People are becoming more passionate about forex trading these days. Everyone wishes to have quick profits with minimum investment. This is the reason why forex market has become the world’s biggest financial market with a daily turnover of around 5.3 trillion dollars. Millions of trades and brokers join the forex market each day. There are many who successfully trade forex and earns a handsome living, while numbers are no less for those unfortunate traders who lose their investment in all of a sudden and never returns back to the industry again.
Forex Trading In Australia and ASIC Regulation
Forex trading is equally popular in Australia as in any part of the world. However, rules and regulation concerning forex in Australia are relatively strict as compared to other countries. In Australia, the regulatory body Australian Securities and Investment Commission takes hold of control concerning all activities relating to forex. The regulatory body ensures that banks, brokers and all such financial institutions entrusted with the public money remain fair, and takes every possible measure to avoid financial irregularities.
Having said that, we now would like to move forward discussing few features, tips, and secrets for traders so they can trade forex successfully. As mentioned earlier, there are a lot of people who join forex with great passion but soon they end up losing if not all then at least major part of their investment and leave the industry forever. The reason could be the challenging environment of the forex industry that may drive you nuts before you are able to trade successfully and start earning a life you once imagined.
Today, we plan to share some tips, and secret for traders to help them avoid those mistakes that could result in a possible loss. Let’s start mentioning them below;
1. Define Your Goal, Plan to Achieve it
To achieve anything in life, it is imperative to first set your goal. Forex trading is no more different, you need to set a target for what you wish to achieve? Do you want to make quick money or accumulation of profits over time works better for you? In either case, you must be very clear in your mind. Once you know your ultimate objective, now you need to devise a trading plan to get your goal since each trading plan or strategy has different scope and risk involved. Forex example, if you wish to generate quick profits, then day trading should be your choice, on the other hand, if you can bear patience and let your investment grow over time then position trading may suits you more.
2. Sign Up With a Reputable Australian FX Broker
The first thing you may come across after deciding what type of trader you wish to become is the account opening process. You need to sign up with an Australia based Forex broker in order to place your trades in the market. Signing Up with a reputable broker is crucial for successful trading. First of all, make sure that the broker you are going to open an account with is a legitimate broker and have been regulated. The other thing you may wish to know is that it should meet your trading requirement. For example, it should have the platform that allows you to do analysis and use all those trading tools that are deemed necessary for purposeful trading. Features offered by the Australian brokers such as low deposit requirement, permission to trade micro and mini lots, competitive spread, leverage, bonuses also worth to be considered before you open an account with a forex broker.
3. Be Consistent After Selecting a Strategy
Sometimes changing trading methodology quite frequently results in a loss. You must remain consistent following your trading methodology for a while at least. Some traders prefer doing fundamental analysis and use charting options to determine the best timing for executing their trades. While others like to go for technical analysis and they use charts to time their trades only. You need to be aware of the fact that fundamental analysis helps you in the long run whereas charting options may let you know best short-term trading opportunities.
4. Mark Your Entry and Exit Carefully
It happens sometimes that traders get confused because of the conflicting information obtained by looking at charts having diverse time frames. It may well be the case that a weekly chart may show something up to buy whereas intraday chart shows the same assets being up to sell. Therefore, if you are taking direction from a weekly chart and for time entry you use a daily chart, you need to make sure that you synchronize both of them. What we mean to say is that if your weekly charts suggest you buy something then you must wait until your daily charts also show you a green signal to buy.
5. Learn From Your Mistakes.
It is just not possible to win every time. You too may lose sometimes. But the important thing is that you must not lose your temper, try to learn from your mistakes and make sure that you do not repeat them.
Forex trading requires you a lot of knowledge and experience to trade successfully. However, if you haven’t got any of them, still you need not to worry. It’s never too late to learn forex trading provided that you are committed, passionate, calm and patient.