ONLINE CURRENCY TRADING-7 TIPS FOR FOREX TRADING SUCCESS

1. ONLINE CURRENCY TRADING-7 TIPS FOR FOREX TRADING SUCCESS An online currency exchange, or electronic forex exchange, is an internet Based platform that facilitates the exchange of currencies between countries. Online currency exchanges make money by charging a nominal fee and or through the bid\ask spread in a currency. Best trading broker easily trade in forex business and transact the money by electronic platform. The business of trading in different currencies in order to profit from exchange rate differentials. Currency trading of forex trading refers to buying and selling national Currencies to either make profit or hedge businesses. HERE ARE THE SEVEN IMPORTANT TIPS FOR FOREX TRADING SUCCESS:-

2. DEFINE GOALS AND TRADING STYLE THE BROKER AND TRADING PLATFROM A CONSISTENT METHODOLOGY DETERMINE ENTRY AND EXIT POINTS CALCULATE YOUR EXPECTANCY FOCUS AND SMALL LOSSES POSITIVE FEEDBACK LOOPS 1.DEFINE GOALS AND TRADING STYLE: – The goal of trading is to seek out profitable patterns in movements in price, to seek to be on the right side of the trends that you are seeking to trade, with a certain tolerance level which would indicate that the trend is over and a reversal is more likely. Goals offer direction, something to aim for when trading the markets and give a sense of achievement each time a target is hit. The goal of day trading is to generate profits from the price action of the underlying financial instrument in the shortest period of time. It plays an important role to give success in the forex trading. Moreover, a trading style is a set of preferences that determine how often trader trade and how long they will keep those trades open for. It will be based on your account size, how much time trader can dedicate to trading, personality and risk tolerance. 2.THE BROKER AND TRADING PLATFORM: – It plays an indispensable role to understand the trading skills of online currency trading. A brokerage platform is defined as software provided by brokerage companies, which gives the opportunity to perform trading activities and manage trading accounts. Brokerage trading platforms are software that can analyze financial market transactions and activities, evaluate the risk associated with trading opportunities, and ultimately facilitate investors and traders opening, closing, and managing market positions

3. 3. A CONSISTENT METHODOLOGY: – A consistent business methodology means a system of broad Principles or rules that determine how specific procedures or methods can be defined and followed to help managers make right decisions and solve different problems efficiently within the scope of a particular business situation. An example of a business methodology would be determine how, in a defined, planned manner, you test something, validate results, establish the deliverables and to improve and monitor that “thing” on an ongoing basis. Methodologies demonstrate a well thought out, defined, repeatable approach. It is very helpful to trade in the forex business and understand every technique. 4.DETERMINE ENTRY AND EXIT POINTS: – A forex entry point is the level or price at which a trader enters into a trade (buy/sell). Deciding on a forex entry point can be complex for traders because of the abundance of variable inputs that move the forex market. It also refers to the price at which an investor initiates a position in a security. In order to participate in an investment, traders must engage in a transaction, buy or sell. Moreover, an exit point is the price at which an investor or trader closes a position. An investor will typically sell to exit their trade because they are buying assets for the long term. A trader may also sell at an exit point, or they may decide to buy to close the position (if they were short). 5. CALCULATE TRADER EXPENTANCY: – The expectancy ratio is then calculated by taking the reward to risk ratio and multiplying it by the win ratio, and then further subtracting it from the loss ratio. This means that this trade will return 0.2 times the size of your losing trades. Most of forex strategies tend to have 50% to 70% win rates, depending on market conditions, with a reward: risk of ratio of 1.5:1 or higher. That means that on average about 60% of my trades and my gains are bigger than my losses. Without the understand of the forex traders expectancy, a forex broker could not trade in the online currency trading.

4. 6, FOCUS AND SMALL LOSSES:- To understand the forex market and currency trading, firstly, a trader focus on the undercapitalized the money relation to the size of the trades that they can make. There are many rules to focus on the online currency trading is that always use a trading plan, treat trading like a business, use technology to trader advantage, protect trading capital and many more. Most of the intraday traders lose money because they fail to understand the market movements and end up taking wrong decisions. 7. POSITIVE FEEDBACK LOOPS:- Positive feedback—also called a positive feedback loop—is a self- pattern perpetuating of investment behavior where the end result reinforces the initial act. For asset bubbles, positive feedback loops can propel the price of a security far above its fundamentals. Positive feedback trading is a trading strategy that implies buying when prices rise and selling when they fall. A large number of studies have documented the existence of positive feedback trading around the world in both developed and emerging markets. Positive