Posts Tagged ‘forex education’
It is at least imprudent to start trading on Forex not making strict rules and getting wise to the trading basics. Look before you leap – or so much time and nerves will be spent to no purpose. Before being flush with money right and left it is better to get insight into capital or money management.
1. Look for alternatives
- Look for beneficial investment objects, fish for information and keep in touch with professionals. Do you want to earn profit? Make efforts! Learn opinions, ratings, brokerage companies’ websites. The opportunities of a modern trader are wide enough and in order to embrace them you should know about them first.
2. Start from scratch
- Stock exchange investors use the averaged investment method which means the security papers purchase for the same amount of money in equal time frames. It helps to set limits and avoid serious financial slips. There are cent accounts on Forex, serving as a safe point for start.
And certainly, you should not rush to open a real account – have practice on demo accounts first.
3. Do not put your last money at stake
- Any investments are related to risk somehow, that is why the market environment is variable. Do not play with money which you cannot afford to spend. Remember why you came to Forex. Not for blowing off all your capital for sure.
4. Remember: the higher profit – the higher risk
Risk and profit are proportionally related to each other. It should be taken into consideration when forming an investment portfolio.
- Running trading on Forex, think well about the leverage usage provided by broker. Leverage will advance your financial options, and in case of success you will benefit from the whole amount deposited, but in case you lose – you risk blowing off all your funds.
5. Diversify risks and observe the fixed limits
- To continue the previous point, it should be emphasized that for reducing risks it is reasonable to use different investment tools. Moreover, the experts recommend applying not over 50% of funds available and involve 5-10% of them in one trade.
- In a currency market it is important not that how much you earn, but how much you manage to save while you trade. Apply “Stop loss” and “Take profit” instruments to protect your capital.
6. Develop your own strategy
It is better to have a bad strategy rather than none. In addition, all your decisions should be conscious; you have to comprehend market changes and your actions. If the events do not follow your scenario it is better to stand back for awhile. It is also essential to determine your opportunities and goals: what amounts you are ready to invest, how much you are ready to put at stake, and if there is a place for adventurism in your plan?
- To sum up – a piece of advice. Never invest the money you borrowed. It is always risky. Do not put money being influenced by emotions or giving way to somebody’s opinion. Also remember that excessive self-confidence will bring you no use. Always be aware of your rights and duties.
Added by InstaForex Staff
Active market players include central and commercial banks, and major brokers. They are also called market makers.
Passive market players are called market users: they can only use market services and cannot set prices.
Major banks make a massive impact on markets by selling and buying huge volumes of currency.
Central banks are regulatory authorities which set key interest rates. In some cases they are entitled to perform exchange market interventions to weaken or strengthen a national currency.
The most part of currency operations is convened by commercial banks at their own expense and for the account of their customers.
Market makers quote currency rates for other market players. They own hefty assets and directly influence the rate-making. Market makers include the following banks: Deutsche Bank, Mizuho Bank, Barclays Bank, PBS, Citi Bank, Chase Manhattan Bank, and Union Bank of Switzerland, etc.
Export and import companies are market players as well. They use international exchange mechanisms in their business activities and are both major providers and consumers of foreign currencies.
Insurance and investment funds manage asset portfolios, provide hedging (protect positions from potential losses), and make profit from purchase and sale of assets.
Brokers are mediators providing customers with access to foreign exchange market (Forex). They contribute to trading between sellers and buyers. Carrying out activities in the name and on behalf of their customers, brokers set a certain commission for these activities. Major brokers may perform as market makers and provide their customers with trading at low cost.
Assisted by brokers, private investors carry out profit-seeking activities by investing funds in Forex and exchanging currencies.
Therefore, passive market participants have to abide by the rules of the game set by active market players.
Added by Olga Vitkovskaya,
InstaForex Clients’ relationship manager
On a recent day InstaForex Company branch in Moldova held a presentation workshop, where trading on Forex market was put at issue with its advantages and risks. By the way, Moldavian representative office is equipped with the cutting edge computer technology, high-speed Internet allowing to run professional seminars in Russian as well as Romanian language.
Last seminar about 30 Romanian and Russian traders took part. The workshop was held by InstaForex Company managers: Sergey Lavrik and Alina Shompol.
In the first part of the seminar Sergey Lavrik reported on Forex market and its operating principles. Alina Shompol picked up the slack introducing InstaForex Company to the participants, laying special emphasis on terms and work benefits with this broker.
The second part of workshop covered the issue of Forex market fundamental analysis based on analytics placed on the main company’s website.
This is the third time InstaFX Education Centre holds a seminar. We chose the town of Wonosobo from the three we visited. The residents of Wonosobo are potential to increase their investments in various fields including Forex trading. Wonosobo’s public euphoria of Forex field is quite large. This is evident from the participants of the seminar amounted to 150 people, the exciting number for us as for organizers.
The seminar of 24 April 2011 was attended by people of various professions and walks of life, such as businessmen, civil servants, private employees, students, mothers and even households. The seminar was divided into 3 sessions, the first session was delivered by Mr Agung who gave a seminar on “Introduction to Forex”, the second session was presented by Mr Abiyanto who presented the speech on “Beware Of Scams Impersonate Forex”, and the last session was delivered by Mr. Danis Linggar P who held a seminar on “Introduction to Education Centre and the introduction InstaFX School Website”. That seminar took approximately 4 hours, in addition to our seminar organizers provided the opportunity for participants to attend a workshop that will benefit on 12-13 May 2011. This seminar helped us to gain the insight into the audience and make them open vanishing the negative impression about Forex.
October 23 was marked by another lunch seminar held at one of InstaForex introducing offices in Kelantan, Malaysia. The key speaker was a leading InstaForex analyst Asri Mahmood: he initiated traders, longing for deep knowledge, into the secrets of intraday Forex trading.
Besides the useful information about the currency market, InstaForex Company has arranged plenty of pleasing surprises for its clients. Everyone who visited the seminar at the InstaForex introducing office got presents from the company and also a bonus of USD 40 to trade with. Furthermore, the visitors of the seminar took part in “Lucky Draw” lottery. Each of the five winners of the draw was granted USD 200 credited to his/her account to manage.
InstaForex Company thanks all the visitors of the seminar and hopes to see them once again at the next event within the framework of the educational seminars in 2010.
Added by Vladimir Syrov,
InstaForex Chief development manager