Potential investor – who is he?
Answer – a casual man, who has certain amount of funds accumulated. As any reasonable man, sooner or later, he starts to think about where and how to invest it : Spend it? Take it to the bank? Invest somewhere? But where? Nothing to spend it for, he has everything he needs. Zero desire to take it to the fat bank cats.
So somewhere on a subconscious level there is always a thought about speculations. And why not? There is a lot of free time available, fully legal - pay taxes and speculate all you want. Next step is to chose where and with what to speculate? He might have heard from friends about some - Forex market. People are trading currencies, buying low, selling high. And it's right there, no need to go somewhere, just reach for your computer and you are already at work.
But seriously. First steps must be simple. Like to google «What is Forex?»or «Everything about Forex». To see about 80 to 100 millions of results. First ten usually will provide enough information. As «Those who seek ..».
Terms to learn about : dealing center, Broker, trader, price chart, currency pair, Forex overall. Should be enough to take on a first day. Taking the first short impression about how the market is operating, which powers determine the courses, next in line is to know : who are the traders and the Brokers.
In short : traders – currency speculators (individuals); brokers – licensed party, operating in jurisdictional fields. So you need to pick one, and it can be difficult. Possible to go random and pick one from top 10. But is it recommended to get familiar with it first, and learn through sections as :
• public offer;
• trading conditions and account types;
• how o start working;
By going through those sections, beginning trader will realize that he can invest without trading by himself. But to invest with the experienced trader's account for 30% to 50% of profit commissions. Such service is provided by PAMM-system. Risky? Of course. But it is much more risk involving to go in a trade wars by yourself. You can copy the trades executed by those traders This service is provided by the ForexCopy - system, for additional fees.
And close attention should be paid for the demo accounts. If to separate the account types on two : demo and real. On real account trading is executed using the real funds of a trader, on demo-accounts – virtual funds are used. Demo accounts are the same as real accounts except the fact that one is meant for practice on live market conditions using virtual funds, and the other is for actual trading with real funds. By using demo accounts, you can determine the most suitable trading strategy for your needs, and this is the most difficult step in a trader's career. It is implying learning the basics of technical analysis; getting familiar with the market trading attributes as indicators and advisors.
In the projected future, beginning trader will be met with a life full of excitements. The one who walks the road will finish it!
Forex trading - probably a way not to make money, but to lose it. More often, people just lose money on Forex. One of the main reasons - high activity of traders involved, which in turn forces others to take losses, as there is no way to predict certain market activities. And the commissions to the Broker, are still to be paid. Leverage is also a factor, marginal trading - is bad for your deposit. Losses using this instrument can be considerable.
So what amount is suitable to start, and is it worth it? Forex trading is worth to try - in order to just forget about your desire to become a trader, and go for more traditional types of investments. You need to begin with the amount accordingly with two major conditions.
Firstly, it needs to be an amount that you find comfortable to lose, because it most likely will be so. Most of the traders lose more than their first deposit, before leaving the idea of trading forever. And if by some way, they get profits, they still lose it at the end. So the capital you are investing, must not be the last one you have. And it must not be some sort of credit money, as with all types of investments in this case, it is a bad idea.
Secondly, this amount should be considerable for you to lose, to some extent, why? So you could experience the actual loss. And for you to understand that you are not trading something else but a real "live" money. Sometimes people are investing lesser amounts to their deposits. So the loss of this money or a profit, will not take effect in decision for the trader to either consider trading or to forget about it. So trade using the money you will feel losing. Thanks to this, you will understand that to make profit on Forex is close to being unreal perspective.
Another important thing - be honest with yourself starting trading on Forex. Keep in mind that you are risking your money. If you will lose it, you need to make it back. Thinking that you are a successful trader, after few profitable trades, is a false mental state. Only few are able to make real profits on the Forex market, and they are either geniuses or a very lucky people.
When you've tried all options mentioned above, you will have two options left :
First - to leave the idea of forex trading forever.
Second - to address the professionals and to use their experience of profitable trading, and to gain stable profit on forex market. Our Multiple years of experience in this field of trading and the strategies we've created will turn the trading process in profit for you, and prevent total losses.
Perhaps, everyone heard something about the Forex market. Somebody is performing well, others think that there is some sort of cheating mechanism involved in Forex trading. There are plenty or positive and negative views in the web. Last, as a rule, are view points of those who had no positive trading results. But it doesn't mean that it is impossible. It's just that not everyone is meant to handle this way of making money.
Making profit on Forex, it's core and principles.
Currency trading as a base. Trader's target - is to buy the currency low, and sell it high. In order to gain profit, you need to have specific knowledge in the field of trading. If you are ready to acquire it, you can make profit on Forex market and become aware about that everything is possible here. You can work from any point of the world. Weekly profits can be literally any. Sure, such possibilities attract many people that are looking for a way to make profits through the internet. But a newbie, without any knowledge and money, has no place in the Forex market. In order to get results on this market, you need to apply yourself. Without it, the risk of losing money is way too great.
As a starter, you need to be at least an advanced level internet user, able to work with payment systems. Even if you are not planning on trading yourself on Forex, you still need to use electronic wallets and accounts for transactions.
Making profit on Forex with own recourses.
As a starter, you need to jump into the Forex topic. Learn the basic principles : who are traders, brokers, how the currencies are marked, how trades are executed etc. all of it is free to access, so there is no trouble finding the information. Get familiar with the existing market strategies and the ways to apply them.
If you are afraid to risk right away, take courses in learning Forex. Such as demo accounts, which are allowing you to take part without investing real funds. There you can apply learned strategies, and check the practical results. Demo accounts can be opened with different brokers. Use those with which you are planning to invest real funds with, in future.
Income from PAMM-accounts
Those who are afraid to go out as themselves in trading right away, will like the idea of PAMM-account investment. It is used for investors to invest the funds, and for traders to use it in trading.
Example, you want to perform on forex market, but you are not ready to open the accounts and execute trading operations. But there is a trader that is ready to execute trading process, using your capital and gaining partial profits. He crates PAMM-account, and manages it. Gained profit is then spread across the trader and investor (usually 50 to 50 percent).
Trader is educated in trading, and he, as well as you are, interested in gaining profits. And you have no need in educating yourself on all the aspects of trading, follow constant changes, and spend time executing the operations. You can begin even with insignificant amount of funds. 500 dollars for example.
Are there any risks?
Can a profit be made without any risks on Forex? No, not at all. Any trading activity is risk involving. No one provides any guarantees, that you will gain profits only. There is a possibility that you will make losses. First, make your pick of Broker and trader carefully. Secondly, be ready to take losses.
If you understand and know the theory well enough, practice, on demo accounts. If you chose PAMM-accounts, perform a thorough analysis of a trader, to who you are trusting your funds. Search for statistics, reviews, ask questions.
Profit with Forex market is a very real perspective. Many are making decent living as a result of this activity. But it involves knowledge, capital and involvement. To make money, you need to invest money. To gain high profits, you need to constantly upgrade, analyze results and make your own strategy.
Many users in search for alternate or additional occupation, are not giving Forex market much trust. For them, the operations involving currency trading are beyond the boundaries of understanding, with envy to those who are investing themselves in trading activity, and is in touch with all the constant changes market is experiencing on daily basis, with slow growth of hate to the currency market itself.
Of course, forex market is not totally reliable. As it depends on your mental capability and attitude towards economical and market analysis, as well as overall familiarity with the world of economics and its simple understanding. "Not reliable" - is being cheated on, as any casual user considers - "Fraudulent". So simple way is to just get a casual work schedule without any thorough thought process, making profits for somebody else, but guaranteed.
Forex market has its principles, same as the stock market - but the process doesn't involves stocks, but with the currency. By making trading operations, trader is learning to feel the courses, project the next price points and play with it to his advantage. Growing from newbie to expert, trader is able to make potentially unlimited profits in his comfort zone, playing with currencies.
By coming to Forex market having only a dollar in pocket, trader that has knowledge is able to make significant profits, making those who chose an easier way, envoys.
Of course, playing with currencies on unofficial market, there is always a way for a "step down" or "fall of a clif", but it is a minimal possibility for those who can manage their business and knows what not to do. After all, you can't get anywhere in life without taking risks.
Risk is always present with a Trader or Broker, but this risk is not always justified by possible losses. Those risks are present within the Forex market, as well as stock exchange markets, a New-York stock exchange for example. Those who are not prone to manage risks, and wish to know about the stability rather than the volume of profits - should probably stay away from Forex market, and a Trader's way in general.
If somebody is ready for analyzed risk, to analyze political news and to apply it to financial courses. To think with your own head, being able to take losses, mental capability for high volume operations - Forex is made for this kind of people. Option to work on Forex market - is a personal weighted decision.
We wish you successful and profitable Forex trading!
Up to this day, many investors and beginning traders are making profits on Forex market, using different software which are making the trading process easier. The most popular are forex-robots, which are often called robots-advisors or experts. And there is virtually no limit to maximal effective results that can be reached using it.
How does it works?
Automated forex-robot is a complex software that implements a trading algorithm. This program is created using specific languages for the purpose of automatic trading.
In the process of creating of such software, the already existing strategies used by live human traders are taken.
Which advantages forex-robots has:
• no psychological load. Human has no need in making a decision on a trade. Taking the stress away, which is a major human factor in trading and can lead to unpleasant results.; • suitable for beginners, as the activity involving the market analysis and other, is no longer in priority or on a need-to-know bases for the beginner; • provides a lot of free time away from the desk for the trader.
When the question occurs, can real profits be made using a robot-advisor, the answer is always, "Yes", and why not? The advisor is working on the same principles and strategies that are used and created by the actual traders themselves. Some time, robot can and will bring more profits than a regular trader working the same strategy. All this is summed with the following factors.
• Advisor is able to perform round the clock, taking every option in consideration, when a human can miss a lot of mentioned options, especially during the night time. • It works faster, as any actions are taken automatically. This shortens the response time with minimal profit losses. • Automated robots are performing trading process with accurate strategies, which increases the amount of net profits.
Thanks to such software, man can now execute a trade in real time being far away from the desk. But, every trader should realize that before using any automated system in real trading, optimization and tests are mandatory. Trading process should be under control all the time, with this approach the best results can be reached in Forex trading. By collaborating with our team, Kalinka Capital OU, you will gain a full spectrum of services and support. As tests, optimizations and search for the most profitable settings.
Forex robot - is a program that allows to trade on the market automatically. Main purpose of it is to exclude the human factor from trading activity, and to be involved only in adjustments of parameters. Advisor has the ability to monitor trends of course ranges in a specific time frame. Learning the market flow and other different factors, robot makes a firm decision about the trade opening.
Today, there is a wide range of such robots. Following factors determine the types of Forex advisors :
Neural type advisors;
Robots working on the principle of martingale, are allowing to get almost ensured profits. Main principle - doubling the position after each losing position. The negative side is that with long repeated losses, doubled positions happen more often, so the risk of wiping the deposit is increased drastically.
Multi currency advisors can open multiple positions with different amount of pairs. Program can easily execute all the complex algorithms that can't be executed by any single human in manual trading.
Scalping or pipsing - strategy of trading that closes the position right past some lesser amount of points of profit. Many experts are calling this type as the most profitable in trading on currency market.
The most common and reliable are considered to be the trend robots. Their main point is to determine the trend and squeeze the maximal profits from it. Some form of risk management must be implemented in this program, but in practice they take serious losses on a flat trend.
Grid based programs are placing multiple orders at the same time, from the top and the bottom. Same as martingale based, grid based programs are using the averaging strategy, which can lead to some good results, but is still quite risk involving.
The most complex are the type of neural programs. They are the most expensive, with some form of AI and neural networks implemented, with a hint of self-learning capability. The most promising type of forex software, but up to this day it is more of an elusive thing than a really established form of advisor.
And a combined trading advisors, that are capable of compiling different trading technologies. Those programs have the most amount and range of adjustment, making it harder to use, but gives a way of modifying it in more than few options.
Our team is happy to help you in choosing the trading robot that is suitable for you and your priorities in trading.
Companies offering services on the forex market, provide newcomers with possibility to learn the trading terminal functions, by "trading" in demo mode without any risks of losing real money.
"Test of skills" and success of "demo-trading" makes beginner trader to shift to the real trading without losing time of trading on demo account. But more often, expectations exceed reality - real money are getting away from the new "trader". Search for the reasons of it happening concludes on commercial grade articles about the psychology and the fear of losing money. The outcome about "unjustified fear" is really dangerous for the beginner, and the Brokers are pushing to this conclusion, especially in cases when they are market makers for a small time trader. Psychology matters, especially for the emotional people. It is commonly knows and apparent. But it is not the whole truth.
Analysis of the most active currency pairs, shows a match on real and demo accounts. But the quote charts - are not the same as charts that were thought in algebra class at school. To fully understand it , you need to have a degree in math. Yes, traders know the terms like "gap" and "fractal", but not all are thinking in terms of no differentiability of currency pair charts as a time function, and not in one point. The quotes chart is really reminding of Weierstrass function at any timeframe. In practical terms, all of the above is mentioned basically for the trader to not only create a profitable trading algorithm(a strategy), but also to justify its stability in moderate technical sense. For it, strategy needs to be formalized - programming of a so-called robot (advisor, expert) and its tests on the historical data of high quality. When writing an advisor for the purpose of algorithm's performance modelling on historical quotes, it is necessary to establish the conditions to exit the position, without letting stop-losses to take place, for example, upon the news release in the middle of a minute candle (minimal time frame for chart modelling) of high amplitude, because such closing point is not certain - can appear to be inside a gap; in reality, position will be closed with worse quote for a trader. And, this is related to the position opening point on real account with possible re-quote, delay and follow up offer for the worse price.
But even if the trading algorithm passed the tests of modelling, it can only be suitable for practical use only if math expectancy is exceeding the spread of a market maker. Exceeded math expectancy - a sign of a profitable strategy. It is recommended, that only past quality tests on "history", algorithm can be tried in practice on real trading account with the risk of real money. The drawdown must be controlled, if it exceeds maximal historical drawdown, use of the algorithm should be stopped, model the algorithms performance on the new historical data, and to review the outcome. As the record drawdown is a sign of quality changes in the market, rendering the strategy useless for the long term. So it is recommended for the trader to have more than one strategy in favor - as diversity is a good thing.