Forex Broker Selection Guide
One of the most important aspects of forex trading is choosing the right broker. Many traders have already faced many problems with brokers. Some people have problems with investing as they cannot choose a good broker without realizing it. Again, it has been seen that even after making a good trade, one cannot fall into the various traps of the broker and withdraw money. There are many such examples.
So today we will discuss how to choose the right broker and how to make sure that your investment is safe with this broker or how much the investment should be.
Refrain from trading in the brokers in which you will get the following points.
Slipage is the difference between the price at which you want to open a trade and the price at which you can open a trade. In this case you will never be able to open or close the trade at the actual price on instant order. Solid and no dealing desk brokers do not have slippage.
This is not to say that you cannot trade in new brokers, but there are many new brokers who disappear with your capital after accumulating in the market for a few months. One broker is Kiwifxbank so be aware of investing in new brokers.
Cash or product offer
Many brokers open new live accounts and offer a variety of attractive products such as iPhone, Android, etc. with cash prizes. In fact, these are just a trap to get you invested. Beware of all these brokers.
If your broker is a Fiscal Paradise type broker, think twice before investing. That when you go to withdraw money or visit their office directly, you will actually find someone there!
Brokers have at least one authority when it comes to the market, but in that case you have to be clear about some things. For example, the authorized number that the broker is using is actually the authentication of his company. For example, a broker called Kiwifxbank did such a thing. They started working under the name of Kiwifxbank as a Sister Concern of an organization called Vault Market Pvt.
Let's learn how to choose a solid broker.
Review / Reputation:
When a broker starts working, many forex bisayaks write about the good / bad, advantages / disadvantages of that broker. Such as how this broker is, how transparent its transactions are, what are its good aspects and what are its bad aspects, etc. There different traders write their respective opinions about the broker to help you find out the details about that broker. When many traders give the opinion that the broker has slips, recalls or problems in withdrawing money, then that broker should be careful.
Straightforwardly, the older the broker, the greater your reliance on that broker for trading. Many brokers come every year, so study the broker to see how long it lasts, you can proceed in a positive perspective for those who have been running the business for about 3 years.
As I said before, broker regulation is a very important fact. In the case of broker selection, check whether there is a National Authority with minimum তার domestic stock exchange regulations. For example, check for CFTC / NFA for US brokers and FSA for UK brokers.
It would not be wise to trade in Virgin Islands regulated brokers.
Solid and real brokers trade with their physical existence because this type of financial business is not possible in Fiscal Paradise. So be sure of the broker's office location.
ECN or Dealing Desk / Market Maker:
Brokers are usually of two types, market makers who open another trade against each of your trades and create a market on their own to benefit themselves by keeping you away from the main market buyer sellers.
ECN - Electronic Communication Network Brokers are real brokers who conduct trades by directly connecting buyers and sellers. (Read my post to know more about Dealing Desk Brokers and ECN Brokers.)
You can also choose a broker and start trading knowing the broker spreads, customer support and some other details.
Japanese candlesticks are a popular charting technique used by many traders. Today, we are looking at the shooting star reversal pattern which is a popular Japanese candlestick formation and how to apply it towards the FX market.What Does a Shooting Star Look Like? (the shooting star is the red candle at the high point above)A shooting star formation is a bearish reversal pattern that consists of just one candle. It is formed when the price is pushed higher and immediately rejected lower so that it leaves behind a long wick to the upside. The long wick should take up at least half of the total length of the candle.Additionally, the closing price should be lower than the opening price creating a red candle. As you can see, this creates an overall bearish structure because prices were unable to sustain their higher trade.Trading the Shooting StarTrading this reversal pattern is fairly simple. First, the implication is for lower prices therefore we want to look for entries to short. Since the prices were previously rejected at the high of the shooting star, we will establish our stop loss about 10-20 pips above the high of the said candlestick.The entry can take place in a couple of manners. First, a trader could simply enter on the open of the next candle. Or, if the trader was more conservative and wanted to capture a better risk-to-reward ratio, we can trade a retest of the wick.Retests of the wick tend to occur when the wick is longer than normal. Oftentimes, prices will come back and retrace upward a portion of the long wick. A trader recognizing this might wait to enter around the middle of the wick rather than enter immediately after the shooting star candle forms. This means the trader is entering a short trade at a higher price and with a tighter stop loss reducing risk.Regardless of the entry mechanism, the stop loss will remain the same which is about 10-20 pips above the shooting star candle.Regarding profit targets, we teach in our courses to take profit at least twice the distance as your stop loss. So if your stop loss is about 90 pips, then look for at least 180 pips of profit potential. This means we are establishing a 1-to-2 risk-to-reward ratio which falls in line with the Traits of Successful Traders research.Trading the AUDJPY Shooting StarOn Friday, November 2, the AUDJPY produced a shooting star reversal pattern on the daily chart. What makes this set up appealing is that it forms near 2 other levels of horizontal resistance.1. Purple horizontal line which coincides with the previous high on August 20, 2012 and October 25, 2012. This resistance line is near 83.60.2. The 61.8% retracement level of the March 19, 2012 to June 1, 2012 down trend crosses near 83.23. (blue horizontal line)Therefore, a strong resistance zone is created. As prices approached this resistance zone, the buyers stopped buying and the sellers started selling which left a shooting star candle pattern in its wake. Since the AUDJPY has been trading in a range between 79.70 and 83.50, consider an entry to short near the top of the range near 83.15 with a stop loss just above the shooting star high near 84.05.We’ll look to take profits near the bottom of the range at 80.15. This means we are risking 90 pips for a potential reward of 300 pips. This yields a 1-to-3 risk to reward ratio.
Cryptocurrency working in the financial market: Cryptocurrency is a decentralised, encrypted virtual currency confirmed in public record or ledger and transferred between companions or peers. The term given to this process is known as mining. If we specifically talk about working of bitcoin, then it is known as bitcoin mining. The article contains all the information regarding how cryptocurrency works. Let’s first see the essentials and basics of cryptocurrency, and then move further on its working and other properties which have made it so popular in the present time. Basics of Cryptocurrency Working The primary concepts and steps regarding the working of virtual tokens are listed below: 1) Public Ledgers: All the confirmed and valid transactions of the cryptocurrency market are saved in the public ledger. The personal information, along with the identity of the owner, is encrypted with the help of cryptographic techniques. The main motive of these techniques is to assure the legitimacy of report keeping. The record ensures that respective digital wallets can estimate a correct spendable account balance. Moreover, a client can also check the latest transaction to ensure that each trade used currently owned coins (spender’s coins). Concerning bitcoin, these public records or entries are known as blockchain transactions. 2) Transactions: The exchange of funds between two virtual wallets is called a transaction. These transactions wait for confirmation after submission to a public ledger. During the processing of a transaction, digital wallets make use of the encrypted digital signature. This signature (an encrypted part of data called a cryptographic digital signature) is technical proof that the transaction is made through the wallet of the owner. The whole confirmation and authentication process takes around a bit of time (for bitcoin it takes ten minutes) at the same time miners mine the information. This mining verifies the process and adds these payments to the public ledger. 3) Mining: It is the process of verifying the transaction and adding the same to a public ledger. For carrying out this process, the miner resolves a complex computer program (same as solving a mathematical puzzle). This method is open source which allows anyone to verify the transaction. At first, the miner resolves the puzzle and then adds the transaction block to the ledger. The way how this public ledger blockchain and the transaction blocks together work ensure that no person can readily change or add a block at will. Once the process ends (blocks get added in the ledger), all corresponding transactions are permanent or fixed, and they generate a small amount as a transaction fee to the digital wallet of a miner along with the new electronic coins. It is called a proof-of-work system and provides the value to the currencies. Quick Look At Sequential Steps In Working 1) Generation of bitcoin address 2) The transactions and public ledger are added in the blockchain. 3) Calculation of spendable balance for confirmation on new transactions. 4) Transfer of value between digital wallets 5) Confirmation of the pending transactions and storing results. The Bottom Line If at any point, you think that things are getting a little bit confusing, don’t give up. Understanding all the concepts that are primary in the cryptocurrency market is a big challenge. All have different grasping power if one way suits a particular person it might not work for another. The ultimate solution for this is never giving up on learning things and try to adopt different suitable sources, which are way easy for you to understand. These sources include various articles, explanations, and videos. Slowly but eventually, they will click.
Extensive meetings and seminars on Forex trading are being held in reputed hotels and restaurants in different cities of the country. I feel the need to say a couple of things to the organizers, negotiators and guests of these meetings and seminars. But as a forex trader I shared my feelings and fears.We all know that Forex is the largest trading market in the world. But how many people have succeeded in this marketplace, in answer to this question we see that only 5 to 10% of people are successful here, the remaining 90-95% of people are unsuccessful. But the opposite has happened. In other words, the perimeter of the market and the position of traders are completely opposite. However, now the question is why a large part of the forex market is failing? Of course there are different evaluations behind this but I have pointed out some issues from my long 7 years of trading experience which I have shared for you.01. It is better not to have any training institute. From where a novice can take proper preparation.02. Deposit excitement: That is, before mastering the trading concept well, one has to test one's luck by depositing through one's savings, business capital or loans from the helpline.3. Thinking of yourself as omniscient: that is, knowing a couple of things or after two or three months of demo practice or one or two accounts are zero, you start to think of yourself as a great sage.4. Loneliness: Selfishness or narrow mindedness.If you have failed in the trading world, ask yourself what level you were at or are still at.However, let's get to the real issue. The phrase "Forex trading" is a money-making machine for some and a trap for others to become poor. Hmm, the machine is for those who have been able to wisely overcome hundreds of adversities to establish their position and capture the true character of the trading market.On the other hand, the trap of becoming destitute is for those who, despite being adults, educated and mature, behave child-friendly in this market. At present, those who have become obsessed with Forex insanity by beating drums and meeting seminars are a special part of that group. There is no doubt that a significant part of them will fall. Forex is like a very beautiful, well-groomed lady, whose intoxication will take away everything from you. Undoubtedly, this is a trap for those people who are addicted to money. Forex is a matter of pursuit, perseverance is required here. It is not as easy as you think. Its look and reality are different.So after a couple of seminars, webinars or a few days of demo practice, if one thinks that his market is understood, then he is undoubtedly on the way to becoming destitute. It is very difficult to control oneself here.However, there are very few people whose insanity and excitement cannot dominate the conscience. They proceed by analyzing both the positive and negative aspects of this business. And the planned steps lead them to a reliable achievement over time. So every request to every newcomer should refrain from these races at the persuasion of anyone. And ask yourself if you have the ability to withstand the pressure of the trading market. Because trading profession is a stressful business which is not for everyone.You have to be careful about one thing. And that is, a class of people will try to achieve their own interests by motivating you with the opportunity of your weakness. Maybe you stumble before you realize anything. This will make 90% of the affected people heavy. Currently, there are some forex brokers who offer up to 40% refund on margin calls to IB holders (business representatives). As a result, even if they spend Rs 50,000 on a program on Radisson Blu, they will pay for it from a client's losing fund of only 1,000. Now ask yourself if you are the unfortunate person who has gone into investing before you understand the market? Many may be offended by the above discussion. But sincerely sorry. I am warning the newcomers not against anyone but from the experience of long trading life and policy ideals. Because I know very well how novice traders lose on any line. Give them the right direction without hurting their classmates, family or friends financially. Talk about your achievements. That's good for both of you.I know your profit margins are negligible compared to a broker. But that doesn't mean you can't put others in the way. Driving is not for everyone, just as Forex is not for everyone. You can't jump into the business of Warrant Buffett and Bill Gates. There are definitely some rules here. Basic Concept, Technical, Fundamental, Sentimental, Risk Management, Currency Analysis, Co-relation, Impact Analysis, Political Issue, Goal Setup, Trading Plan and Strategy.