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Regal Core Markets recently reported on the major influence COVID-19 has had on online trading and how trades take place. Due to varying influences - from widespread panic, to corporate shutdowns, and wild speculations - markets have also incurred major losses, leading to a newfound volatility among most currencies. <br><br>u201cTraders are now more inclined to hold on to their money and conduct low-risk investments,u201d the report noted, u201cfocusing more on the necessity of in-depth monitoring tools and analysis reports. The internet is brimming with increased online trading activity, and developers are pressured to provide more ways to ensure forex trade security.u201d<br>
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Regal Core Markets recently reported on the major influence COVID-19 has had on online trading and how trades take place. Due to varying influences - from widespread panic, to corporate shutdowns, and wild speculations - markets have also incurred major losses, leading to a newfound volatility among most currencies. • “Traders are now more inclined to hold on to their money and conduct low-risk investments,” the report noted, “focusing more on the necessity of in-depth monitoring tools and analysis reports. The internet is brimming with increased online trading activity, and developers are pressured to provide more ways to ensure forex trade security. • This new outlook on financial trading is a result of the sudden, swift changes that came with the coronavirus pandemic. With an influx of new traders on the scene, it’s important that education on forex markets is available.
Here are a few quick tips to help you find your footing in forex without making risky mistakes and incurring big losses: 1. Do Your Due Diligence, First One mistake beginner traders make is thinking that forex’s low barrier of entry means they don’t need to do much research. This is a mistake. Learning is a core part of forex trading and a trader’s success, so don’t depend on “figuring it out along the way”. Yes, there is a significant amount of learning that happens during live trades and outcomes, but a trader must dedicate time to building their knowledge on all things related to the forex markets - including the external factors that could affect trades such as economic influences. Part of doing your due diligence is also creating a trading plan for yourself. This is a system that you have crafted for evaluating investments, settling on the amount of risk that can be taken, and also generating short-term and long-term investment goals. In order to be a successful trader, you have to be intentional about your journey. Make sure that you prepare to adapt to the changing conditions within this space - fluctuating market conditions, regulatory requirements, and world events (e.g. COVID-19).
2. Use A Practice Account Before You Go Live • Most trading platforms come with a practice account - also known as a demo account - and this allows traders to practice some of their strategies without funding the trades. One of the major benefits of a practice account is that it helps traders become better with their order-entry techniques. • The last thing you want to do is make a big mistake because you pushed the wrong button when trying to open or exit a position. New traders, charged up with excitement, try to skip this step of the process but this is not advisable. • Forextrading can bring in great returns but it is also very risky.Partof doing one’s due diligence is taking time out to practice their strategies, get used to the platform, and then move on to live trading.
3. Find A Reputable Broker • This is the most important part of the process for any trader, especially during these times. Forex trading has become very popular which has resulted in new platforms springing up and new brokers offering their services. The problem with forex is that there isn’t as much oversight as other markets, which makes it much more likely for you to end up doing business with a shady forex broker. • Investopediaadvises all forex traders to open accounts with firms that are members of the National Futures Association and are registered with the Commodity Futures Trading Commission (CFTC). If the brokers are based outside of the United States, then please ensure that they are registered with the relevant regulatory bodies in their respective countries. • It is also important that you look up every broker’s account offerings; this includes their leverage amounts, commissions and spreads, minimum initial deposits, and withdrawal policies. Any reputable broker should have an efficient customer service that can provide you with all the necessary information, and they should also be able to answer all questions you have about the firm, their practices, and policies.
The Bottom Line • One of the biggest mistakes new traders make is trying to make money instantly through impatience in high risk trades. In a time where the market is so unpredictable, it is important that all traders, regardless of their background, pay attention to following due diligence and doing all the homework required. • For as long as the coronavirus pandemic continues to impact the way businesses operate, especially financial conglomerates, it means that traders should expect to deal with unpredictability and volatile charts for the long run. • This is also the time to lean on the advice of experienced traders who are used to making decisions under pressure or in uncertain times. A lot of time and money can be saved with the guidance of experts on the market, instead of trying to figure things out on your own.
