The Weekly Freesource

The Weekly Freesource

The Weekly Freesource

The Weekly Freesource

The Weekly Freesource

The Weekly Freesource

The Weekly Freesource

The Weekly Freesource

Here are the 15 best investing and trading resources we found this week. Just click the links and enjoy!

  1. Paper Tiger by Trey Reik.

  2. Quantitative Tightening & Auto Sales by MI2.

  3. Strategic Trading As a Response to Short Sellers by Marco Di Maggio, Francesco A. Franzoni, Massimo Massa, and Roberto Tubaldi.

  4. You Are Here by John P. Hussman, Ph.D.

  5. The Yield Curve Flattens: It Might Be Different This Time by Ed Yardeni and Melissa Tagg.

  6. Bubble 3.0: Can An Acronym Save The World? (Part II) by David Hay.

  7. On Stocks, Rusted On Bears, Bonds, And Forex by Greg McKenna.

  8. Why All The Pessimism? by Ian McMillan.

  9. 2-Year Yield and Fed Funds Finally in Balance by Tom McClellan.

  10. The Brexit Impossibility Triangle by Emily Jones and Calum Miller.

  11. Reflexivity Here in The Yield Curve & Everywhere by Seth Levine.

  12. Japanified World Ahead by John Mauldin.

  13. Data Dependent: Full Week Ahead Preview by TheRealHeisenberg.

  14. The Long Running Circus of Uncertainty Circles Back by Jeffrey P. Snider.

  15. Investing in Blank Checks featuring John Jannarone by Real Vision.

The Weekly Freesource

The Weekly Freesource

The Weekly Freesource

The Weekly Freesource

The Weekly Freesource

The Weekly Freesource

The Weekly Freesource

The Weekly Freesource

The Weekly Freesource

Top 9 Tips for Forex Trading Success

 

Trading on the foreign currency exchange market can be incredibly lucrative. The Forex market is a truly global market, allowing you to trade currencies online from your computer at any time of the day or night.

When compared to the stock market, the Forex market has several distinct advantages. You don't have to factor in the trading costs for placing trades as you would with the stock market. The cost of your trade is factored into the spread between the buy price and the sell price. The Forex market also offers investors the highest level of liquidity of any financial market. It's estimated that approximately $4 trillion per day is traded on the Forex market.

Forex trading also offers you considerable advantages in terms of leverage. When you use your leverage wisely, it has the ability to significantly increase your gains. Of course, if used incorrectly there is also the risk that leverage may compound your gains.

Despite all the advantages, Forex trading requires a lot more than just following the crowd or the latest hot pick in currency pairings. It's important to take time to learn how the market works for your own purposes.

Learn the Ropes with a Demo Account

Many newer Forex traders will jump directly into the market with a false sense of confidence. Rather than risk your own money while you're still learning the ropes, take advantage of a free demo account. Using a demo account familiarizes you with the trading platform. It also lets you see how currency pairings appear within your account and what actions to take when entering or exiting the market.

Develop a Trading Strategy

Every trader will develop a trading strategy that suits their needs. Some adopt day trading systems that allow them to enter and exit the market relatively quickly. Others prefer to develop longer term trading positions.  

Regardless of the trading strategy you choose, always stick to your plan. Many new traders will close out winning trades too soon, which reduces your returns. Other traders sit on losing trades too long, refusing to cut their losses in the hopes the market might rebound and gain back some of those losses. Set your trading plan before you enter the market and then stick to it. Don't allow greed or fear to drive your trading decisions.

Choose Your Broker Carefully

Spend time checking Forex broker reviews and ask other traders if they can recommend a reliable broker. You may also want to check out what type of trading software different brokers offer. It's vitally important to choose a broker that suits your trading goals and aims.

Start Small

If you're just starting out in the Forex market, set yourself a study period and stick to it. You might start out by using a mini account that allows you to trade with smaller amounts of capital initially. As your profits grow you can increase the size of your trades by reinvesting your profits, rather than depositing more funds into your own account.

Master One Currency Pairing

Lots of new traders spread their trades across a variety of currency pairings. They hope to snag some winning trades by spreading their risk. Yet currency prices can be affected by a myriad of things, each of which can lend to the volatility of the market.  Choose a currency pairing you're comfortable with and focus your attention on that. By sticking to the most liquid currencies and following the pricing movements closely, you're in a much better position to recognize emerging trends as they occur.

Use Your Stop Loss Wisely

The Forex market can be notoriously volatile, which can see prices plummet without warning. If you remember to set a Stop Loss, you protect yourself against any losses getting out of hand if the market turns against you. One of the biggest reasons people stop trading on the foreign currency exchange market is due to heavy losses. Unfortunately, the single largest cause of losses on the Forex market is forgetting to use a Stop Loss.

Adjust Your Stop Loss When Necessary

If you're in a situation where the market is going your way and your trades are showing a profit, you can most your Stop Loss forward. If the market has trended upwards far enough you can move it forward to your entry point, which secures your investment. Any money you make on that trade beyond that point is pure profit, but you also protect yourself from allowing your position to move back to a loss.

Use Leverage Carefully

The leverage ratio you choose for your trades can dictate the level of profit or loss you achieve on each trade. However, a lower leverage ratio is a much safer trading strategy overall. If you leverage your trades too highly in the hopes of maximizing your profits, you could also be compounding your losses if the market moves against you.

Automate Your Trades

One of the primary reasons so many Forex traders lose money is that they let their emotions control their trades. You can remove the risk by automating as much of your trading activity as possible. Automating your Forex trading does not mean go out and buy expensive Forex robots or other trading software. It means set your stop losses and use your trading platform to pre-determine your timing to exit the market.

You don't have to be a mathematical whiz to generate profits on the Forex market. However, you do need to spend time learning the intricacies of the market if you hope to succeed.  Learn as much as you can about your trading activities and seek ways to improve your strategies. If you're patient during the learning process, you should find it becomes much easier to pick winning trades on the Forex market as you progress.

Disclaimer: Forex trading involves significant risk of loss and is not suitable for all investors. All trading involves risk and losses can exceed deposits.

 

The Weekly Freesource

Here are the 15 best investing and trading resources we found this week. Just click the links and enjoy!

  1. Cause and Effect by MI2 Partners.

  2. Everything You Wanted to Know About MMT (But Were Afraid to Ask) by Kevin Muir.

  3. Corporate Spinoff Monthly Roundup - January 2019 by Spin Doctor.

  4. State Of The Union: The Art Of No Deal by Remy Blaire.

  5. Political Reality Meets Economic Reality by Howard Marks.

  6. Quarterly Webinar EVA with David Hay.

  7. What Should We Then Expect (From Investing)? by John Mauldin.

  8. As Goes January…? Really? by Tom McClellan.

  9. Stocks: Something for Worriers by Dr. Ed Yardeni.

  10. December 2018 Commentary by DoubleLine Capital LP.

  11. Turtles All The Way Down by John P. Hussman, Ph.D.

  12. 2016 All Over Again? by Elena Moya.

  13. Currency Returns in Different Time Zones by Zhengyang Jiang.

  14. Macro and Credit - The Zeigarnik Effect by Macronomics.

  15. Fear or Reflation Gold? by Jeffrey P. Snider.

The Weekly Freesource

Here are the 15 best investing and trading articles we found this week. Just click the links and enjoy!

  1. Housing and Millennials by MI2 Partners.

  2. Best Way to Short China? by Kevin Muir.

  3. Spinoff Odds and Ends: M&A Edition-Gannett, The Best DIgital FIrst Can Get? by Spin Doctor.

  4. Why Blaming ‘Algos’ For The Decline Is Really Just An ‘Inverted Stock Tip’ by Jesse Felder.

  5. Business Confidence Is Starting to Crack by Patrick Watson.

  6. Why You’ll Regret Not Investing in Dividend-Paying Stocks by Robert Ross.

  7. How Should We Then Invest? by John Mauldin.

  8. Junk Bond Strength is Bullish For Stocks by Tom McClellan.

  9. This Century’s Suez Crisis by Louis-Vincent Gave.

  10. The Complete Guide to MACD Indicator by Rayner Teo.

  11. The Shift from Active to Passive Investing: Potential Risks to Financial Stability? by Kenechukwu Anadu, Mathias Kruttli, Patrick McCabe, Emilio Osambela, and Chae Hee Shin.

  12. $TWTR Will be A-Ok Because of AOC by Citron Research.

  13. Catalyst for Gold Locked and Loaded? by Trey Reik.

  14. Incrementum Inflation Signal Update: Reversal To “Rising Inflation” by Mark J. Valek and Ronald-Peter Stoeferle.

  15. Hussman Market Comment January 2019 by John P. Hussman, Ph.D.