Forex Trading Advice

Forex Trading Advice

Forex is an extremely popular and profitable form of trading that offers you a wide range of advantages. You can trade nearly 24 hours a day, 6 days a week – from Sunday to Friday, and have access to over 12,000 instruments!

Money

When it comes to trading currencies, you need to have a strong understanding of how they work. In general, currencies are organised into pairs – so you buy (long) one and sell (short) another. This is known as a contract for difference (CFD) and if you get it right, you can make a profit.

Advantages

In addition to this, you can use leverage in your trading which increases your exposure, but can also increase losses if you take on too much risk. This is why it’s important to have the right strategy and broker in place before you start trading.

Your trading style

When you choose your forex trading strategy, you should consider three key criteria – a risk-reward ratio, the time investment involved and how your capital is protected. Position trading typically carries the highest risk-reward ratio, and it requires a greater investment of your time as you need to monitor your portfolio continuously.

Your trading mindset

Taking the time to learn about your own trading personality is crucial to success in Forex. You should have clear goals that you intend to achieve – whether that be a certain amount of profit or a specific number of trades in a given period.