AssetShot broker: how to become professional on Forex05 / 06 / 21 Visitors: 556
AssetShot Forex experts prepared a guide in this article.
The Forex market is a worldwide currency exchange market. The stronger the political and economic condition of the country, the better its prospects, the higher the value of its currency will be.
The essence of the Forex market is the same as in any other market - the exchange of one product for another to derive benefits. Only commodity - currencies.
Suppose that yesterday the euro was worth $ 1.1, and today it was $ 1.16.
If you bought 1000 euros yesterday for 1100 dollars, and today you sold your 1000 euros, then you would have returned 1160 dollars, increasing the investment by $ 60 in 1 day.
Now imagine that you have leverage, the so-called leverage. This is a pledge from a broker, which can increase your investment by 10, 100 or even 1000 times.
AssetShot Forex broker tips: Forex market participants
In the structure of the Forex market, there are "big guys" (central banks of countries, commercial banks), there are "smaller fish" (pension, investment and other funds) and there are those who can be called "retail" (various exporting and importing organizations, private investors and even you and me, just buying and selling currency).
Do we also influence? Yes, but not directly, but through intermediaries:
if we buy or sell a currency when we want to travel to another country, commercial banks help us.
if we plan to make money on the difference in exchange rates, we need to go to a Forex broker like AssetShot Forex broker. By the way, you cannot buy currency for personal use through it (like in a bank). The AssetShot broker enables currency trading, not exchange.
AssetShot broker tips: How Forex works
For an importing company from Japan to pay for a product from Germany, you need to sell Yen and buy euros. This operation is done through a commercial bank. If the bank does not have the required currency, it will buy it from another bank, of a larger size. Central banks of countries, when regulating the exchange rate of the national currency, are also forced to carry out foreign exchange operations.
Thus, any purchase and sale of currency to one degree or another takes place through Forex.
AssetShot broker tips: Types of Forex Markets
There are 3 categories of the Forex market: spot, forward and futures.
Spot currency market:
In the spot market, a deal is settled at the time of its conclusion. For example, if you bought euros at 15:00 today, then this currency will be in your account immediately.
Forward Currency Market:
A forward transaction involves the conclusion of a transaction to buy or sell a currency pair in the future at a predetermined price. For example, suppose you entered into a forward contract today at 15:00. This means that at some point in the future you must buy and the seller must sell the agreed amount of euros at the agreed rate. Based on the conditions, such a deal will be profitable for you in case the rate grows in the future, because get the agreed amount of euros “cheaper”.
Futures market of currencies:
Settlement on a deal with a futures contract, like a forward one, is carried out in the future. The main difference is that a futures contract sets a clear date for its execution in the future. It can also be resold to a third party, unlike a forward contract.
The question is, what do forex traders do to become professionals?
AssetShot broker experts would suggest starting with the main thing:
Focus on slow, gradual progress. You will need to tighten up discipline, become independent about other people's opinions, learn to go to the end. And also thoroughly study what Forex is and how it works.
Try as much as possible in practice. To separate working methods from non-working ones, you will have to try them all.
Trade as many trading strategies as possible. This will help you determine what is “closer” and what works best for you.
Use stop losses and take profits. Without these fundamentals, Forex trading resembles a casino, and trading turns into a "guess-who". This is closer to gambling than consciously making money.
Set small, achievable goals. When you see even small progress at AssetShot broker, it helps to move forward.
Gradually create the rules of your trading strategy and improve it endlessly. Successful traders do not use other people's trading strategies.
At first, trade only those instruments with better results. This will improve the psychological component - there will be motivated to continue.
Constantly analyze your "automatic" reactions, forcing you to make extra-systemic transactions. Yes, yes, it just seems that you will be 100% in control of yourself. You will understand, after about a year of working on AssetShot Forex broker, how it works. Let us limit ourselves to the fact that work in this direction gradually raises the trader's discipline and relieves him of emotional decisions in trading.
Avoid overtrading: designate the time at which the trade takes place. Designate the total limit of transactions per day and the limit of unprofitable transactions per day, upon reaching which trading should be terminated.
Be objective and don't take your word for it. Understand what Forex trading is, with its mechanics - with what causes the price to rise and fall. This will filter out biased theories, opinions and recommendations.
At first, a trader will not be able to comply with some of these points, even if he wants to. Because he doesn't have enough experience yet. This should also be taken calmly - as a result of practice, the trader with AssetShot broker will gradually become able to comply with more of these points. This will be one of the indicators of an increase in his skill.