A forex trading business opportunity based at home has some unique advantages over a corporate work environment. First and foremost is the degree of freedom that independent traders have. They are allowed to change their methods and tactics on the spot, right away, without delays. Institutional traders have to stick to schedules and to achieving certain goals. In forex trading, limitations on your freedom to make decisions are not good. In fact, there should be no limitations in how you think and operate. Because good forex trading boils down to problem solving. A serious forex trading business opportunity is one which makes enough money. So as to justify the time and energy devoted to trading the various currency pairs. Powerful currency trading strategies are the ones who offer you an edge, and somehow make you better than the average trader. Very often, the home based trader-entrepreneur trades through a small to medium size forex account. They cannot afford too many losing trades and too much complacency. And yet, if you simply follow the crowd through the trading actions that technical analysis signals suggest, you are bound t to fail. Especially signals that are very easy to figure out on the charts. Signals such as flags and moving averages, can be completely wrong from time to time. And the trades at stake may be easily worth $200 – $300, even in a small account. So a simple mistake here will instantly cost you $200 – $300 in a day! The home based forex trader, is wise and bold enough to figure out that convenient and easy technical signals will fail, more often than not. And so, they will figure out ways to gain that edge, by evaluating those signals through some leading indicators. Home based entrepreneurs are clever people, original thinkers, and risk takers. But their familiarity with risk allows them to eventually spot risk at a safe distance, and avoid it altogether. Moreover, it’s the necessity to keep their accounts intact. Institutional traders can afford to lose more and more, and if they continue to lose money they will simply be fired. Independent traders cannot afford to have such losses. So their necessity to win allows them to push the limits of their creativity. Until their trading becomes a real home based business.
People tend to focus extremely well when working from their homes, even more so at their garage based office. And this isolation from public noise and distractions allows them to brainstorm new ideas. That’s why many great things were invented at home, and many successful products and subsequent companies came right out of someone’s garage. There is no schedule to adhere to, no boss to give orders, no report forms to fill. It’s just the coffee and the focus on the problem.
If the trader is very successful, then they might look at their strategy as more than just a forex trading business opportunity. And just like all successful start-ups which eventually become huge companies, their idea may solidify. It may become less of a personal affair, and turn into low frequency, large size forex trading. As profitable trading grows, from small scale into larger scale, one wants to reduce day trading forex live, and trade more on the overnight forex market. And at much larger size. This is the philosophy upon which many home based small businesses finally grow into larger ones. They follow the path of less risk and greater wisdom. In the case of the confident independent forex trader, they can simply expand their profitable trading into trading other people’s accounts. These are usually rich people with huge forex trading accounts, seeking to make very low annual returns. Perhaps as low as 8%, on $1million or more. Which the wise, proven home based trader can easily do with only few trades.
The forex trading business opportunity is possible to reach, today. And there’s no one size fits all kind of solution. Each trader has to think in a unique way, specifically tailored to their needs. If you happen to be trading with less than $5,000. Then you have to limit risks, make use of leverage and smaller size trading. Today’s CFD forex brokers minimum deposit requirements are relaxed and much more affordable. The only thing the independent trader needs to worry about is risk control. Which is a whole field of research, and little understood even by winning traders. The home based trader is simply looking for ways to do more with less. And even $5,000 can go very far in today’s markets. What if you learn forex basics very well, had moderate goals, and low risk strategy. What if you only wanted to make $50 per trade, but were willing to commit $300 in hedging risk, and in recovering even a $20 loss. The trick in using a small account, is to stick to higher frequency trading, and smaller take profit goals. Traders who think otherwise, and believe that a $5,000 will be doubled or tripled in 2 months. Through huge directional trades. These traders are only fooling themselves. Every forex broker knows that such traders fail, whereas their high frequency clients do much better. And they are the only ones, among small account clients, who become profitable. The small high frequency trader is much more objective. They can afford to be wrong and still make money trading.Read More
Forex Education is that thing that gives you the correct dose of confidence. When you have ambition, taking action becomes second nature. Trading and Investing online requires the appropriate know how’s to operate, strive and succeed (OSS). Many people have varying views, on how to approach Trading. Some say, “Start and learn as you progress” while others claim, “you need to have all the Education before you start trading.”
Irrespective of the view, you may hold, there is no doubt education, is an essential part of the success package in your trading career.
With any new hobby, profession, or skill. A plan is needed. In which Identification, Familiarity, Practice, and Consistency become the building blocks to Master your Plan and execute at it will.
In the first stages, identify with all you need to begin your trading. i.e., What kind of Assets you wish to trade on (Currency Pairs, Commodities, Indices, and or Stocks). The trading timeframes concerning your availability, accessibility to the Internet and up to date information.
The Second stage is when you become familiar with the asset(s) of your choice, by learning about them. (Start with 2 or 3 assets). Then gradually diversify your portfolio. During this phase questions concerning the Who, What, Why/When should be addressed. For example:
During the third stage, you should be testing and be practicing to become perfect, opening, closing trades and exploring other methods, by the fourth stage you should be consistent with your custom plan or approach with fine tunings.
Most Brokers and online platforms will usually provide you with a wide range of financial tools. Since learning is subjective, some may prefer a technical approach, while others prefer a fundamentals approach.
Once are familiar, with those tools. Using them correctly is likely to
increase your success and profitability exponentially. The accessibility to
specific “tools,” maybe at the discretion of the Broker. The standard tools are
usually visual or textual and could be, divided into Fundamental and Technical
Tools or Indicators.
are Market related data, derived from the news (TV, Radio, Internet).
Summations or complete data are usually, obtained from the Brokers website,
blog posts, daily financial news or reviews and YouTube video updates which are
all updated periodically with current events derived from the Financial
Technical Tools /Indicators. These usually consist of all the different types of Trading platforms, like (Web Trader, Mobile Trading App, MT4,) as well as Graphs and charting systems, like (Candle Stick Charts, etc.) Mastering both approaches will most definitely equip you with more strategic options and flexibility both in spotting great treading opportunities and limiting your risks.
As you become aware of your options and choices, to increase your knowledge, the recommendation is to find 1-3 mediums that best suits you. Don’t hesitate, if you can’t find any. Start slow, aim to spend 10-30 minutes each day to learn more about your intended trades and Online Trading.
If you still wonder why learn forex basics, take a look at traders’ mistakes. They all boil down to ignorance of basic principles and basic risk assessment.
You can actually approach learning through a hand-on method, in all kinds of subjects. Not just forex trading. In fact, learning becomes powerful and meaningful when the problems and challenges of life are presented first. The principles and ideas constituting the solutions should come second. Because if one fails to understand the usefulness of a theory. Then they are no longer motivated to learn a great deal about either the problem itself, or the possible solutions. Problem solving is interesting when one faces the problem, and then turns to theory. In the case of forex trading, some typical problems are risk assessment and management. Dealing with open losing trades. Identifying false market moves. And even recovering trading accounts that have been blown by more than 70%. All these problems look impossible to tackle, but actually aren’t. As the forex trading business opportunity appeals to to more and more people, the brokerage industry wants to make things easier for them. By not presenting too much complication. And by facilitating efficient, fool-proof trading. However, you can do better than the majority of these traders, by ignoring classic trading advice. And by solving those big problems of forex trading. That’s what will ultimately minimize risk and trading losses. And when most of the risk is removed, what will eventually remain will be a very profitable trading system.
Necessity is the mother of invention, and in the case of the early light bulb the problem was to make it more efficient. So through more and more research and critical thinking, hidden properties of light and of the atom were explored and quantum mechanics was born as a result… And there was a rebellion against established opinion at a time. Basic principles of physcis however held, and it was them who led the revolution. In the case of trading, the older generation hangs onto mistaken, unproven ideas, which fail under close scrutiny. But the fundamental principles surrounding market risk and price action are real.Read More