Success in online forex trading requires more than having the basic trading knowledge. Amateur traders get excited by the performances in the leaderboards and the reviews of existing traders. However, it is important to note that growing your fortunes in forex requires time and investment. Investing in the right signals, and trading robots make the difference between top performing and average performing traders. In this, the focus is on the influence of reliable signals, the choice of a trusted forex broker, purchasing trading robots and understanding timely market trends with respect to the above subject.
1) Reliable signals: forex trading analysis is a complex process and that new entrants will take longer to perfect besides training. Signals are available in three versions, the first one is free signals, and the second is free signals for specific traders who have signed up with a particular forex broker. The third is signals sold by experts specializing in the generation of signals. The reliability of trading signals is assessed in terms of the time they arrive and the targets provided. Different forex signal providers generate signals that have varied accuracy. Free signals have as much chance to fail as the chance to be right. However, the second and third version of signals has over 80% reliability. It is, therefore, important to invest in the most reliable signals to make consistent and good gains in the market. Signals are available on different schedules from one month, quarter, semi-annual and annual durations. A trader should, therefore, choose a combination that is reliable and that is affordable.
2) Choose the right broker: there are different brokers offering online forex services, and each has pros and cons. From experience, the best brokers should have easy to use and secure trading platforms. However, the most important thing is the availability of accounts manager assigned to each client. Account managers help in navigating through the market at beginner’s level until one is comfortable to work on his or her own. Different brokers are offering incentives in terms of deposit bonus for clients to sign up with them. Incentives are good, but they can be misleading if they are exaggerated. Bonuses that do not require deposits and are not time-bound conceal some undesirable aspect of the broker. Critical aspects of a broker that a client should pay attention to are regulation, spread, minimum lot size, the minimum amount to activate an account, and the minimum amount to initiate a withdrawal. Different brokers also provide critical information that affects specific currency pairs in trading and that is critical to traders.
3) Buy trading robots: a trading robot is a software application that advanced traders use to increase their trading volumes by running more than one currency pairs. Forex trading robots come in handy when a trader opts for automated trading over manual trading. The advantage of using trading robots is that it is easy to execute the market once a trader has reliable signals ahead of time. Using trading robots reduces the chances of incurring losses from opened trades since the robots execute the markets based on the instructions provided by the trader. Just like trading signals, getting good and reliable trading robots cost some amount and therefore, before using trading robots, a trader has to ensure the decision favors their trading portfolio. If a trader is having equity below USD500, then it is worthless to invest in trading robots considering that their trades will not be more than USD500 at any given time.
4) Evaluate safe trading periods: forex trading is volatile on different days across the week, which means one is bound to incur huge losses. From experience, the first day of a trading week starts on a Monday and ends on a Friday. Trades on early Mondays are volatile until 9.AM and onwards when the markets have stabilized. On Fridays, trading activities are volatile from 3.PM onwards since some other markets are beginning to close down their operations until the next cycle. This situation with close to four days of good operation when trading activities can be running stable. With this information in mind, traders can increase the intensity of their treading between Tuesday and Thursday, but on Mondays and Fridays, they can set the maximum limit for their trading per currency pair. On each day, however, trading activities decline during the night, and the movements on the screen depending on the platform one uses reflect that situation. One should, therefore, maximize daytime trading.