Forex Software: What is a Forex Brokers List?

There is a good chance that a forex brokers list is included with certain types of web-based or downloadable forex trading software you may use. The goal of providing this information is to help you make as educated of a decision about trading as possible.

A brokers list helps you make a decision about who would be the best possible firm with which to conduct your forex trading business. It helps you make a decision regarding who to conduct business with based on a variety of attributes.

Information that you can obtain from broker’s lists include as follows:

  • You might be able to find out whether they offer live customer service help or not. You should only deal with firms that are happy to help you when you need it.
  • You might find out a little bit about a firm by what other investors and traders say about it. This info is found in reviews and comments made by foreign currency traders who dealt with specific firms.
  • It helps if the broker you choose offers some type of charting software. Find this out as you view various brokers’ lists. This often is provided free of charge, and you are encouraged to seek out the firms that indicate this possibility.
  • Comparison charts provided with information about various trading firms most likely also will indicate how much of a deposit is required. You can compare minimum deposits required and find a broker that requires as low of a minimum deposit as possible. Usually the lowest minimum deposit required by a reputable company would be about $250.00. The highest would be in the tens of thousands of dollars.
  • When seeking information about qualified firms with whom you hope to trade, you may need to seek out account types. Some brokers may allow you to trade micro or mini-lots which average between $.1 and $1.00 per pip (percentage in point, which is the smallest forex price increment).
  • As you seek info about attributes of different trading firms, check out the advantage offered. The higher the advantage, the less the risk. This pertains to how much you would lose compared to how much you would invest.
  • You may choose a particular firm with who to trade based on spreads. According to the advice of some experts, you would ideally want to work with a broker who offers spreads of about 2 to 3 pips, depending upon which shares are traded. You can in some cases go as high as 4 pips, but you are usually never advised to go any higher than that.

Forex Software: Watch out for Scams!

There are many different types of forex software and trading scams. It is advised that you watch out for them.

One of the most important scams to watch out for right now is the ones where you are offered some sort of “miracle software.” For instance, some software available that people purchase is sold as one that helps figure out the market for you.

Some of these may work, while others may not. Beware of the scams and never invest money unless you know you need to.

Common Examples of Scams

  • Perhaps you might notice some software products for sale, which cost thousands of dollars or more. Yet, they do not do more than say products that you can download for free.
  • Another very popular scam is simply being required to pay for a free trial. Then, some thief decides to steal your credit card number via usage of a money transaction system that is not even encoded or encrypted.
  • Some people seeking forex software may have been duped into purchasing products that are expected to be very effective. However, this information is often based on nothing but false advertising claims.
  • Consumers sometimes purchase products that have not even been properly tested. This often results in two things: disappointment and wasted money.
  • Sometimes advertisers will claim that their automated systems are guaranteed to product high returns. Although this may be possible, sometimes the systems that are used do not produce any results.

Other Trading Frauds

Aside from the frauds and scams associated with forex software, additional scams include those associated with certain online accounts. Sometimes money invested might be embezzled (stolen in large quantities).

Some of these above-mentioned types of fraudulent systems often are recognized by one main characteristic. That is, you end up sending them your money and you do not have to do any work.

Generally, this would be very convenient. However, it of course would not be very “convenient” if someone were stealing all your investment proceeds.

Another huge mistake that can lead to stolen funds is when a trader does not separate their investment account from their general funds. The result is that these accounts are not protected from creditors.

Likewise, one big mistake that often is made is they purchase e-books that are not even written by qualified foreign exchange experts. This leads to great frustrations as they try to invest.

What are the easiest things to trade?

There are many ways to trade. You may like the idea of stocks, bonds, forex or even fancy some binary trading. However, you may prefer something simple and wonder which option is the easiest.

At the end of the day, it is probably easiest to trade the thing that you know the most about. You will feel more confidence in your abilities and your choices then. However, if you know very little, then you may still not know where to invest. It can be a good idea to find out more about your options though. If you learn a little bit about all the different things that you can trade, then you may find that you see a particular type of trading that you think you would prefer. Then learn more about that. It is important to get a grasp of the basics so that you understand what you are getting in to. You may find that some look easier than others and it will very much be down to your own personal opinion and understanding as to which you decide to go with.

It is not just understanding that make things easy or hard to trade though. Some items have a trading platform that is easier to use as well. This is something that needs to be considered as well. There is also a difference in cost between the different trading platforms and it may be that this could be an issue as well.

With the Internet making trading so easy, there is not really one item that is simpler to trade than others. It used to be that you needed to get your bank to help you or that you needed to know the right people. It was quite a difficult thing to get in to. However, how that there are many online trading platforms for all sorts of different items, then there is no way to pick between them in this sense. It can just be a matter of choosing what you are most comfortable with.

William hill day trader allows punters to have a crack at indices, commodities and currency pairs in financial trading.

Does Sentiment Analysis Still Have Any Place in a Trader’s Study?

Forex is fascinating for many reasons, but one of the reasons why it interests us is because there are just so many different perspectives to look at. Maybe that’s something that will frustrate you. Don’t worry — once you really get into forex you’ll find that multiple perspectives is definitely a good thing? The reason why you will want to always think about different things when it comes to forex is that your strategy should represent the different areas of influence. You can’t go wrong that way, and you certainly can’t find yourself worrying about how everything will click into place. When you get into forex, you have to look at minute details as well as macro details in order to stay competitive.

So, where does sentiment analysis fit into things? That’s a great question! First, let’s define sentiment analysis as it relates to forex trading.

Sentiment analysis means looking at how traders generally feel about the market. You can look at what people think about the market by charting — what positions are being taken in the marketplace. If everyone is feeling bearish on the dollar, your feelings aren’t really going to overturn it. But what you have to do is look at how to profit from the current market condition as it stands.

Using sentiment analysis to your advantage is something that’s not always easy. Whenever you’re dealing with emotions rather than hard facts, you’re going to have to be careful not to go overboard. We still think that fundamental and technical analysis are important, and that they shouldn’t be skipped over for any reason. Later on as an investor, you might find yourself trying to use market feelings to your advantage. As a beginner, we would advise thinking about the numbers and building a plan from that angel.

As always, you will want to test new theories in a sandbox rather than in real time. That’s a good way to lose money before you even understand how your system will play out. The only difference between a demo account and the real thing is that your demo account doesn’t run on real money. It will still function like a normal forex account, and this is a very important distinction.

We mention sentiment analysis because it’s something that you will probably see in forex forums, and we don’t want you to be thrown off guard. Never feel like you have to add in something just to get attention or to feel like you’re part of a group. It’s perfectly fine to go at your own space in the world of forex — we won’t tell anyone! 🙂

So, How Does the Forex Market Stack Up to Stocks?

Ah, stocks. If there’s one thing that investors love to talk about, it’s stocks. That’s because stocks are something that’s discussed even on mainstream financial news points, which means that just about everyone knows what they are.

Stocks also provide a lot of variety. If you want to feel like you’re part of a certain company, you can always invest in the stock of that company. Then you feel like you’ve really got a say in how things really are. In fact, a lot of companies will let you vote in shareholder meetings if you own a certain amount of stock. Isn’t that just too cool for school?

Of course it is. There are nearly 4500 stocks listed on the NYSE, and another 3500 on the NASDAQ. You can do your research and build an amazing stock portfolio.

But if you’re like many investors, you might be growing tired of getting into the stock market game. There are plenty of movies about people that made it big in the stock market. These are pretty important people, and it goes without saying that you might want to be just like them. Yet times are definitely changing, and if you’re thinking about growing past that, then you might want to think about forex. This is actually a good decision, for a few reasons.

First and foremost, spot currency trading is all about the currency pairs. The major investors in forex only focus on four top pairs, and that’s a lot better than trying to figure out nearly 10,000 stocks all of the time. Are you going to be looking at all 10,000? Not at all. However, you will want to still look at the market movements as a whole in order to fine tune your portfolio. If you’re tired of that, you might want to start looking at forex trading in a different way.

As you might realize, you can’t trade stocks all the time. That means that you’re going to have to step out of stocks when the market is closed. Instead of not trading at all, you can build a better trading schedule with forex. This new market is actually a seamless 24 hour one, with trading going all the time. You can hit the U.S, Asian, and European markets with ease. It’s simply up to you to define how you want to trade. Gone are the days where you feel you have to be married to a certain time schedule in order to get things going properly.

The commissions are so much less with forex when compared to stocks. Of course you might wonder how brokers actually make their money. They handle things through the bid/ask spread, which is always transparent. There aren’t any hidden forex fees to be had, which is refreshing.

As much as it’s not mentioned, forex is actually open to everyone. This used to be a market that was limited to huge corporations only, but that’s no longer the case. Anyone can trade in forex, so why not check it out for yourself?

The True Differences Between Long Squeezes and Short Squeezes

Still interested in investing in the markets? All right! As you might have guessed, you have a lot to learn in terms of charts and data, but that’s okay — you can learn everything you need right there!

One term that keeps popping up in a lot of financial outlets is the “squeeze”. If you’re trying to keep up with what’s being said and having a hard time, you might need to actually read up on the concepts behind what’s being discussed. In this case, you need to understand long and short squeezes in order to figure out not only what they are, but how to handle them as they relate to your trading strategies.

Simply put, a squeeze of any kind is the market price temporarily moving against the longer term direction. This is a “squeeze” primarily when the movement is by a larger amount than first imagined. The squeeze will continue to move forward in the direction expected, but it might take a while.

A long squeeze tends to be the worse, because it’s when the market shifts downwards by a huge amount that tends to throw you off. Does it go back up? Yes, in time — you could be caught by a long squeeze for quite some time. This means that instead of being able to stay in a position as you imagine, you might have to use your stop loss function to back out of the trade before it really starts costing you a lot of money.

Avoiding the long squeeze will come in time. As a newcomer to day trading, you might find that you have to back out of positions a lot more often than you would like. However, over time you will get better at seeing when a long squeeze is going to occur. This is also why it’s so important to make sure that you’re actually reading the markets as they stand rather than just going through the motions and assuming everything can be handled by the chars along. Financial news really does make a difference, and press releases from businesses that are within the market sector still matter a great deal as well.

What about short squeezes? This is going to be just like the long squeeze, but a bit shorter. You will need to make sure that you adjust your position and go through your options either way.

And it cannot be stressed enough — you nee dot make sure that you’re actually learning true trading systems rather than just trading gimmicks. These are part of those “tips” that you hear thrown out on TV without proper analysis of the markets themselves. New traders tend to latch onto these in hopes of making fast money. It’s better to actually make sure that you can focus on the bigger picture rather than just sweeping in for profits without having any idea of how to make more profits.

We will cover just about every angle of investing that you can think of so that at the end of the day, you’re going to become an amazing trader!