered to easyMarkets clients.
In accordance with April 2012 Foreign Exchange Committee, there are total 4 billion dollars of Forex spot transfers on a regular basis. With diverse participants especially those who are trading for some particular purposes are having an edge in the Forex market.
It is imperative to pay attention to the fundamental analysis as they show up the big picture. By looking at this picture, you can easily come to know about the latest actions of the currency pairs and technical analysis. Not just that, you get information regarding the trends.
The forex sentiment indicator is an imperative tool that alerts all the traders about the extreme conditions. This indicator also helps the traders to know the price reversals. It can easily be utilized in conjunction with the fundamental along with technical analysis.
An Incredibly Imperative Tool That Works for All
The sentiment indicators show up the percentage of the traders who have taken a specific position in the currency pair. For instance, you can assume that there are total 50 traders that are trading in the same currency pair. If 10 of these traders are long and 40 are short, then the 10 percent of the traders are considered as the long ones on the currency pair.
When the traders’ percentage in a particular position reaches the highest level, then the sentiment indicators becomes quite useful. For instance, you can assume that when a certain currency pair starts rising and 70 out of 100 traders are long; then some traders will leave to go with the trend.
The sentiment will indicate that it is the perfect time to consider the price reversal. When the price starts moving in lower and shows up a signal which is topped, the sentiment trader just enters the short. It assumes that those traders in the long will have to make sales to avoid losses when the rate falls.
On the other hand, it is said these indicators are not so accurate in providing the buying and selling signals. You have to wait for the rate to confirm the reversal ahead of acting on the signals of the sentiment. The currencies can stand on the higher levels for an extended time period as well as the reversal might not appear instantly.
The higher levels will be different for each currency pair. In the event that the rate of the currency pair has reversed when the buy reaches 75 percent and when the longs reach that higher level again then it is said that the pair is at the extreme.
Therefore, you will have to wait for the signals of the rate reversal. In case, another pair has reversed when the percent of the traders in the short is 80 percent then you will need to wait for the reversal at the extreme.
The sentiment indicators are present in diverse types. They are available from diverse sources. We cannot say that one is better than the other one. However, they can be utilized in juxtaposition with each other. Or else, the particular techniques and strategies should be followed to the data you find simple to interpret.
