Some common misconceptions among the new traders

People are amazing in nature. Once they decide that they will do something it’s really hard to change their decision. Similarly, when it comes to trading this very human nature causes huge loss to the traders. Some even consider trading as one of the most dangerous profession since the success rate is too low. According to the researchers, only 5 percent of the traders are making money. So by seeing the data, you should understand that how competitive the trading world is for the new trader. However, once you develop a solid trading strategy and gain enough experience you can easily make a huge amount of money. But most of the retail traders fail to train themselves in the perfect way due to some common misconceptions. Today we will focus on the most popular misconception prevailing among the rookie traders.

forex trading

Trading more is the only way to earn more

The new traders in the financial industry often think that the more they will trade the better chance they have to make money. In the United Kingdom, the professional traders completely disagree with such a conception prevailing among the novice traders. In their point of view, the only way to make a huge amount of money is by trading less. According to them, the full-time currency traders should only focus on high-quality trade execution and they should do their technical analysis in the higher time frame. When you trade in the larger time frame then you can easily get a clear overview of the market. Most importantly if you use the smaller time frame then you will have to deal with lots of false spike and trading signals. If you are not experienced enough then this false spike even blow your entire trading account. So focus on quality trade setup and trade with discipline. Overtrading is not a bad thing only rather it is one of the most deadly mistakes in the investment world.[Continue Reading…]

Using forex software

Forex trading can be a bit overwhelming for new comers who want to try out this type of investment in a bid to increase their income. This is mainly because it is risky as a small mistake can cause an individual to lose all their money at one time. Majority of forex traders who are not very conversant with the ins and outs of forex trading like to use forex software while trading. The software used in forex trading has a main objective which is to provide both signals as well as indicators that help in identifying buying and at times selling points of currencies that are traded in the particular forex market.

There are different types of forex software that forex traders can use so as to be able to make as much profit from the investment that they have made into the forex market. The software used is usually the preference of the trader as well as the broker who have to agree on which one they will use to be able to make maximum profit in their future prospects.

Forex charting software is one of the types of forex software that is used to review the foreign exchange rates using technical analysis. This software encompasses a lot of computers that make sure that the analysis is accurate and can be either simple or complex. The simple type of this charting software allows the broker to monitor the progress of the exchange rate over an extended time period; while the complex type helps the traders to analyze the movements of the exchange rates using theories such as Elliot wave.

Another type of forex software is the automated version which is has a pre-determined plan for trading and does not need any manual speculation by brokers. The automated software is good for beginners who would want to trade forex as the experts do without losing money as well. It is also good because it removes the emotions from the whole currency trading process because the plan involving the trading had been set up beforehand.[Continue Reading…]