On the surface, Forex (foreign exchange) trading sounds pretty straight forward and easy. All you need to do is predict what direction a currency pair is going to go and bank the profits! But like investing in the broader stock market, it’s never that easy. To succeed as a Forex trader, you need to have a comprehensive Forex trading strategy; one that helps you understand the Forex market and entry and exit signals.
What Will You Learn?
The Advanced Forex Course is based on the careful research and practical application used by the professional traders at Learn-To-Trade.com. In the Advanced Forex Trading Course, you will learn how these top traders think, what they look for, and when to act.
Currency Options Trading
In currency options trading, you agree to purchase a currency pair at a predetermined price for a specific period. A currency option is used by currency traders to either make a profit or protect against a loss.
Position trading is an advanced Forex strategy used by many of the world’s top currency traders. Many Forex traders like position trading because it takes a long-term approach to currencies and requires a lot less daily attention. To be successful though, you need to conduct a long-term market analysis.
Most Forex trading strategies are conducted over a short period of time. Meaning, the majority of currency investors actually use day trading strategies. With position trading, investors hold a position for a longer period of time, in some cases, weeks or even months.
Because of the longer time frame, currency traders need to have a comprehensive understanding of the current economic situation in the currency pair you are trading, and even how the economies of other nations will affect that pair.
If position trading sounds too slow, you might be interested in Forex scalping. Forex scalping is a trading strategy that can help you make a large number of profits in a very short period of time. In this case, it’s when you take out a position for any period of time that is less than five minutes.
Forex scalping taxes advantage of the short-term fluctuations in currency pairs. Because these movements tend to be smaller, the profits are smaller. There is a way to capitalize on this though. The larger your capital and larger the volumes, the greater your profits, or losses. That’s why Forex scalping is mainly used by seasoned Forex traders.
The most successful Forex traders trade confidently and profit regularly. But how do they do that? Every Forex trader makes bad trades, the most successful currency traders manage their risk, letting go of bad trades and protecting their capital. There are a number of ways Forex traders can protect their trades for unforeseen or unexpected changes in the currency markets.
Technical Charting Analysis
Forex traders who approach currency with a technical analysis believe historical price action predicts future price action. The NYSE is open Monday to Friday, from 9:30 a.m. to 4:00 p.m. The Forex market is open 24-hours a day. This means there is a huge amount of data that can be used to help predict the future price of a currency pair. It also means there is a lot more statistical information to process.
Technical charting analysis is a perfect Forex trading strategy for investors who like to use technical tools, including charts, trends, and indicators.
Many Forex traders fail because they fail to understand the complexities of the currency market and overestimate their own skill level. This leads them to use a large portion of their capital and make a number of, unnecessary, high risk mistakes.
Because Forex trading is leveraged (In Canada, leverage can be as high as 50:1), investors can trade one standard lot ($100,000) for every $2,000; one mini lot ($10,000) for every $200, and one micro lot ($1,000) for every $20 they have in their trading account. It doesn’t take long for some Forex traders to get in over their head and lose more than just what is in their trading account.
If you want to make money as a Forex trader, you need to understand different ways to preserve your capital. Some of the ways you can do this is by being a disciplined trader with a trading plan. With Forex trading, it’s also imperative to adapt to the markets and have a realistic trading plan.
Join Our Advanced Forex Trading Course at LearnToTrade.com
There is no foolproof Forex trading technique; there will always be elements of risk. But, with the proper guidance and skills, you can learn how to trade currencies with confidence and profit more consistently. This is exactly what Learn-To-Trade.com’s Advanced Forex Trading Course does.
Learn-To-Trade.com is home to Canada’s oldest and leading provider of stock market trading courses. In addition to teaching investors of every skill level, our instructions are also educators for the Toronto Montreal Exchange, through which we host educational sessions for major banks across Canada.