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Day Trading As A Home Business

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Day trading refers to buying or selling securities within the same day. While it is not restricted to any specific market, investors usually prefer forex or stock market for day trading. Day trading can be a lucrative career when done with due care. Since day trading involves the use of high leverage and diverse trading strategies, so you need to have sound market knowledge, skills, and experience to become a successful day trader. In this piece, we discuss some key factors to consider before you chose day trading as a home business

Factors to consider before choosing day trading as a home business

Starting from a selection of the right equipment to choosing the right market for day trading, given below are some factors you must consider before getting started.  

1) Equipment selection

You can only access the forex market online. Therefore, a computer, or laptop, with a stable internet connection is the prerequisite. Sometimes a mobile phone with a data mode enabled can also work great but is not recommended for novice traders. Make sure that your device has enough memory, and a fast processor to run trading software without interruption. For a desktop PC, you need to have a power backup in place as well. 

2) Selecting the right broker

The selection of the right broker is vital for successful day trading. Forex market is full of honest and scam brokers making it difficult for novice traders to select the best one. You need to be very careful before investing your hard-earned money. Check if your prospective broker has a good reputation. Do not forget to check the regulation status of your broker as well. Also, it is best to open an account with a well-established broker. A broker who has already been in the industry for several years is likely to be more competitive than a broker who is new to the industry.  In addition, make sure that you read broker reviews at Trading Dominance. 

3) Choosing a market to trade

You might have already decided on the market you wish to trade i-e- forex or stock market. However, you can also consider some other options, such as trading shares, indices, spot metals, energies, and cryptocurrencies. Each market is full of opportunities, but it is best to focus on a single market at the beginning of your day trading career. 

4) Trading hours

There is no hard and fast rule concerning timing selection to trade the forex or stock market. You can trade round the clock since the forex market remains open 24/5. However, there are a few hours when the market is supposed to be highly liquid. Usually, the best time to trade forex is when two forex market sessions overlap (i-e a new trading session opens before the closing of the existing market session). On the other hand, the stock market undergoes high volatility in the first 1-2 hours after an opening of a session. 

 

5) Devise a trading strategy

A trading plan is one of the most crucial factors that can make the difference between the success or failure of a day trader. A good trading strategy involves entry/exit points, TPs, SLs, an appropriate leverage, and risk levels. Once you have devised a trading plan, stick to it even if you lose some trades. Switching between different trading strategies can make you confused. Believe in yourself and keep placing trades. If you have carefully devised a trading strategy, you will end up making profits despite losing more of your trades for the day. 

6) Risk management

The forex market is one of the most liquid markets in the world. It enables day traders to make lucrative earnings fast. A common way to make quick returns is using high leverage. While leverage helps traders making more money, it also carries high-risk exposure. Therefore, proper risk management is essential to stay safe. It is best to use low leverage while day trading. Another way to manage your risk effectively is to staking not more than 1% of your capital on a single trade. 

7) Use demo accounts

Unlike other investment markets, day trading offers you to test your skills before losing your hard-earned money. You can use virtually funded demo accounts to learn, practice, and master different trading and money management strategies without risking your real money.

Final Words 

Day trading is becoming increasingly popular these days. Being easy to start and quick to generate returns, people have started day trading as a home business across the world. Like other businesses, day trading also comes with pros and cons. Therefore, you must consider all the factors discussed above before jumping into it. Remember, consistency with patience and effective risk management is the key to success in day trading.

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Forex

Top 3 Rules of Discipline in Forex Trading

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Discipline is crucial in every area of life, but in Forex trading financial aftermath of the lack of discipline might be devastating. Forex trading is an intellectual activity, and as such, it gets affected by many factors, including your lifestyle, personal situation, relationships, etc. And giving advice on all this seems quite bold and unnecessary. So instead, we’ll take the best Forex trading discipline advice and break it down into three main rules with a bit of bonus advice at the end. 

The rules below will help you minimize the chances of making beginner’s mistakes. Of course, you’ll make a lot of errors anyway, but avoiding stupid mistakes from which you cannot learn anything is going to make your first steps in Forex trading much easier. If you’re up for a more extensive analysis – don’t hesitate to learn more about the professional Forex trading discipline with JustForex. 

Don’t Make the Beginner’s Mistakes

Forex trading plan is a basis for all trading activities. You should create one for yourself, improve it every time you face the unexpected, and stick to it unless you’re sure that it won’t work. Resourcefulness is the key to your interactions with your plans and rules. You should have the discipline to abide by the rules and the flexibility to break them when it’s necessary. 

Beginner Forex traders often try to cut corners and almost always get punished for it because those very unexpected events that might be the sign for you to drop your Forex trading plan don’t occur too often. So when you feel an urge to turn down a part of your trading plan – take a step back and think hard on this. If you’ve missed the chance to buy a pair for the price you’ve decided to be borderline – then give it a go. If you’ve reached your profit goal but there’s a chance to get some more – lock your earnings. If the same situation repeats several times, it might lead you to reevaluate your planning methods but until then – stick with what you have.

Use Your Discipline To Reject FOMO 

Discipline is your friend. FOMO is not. Say it loud and clear every time you feel an urge to chase the train when it’s already left the station. When the news breaks out about some stock skyrocketing, the key players are already locking their profits and ready to move to something else.

Another reason to avoid doing what everyone does is that herd mentality was defined, researched, and understood by all the predators of the Forex market. So don’t become their prey. Be ahead of them because of your careful research and knowledge of the situation. Being behind and figuring out how to exploit the consequences of the herd’s actions is a viable strategy as well.

Embrace New Forex Trading Methods and Technologies 

If you’re not on Forbes top 100 yet – you probably have space for improvement, and to improve, you should force yourself to learn new things. Many beginner traders eventually come to the point when they know enough to tell a story about Forex trading and move around their few thousands of dollars without blowing it completely. At that point, many decide to wait for an opportunity because clearly, all they need to get their first million is luck. But, of course, they’re wrong. Opportunity doesn’t come to those who wait; it comes to experienced traders, able to recognize it and take advantage.

And besides these three – don’t ever forget to place a stop loss. Even if you’re entirely sure that you’re lucky today and you cannot afford to sell your pairs before you turn even – you surely cannot afford to lose it all. 

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Integral’s April ADV Took a Hit, but Stood Strong YoY

The company reported a monthly ADV of $43.3 billion for last month.

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Integral, which is a technology provider in the forex trading industry, published its trading metrics for April, reporting a month-over-month slow down in demand, but a solid jump when compared to the numbers a year ago.

According to the press release shared with Finance Magnates, the total trading volume on the platform for last month came in at $43.3 billion, which is 23.4 percent higher than the numbers in April 2020. However, trading activities declined by 19.2 percent from the previous month’s $53.6 billion in ADV.

Looking Forward to Meeting You at iFX EXPO Dubai May 2021 – Making It Happen!

March 2021 was the second-best month recorded by Integral in terms of trading demand and was only behind the volumes generated exactly a year ago when the markets were under the influence of Covid-spurred volatility. The surge in trading a couple of months before was organic and in line with the industry trend.

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A Major FX Industry Player

Integral was founded in 1993 and has a global presence with sales offices in Palo Alto, New York, London, Tokyo, Singapore, and Bangalore. It offers services under several brands like TrueFX, the spot trading venue offered by the company, and Integral OCX, ECN services for institutions.

The company highlighted that the reported monthly ADV represents volumes traded across the group’s entire liquidity network.

“Our clients leverage the deep and diverse FX liquidity available through our platforms and have the choice to trade any execution-style required, all within an integrated environment,” Integral noted.

Meanwhile, it is still expanding its industry reach with many new partnerships. Earlier this year, it closed deals with Raiffeisen Bank International, IS Investment, and Spuerkeess, and, additionally, expanded its decade-long partnership with Squisequote with another multi-year agreement.

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Source: https://www.financemagnates.com/institutional-forex/integrals-april-adv-took-a-hit-but-stood-strong-yoy/

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Blockchain

Integral’s April ADV Took a Hit, but Stood Strong YoY

The company reported a monthly ADV of $43.3 billion for last month.

Avatar

Published

on

Integral, which is a technology provider in the forex trading industry, published its trading metrics for April, reporting a month-over-month slow down in demand, but a solid jump when compared to the numbers a year ago.

According to the press release shared with Finance Magnates, the total trading volume on the platform for last month came in at $43.3 billion, which is 23.4 percent higher than the numbers in April 2020. However, trading activities declined by 19.2 percent from the previous month’s $53.6 billion in ADV.

Looking Forward to Meeting You at iFX EXPO Dubai May 2021 – Making It Happen!

March 2021 was the second-best month recorded by Integral in terms of trading demand and was only behind the volumes generated exactly a year ago when the markets were under the influence of Covid-spurred volatility. The surge in trading a couple of months before was organic and in line with the industry trend.

Suggested articles

Moma Protocol Raises $2.25m to Explore DeFi Potential Of Long-Tail AssetsGo to article >>

A Major FX Industry Player

Integral was founded in 1993 and has a global presence with sales offices in Palo Alto, New York, London, Tokyo, Singapore, and Bangalore. It offers services under several brands like TrueFX, the spot trading venue offered by the company, and Integral OCX, ECN services for institutions.

The company highlighted that the reported monthly ADV represents volumes traded across the group’s entire liquidity network.

“Our clients leverage the deep and diverse FX liquidity available through our platforms and have the choice to trade any execution-style required, all within an integrated environment,” Integral noted.

Meanwhile, it is still expanding its industry reach with many new partnerships. Earlier this year, it closed deals with Raiffeisen Bank International, IS Investment, and Spuerkeess, and, additionally, expanded its decade-long partnership with Squisequote with another multi-year agreement.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.financemagnates.com/institutional-forex/integrals-april-adv-took-a-hit-but-stood-strong-yoy/

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Forex

The role and function of a forex broker in the foreign exchange market

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Well, you may have heard about forex brokers either from your colleagues or from the internet. But if you do not have any previous experience of trading, then you might wonder what does forex brokers do or what is their role in trading? Moreover, if you are feeling interested to enter the Foreign exchange trading market, then you should have to find the best forex trading platform for yourself.

In this post, we will tell you the role of forex brokers in trading so that before entering into the trading market, you can get a clear image of this. Stay connected and keep reading. 

Who are forex brokers:

In simple terms, forex brokers are mediators who connect buyers and sellers in the forex trading market.  Seeming difficult? Okay. Let’s go through this example to understand this more clearly. Suppose you want to buy potatoes. So, being a buyer, where would you go? You would go to the market to buy potatoes.

Similarly, being a seller, if you want to sell potatoes, you will also come to the market to find your potential buyers. So, the market is the place where buyers meet sellers. But do they buy or sell potatoes to each other individually? Nope. They go to the shop where sellers sell and buy from them. So, there needs to be a platform to better run this trading process.

The same rule applies to forex trading also. Forex market is full of buyers and sellers with diverse currencies, and there should be a common platform to facilitate the process of buying and selling. In addition, unlike the normal market scenario, in the forex market, both buyers and sellers can be a hundred miles away from each other. So, it requires a mechanism to match buyer and seller interest. This is where the role of forex brokers lie.

What forex brokers do?

In the foreign exchange (forex) market, a forex broker is a place where both buyers and sellers come to exchange currency. So, forex brokers are middlemen who connect between you and the trading market. In other words, if you are a seller of currencies, then you would go to the forex broker to find the right buyer, and the forex broker is the medium that will match up with the right buyer and vice versa. Forex brokers primarily work on the OTC (Over The Counter) market. Forex brokers are not mediators between you and the market, but also they are the mediator between you and the liquidity provider. 

Liquidity provider:

It will be easy to understand who are liquidity providers if we first know what liquidity is. If you are a buyer and want to buy currency, then there needs to be a seller from whom you will purchase. And the same way, being a seller, you need buyers to sell your currency.

If the market gets congested with potential buyers of your mentioned currency, then the probability for you to sell your currency will rise. Similarly, if there are plenty of sellers in the market who are selling the currency you want to buy, then your chance of buying will surely increase. Thus, when the market becomes full of buyers and sellers, then we say that the market is in a ‘liquid’ state. 

The market can also be liquid differently. Suppose, instead of plenty of small buyers and sellers, if there are fewer buyers and sellers with a high chunk of currency, then also we can say the market liquid. Those who sell currency in a large amount are known as liquidity providers. In this case, whether you buy orr sell, a forex broker matches you with a liquidity provider to take the other side in the trade.

How forex brokers make money?

As forex brokers play the role of mediators during trading, so they take a certain percentage as a form of commission from each trade or spread. This way forex brokers earn money. A spread is basically the amount that differentiates bid price from ask price. The price you get by selling a currency is called bid price. Alternatively, the rice that you pay to buy a currency is known as bid price. A broker keeps this difference amount as spread for mediating. A broker can also charge you both spread and commission for a single trade, while some may provide you commission-free trading.

Final thought:

You need to be very cautious if you want to enter into the forex trading market because a lot of traders have lost their money being the victim of fraudulent schemes. Different forex brokers offer different quotes and thus, gaining some basic knowledge on forex brokers will help you with better trading experience. 

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