Some important trading tips for Forex beginners..
FOREX TIPS FOR BEGINNERS
1. Define your Trading Style according to your Time Frame
First of all a trader must choose his trading style. Trading styles are formed according to a wide number of parameters. There are 4 questions that every trader should answer before commence trading Forex:
i) How much money can you invest?
ii) How much money can you afford to loose?
iii) What are your targeted annual returns?
iv) What is your time frame?
After answering these 4 questions you will be able to determine what kind of trading style is suitable to your particular profile. Each trading style corresponds to a particular time frame and thus we may categorize trading styles as follows:
a) Day-Traders, time frame intraday
b) Common Traders, time frame a couple of days / a couple of weeks
c) Long-Traders, time frame a couple of weeks / several months
2. Choose the right Forex Broker
Choosing the right Forex broker can make the difference between win and loose in Forex trading. There are tens of parameters that define which Forex broker suits you best. Here are the most important factors categorized in 4 general categories:
a) Safety of your Funds
-Forex broker regulation level
-Forex broker headquarters
-Forex broker existence in the market (in years)
b) Cost of Trading
-Magnitude of Trading Spreads
-The Existence of Trading Commissions
-The existence of Withdrawal or Maintenance Fees
-The existence of a Trading Bonus or of a Trading Rebate
c) Trading Options
-The allowance of Hedging / Scalping »What is Fx Scalping?
-The maximum rate of leverage
-Deposit and Withdrawal Methods
d) The level of Technology used
-Automated Trading (Expert Advisors)
Using our Forex Broker Reviews in various partner sites you may find deep reviews and ratings regarding the world’s most popular Forex brokers.
Forex Rating Formula
In addition we have formed a unique way to rate Forex Brokers using a rating formula for the first time in the whole internet: » Forex Brokers Rating Formula v.2.0
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