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If you think about the right performance in the trading process, a lot of things are necessary.

Your trading edge will have to conclude strategies like a proper signal technique and proper selection of the profit targets.

Then the traders will also have to learn about the right placement of the stop-loss and take-profit. All of those are necessary for the right performance in the trading business.

When you will be able to make the right setups for the trades, there will be good executions. From there, the proper income is possible for a trader to make.

Then the traders will also have to learn about the right placement of the stop-loss and take-profit. All of those are necessary for the right performance in the trading business.

When you will be able to make the right setups for the trades, there will be good executions. From there, the proper income is possible for a trader to make.

In this article, we are going to talk about the right strategies implementation for the trading process.

All of them must be followed properly without thinking about the losses. Throughout the process of trading, the traders will be stable with the system from there. The right management of the trades will be possible.

From there, you can supply a very good performance for the currency trading platform like forex.

Determining your profit target

In the title of this article, we mentioned that you can be right from your side of the trading process. That is good for proper trade execution.

As the market will be a lot more volatile than any other financial markets in this world, the trading process will have to be disciplined.

That kind of performance will have to start with a proper selection of the profit target. If you want to deal with the signals, it is necessary.

You may think that your assumption may not be right in the beginning. It may be too much for the signal analysis.

If something happens like that, you can deal with that from the stop-losses and take-profit placement.

The benefit will come in another form and that would be proper control of the trades. First, the traders will have to learn about the right control of the trades.

So, try to make the right choice for your trades. Then go for a controlled performance.

Finding the mistakes in the system

You might have bought the best trading system in the world but there is no assurance you will make money from it. You need to back-test your trading strategy by using a forex trading demo account offered by reputed brokers like Rakuten.

Nothing is certain in the investment world. You have to be always ready to deal with unexpected incidents. At times, switch to the demo accounts so that you can find the faults in the system. Most importantly, you will have read on regular basis to make things work in this industry.

Finding the right signals

After the right selection of the trades, the traders will have to do the signal analysis. It will be done for the right placement of the trades. The right selection of the profit targets will have a good reference for the stop-losses and take-profits. The traders will have to manage pips from the market.

That will be done with the proper selection of the signals to trade with. In this process, the traders will also use their profit targets as a reference.

Thus, the working process will be very easy. Say, your profit target is about 2R and the risk is very minimal for your mind to handle. From there, the right performance is not very hard for the traders to maintain.

Following a simple trading plan

Besides the right thinking about the proper management of the trades, the traders will also have to maintain the method. It will define how long your trades will stay running in the market.

From there, your trading sessions will be designed. Also the stress limit will be depending on that. That is why we tell the novice traders to get into the swing trading process for a better experience in the business.

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Many people do not know but a small change from the mindset can be helpful for the traders.

The market is intense, the patterns are changing and every time there is a new pattern. All these make the analyses complex and people get lost in the pattern.

Though there are indicators and strategies, it all comes down to how effectively a mind is used to predict the trends.

After the trade has been placed, it is the most important time. If there are no distractions, he will again engage himself with the industry and make the analyses complex.

Sometimes, we need to distance ourselves to understand the volatility. This article will tell about small distractions and how they can be used to improve the performance.

Do not ignore the importance of a break as it can boost the chance of success.

Our minds needs rest

The first thing that is needed is rest. Without breaks, the mind works continuously and have a chance to break down. The patterns look simple but only investors know the battle. The moment money has been invested, it is inevitable that the direction will change.

What more surprising is, this does not happen in a demo account. Only in live accounts, the traders get to experience all the surprises.

After spending some hours, take a break and forget about this sector. Spend time with the family, read the newspaper. A common mistake is reading the same financial news on papers. Ignorance can be bliss as the more you try to understand the more complex it will seem.

Small breaks in trading

Many people become addicted to the trading profession and lose a significant portion of their investment. Just after closing a losing trade, they execute high-risk trades.

During this time distractions will save a huge amount of money. Distractions act like small break and allow the traders to analyze the important variables in SaxoTraderGo trading platform.

You are here to make money. So be prepared to work hard and learn about this market. Always remember, trading is not a short cut way to get rich.

It’s more like a business where you need to focus on long term strategy.

Mastering the art of trading is really easy but controlling your emotions is extremely hard. Learn to trade with patience or you will lose money like the majority of retail traders.

Get a hobby

A hobby can be proven effective in distracting the mind from the patterns and trends of the industry. The professionals never keep themselves busy all day long. They will get some work to do and through these hobbies, the tensions never get in the head.

Spending that time sitting will allow negative thoughts to come into the mindset. It can affect the strategy, start doubting the plan and can result in taking the wrong decisions.

Less is more in Forex, every investor is trying to get wealth but only the smart traders can find a winning trade. If there is no hobby, develop one to achieve the expected result.

Walk away from the chart

The chart is the tool that gives us the tensions. If you keep looking, the price will not come to your favor. Accept this and learn how to manage the volatility.

The mind will fancy to look back but simply walk away. Slowly, the patient will develop and this can help to make the profit. When the past trades no longer affect you, the performance gets improved by every trades.

Find the mistakes

There is no person who can have perfect investments. Every time, there is a small mistake and this explains why trading is a never-ending process.

If we kept on looking back to the past trades, we can never find the mistakes. Accept the mistakes as part of life and move forward.

A small distance from the market can make us better over time with more perfect strategies and techniques. To get the expected profit, distract yourself from the industry.

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MACD (pronounced “ MAC – dee“ or “M-A-C-D“) stands for Moving Average Convergence Divergence.

In forex trading, this popular and versatile tool is used for technical analysis. Majorly, it is used either as a trend or momentum indicator.

MACD was developed in 1979 by Gerald Appeal, who was an experienced trader and market technical analyst.

And, over the past few years, the use of MACD has become widespread among forex traders.

MACD calculates the difference between the 12 and the 26 exponential moving averages (EMAs). The 12-period exponential moving average is the faster one while the 26-period exponential moving average is the slower one.

The difference between the two moving averages is what is shown in a single line that is the MACD main line. Often, MACD indicators comprise of one extra line, which is a simple moving average of the main line. This moving average usually has the default setting of 9 in most trading platforms.

In MT4 trading platform, the default MACD lacks the main MACD line, but instead it has bars (histograms).

However, on other trading software, both the MACD main line and the MACD histogram are easily identifiable.

 Advantages of trading using MACD

One of the key reasons why most forex traders experience huge losses is because of being impatient.

Majority of traders are not patient enough to wait for a trade setup to develop to maturity. After glaring at their computer screens for an extended amount of time, they lose their patience and try to compel the market to obey them, instead of them obeying the market. As a result, they lose a lot of cash.

On the other hand, there is a group of traders who exit quickly winning trades with a small amount of profit.

They do so in the fear that the market may turn against them and erode the already won profits.  This means that they are not patient enough to remain in the trade till it hits the target. As a result, they limit the amount of returns per trade.

The good news is that MACD provides a good solution to this common problem. Since MACD is a lagging indicator, its delay compels you to wait more for sharp and clear signal.

As such, when you are waiting for a ripe opportunity to enter a trade or you’re already in a trade, you will not make hasty decisions.

From experience, we have learnt that there are some instances that other indicators and even the price chart indicate a trade opportunity but MACD gives the reverse – it indicates that waiting is still necessary to avoid going against the trend and causing unnecessary damage to the trading account.

There are also some other instances in which we think it is the right time to follow a trend but MACD makes us to re-think because it signifies that we are too late and the trend is worn out and may soon change its direction.

In this article, we will give you all the details on how to make MACD become a useful tool for your trading.

Uses of MACD in forex trading
  • Analyze momentum and measure the strength of the trend
  • Identify divergences between MACD and price to signal potential market turning points
  • MACD cross-over used for giving entry and exit signals

i)                    Analyze momentum and measure the strength of the trend

When MACD is plotted on a price chart, its use becomes clearer. As earlier mentioned, the histograms give the difference between the 12 and the 26 exponential moving averages.

On the chart below, 12 (aqua) and 26 (red) exponential moving averages are drawn.  On the chart, it is evident that any time the distance of these two moving averages become longer, the histograms are also longer.

And, any time these two moving averages cross each other, the length of the associated histograms is zero.

As it is evident on the chart, when there is bullish momentum, MACD bars go above the zero level. And, when there is bearish momentum, MACD bars go below the zero level.

MACD is also very helpful in measuring the strength of the trend. The zero level of the MACD determines the trend of the market.

If MACD is above the zero level, then it indicates an uptrend. On the other hand, if MACD is below the zero level, then it indicates a downtrend.

Importantly, MACD can help you avoid placing trades against the trend. Since MACD is said to be a lagging indicator, when you spot a reversal signal in the market and you want to take a position against the trend, the indicator advises you otherwise.

Therefore, you can use MACD in forex trading to your advantage.

ii)                   Identify divergences

Divergences are one of the prominent and reliable trading signals that MACD generates. Divergences are seen by comparing price action and the movement of the MACD indicator.

In the forex market, price and momentum usually move hand in hand. Therefore, if price is making higher highs, then the indicator giving momentum ought also to be making higher highs.

On the other hand, if price is making lower lows, then the indicator ought also to be making lower lows.

And, if this is not the case, then it implies that the price and the indicator are diverging from one another. This is what is referred to as ‘divergence.’

MACD divergence is seen when either price makes higher highs and MACD bars make lower highs (bearish divergence) or when price is making lower lows and the bars are making higher lows (bullish divergence).

Here is the rule: price will ultimately follow the MACD direction and will reverse to the downside or the upside, based on whether the divergence is bearish or bullish.

Nonetheless, we have realized that it’s not easy to know when the reversal to the MACD direction will take place.

Therefore, if you are impatient and enter a sell order immediately you spot a bearish MACD divergence, then you can be in for a big shock, as price may continue rising by numerous more candlesticks.

As such, it is advisable you enter a sell order when MACD divergence is followed by a good confirmation such as a clear break of a major support level.

MACD divergence normally appears towards the end of up trends or downtrends. Thus, it signifies a weakening trend or an imminent trend reversal.

iii)                MACD cross-over

To illustrate this better, we will use another version of MACD (It does not come with the metatrader platform).

Since there are two moving averages with different speeds, the quicker one (fast moving average) will clearly respond to price action than the less quick one (slow moving average).

If a new trend takes place, the quick line will respond first and ultimately cross the slower line. And, if this “cross-over” takes place, the quick line starts to diverge or move away from the less quick one.

This is what depicts that a new trend has emerged.

From the chart above, it is evident that the fast moving average closed below the slow moving average to rightly identify a new downtrend.

And, when the lines crossed one another, the histogram temporarily disappears because the difference between the lines at that moment is zero.

As the downtrend starts and the fast moving average moves away from the slow moving average, the histogram starts getting bigger. Thereby, this indicates a strong trend.

Here is MACD cross-over:

Therefore, you can use MACD cross-over points to identify places of entry and exit in the market.

For example, in the example above, you could reap big pips if you placed a long order immediately after the cross-over.

Summary

Just like with the majority of technical indicators available out there, it is important that you use MACD as a secondary indicator when trading currencies.

You should not use MACD the same way you use primary technical indicators such as trend lines, chart patterns etc.

It is essential that you use MACD in forex trading only for confirming the signals that your primary indicators are giving.

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Forex industry is growing fast. People all over the world find forex trading worth spending since it offers easy and profitable trading options to make money with a little investment.

If you are interested in this currency trade, you will need a forex broker to start with. When the options are many, it can easily confuse new traders. In this article, we will discuss two popular brokers, ECN and STP.

ECN Brokers

ECN brokers provide a clear view of the other side of a trade. It will enable the traders to know other parties who are interested in their trade that might be money managers, commercial banks, funds, or institutional traders.

However, you will have to pay for this transparency. ECN brokers have big expenses. Also, even the best ECN brokers are unable to provide micro-lots to their customers.

If some broker is claiming to offer micro-lots, then be sure that he is not a true ECN broker. True ECN brokers work in some specific conditions. They can enable you to start trading with a minimum amount.

ECN brokers offer a marketplace to enable all the participants including banks, individual traders, and market markets to trade against each other.

The best ECN brokers show the highest bid with the lowest offer. They reveal the market condition using a data window to display the order size. They offer the best possible spread and they do not mark-up spreads. They make their money from fees and commissions.

Benefits

• Better spreads deriving from different sources

• Higher liquidity & direct market

• Since the order is passed to other participants of the industry, ECN brokers cannot trade against their clients

• No conflict of interests

• The trades will remain unidentified on an ECN platform. That will help traders to execute a transaction that reflects the real market condition. They will not be guided by any strategies.

• No spread mark-up

• The executions will be carried out and the confirmation will come immediately

Cons

• You need to pay high fixed commission for each and every transaction

• You need to make a big deposit to open your account and to start trading

• Variable spreads will make it difficult to calculate stop-loss levels

• The platform is not user-friendly

STP Brokers

They pass your orders directly to a counterparty that might be STP broker, market broker, or even an ECN broker. They charge commission and also make money from the spreads.

The key benefit is that you will get both variable and fixed spreads with STP brokers. Also, they can trade against their clients, unlike ECN brokers. STP brokers are generally considered transparent.

They offer faster and better filling of their clients’ orders. The best STP brokers provide access to liquidity and interbank market structure.

Benefits

• Fast order processing and quick execution

• The correct price of the currency pairs

• Automatic execution of orders

• Clients will have the freedom to avoid quotes

• Less risk in comparison to other types of brokers

• Provide live market trends

Cons

• Price can change within a few seconds

• Major conflict interest

ECN vs STP: Which One Is Better?

From the above discussion, you might have an idea about both these types of brokers. Both have positive sides and negative impacts.

Before choosing any of them, it is important to understand your budget and objective.

For example, if you want to start investing in forex trade with a restricted budget, it is better to choose STP. STP brokers do not charge a high amount to open an account or to start trading.

Similarly, if you have a flexible budget and you want a transparent platform, you can consider choosing ECN.

ECN will charge more to open an account. As they make money from commissions, they will charge a decent commission for every transaction. However, they offer a number of opportunities to make money from forex trading.

Trading with STP brokers like FBS Markets will be easy and fast with quick order execution. However, they will be the clash of interests as they can trade against their clients. ECN brokers are better.

They do not trade against their clients and make the process completely transparent. Also, it is hard to find a true ECN broker in the current condition. You can find the one that combines both ECN and STP.

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Forex Trading Big by Bigtrader - 2M ago

Click here to open a trading account with FXVC.

FXVC is an online CFDs trading platform that is owned and operated by a Cyprus Investment Firm (CIF) referred to as Central Spot Trading (Cyprus) Ltd. The parent company operates under the license number 238/14 issued by the Cyprus Securities Exchange Commission (CySEC).

FXVC is an online CFDs trading platform that is owned and operated by a Cyprus Investment Firm (CIF) referred to as Central Spot Trading (Cyprus) Ltd. The parent company operates under the license number 238/14 issued by the Cyprus Securities Exchange Commission (CySEC).

The broker head office is located at Lophitis Business Centre, Office 102, 249, 28th October Street, Limassol, 3035 Cyprus. FXVC was established in 2018 by a group of financial professionals.

This group believed that each clients of a brokerage firm should be valued and treated well. It is for this particular reason that FXVC strive to offer its clients with the highest level of customer support and services.

Security and regulation

The FXVC brand is managed and owned by a Cyprus Investment Firm (CIF) called Centralspot Trading (Cyprus) Ltd. As a CIF based in Cyprus, Centralspot is regulated by the Cyprus Securities Exchange Commission (CySEC).

This mean FXVC operates by the strict regulatory requirements imposed by CySEC. One such requirement is the need to have segregated accounts for the clients.

In addition, FXVC is also required to have regular audits by an impartial third party to ensure it has sufficient liquidity are all times to meet its contractual obligations.

As a CySEC regulated broker, FXVC is also MiFID compliant and is a member of the Investor Compensation Scheme. Under this scheme, your funds are covered up to a maximum of 20,000 euros  in the event FXVC becomes insolvent.

Trading Platforms

For the trading platform at FXVC, the broker offers a proprietary trading platform that is accessible using any web browser. The platform is also available as a mobile trading app which can be downloaded from Google PlayStore.

FXVC Broker Account Types

There are two types of accounts at FXVC: a demo account and a standard account.

Demo Account

The demo account lets prospective clients of FXVC to try out the services offered by the broker without having to risk any real money.

It also lets beginner traders to get a sense of how live trading can feels like. Because you only trade with virtual money as opposed to real money, the demo account can also be used to test new trading strategies.

Islamic Account

To meet the trading needs of muslim traders who wish to trade the markets in compliance with Sharia law that prohibits the charging of interest, FXVC has made available swap free accounts to them. A swap free account does not incur or earn any interest on overnight positions.

Standard Accounts

Standard trading accounts are live trading accounts which clients of FXVC must open and fund before they can start trading the financial markets. At FXVC, there are 5 different of live trading accounts. They consist of the Basic account, Silver account, Gold account, Platinum account and VIP account.

Live trading accounts

FXVC has different types of trading accounts to suit different category of traders.

1. Basic account

This type of account is geared towards novices and beginners. It has the lowest minimum deposit requirement which is 500 euros.

This type of account gives the account holder access to 305 different types of instruments. This account also comes with a Widget Analysis Alert.

2. Silver account

  • Minimum deposit 5000 euros
  • 305 tradable assets
  • Widget Analysis Alert
  • Forex Ebook + Videos
  • Daily/Weekly Market Review
  • Dedicated Client Relationship Manager
  • Email Analysis Research Alert
  • Personalized Trader’s Education
  • Chapter 1 – Terminologies

3. Gold account

  • Minimum deposit 10,000 euros
  • 305 tradable assets
  • Widget Analysis Alert
  • Forex Ebook & Videos
  • Daily/Weekly Market Review
  • Dedicated Client Relationship Manager
  • Email Analysis Research Alert
  • SMS Analysis Research Alert
  • Personalized Trader’s Education
  • Chapter 1 – Terminologies
  • Chapter 2 – How to use Trading Central Research

4. Platinum account

  • Minimum deposit 25,000 euros
  • 305 tradable assets
  • Widget Analysis Alert
  • Forex Ebook + Videos
  • Daily/Weekly Market Review
  • Dedicated Client Relationship Manager
  • Email Analysis Research Alert
  • SMS Analysis Research Alert
  • Personalized Trader’s Education
  • Chapter 1 – Terminologies
  • Chapter 2 – How to use Trading Central Research
  • Chapter 3 – Risk & Money Management Tool
  • Chapter 4 – Economic Calendar
  • Loyalty Store
  • Lower spreads

5. VIP account

  • Minimum deposit 100,000 euros
  • 305 tradable assets
  • Widget Analysis Alert
  • Forex Ebook + Videos
  • Daily/Weekly Market Review
  • Dedicated Client Relationship Agent
  • Email Analysis Research Alert
  • SMS Analysis Research Alert
  • Personalized Trader’s Education
  • Chapter 1 – Terminologies
  • Chapter 2 – How to use Trading Central Research
  • Chapter 3 – Risk & Money Management Tool
  • Chapter 4 – Economic Calendar
  • Chapter 5 – Time frame & Candlestick analysis
  • Chapter 6 – Support & Resistance Indicators
  • Chapter 7 – Price Patterns
  • Loyalty Store
  • Lower spreads
Deposit and withdrawal at FXVC

With FXVC, you have several options for making deposits and withdrawals. The available methods include the following:

  • Major Credit/Debit cards
  • Bank Wire Transfer
  • Electronic Fund Transfer
  • Skrill

The processing time for deposits is near instantaneous. Withdrawals on the other hand take around 1 business days to be processed and completed in a time frame ranging from 5 to 7 business days.

Education, customer support, and supported languages

Customer support at FXVC is top notch as the broker takes the welfare of its clients very seriously.

The support service is available in multiple languages and can be accessed through email, live chat and the telephone from Monday to Friday (5am to 5pm GMT time).

Other means of support at FXVC include a comprehensive trader’s education package and a FAQ page.

Advantages of FXVC Broker
  • Comprehensive Trader’s education
  • CySEC Regulated Broker
  • Dedicated Support
  • Wide range of trading assets
Disadvantages of FXVC Broker
  • Higher than normal minimum deposit requirement
  • No Support for MT4 trading platform
Conclusion

Our review of FXVC shows that the broker is a dependable broker for both beginners and experienced traders.

While the broker is fairly new, it is regulated and gives proper protection to its clients in terms of regulatory oversight as well as coverage under the Investor Compensation scheme.

Although FXVC does not support the MetaTrader 4 trading platform, its proprietary trading platform is more than sufficient to meet the needs of even the most experienced trader.

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The forex industry is dynamic and numerous changes have taken place in the market over time. And, two of the most recent developments are the MiFID II directive in 2017, which sought to regulate the levels of transparency to greater heights and the growth of cryptocurrency space.

The new directive is designed to influence and augment investor protection by ensuring increased transparency in trade assets such as fixed incomes, exchange-traded funds, equities and foreign exchange with the aim of tightening control over the forex industry.

The MiFID II directive of 2017 has forced some European traders to seek other businesses and trade offshore in jurisdictions that are less regulated. Those who were keen to continue offering services in Europe have had to adjust their businesses to match the set regulation requirements.

The cryptocurrency craze has been catching up, and in 2017 it gained ground pretty fast. More and more people have been venturing into the crypto world globally as the digital currency gains popularity.

Bitcoin and other cryptocurrencies have been more attractive to investors due to their volatility which enables the investors to anticipate extraordinary profits that are unlikely on other financial markets.

Digital platforms have been emerging over time enabling traders to conveniently offer their clients the opportunity to grow their investments in the crypto world.

Incorporation of Cryptocurrency into the Forex Industry

The innovative blockchain technology has led to several changes in the financial markets—similar to the way Netflix changed the film industry and social media disrupted the internet.

Cryptocurrency experts refer to it as the “digital gold” and believe that the technology will change the course of business in the next 5 to 10 years. The Blockchain refers to an incorruptible ledger that exists in the digital space to improve transactions between parties in the financial world as a result of enhanced trading conditions.

The blockchain is not limited to the financial sector. As much as the technology is helpful in the forex industry, it is embraced in various sectors of the economy, from health to the legal sector, to the environmental industry, and so on.

Cryptocurrencies are popularly used as a short-term means of payment and are useful instruments for simplifying Know Your Client (KYC) on one hand and curbing Money Laundering on the other.

For example, the European Legal framework seeks to incorporate cryptocurrencies in their system to maximize the benefits of digital currencies and enlarge the list of instruments available for investment portfolios.

Present-Day Trends in the Forex Market

Investors have been embracing more civilized trading recently, forcing small brokerage firms operating under quasi-legal schemes to close shop.

Traders are now concerned with the types of products and services availed to clients and proprietary technologies used by companies as opposed to earlier trends where they were more interested in the bonuses and the number of rebates offered by a company.

In recent times, the web tunnel has made it possible for trading to take place in different markets after multi-asset cloud platforms were cropped up.

The blockchain technology has made it possible for investors to track information as traders share results of trading signals and trading charts.

This has led to the increase in social trading services enabling inexperienced businessmen or new entrants into the forex market to trade and achieve similar results to experienced traders.

The use of algorithmic trading in the forex market has also enabled unskilled traders in the programming field to develop their own trading robots, controlling the technical aspects of forex trading and automating routine activities.

Forex in 2018 and Beyond

The European forex market has room for expansion now that the numerous brokers who had been operating under quasi-legal systems have been faced out to offshore jurisdictions.

Thanks to the new MiFID II, consolidation of market players and improved transparency have made the forex market more attractive to clients with high expectations of a stronger financial space.

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Successful forex trading is all about developing disciplined trading habits and having a trader mentality rather than a gambler mentality.

Most people who engage in currency trading expect instant rewards and have dreams of becoming overnight millionaires.

The truth of the matter is, most successful traders had to work very hard over a long period of time to achieve their goals.

They suffered losses along the way and learnt from them. There are some essential steps one has to take to become a disciplined forex trader.

Have a Plan

To achieve success in forex trading, the first logical step would be to develop a good trading strategy and to follow it.

Having the discipline to follow up on a working trading plan is the surest way to build your trading career and make consistent profits over the long term.

Trading plans in online forex trading typically involve meticulously conducting fundamental analysis and technical analysis.

This means the trader has to be able to read and interpret price movements on trading charts. The trader also has to be adept at translating technical indicators and identifying ideal trading positions.

A good trading plan should be one that resonates well with your personal trading style and habits. Every trader should try and develop a trading plan that uses simple methodology.

Some features of a great trading plan include clear trade exit points for taking profits and controlling incurred losses, auto adjustments to fundamental trends, logical points for trade entry, and controllable money management.

Control Your Emotions

Emotions are the worst enemy for online forex trading as they make the trader lose focus and make decisions based on other factors rather than clear-cut logical facts.

Forex discipline can only be attained by traders who have learnt to rein in their emotions and keep them in check.

The negative emotions that affect most traders include fear, anxiety, confusion, and panic.

These emotions are usually most evident when the trader is in the middle of a losing trade. Such losing positions make traders lose confidence in their decisions and ultimately end up veering off their plan when they let emotions overwhelm them.

Another emotion that negatively impacts on forex traders is greed. Greed usually rears its ugly head when the trader is in the middle of a winning trade. The forex trader feels compelled to maximize on profits and thus ends up holding on too long to the trade.

Aside from holding on to the trade, a trader may initially stick to the plan and close a trade profitably according to plan.

Then greed takes over when the trader sees the trade continuing to gain and the trader re-enters the trade hoping to make even bigger profits. This might end up resulting in a loss of profits previously gained.

Acquire Good Trading Habits

Good trading habits lead to overall trading discipline and long term profits. Such good trading habits include setting realistic targets, developing and sticking to working trading strategies, avoiding over trading, and proper timing of trade entry and exit points.

Be Realistic

Most novice traders enter the fx exchange field with dreams of making it big in a short period. They dream of leaving their tiresome day jobs and working comfortably from their computers for a few hours daily or weekly and making a killing.

This is an over-simplistic and unrealistic ambition that is unfortunately never realized. One thing a trader should know from the very beginning is that trading successfully involves hard work, determination, discipline, and a lot of learning.

The reality is that you will invest your money and most likely, your first few months of learning how to trade profitably will involve suffering a few losses.

A good trader will keep this is mind and accept the losses while learning from them. Profitable trades will make the disciplined trader record the trade and try to emulate that in future trades.

Being realistic means you will set practicable and achievable goals which will grow with time. For instance, if you start out with a $1,000 investment and open an account with a forex broker in Australia, you should realize that it will not turn into $10,000 within a week.

You may make modest profits of about $200 per week and as you re-invest your gains you enjoy bigger profits over time.

Keep a Trading Ledger

The best way to maintain discipline as a forex trader is to monitor all your trading moves. A well disciplined trader will keep a journal and make regular entries on all trades entered and exited.

It is not enough to just record your trades in a journal; you should constantly review them and use the mistakes and successes to learn how to trade more profitably. A well kept trading journal is also the number one tool you will use to develop a great working strategy that will work for you.

Keeping a journal lets you see the big picture and makes you less prone to impulse trades, which are based on emotions rather than facts.

Keep To a Trading Timetable

Once a trader makes $500 on a 30-minute trade, they may end up thinking of trading 24 hours a day to chase the potential of making much more money per day.

This is a wrong approach that may lead to burnout and bad decisions. A wise trader will choose regular trading times which are optimal for their individual trading styles.

A good timetable may involve choosing times when forex trade is at its peak. These are periods of high trade activities and high liquidity in the forex market.

Practice

One of the best ways to learn and gain experience in currency trading online is to extensively use a demo account. This will help you gain perspective when you eventually start trading on a live account.

It will also help you learn how to handle your emotions. A good way to avoid having emotional trades is to learn to walk away and resume trading when you are more focused.

Summary

If you want to become a forex trader, the number one skill you need to acquire is forex trading discipline. Always remember to avoid letting emotions dictate your trading habits and decisions.

For the best long term results, make a comprehensive trading strategy and strictly follow it.

Keeping a trading ledger shows you the history of your trades and you can use the entries for back testing and improving on your strategy.

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Many traders on the retail side of the market do not understand the instruments that they trade.

So an article such as this is very apt, as it will explain the similarities and differences between forex and CFDs.

What is Forex?

Forex stands for foreign currencies. Therefore, forex assets are usually currencies of various countries that are listed for trading either in the interbank market or on the OTC market.

Forex trading involves the buying and selling of these currencies with the aim of profiting from the change in the rates of exchange between two currencies that are paired together.

What is used as the measure of profit or loss is the change in the exchange rate between currency 1 and currency 2, found in the pair. Forex assets are always traded in pairs.

What Are CFDs?

CFDs are also known as Contracts for Difference. A CFD is a derivative trade contract that allows traders to speculate on differences in prices of fast moving assets in various global markets.

By definition, assets listed as CFDs are spread across various markets such as stocks, bonds, commodities and indices.

So what are the similarities and differences between forex and CFDs?

Similarities Between Forex and CFDs

1. Leverage

Both forex and CFD trading are leveraged trading activities. This means that it is possible to open positions which are larger than the trader’s capital can ordinarily carry.

This is because of the extra capital that is provided by the brokers in the form of leverage for every trade that is executed on a forex or CFD platform.

2. Regulation

Both the forex and CFD markets are well-regulated markets, governed by rules and regulations passed down by either government-owned regulatory agencies, or industry self-regulating agencies.

This makes these markets generally safe for investors to participate in.

3. Charting and Software

There are lots of brokers who offer both forex and CFD trading, using similar charting packages and software. This makes it easy to trade both markets using the same software, perform the same sort of chart analysis as well as use similar add-on software such as expert advisors and virtual private servers (VPS) made for trading purposes.

4. Price Quotation System

Prices of forex and CFD assets are quoted with a two-price quotation system: prices are quoted with a bid and ask price. Therefore, short trades are executed using the bid price, and long trades are executed at the ask price.

5. Trade Size Calculation

Sizes of trades as well as price movements are done in the same way for both forex and CFD assets. What does this imply?

This means that trade sizes are measured in lots, and price movements are measured in pips, whether you are trading the EUR/USD or crude oil.

Differences Between Forex and CFDs

The following differences exist between forex and CFDs.

1. Pairing of Assets

All forex trades involve the pairing of two currencies. This is because a currency is exchanged for another in a forex transaction at a given rate. Therefore, it is not possible to trade a currency by itself: it must be traded in a pairing with another currency.

CFD assets are single, stand-alone assets which not traded in pairs. A CFD asset is a single entity, and profits or losses are calculated on the basis of a change in the price of that asset with time.

2. Interbank Trading

Forex can be traded on the interbank market as well as the OTC market. What does this mean? Interbank trading of forex occurs at the level of the big banks, acting as liquidity providers that sell forex assets to either brokers or high-end customers. The brokers who act as market makers then re-sell the forex assets to low-end customers using their dealing desks.

CFD trading is not done at the level of the interbank market, but solely at the level of the broker’s dealing desk. Traders who trade CFDs obtain their pricing from the broker’s dealing desk, which is also where the trade executions are handled.

3. Leverage/Margin Requirements

Even though these markets are both leveraged markets, the degree of leverage available for trading forex varies with that required for trading CFDs.

Generally speaking, leverage provided for forex trading by brokers is higher, and the margin required lower than for CFD trading. It is typical to get leverage of up to 1:100 for forex trading, but leverage for CFD trading is usually capped at 1:20 (sometimes 1:50).

4. Contract Expiration

The CFDs market features several assets, whose underlying instruments have contract expirations.

What this means is that any open positions on certain CFD assets will automatically be closed once the contract expires, and the trade settled in profit or loss, depending on the settlement price.

Forex spot contracts do not expire. A trader can hold a forex position open for as long as is desired.

5. Trade Types

Trading forex can only be done by buying or selling a currency pair; your profits depend on whether the movement of the currency pair are in your chosen direction.

In CFDs, you can make money from other ways apart from just buying and selling an asset. For those who do not like to be constrained to doing the same thing over and over again, the other trade types found in CFDs provide an alternative way of going about trading business.

Conclusion

These are the similarities and differences between forex and CFDs. It is important to understand these differences so as to be able to use them to your trading advantage.

For instance, a knowledge of the contract expirations that are only obtainable with CFD assets will help swing and position traders understand how and when to close their positions.

Know your trading instruments, and how similar or different they are.

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When a trader enters forex trading, they make a lot of mistakes before getting on the right track. These very mistakes can make or break you.

To make sure your career doesn’t die because of a simple error, we are naming some common mistakes that end up killing trading careers.

Paying Too Much Attention to the Trends

It is good to tune into the latest trends and developments, but if you focus too much on the news and what other traders see, you won’t make an impact. In order to be successful, you have to find a strategy that works for you. Perform your own analysis and find something you feel confident in.

No one knows what the market will do next. So it will be better if you focus on what you know, what you tried and tested. Find something that works for you.

Don’t let the crowd make you lose direction. There will be news stories every hour; you can’t follow everyone.

For example, following current trends of British pound is smart, but if you log into every British Pound sterling GBP news outlook and forecast you will lose track of other currencies. This may kill your career.

Moreover, the news isn’t always trustworthy, and you can’t map your whole plan around it. Don’t make this news and trends the only key component of drafting a plan. Have confidence in your own analysis and strategy.

Lack of Planning

When you fail to plan, you plan to fail. This is most true in forex trading. Most beginners don’t have a plan when starting out.  Without a clear vision, you put your goals at risk. You start trading with your emotions instead of analysis.

This is a recipe for disaster. Don’t be over-optimistic because you will lose hope after continuous failures, especially when starting your forex career. So, do your homework and come up with a plan.

Once you made a plan, make sure you stick with it. Another common problem starters have they are not disciplined enough to follow it.

Lack of disciple gets you in trouble because you let your emotions take over. This is a common mistake which makes your loss exceeds your gains.

Over Doing Things

A word of advice before you enter the Forex Market, never risk more than you can afford to lose with a single trade.  Beginners believe everything they will touch will turn to gold. This is the reason they overtrade their account size or use too much leverage.

The pioneers never risk more than 1-2% of their equity with a single trade.

High stake trading doesn’t always work. If you take a huge risk, you will end up losing your market. Even if your reasons are good, high stake trade makes you run out of business.

Not Cutting Loses

To Win, you need to place calculated trades and control yours loses. Using 1-2% of your equity is an effective way to keep yourself from running out of business.

Don’t enter too manage trades to average down because the market will work against you. This way, you will still get wiped out.

If you want to bet higher, risk 6-10% of your equity. If you invest heavily, your equity gets a high exposure, and the risk of losing is mitigated.

So instead of risking one major risk, create a diversified portfolio of investment. Limit the risk with diversification and low exposure to a particular market.

Failing to Bank Gains

One of the worst ways to make money with Forex trading is holding out for too long. If you do this, your once prolific trade will lose value. So, bank the profit once your target is achieved. To improve your chances of success, learn more about trail stops.

Trail Stopping is when a stop loss automatically follows the price movement by a set number of pips and percentage of gains.

As the price gets higher, so does the stop. When you close half of position, the trailing stop allows a better return, especially in a strong market before the reversal.

Averaging Down Too Often

You need to make your mind how much you want to risk on a trade and stick with your plan. If you don’t have much experience with forex trading, you will fall to the temptation to buy or sell more when a trade goes south.

This averages your loss. If the market turns around, it means you can control the loss or leave with a profit.

The issue with this approach is once you double a losing trade, you lose control of your money, and the results are devastating.  To prepare yourself better, you must try Metatrader 5 mobile & web platform for demo & real account.

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ZuluTrade is a social trading platform that links investors and signal providers.

Signal providers are traders who have proved to be consistently profitable over a given period of time.

Leon Yohai is the creator of ZuluTrade and he registered it in 2007.

The thought behind ZuluTrade is to offer a platform in which traders globally can interact, share knowledge and connect their trading platforms.

Click here to open an account with ZuluTrade.

Here is an unbiased ZuluTrade review.

Account Registration

Registration for a ZuluTrade account is free and traders have the option to either create a new account or to link an already existing trading account provided by other brokers.

ZuluTrade offers demo accounts which traders can utilize to experiment in different settings and trade with zero risks.

As soon as a trader or investor has identified a combination that suits their needs then they can proceed and open or link a live account.

Registering a live account is simple and straightforward. Upon visiting the ZuluTrade website, you shall click on the registration button.

Once you click and select the live account option, you will then select a supported broker from the list that you shall be provided.

Upon registration with the broker and funding your account, ZuluTrade will send your ZuluTrade account credentials to the registered email within 2 to 3 days.

Traders and investors have the option of linking their already existing accounts to ZuluTrade as long as the broker is supported by ZuluTrade.

It is important to note ZuluTrade supports more than 50 different brokers so there is a high chance that your broker is among those that are supported.

You can know if your broker account has been correctly linked to your ZuluTrade account by scrolling to the broker account setting tab and checking the account connection status; connected to broker means that the link has been properly done while disconnected means that the two platforms have not been properly linked.

If disconnected, simply enter your broker account numbers and broker MT4 master password and click connect.

List of ZuluTrade Supported Brokers
  • Triple A Experts
  • FXDD
  • Dukascopy
  • ADS Securities
  • USG
  • Traders Trust
  • Matador Prime
  • Start FX
  • Top Forex
  • Phnom Penh Securities
  • AETOS Capital Group
  • IC Markets
  • Alfa Forex
  • FXOpen
  • InterTrader
  • AxiTrader
  • InstaForex
  • Fidelis Capital Markets
  • GDMFX
  • ITRADER
  • MFX
  • Forex24
  • NPBFX
  • Titan FX
  • Finpro
  • SystemForex
  • Pepperstone
  • FXCM0
  • Swissquote Bank
  • Land-FX
  • Vantage FX
  • FirewoodFX
  • PlatinaFx
Account Types

Traders or investors have two main live account types which are:

  • Classic accounts
  • Profit-sharing accounts

Classic accounts

Under this trading account, a trader has the ability to perform both copy trading and manual trades.

Traders will have the ability to create a portfolio, customize portfolio settings, close trades, update trading signals and customize advanced features.

Profit-sharing accounts

This account type is suitable for those seeking to utilize the copy trading feature only.

A trader or investor will simply identify a top performing signal provider, set up a fund protection amount and let the copy trading run.

In profit sharing accounts, a monthly performance fee of 20% is charged on all profits generated on your account.

ZuluTrade utilizes a system called High Water Mark (HWM) to calculate the amount of chargeable profit.

In other words, the performance fee will only be charged when profits exceed the monthly predetermined HWM level.

The fee WILL NOT be charged when losses have been made and when profits are below the predetermined HWM level.

Portfolio Settings

On the ZuluTrade platform, the portfolio settings allows you to view a brief description of the signal provider’s information such as ZuluRank, profits, trades, percentage winning trades, etc.

Also, it gives the trader or investor the ability to set settings in regards to the traders (signal providers) you are following.

The portfolio settings tab resembles the picture below.

Under this tab, a trader or investor will be able to setup:

  1. Risk meter bar; this sets the degree of capital that will be used in trades and is shown in percentage form. A higher percentage signifies a higher degree of risk.
  2. Choose your signal providers or traders; choosing traders will enable the auto trade feature and trades will be automatically copied in accordance to the signal providers’ trades.
  3. Activating ZuluGuard. ZuluGuard is a security feature that protects the investors’ capital. It works by monitoring the signal provider’s behavior and whenever a radical change occurs, ZuluGuard can either close all open trades under that trader, disable the trader or request you to replace the trader with a higher ranked trader.
Account settings

On the ZuluTrade platform, under the account settings section, an investor or trader has the ability to custom set settings in accordance to his or her preference.

Here is an image of the the account settings section.

Some of the important settings are:

  • Maximum open lots; this setting lets you set the maximum number of cumulative lots a signal provider can place in your account at one given time. You also have the option of selecting “no limits”.
  • Maximum open trades or currency; this lets you set the maximum number of open trades of a specific currency pair.
  • Limit and Safe limit; limit setting gives you the ability to set limits in terms of pips while the safe limit option compares your own personal limit to that set by the signal provider and the system automatically works with the lowest or safest limit.
  • Trailing Stop; this setting lets you set a trailing stop for specific traders. Trailing stops do not need physical monitoring of the trades and once set, the stop loss levels will automatically be adjusted in accordance with your setting.
  • Conditional Stop; this is a type of trailing stop loss that is normally activated when some certain conditions are met. For instance, you can set a trailing stop to be activated only when a trade is in a profit of 50 pips.
  • Safe Stop; this option lets the system compare your stop loss levels including trailing stops with that of the signal provider and the system selects the lowest level. Example, if your stop loss is set at 50 pips and the signal provider’s stop loss is set at 25, the system will use 25 because it is lower.
Advantages of Using ZuluTrade
  1. Availability of a demo account allows traders and investors to test out signal providers without risking their own money.
  2. A wide variety of signal providers to pick from.
  3. Fair pricing- you’re only charged when you’re profitable.
  4. Availability of many regulated brokers.
  5. Ability to follow both forex and binary options signals.
  6. Availability of advanced risk management features.
Disadvantages of ZuluTrade
  1. Due to the fact that there are several signal providers available, it will take some research and time to get a signal provider that you’re comfortable with.
  2. Finding the right money management settings can be intimidating especially for novice traders.
Conclusion

As this ZuluTrade review has revealed, the company has given investors an opportunity to earn returns from the forex market without the need of being professional traders.

The advanced risk management and money management features make it easy for investors to set limits in regard to the amount of capital they have.

Since ZuluTrade is a social trading platform, novice traders have the opportunity to communicate with professional signal providers. By doing so, they get an opportunity to learn.

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