How Can I Select A Trusted Broker For Forex Trading? - FinanceWhile

How Can I Select A Trusted Broker For Forex Trading? - FinanceWhile
Everything you ought to know about forex trading in Japan - AZ Big Media
Which Forex Pairs to Trade - Day Trading and Swing Trading - TheStreet

Posted: 23 Apr 2020 09:41 PM PDT

The most significant part of forex trading is choosing the right broker. Despite having excellent trading strategies, and fine trading capital, the forex trading can still fail if the forex broker is not up to the standards. Find out the factors that you need to take into careful consideration while choosing the forex broker.

Factors to consider for choosing trustworthy broker for forex trading:

1. Check your needs first

Assess your trading needs before venturing out to select the forex broker. Here are some of the pointers:

Do you seek to take part in a lot of day trading or not?
Do you seek to trade with smaller moves or make significant trading moves?

If you take part in a lot of day trading and make small trading moves, then consider selecting an ECN forex broker. Make the payment of the commission of trades and ensure that the spreads are tight when forex trading with smaller moves. However, there are other alternatives too apart from ECN forex brokers. Choose an account and a forex broker that suits your capital. The various forex brokers offer different modes of withdrawing and depositing funds into the account. Make sure that the forex broker aligns with your trading preferences.

2. Check everything that the broker is offering

Jot down your trading preferences and then check out everything that the forex broker has on offer. Here are a few pointers on what factors to check for regarding the broker's offers.

If you want to take part in day trading, then make sure that the online forex broker is available for direct interaction. Do not choose a forex broker with a trading desk, as that wastes precious time and trading opportunities when it comes to day trading.
Make sure that the online forex broker complies with the official financial regulations of the country. Check if the broker adheres to the regulations of the US, Canada, the UK, Australia, New Zealand, and Japan for secure trading in the forex market.
Place a demand for competitive spreads if you are a day trader.
Find a forex broker who is always available at any hour of need. If you find a few brokers who seem almost equally interesting, then open demo accounts with all of them. Take note of the response and skill of the broker and then select accordingly.

3. Check the reviews

If you are doing thorough research about different forex brokers, then make sure that you read the online reviews. Make sure that you read reviews only from credible sources of information. Do not visit phony websites and make decisions based on fake reviews. Several traders tend to incur heavy losses after choosing online forex brokers based on fishy positive reviews. Look up the reviews on authentic websites and forums and be careful while choosing the forex brokers. Conduct demo trading at the forex market before taking part in live trading through the broker.

4. Check the broker personally

By now, you must have narrowed down on a small list of potential forex brokers. But there is too much information still left to be processed and false information to be filtered out, so take your time before making a final decision. Run a test on every forex broker that you have selected. Here is what you have to do:

Open a demo trading account with every forex broker on your list. Take note of the market conditions. Place your orders and check if the orders are being executed in an instant. The platform should be stable, and the spreads tight.

Run the demo test for a few weeks to see if it works well consistently. Now open a live trading account with a portion of your capital to conduct trading through the forex brokers. Test out the forex brokers with live trading as well, to take note of the customer service and response. Initiate withdrawals, too, despite the cost, as it is important to assess the ease of withdrawal. Select the broker who fairs in every test with flying colors most affordably.

5. Avoid the bonuses and schemes

The bonus offers may seem attractive, but then most of the forex brokers who offer bonus offers and schemes turn out to be phony in the end. There is nothing available for free, and what you get as the offer will be deducted as hidden charges or extra costs. To avoid falling prey to such tactics, send an email to the forex broker, clearly stating that you do not want any such offer. Agree to trade only after the forex broker acknowledges your condition.

Do thorough research before choosing the right from the top forex brokers. Consider every factor carefully and take your time with the demo trading and testing before finally settling on the right forex broker.

Everything you ought to know about forex trading in Japan - AZ Big Media

Posted: 08 Apr 2020 12:00 AM PDT

The beauty of online trading is that you can venture into trading in various countries. It's often a unique opportunity to interact with a vast array of foreign brokers, different trading currencies, among others. One of the investment opportunities that you ought to grab includes forex trading in Japan. Are you enthusiastic about the opportunity but don't know where to start? Here's everything you ought to know about forex trading in Japan.

Find an ideal broker

Are you willing to try out trading in bonds, stocks, or any other financial instrument in Japan? First and foremost, you ought to find an ideal and legitimate broker. You can either choose a japan based broker or a foreign broker with access to the Japanese stock exchange markets.

The advantage of seeking brokers is to enjoy higher leverage, negative balance protection, and bonuses, among other perks. However, you need not choose any broker blindly. You ought to conduct in-depth research to ensure that the broker in question has the ideal access to the Japanese stock exchange.

The drivers of the Japanese currency

Which engaging in any foreign exchange trading, you ought to be quite familiar with some theories in place. It's best to know about the interest rate parity, balance of payments, purchasing power as well as the fisher's effect, among others. It'll enable you to get ready to trade in the real market. However, that's not all, and you ought to know the primary economic data in play as well.

When it comes to exchanging the yen, you ought to know about the current employment rate. Interest rates, daily net flow, governmental policies, among other nitty-gritty details. It's also essential to have in-depth information on trading tools to enable you to power through the trading markets. You can check out various websites, including ForexNihon.com, to prepare for what lies ahead in the forex exchange markets.

The great investment opportunity

If you are seeking to enhance your income, it's time to try out the real deal. Most people shy away from forex markets due to the potential risks it possesses.

However, that's where the fun and room for growth lies. It's best to be rational and quite prepared while entering the forex trading markets. It'll enable you to enjoy a great wealth-building change in your life. The best way to achieve this is by debunking all the fallacies and avoid all mistakes that unsuccessful traders keep making each time. With the right surefire trading strategies, you can become a powerful forex trader.

By setting realistic expectations, you get to refocus on looking at powerful investment methods that work for you. You also need to compose yourself and let no one intimidate you in forex trading as anyone can become a great investor.

Forex trading in Japan is an excellent chance to participate in one of the largest stoke exchange globally. Thus, you ought to ensure you equip yourself with the ideal trading tools as well as strategies to suffice the market. It's best to have a look at various sites, including ForexNihon.com, to have profound knowledge to become the best forex trader there is.

Which Forex Pairs to Trade - Day Trading and Swing Trading - TheStreet

Posted: 24 Apr 2020 11:08 AM PDT

Which pairs you opt to day trade or swing trade will depend on your trading style. We'll talk a bit about that, and then discuss which forex pairs to trade.

Main Takeaway Points

1-minute chart day traders, focus on trading one pair well, like the EURUSD. If it is really quiet for an extended period, consider trading the GBPUSD, but only trade one pair at a time.

Day traders trading 5-minute or higher charts, or that use partially or fully automated strategies, trading more than one pair is acceptable.

Swing traders, consider looking through multiple pairs. Each trade lasts longer, so there is lots of time to look through charts and find other trading opportunities. Pairs to consider are laid out in the chart below.

There is no reason to overwhelm yourself. It is better to trade really well on the trades taken, than to take too many trades or try to analyze too much and trade poorly.

Whenever trading more than one pair at once, be aware of correlation! Highly correlated trades increase risk, while inversely correlated trades may reduce profit potential.

Which Forex Pairs to Trade and Trading Style

The less time a trade lasts, the more attention that strategy requires. A day trade that lasts 3 or 4 minutes requires steady focus. That trade will be exited and there may be another opportunity, or possibly the exit requires a manual action on the part of the trader.
If trades last a few days, there isn't a lot to do while that trade is happening. The trader may look for more trades, but this may only take 20 minutes a day, and then the work is mostly done on that trade for the next several hours or days.

Next, we need to consider if the trader actively manages the positions, or if they set stop losses and profits targets and then leaves the trade alone. Actively managing a trade—determining when to exit in real-time—takes a lot more focus than setting a stop loss and profit target and walking away.

All these things can be boiled down to a few guidelines:

Shorter time frames and active management require more focus. This typically means the trader is better off focusing on one, and no more than several, currency pairs. Due to the short time frame of trades, these pairs should be enough to provide lots of trading opportunities.

Longer time frames, and not a lot of active management, means more currency pairs can be traded, and may be required in order to find enough trading opportunities.

These are not hard and fast rules, but just some guidelines to consider.

Which Pairs to Day Trade and Actively Manage

When day trading a 1-minute chart, focus on trading one pair well. There are enough opportunities in a few-hour period to make money. Trying to trade more than one pair will likely spread our focus too thin, and we may end up missing some trades as we try to jump back and forth between multiple charts.

For day trading, I recommend trading the EURUSD. It is the most heavily traded currency pair in the world and typically has the lowest spread (a trading cost). Occasionally the EURUSD will be moving very little, not providing a lot of opportunities. The GBPUSD usually moves a little more than the EURUSD, so in such cases, the GBPUSD could be day traded instead of the EURUSD.

Day traders using a 5-, 10-, or 15-minute chart, if you are conformable and feel you have enough time to monitor multiple charts and trades, that should be fine. Just don't overwhelm yourself. The same goes for day traders with partially or fully automated strategies. Trade more pairs, if desired, since the automation means there are fewer tasks you need to manage.

For swing traders that actively manage trades, it is better to trade those positions well. Maintain focus rather than try to juggle too much at the same time. Trade any pairs from the chart below, but don't overextend yourself by trying to trade too many, or even looking at too many. It's best to focus on a few pairs from the first column

Ideally, if trading multiple pairs at the same time, those positions should uncorrelated.

Which Pairs to Swing Trade or When Trades Require Little Attention

With swing trading, typically we can look through more charts to find trading opportunities. Trades based on hourly, 4-hour, or daily charts don't need our attention every second. The charts aren't changing much from minute-minute, so we can set our trades and usually leave them for hours at a time. This allows us to maintain focus when we need it, even when analyzing multiple pairs or managing multiple positions.

If new to trading, start by looking through the currency pairs in the first column of the list below. These are commonly traded pairs involving major global currencies. They will provide lots of opportunities.

If you have the time, and you are trading the pairs in the first column well and according to plan, consider looking through the second column. The second column pairs are still composed of major global currencies. Only add in more currencies if you are profitable trading the first column. If you can't trade a few currencies well, adding in more likely won't help.

More experienced traders, especially with systematic strategies, may want to take as many trades as they can find. They are comfortable managing multiple positions and will typically have stop-loss orders and profit targets placed so they don't need to micro-manage each position. These traders could look for trades in the third column as well.

The third column has pairs that include has non-major currencies. These pairs tend to be more thinly traded and thus tend to have larger spreads. They may also have pip values that are very different than what we typically see in columns one and two. Therefore, only add these pairs in if you can comfortably adjust position size based on varying pip values, spreads, and volatility.

Ideally, if trading multiple pairs at the same time, those positions should uncorrelated.

Quality over Quantity

We can run into traps no matter what we do. If we only look at one chart, or a few, but we don't see a trading opportunity, we may convince ourselves to take a trade anyway. We tell ourselves a low-quality trade still has a chance of boosting our account value. Maybe a few times we get lucky, but over many poor quality trades, we lose.

Similarly, looking through too many charts can make us feel that there are trades in all them of, instead of comparing the charts to see which one or two offers the best opportunity.

Or possibly, looking through too many charts makes us feel frozen! There are so many options that we can't decide.

So there is no perfect answer on which pairs to trade. Our trading styles and personalities can complicate things.

The ultimate goal is to be honest with ourselves, and no matter what, put ourselves in the best position to take quality trades. For some people that will mean limiting the number of pairs they look at. For others, it will mean looking at lots of pairs.

Consider your trading style, the length of your trades, how much time you need to put into each trade. Then, during a weekend when there are no trades to distract you, come up with a plan of action that works best for YOU.

Write down which pairs you are allowed to trade in your trading plan—a written document that outlines how you trade.

By Cory Mitchell, CMT @corymitc

Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.

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