FREE GUIDE TO START TRADING FOREX
WHAT IS FOREX?
FOREX (ForEx) is a portmanteau of the words "foreign" and "exchange". Trading FOREX is the process of changing one currency into another. Exchange occurs for many reasons including commerce, trading, and tourism. It is the largest financial market in the world with more than $5.1 trillion in daily trading volume.
FOREX FOR SPECULATION
Factors like interest rates, trade flows, tourism, economic activity, political and geopolitical risks affect supply and demand for currencies.
The change in supply and demand creates volatility in price from which an opportunity exists to profit from changes that may increase or reduce one currency's value compared to another. Forecasting one currency to weaken is essentially the same as assuming that the other currency in the pair will strengthen because currencies are traded as pairs.
While you can profit from changes in the exchange rate, traders can also profit from the interest rate differential between two currencies. This happens when a trader buys a currency with the higher interest rate and shorts (sells) the currency with the lower interest rate. This strategy is commonly known as a "carry trade."
World's Largest Financial Market
Forex is the world's largest financial market when it comes to the amount of money exchanged on a daily basis.
FOREX TRADING RISKS
Trading currencies can be risky and complex. This market has varying degrees of regulation and the instruments are not standardized. Some jurisdictions lack proper regulation or are completely unregulated.
Since the market is made up many large participating banks providing access to pricing information for a particular currency, the market pricing mechanism is based on supply and demand. Due to large trade flows within the global markets, it is difficult for a rogue trader to influence the price of a currency.
The use of leverage through low margin requirements is often the most riskiest component and often leads many traders to lose money. While leverage can lead to high returns, leverage also may lead to large losses. Some brokers allow up to 100:1 leverage, which means for every one dollar you invest, you can trade as much as 100 dollars. A 1 percent increase in your trade would lead to a 100% gain; however, a 1% loss would have resulted in 100% loss. Thats the double edge sword of leverage. Download the DEMO application to try now.
Understanding trading risks is crucial for long term success. Before trading real money, try a DEMO version, allowing you to learn this market without risking money. You can even use our signals for 7 days to see how we trade and share information.
Leverage is a very powerful tool, but as we already know, with great power comes great responsibility. While this is cliche, it rings true with any trader who ever traded. Leverage can make or break your trading plan and goes hand in hand with risk management.
There are many important takeaways that a beginner should grasp, and risk management is crucial for anyone that wishes to be successful for more than one trade. There are many variables to consider when deciding how much capital you will risk. We help you understand those factors.
THE BOTTOM LINE
The forex market is traded 24 hours a day, five days a week, starting each day in Australia and ending in New York. The major centers are in Sydney, Hong Kong, Singapore, Tokyo, Frankfurt, Paris, London, and New York.
Trading currencies productively requires an understanding of economic fundamentals and indicators. A currency trader needs to have a big picture understanding of the economies of the various countries and their relationship to one another in order to grasp the fundamental factors that drive currency price changes.
A focus on understanding the macroeconomic fundamentals driving currency values and experience with technical analysis helps traders become more profitable.
OUR ADDED VALUE
MACHINE LEARNING & NEURAL NETWORKS
We have created a way to automate the process of finding trade opportunities as well as classifying their potential. We use algorithms with machine learning capabilities and neural networks to evaluate potential money making trading opportunities (signals).
Every signal that we receive is put through our proprietary algorithm that provides us with a set of attributes for our scoring system. We then add human input through market analysis to make the signal better and check for signal errors. Every trade we make on our own investment account is then distributed as a signal to our subscribers.
Signal Within Market Structure
Our machine learning and neural network processes help us determine probability of success of any signal within the context of the current market pricing structure.
HOW TO USE OUR SIGNALS
What do we share?
Each signal that is shared with our subscribers is sent within 15 seconds of our actual trade. Each signal contains only the important information:
- Direction of order (Buy or Sell)
- Currency pair we are trading
- Size of our position as it relates to our signal confidence score.
- Take profit level
- Stoop loss level
- Chart with technical analysis of the currency pair
A message is sent to members whenever a change happens on our account. This includes all messages associated with new, pending, or existing positions, including stop loss and take profit adjustments.
We are also working on adding a dashboard that will allow subscribers to see our positions via the site.
WANT TO BECOME A TRADER?
There is a lot to learn and much more to understand if one wants to be a successful forex trader. Becoming a professional takes many years to accomplish. Time is money, so this is why we created a system for our members to receive our trades. Our members benefit from our expertise, and the direct trades we are take for our fund. Subscribe to join our trading channel.