Perth Stockbrokers: How to start trading forex and earn stably?

It is necessary to realize that every trader can never be profitable in the long run, it is given by the very principle of trading. If you want to open a shop, someone else has to create a shop against you. You sell, someone else buys, and vice versa. If you earn, the other party loses money and vice versa. There is also a broker between you and against the party, who takes a commission from each trade.

So it follows that in order to be profitable in the long run, you have to be better than other traders. It's not, but it's completely true. Not everyone trades in forex just with the prospect of profit from a change in the exchange rate. In the forex market, institutions and individuals buy and sell currency for their own use (eg foreign trade), which plays in your favor.

Perth Stockbrokers: How to make a stable profit on forex?

First of all, it is necessary to understand why they set course changes, when they occur and how to predict them. The forex market works just like any other market, someone buys, someone sells. With increasing supply, the price decreases and with increasing demand, the price increases. I will give a very simplified example to explain the principle:

When do courses change?

Constantly. In a short time (several days), however, changes in exchange rates are not significant, of course, unless there is a significant event such as intervention by the CNB, Brexit, election of the US President, etc. For example This is one of the reasons why leverage is used, because otherwise it would be almost impossible for the average person to make significant money on exchange rate changes.

How to correctly predict exchange rate changes?

Basically, we have three options. The first option is fundamental analysis, which is mainly based on monitoring economic news. Economic news informs us of an event that may affect the development of the economy of a given state and thus affect exchange rates.

An economic report can be, for example: Brexit, the election of the President of the USA, but also the announcement of unemployment, the rate of inflation, the rise / fall of debt, etc. You can follow all these reports in the economic calendar.

The second option is technical analysis. The task of technical analysis is to predict the future development of the course on the basis of historical data plotted in the graph. Charts are based on price, volume, time and volatility.

The third option is a combination of both methods. In my experience, this option brings the best results.

How to start profitable forex trading?

Did you understand the principle of forex trading as I explained above and now you want to take the next step? Although you probably don't know much about forex yet, I recommend you set up a demo account.

Demo account allows you to track exchange rate movements and better understand the market. Understanding the market is one of the key capabilities of profitable traders. In addition, you can devise and test different strategies without the risk of losing your own money.

Create a demo account and train

Nowadays, almost every forex CFD broker offers a demo version. The demo account is also used by advanced traders to test new strategies. The principle of the demo is absolutely simple, the perth stockbrokers will allow you to trade virtual money on its trading platform completely free of charge. If you are successful, you can deposit your own money with the broker. 76.4% of retail CFD accounts lose money.

Try different strategies and try to come up with your own

Strategies can be based on fundamental analysis, technical analysis, or both. If your strategy uses technical analysis, then your trading system can be:

* Completely manual - you are looking for situations where you open / close a trade and then you enter orders manually. The advantage is that you have full control over the opening / closing of the trade, the disadvantage is that you have to monitor the development of the market in the chart, which is quite time consuming.
* Semi - automatic - you will program a system that will alert you in case of certain market developments. Such systems save time, but you must at least know the basics of programming. Another advantage is that you have full control over the opening / closing of the store.
* Automatic - a fully automated system runs completely alone without further intervention by the dealer, in general, automatic systems are not as successful as manual or semi-automatic systems, because they are deprived of the trader's judgment. The advantage is time-saving, there is no need for intervention from outside, the disadvantage is more demanding programming and the impossibility of intervention of the trader to open / close the store.

What to look out for

The market is affected by several factors that you need to know about before you start trading.

* The announcement of economic reports affects the development of exchange rates of currency pairs, you can follow economic reports in the economic calendar.
* Opening / closing of stock exchange - various currency exchanges open and close during the day and unexpected exchange rate fluctuations may occur.

Money management
Risk management, or money management, must be an integral part of any successful strategy. The principle is absolutely simple, you only put as much money into individual transactions as you can afford to lose without the loss affecting you in the long run. We deal with this topic in detail in the article Money management, I recommend you read it.

Perth Brokers
512 Hay Street, Subiaco Western Australia 6008