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5 Rules to Follow For Success in Copy Trading

Category: Investing | January 18, 2018 | Comments Off on 5 Rules to Follow For Success in Copy Trading



When most people are interested in starting a copy trading practice, they only spend a few minutes searching the web for the cheapest trading platform subscription. If this has been your approach so far, you won’t get more than a few tidbits of information. And that can do more harm than good for a new trader.

We get it – you want to get the right starting point, set up a couple of charts, and start making some money now. But, if you want to run trades that generate profit, you will have to do a lot more than that!

What you need is some actionable advice. This is especially true when it comes to the rules that guide all traders, despite the size of their trading accounts.

On their own, each rule is vital. But when they are used together, they produce a much stronger effect. Trading with these rules ensures that your odds of succeeding in the forex market increase exponentially. That said, here are 5 rules to follow that will make you a force to reckon with:

1. Always Have a Trading Plan

Simply put, a trading plan is a written set of rules that define when your criteria for entry, exit, and money management. Although creating one can be a little time consuming, a trading plan can keep you from making costly mistakes in the long run.

And even better, technological advances make it easier to test a trading plan before risking real money. By applying your ideas to historical data, you will be able to determine if your plan is viable. Backtesting also proves the expectancy of your plan’s logic.

Once you have a well-developed plan and testing shows good results, you can then start putting it in action. The key here is that you have to stick to the plan. Running trades outside of your trading plan is a hallmark of poor trading. Even if these gambles pay off, they destroy any expectancy that your plan might have had.

2. Treat it Like a Business

If you want to succeed at copy trading, you have to approach it as a part or full-time business. You should never view trading as a job or hobby. This is a surefire way to kill your own commitment and dedication to the practice. Not only will this make trading frustrating, it can also have serious implications for your wallet.

A lack of commitment can make trading a very costly affair. You will make expensive mistakes because you haven’t taken the time to perfect your knowledge or skills.

All in all, copy trading is a business that incurs its own taxes and expenses. You will have to be ready to shoulder all the uncertainty, stress, risks, and losses – just like any small business owner. That’s why you should take time to research and plan in order to maximize the potential of your business.

3. Protect Your Capital

It’s important that saving enough money to fund your trading account can take a lot of time and effort. And that’s just the first time! Every successive round to raise capital will become more and more difficult.

That’s why it is important to protect your trading capital. This doesn’t necessarily mean you have to prevent all losses. Every trader will have to take a hit now and then; it’s the very nature of the business. That said, protecting your capital means avoiding all unnecessary risks and doing your best to protect your flourishing trading business.

4. Start Studying the Markets

Successful copy trading is all about continuously educating yourself. So, your main goal should always be to learn something new every day. Also, keep in mind that understanding the forex market and all its nuances is a continuous, life-long process.

Research will help you learn the hard facts such as what various economic reports mean. But sharpening your focus and observation skills will help you gain invaluable instincts that may determine your trading success. These skills help you understand how the facts will affect the market that you’re trading in.

5. Using Technology to Your Advantage

Trading is a highly competitive business. One of the only ways to gain an edge is by using technology to your advantage.

As a minimum first step, you must join a renowned trading platform like https://realtradercommunity.com/. This will help you meet experienced traders to copy, as well as identify the various trading strategies that they use.

You can also use technology to analyze the market or backtest an idea based on historical data. This approach will help you take calculated risks, avoid unnecessary ones, and save you a lot of money in the process.

Finally…

Copy trading is a great way to add an additional stream to your income. But, if you want to ensure your success, your best bet is to follow these rules for copy trading to ensure a long and profitable career.

Why You Should Never Trade With The Groups

Category: Investing | January 18, 2018 | Comments Off on Why You Should Never Trade With The Groups



When traders are making their profit in Forex, you will not hear about any groups that had made profit successfully in Forex. Most of them were made by the professional traders and traders who trade not with groups. This market is not easy to trade and many people do not understand what to do. They go I different places and they find the groups of traders that are trading with other traders. If you look at this market in Forex, you will find one thing in common. All the people are trading with groups and these groups are not successful nay people think it is not possible to lose your money when you are in groups. This happens and this article will tell you why you cannot make your money in Forex if you are trading with the groups.

Before you consider trading as your full-time profession you need to know the fact that 95% of the traders are losing money. Based on this fact the smart traders in Singapore always prefer to take their own trading decision. If you trade in a group then you will have to analyze lots of parameters from the other traders which will make trading too much difficulty. If you are new to the market then it’s very true that you will be looking for the professional group of traders. But the sad thing is no professional traders belongs to the certain group. They always trade the market based on their trading knowledge since they know very well know once can predict the price movement with an extreme level of accuracy.

There are three essentials things that you need to have to become a successful trader – Devotion, dedication, and determination. This three unique quality will help you to make a consistent profit while trading CFDs. You might be a complete beginner but if you start learning with a high level of devotion then it won’t take much time to develop a strong foundation in the field of Forex.

They take the most obvious decisions

These groups take the most obvious decisions in Forex. When there are lots of people trying to make money, you should look at the success rate of Forex. You will know that only a small amount of people are successful in Forex. These people are the winner because they do not trade with the obvious trends. These people are professional trades and you will hardly find any groups in them. In Forex, when you start your career in Forex, you will grow some basic idea by reading the Forex websites. You do not need to be a master to know how to trade. You will place some trades on the market and you will see that you are not making your profit. You will turn to the groups and try to trade with the group’s decisions. These decisions are very obvious and the market does not move in that way.  It is not possible for the professional traders to predict the market and if you think you are going to make a lot of money in Forex, you are going to do that on your own. Taking helps from the groups is going to lose your money. If trading with the obvious decision was successful, there would many groups in the world who would provide you trading courses. These groups are only made by people who do not have the idea to trade.

The market only rewards the unique traders

This market only rewards the unique traders in Forex. You are not going to be a professional trader if you are following the groups. Know your trading strategy and develop it in the market. All the traders have to develop their own strategy to make the profit. This is not a random market and you will need hard work to make your profit in Forex.

Are you Acquainted with Forex Accounts

Category: Investing | July 13, 2017 | Comments Off on Are you Acquainted with Forex Accounts



Forex trading is not easy unless you become acquainted with the forex accounts. If you are not well-versed then obviously you are going to have a hard time. Forex basic is easy because you only have to understand the chart patterns, read the market movements, learn the strategies and etc. but when you learn more and more you will understand that there’s no end for forex education. Of course, there is no end because the market is always changing and every time you get to learn something new. Anyways, once you learn the basic your next step should be selecting a reliable broker. But before you find a broker you should know the types of forex accounts because the brokers will inquire about the preferred account.

Figure: Trading CFDs with reputed broker Saxo

So, as traders, you should have the complete picture of the forex accounts in your mind. Actually, there three main types of accounts they are such as standard, mini, and managed accounts. If you are new to the market you would not have the proper knowledge on these accounts so in today’s article we will explain the three types of accounts in brief so you will have some knowledge in it. moreover, you cannot just pick ANY account instead it should be based on certain factors such as how much you are willing to risk, initial investment, time allocation and etc. read the article to learn more.

Standard forex account

The standard forex account is the common account among the forex traders. If you consider the standard account through it, you will be able to trade numerous currency pairs you will not have any restrictions. You can even trade currencies worth $100,000 but it doesn’t mean that you have to have $ 100,000 capital in your account.  There are many advantages in opening standard account and they are such as potential gains, ability trade many currency pairs, and etc. when you consider the forex trading account none of it will have ONLY advantages so the disadvantages in standard account are higher capital requirement, losses are higher, and not suitable for naïve traders. The standard account is not suitable for naïve traders because they do not have the proper experience in trading so obviously it will be risky to trade standard accounts.

Mini forex accounts

If you want to trade smaller lots then the mini forex account is the ideal for you. It is just the account which allows the traders to profit from trading smaller lots. The mini lot can be equal to $10,000 (it may vary according to the brokerage accounts). Normally, these mini accounts are targeted for the novice traders so brokers offer both the standard and mini accounts so it will increase their income as well. There are both pros and cons associated with the mini accounts and the pros are such as lower risks, flexibility and lower capital requirement whereas the disadvantage is it gives the lower reward.

Managed forex trading account

Managed trading account is controlled by the professionals meaning the professionals will do the buying and selling procedures but the capital will be invested by the investors or traders. However if you want to consider trading as your full time professional, you should trade the market all by yourself. There is no point of depending on other people since the outcome of each trade is unpredictable.

Summary- of course, there are many accounts but you should not just select any account instead you should test drive every account. As traders, you should learn the pros and cons of each account but you should not take quick decisions. After the test drive, you will understand whether the account suits your trading style or not so based on it, you can take the decision. If you are not acquainted with the types of forex account it will be hard for you to become a successful trader.

 

Things to Know Before Picking an Online Trading Course

Category: Investing | May 21, 2017 | Comments Off on Things to Know Before Picking an Online Trading Course



Picking the right online trading course can get you started on the right foot or leave a sour taste in your mouth for day trading. With our list of the top ten things to know before picking an online trading course you are bound to pick the perfect course for you!

Value

Are you getting the best bang for your buck? Look to see what is included, how long you have access to the materials, and what is not included. Many times you get what you pay for. Do not sign up for the cheapest trading course just to find out nothing you need is included.

Customer Service

Do they have twenty-four hours a day, seven days a week technical support and customer service representatives available. When you are having an issue you will want to make sure you can get it resolved as quickly as possible.

Results

You want to make sure you are learning from the best so that you can get the results you need. Check out Warrior Trading and their results to get an idea of what you should be looking for in an online trading course.

Course Materials

Online trading courses should offer written materials, videos, tutorials, simulators, call sessions, and direct contact with real mentors. Having the right materials, in the right mediums will ensure that you can get the information you need and develop the skills necessary to properly learn how to day trade.

Mission

Find a day trading course that has a mission that aligns with your goals. If you are looking for freedom and independence, look for an online trading course that has a mission that aligns with your goals.

Community

You should look for a day trading online class that is not just about you, but is about introducing you into a day trading community. The community should feel energized, friendly, focused, and dedicated.

Connectivity

You should look for a day trading course that utilizes all the social network platforms that you are using so you can stay connected and informed even when you are not actively trading. Warrior Trading’s Facebook page is a great way to stay informed and up-to-date while on the move.

A Current Blog

This shows that a company is active and committed to staying up-to-date and keeping you informed on what is happening now in day trading.

A Usable Chat Room

Probably the most important tool to your long term success, is a solid chat room. You want to find a day trading class chatroom that is active, busy, useful, and informative.

Reputation

You are investing in your future, you want to make sure you are signing up for day trading courses and classes that have your best interest in mind and that are committed to your success. Signing up for trading courses with an industry leader with a solid reputation will go a long way to getting you off on the right foot.

If you look for a trading course with these ten qualities, you cannot go wrong.

Why First-time Traders are Opting for Binary Options Trading

Category: Investing | April 21, 2017 | Comments Off on Why First-time Traders are Opting for Binary Options Trading



Binary options are also called Digital options which are modern financial instruments in which the payoff is either a fixed amount or nothing at all. While binary options are relatively new to the market and were introduced to the general public only in 2008 after approval by SEC, they have grown in popularity quickly among the novice investors. This is mainly due to the ease of access, limited risk and great profitability. While binary options have been banned by regulators in several jurisdictions and considered as a form of gambling, they have not lost the fame among first-time traders. Some of the reasons why first-time traders opt for binary options are listed below,

  1. Ease of Access

Binary options are easily accessible through online trading platforms and require very less minimum investment.  A majority of the binary options trading platforms are accessible through the web as well as mobile application. Hence, it is easy for anyone with an internet connection to get started with binary options trading.  Since the market is open throughout the day based on the underlying asset market, you can carry out binary options trading anytime at the comfort of your home. Also, you can open a binary options trading account with most of the brokers with a minimum deposit of just $250. But for other trading methods like Forex, Commodities trading or Stocks you will require a bigger initial investment. Also, the trading procedure is very simple and easy to understand for any beginner without much market knowledge. Beginners can go through the anyoption’s guide to binary options to get some understanding of how to get started with binary options.

  1. Social Trading Support

Another significant benefit of binary options trading is that many brokers support social trading which is very useful feature for first-time traders. Also known as copy trading, this feature allows beginners to copy and execute the successful trades of other experienced investors in the social trading community. A novice investor who does not have the market expertise or understanding of technical indicators may find it difficult to speculate future price movements. In order to help such first-time traders, many binary options brokers provide a social trading network where the successful investors are ranked based on their performance. This ranking is done based on various factors like success ratio, trading frequency, position size, expiry time, profits gained etc. Any beginner can join this social trading community and follow the top ranked investors.  After monitoring these top performing investors and finding out the best trader which suits your trading style, you can automatically copy and execute their trades according to your terms and conditions. This facility is not available with any other trading method and only binary options platforms provide this feature which is of great benefit to newbies.

  1. Predetermined Risk and Higher Profitability

Another reason for traders to choose binary options over other trading methods is its limited risk and significant returns. In binary options trade, a trader has to speculate whether the asset price will reach the strike price before expiry time. For example, let’s consider you are investing in binary options with spot gold as your underlying asset and your investment is $100 for that particular trade. You are speculating that the price of spot gold will reach $1,200 an ounce before 12 PM tomorrow. Normally, the binary options brokers offer a payout percentage of 70-80%. For our example, we shall consider the broker is offering a payout of 80%. Then, if your prediction is correct and the spot gold price rises to $1,200 before expiry time, then you shall gain $80 as profit and you will get back your initial investment of $100. But if your prediction is incorrect and the option expires “out-of-the-money”, then you will lose the $100 invested in that particular trade.  So, you will know prior to placing your trade, how much money you can win and how much you may lose. This is safer when compared to other trading methods like leveraging in Forex trading.  Here, the risk to reward profile depends on your success ratio and how well you are able to predict the market movements.

  1. Profitability in Declining Markets

Binary options do not involve buying or selling the actual assets but traders just bet on the price movement of several underlying assets.  The underlying assets can be anything like stocks, commodities, Forex currency pairs, market indices etc. This is one of the biggest advantages of binary options since traders can make money even under bearish market conditions.  If the asset price is declining, traders can go for a “Put” option instead of choosing a “Call” option. Since the success in binary options trade is not based on actual asset value but only on the correct speculation of price movement, traders can make money even if the overall market situation is very bad and all the asset prices are declining.  But while trading stocks or commodities, you buy the actual assets and you can’t make profits if the actual value of the asset is declining. Also, if you learn the binary options trading strategies like hedging, risk-reversal strategy, and straddle strategy etc. and understand how to use technical indicators, you can make a lot more money with binary options.

Conclusion

Due to above benefits offered by binary options like the ease of access, limited risk and social trading support, many first-time traders prefer to choose binary options. Also, if you are a beginner, you can get access to a lot of online training materials which can help you improve your trading skills to become a successful binary options trader.

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