Why should you trade forex? This is a good question. The forex market is the most liquid of all the different financial markets. Nowadays forex trading is accessible to almost everyone. With the recent influx of retail brokers offering trading accounts with very low minimums in a wide selection of different currencies, currency trading really is now possible for the masses.
Having another funded account could be a good idea. That way if your main forex broker experience any access issues, you can trade your positions on the second forex account. Do you want good secondary account? Check list here.
Avoid systems that are failures. In some forums you will run across traders that will attempt to scam you into using systems they know are worthless. Always take the time to examine any system you are told about before putting it in place. You do not want to lose money because someone was jealous.
Customer Support – If something goes wrong for some reason and getting support is crucial, you don’t want to wait to long because that could mean the difference between a profit or a loss. You should always be able to reach support whenever you need it. This is especially true in the forex market.
There should be a broaden way of view about the forex rebates offered by some IB, and as a forex trader we know that we do trade the forex market pairs, and each pairs caries their own spread rate. If we didn’t sign up through any IB that is offering cash back/rebates, then all of the spread profit will go to the broker. As an added advantage, every forex trader should consider cash back/rebates to their trading activity.
The problem with automated robots if the fact that they almost never stand the test of time. Whilst many of them will be successful in the short term, they ultimately fail in the end.
If you are trading on a time frame of 15 minutes or more, it might be a good idea to avoid watching the 1 minute time frame. Much of your success in the market depends on your own psychology and watching the 1 minute time frame may cause you to second-guess your decisions. Stick to what you know and be confident in your own strategy.
In closing, I trust this discussion on leverage and margin has driven home the importance of how margin and leverage work together and how they can affect your Forex strategies. Leverage is a two-edged sword so use its powers wisely. I hope that you have gleaned from the examples above that risking more that 2 – 3% of your trading account, on any one trade, will eventually take you out of the trading game. If you will discipline yourself to stay at these levels, you will most assuredly live to trade another day as I do with my Forex signals service.