Wednesday, 30 December 2015

How To Get Referrals - 7 Ideas For New Business Owners Just Starting Up

How To Get Referrals - 7 Ideas For New Business Owners Just Starting Up

Referrals are one of the very best ways to grow your business. Asking for a referral is the tricky part. Especially when you're just starting up your business. Here are seven new business referral ideas to get you started.

Referrals are one of the very best ways to grow your business. But how about when you're just starting out? Will getting referrals help you grow your start up?
Yes indeed. However, asking for a referral is the tricky part. How do you ask? Whom do you ask? Especially when you're just starting up your business.

It's not easy getting referrals when you're just starting out. That's because most people asking for referrals fail to keep these two things in mind:

First, think about this from the viewpoint of the people thinking about referring clients to you. They are all asking the same question: "Why on earth should I send you a referral?" Sure, they can see it would be of value to you and your business if they refer someone to you. "But why," they ask themselves," "is it important to me?" If you can answer that question from their viewpoint, you will give them a reason to be happy about referring someone to you.

Second, people who refer a friend or client to you have a lot more to lose than you do. If you do an excellent job, that's great. If not, it colours how the referrer is viewed. As a consequence, they could even lose their client's business.

So you need to think carefully before asking for a referral. Here are some ideas you may find helpful.

Seven New Business Referral Ideas
1. Become a low risk referral by adding high value assurance. For example: Give a money back guarantee or free consultation to each person referred to you.

2. Make sure you have something to offer that either other service providers don't want to do or that you are specialized in doing.

3. Don't hide the fact that you're brand new. Instead, capitalize on it. Offer a new business discount during your first six months in business.

4. Make a list of local people and businesses in your area that offer complimentary services and whose clients may need the services you offer. Then contact them in person.

5. Approach local churches and non-profit organizations and offer to teach classes in your area of specialty. Teach the class for free. Then give a discount on your services to everyone who signs up at the end of the class.

6. Talk with your hairstylist about your services. Give him or her a stack of referral cards. Offer your stylist $5 for every customer who purchases a service from you as a result of one of the cards he or she passed out.

7. Find another new business owner and cross-promote each other. They key here is to find a strategic partner who is in a complementary business who will benefit from promoting your business as well as theirs.

When just starting up your business and asking someone for a referral, keep in mind that you are asking for someone to trust you. Trust you with their precious clients. Trust you to not make a fool out of them for recommending someone to you. Therefore, think carefully before asking for a referral. Make sure you have something to offer that will be of benefit to the referrer.

Monday, 21 December 2015

Ten Shocking Facts About Forex Trading Mistakes

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Ten Shocking Facts About Forex Trading Mistakes

Top Ten Most Common Trading Mistakes

This forex blog aim to cover about ten shocking facts about forex trading mistakes by most traders. The currency trading market is the biggest financial market in the world. The market is largely controlled by global market forces of demand and supply.

Most of the retail currency exchange happens online rather than on exchange floors and this has led to the market being accessible to anyone in the world who has an internet connection.

This high number of market participants has led to many myths in the market. You can find them on online forums, in newspapers, or even when talking to friends at your local favorite hangout.


Have you ever wondered why is it that very few traders succeed in the forex trading market while 90% of forex traders fail to achieve success?

Top 10 Trading Mistakes By Beginner

1. Looking For Easy And Quick Money
I have to stress that foreign currency trading is not a get rich quick scheme. Achieving consistent profitable results out of forex trading is tough. It requires some forex education, patience, discipline, emotion control, etc. to get you into the world of successful currency trading.

2. Looking For The Holy Grail
I have people asked me, "What is the best forex trading system around?" There isn't such trading systems in currency trading. Many forex traders spend years trying to find the Holy Grail of foreign exchange trading, but failed to find one. The main reason is the forex market changes every single moment.

3. Inadequate Right Education
One of the reasons forex traders fail is because they don't have enough right education. Some people who came into forex trading don't even open a forex book or educate themselves about currency trading. You need certain forex training education, a forex course, a forex trading system and then a mentor to coach you.

4. Lack Of Discipline
Discipline is so important in fx trading that it will reward you by accumulating your profits if you abide to it, and could turn your forex trading account into nothing when you lack of it.

5. Lack Of Patience
Forex traders chase after the price because they do not want to miss a golden trading opportunity. In currency trading, there is no such thing as golden opportunity to me because every forex trading setups are equally important.

6. No Money Management
Most forex traders totally forget about the risk of forex trading. They only think about how much they will win and never plan for the worst. Money management limits your risk on every single trade so that you are able to trade tomorrow, the next week, month and years.

7. Failure To Control Emotions
Be a perfectionist in following your forex trading plan. Stay calm if you lost a trade, you know that there are infinite chances to earn an winning opportunity back. Don't let greed take over you!


8. Having Unrealistic Expectations
People come into fx trading thinking they are going to be successful and earn tons of cash, from $1000 and then reaching $100 000 in a very short period of time. You will know why that is untrue if you have gotten my free forex ebook.

9. Lack Of Mentorship AND Support
Once you have a trading system, having a mentor not only gives you forex advice, but also the ability to get nearer to success as your learning curve will be shorten, your doubts answered and confidence boosted.

10. Looking For Excitement
Some other forex traders may think it is very exciting to trade the forex market, but to me, forex trading is boring if I want to be profitable and stress free.

Ten Shocking Facts About Forex Trading Mistakes

Wednesday, 16 December 2015

Forex Pip: How To Maximize Pips And Minimize Losses

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Forex Pip: How To Maximize Pips And Minimize Losses

How to maximize pips and minimize losses? Forex pips. Learn from this forex blog from forex friend loan. As you'll soon learn, the Forex pip can be your best friend or worst enemy. First, we'll go over what a Forex pip is exactly. Then I'll discuss what you can do to maximize pips and your profits, while simultaneously minimizing your losses.

A Forex Pip is the measure of success or loss in Forex trading. Find out how to maximize pips (and profits) while minimizing risk in Forex trading.

What Is A Forex Pip?
First thing first. What exactly is a pip? Pip stands for "percentage in point" and is the smallest price increment in forex trading. Since most major currency pairs (the Japanese Yen being an exception) are priced to 4 decimal places, the smallest change would be reflected in the last decimal point.

Basically, the Forex pip is the measuring stick for gains or losses when trading currency. Let's look at an example to get a deeper understanding of this. A currency pair of EUR/USD might be bid at 1.1815 and later offered at 1.1820. This is a spread of 5 pips. So, if you bought a certain number of Euros at the bid price, and then later sold them for the offered price, your profit would be 5 pips. (Obviously. the amount of money that you make is dictated by how much currency you bought and sold for profit.)

What The Forex Pip Means To You
Successful Forex trading occurs when you maximize your pips when you trade as much as possible. Thinking long-term and logically, to be successful you need to have more pip gains than pip losses in your trading. Let's be honest, it is impossible to win every time. When everything is said and done, what you want is more pip gains than losses.

How To Maximize Pips and Minimize Losses
The perfect scenario is to buy currency at its lowest value, and then sell it once it has reached its highest value before dropping. But that is easier said than done. There are numerous and varied factors that determine the rise or fall of currency values. So, what can you do?

Many Forex Traders are turning to Automatic Forex Robots to do the trading for them. This is a great way to maximize pips while keeping the risk in check. These computer programs or scripts stay current with what is going on in the Forex market and trade according to predetermined indicators set in the program by professionals. So, instead of trying to figure out everything for yourself and being glued to your computer 24 hours a day, from Monday to Friday, you let the automated Forex software do the trading for you.

Why I Recommend Software To Maximize Forex Pips
I already mentioned the benefit of having the software program keep track of and react to the currency market based on predetermined indicators. However, there is an even more important reason to use a Forex robot instead of doing all the trading yourself... EMOTION! Let me explain...

Forex trading is very exciting. Watching the pips go up and down, especially when real money is on the line, is quite a thrill. But you don't want emotion to guide your trading. Greed and fear are expected emotions when dealing with something as exciting and potentially profitable as Forex trading. And you don't want these emotions clouding your judgment in your Forex trading. Using a computer program to do your currency trading is an excellent way to keep your trading profitable and lower risk by keeping emotion out of your trading.


It is a great feeling when you see the pips working in your favor. So if you want to maximize Forex pips and minimize losses, get an automatic Forex robot and put your trading on autopilot. It is not only a lot easier but a lot more profitable as well.

3 Trading Tips to Increase Your Forex Trading Profits

1. Make long-term investments.
Day trading (or short-term trading) has become popular and this is why newcomers to the Forex trading world assume that short-term trading is the way to go. Short-term trading has some advantages such as lower risk of losses and faster collection of earnings. However, it has a few setbacks, starting with much lower profit opportunities. Long-term investments, on the other hand, may not give you your money back quite as fast but they do provide you with better opportunities for profit. For long-term investments to work, you will have to be vigilant in monitoring the market movements so you can take your money out immediately once your investment is no longer profitable.

2. Increase your investments over time.
Obviously, the more money you invest, the greater your profit potential. But in case of a negative turn, the risk of loss will also be much greater. In other words, if you want to make more money in Forex trading, you will have to take bigger financial risks. A universally accepted practice is to invest only up to 3% of the total amount. For the more adventurous or more ambitious trader, this amount can be increased to 10% or more. The risks may be high but if you are fairly sure of your investment, you will earn more eventually.

3. Avoid doing multiple transactions at once.
Some people can conduct multiple transactions simultaneously and keep an eye on each one. This practice is not recommended for everyone, much less for Forex trading newbies. Instead, it is best that you work out the details of a transaction first before you move on to a new investment. Focusing on one transaction at a time will enable you to make better decisions and ultimately increase your chances of making a decent profit.

As you become more experienced in Forex trading and learn new strategies, you can veer away from the standard rules and start to make your own rules. While you are still in the learning stages, however, it is best to keep on the safe side and make small but sure profits. Don’t take huge gambles that could wipe away your savings.

3 Trading Tips To Reduce Overall Risk Forex Trading Profits

1. Use the Appropriate Trade Size Based On Your Account.
There are several ways to properly measure and use risk when trading currency.  One of the popular methods is to use a percentage of the account’s equity.  The other popular method is simply to use a fixed lot size or fixed dollar/euro/pound amount per trade.

With the example of using a fixed dollar amount, you might identify that you are comfortable with risking $100 on every trade you take.  This should be your baseline and you should not deviate from it until you are ready to move on to larger position sizes (or unless you have lost some trades and now have less equity in your account; at which point you now decide that you are going to risk just $85 per trade, for example).

This method will require you to calculate your stop loss level when placing the trade as well as the size of the trade itself (the number of lots you are going to need to use to equal the amount of dollar-risk you want to use).  When trading larger timeframes this is usually not a problem at all because you have time to think and to plan ahead of your entry point.  Trading lower timeframes, however, can make this style of money management problematic.

2. Are You Trading Too Aggressively to Be Safe?
Increasing your position size may generate you big profits, but may also cause you to head down a path of destruction. Always control your trade size because, even with a good analysis of the market, the possibility of losing always exists.  There is always a loss coming around the corner and you need to be prepared for it—both emotionally as well as with your risk-management plan.

Forex traders must always be patient and wise when making a decision to increase their trading size/risk.  Do not ever make a knee-jerk decision to power into a trade when the price just seems to be taking off like a rocket—maintain your discipline and your money management!

3. Control Losses With Stop Loss Orders On Each Trade
The stop-loss order is one of the most effective ways to minimize losses in Forex trading. This function will close your opening position when it reaches a pre-determined point that you adjust depending on your analysis of the pair movement and its resistance and support points.

This is a very simple matter but I just wanted to mention that you must always use a stop loss.  If you have been a trader for more than a few months then you have probably already realized the absolute necessity of placing a stop loss with every trade.

Some professional traders will trade with a ‘mental stop-loss’ and watch the charts closely as the trade progresses, closing manually if need be.  They may close at their mental stop point or prior to it if they see a shift in the market conditions and the anticipated move does not seem to be working out.  This is not recommended for new traders of course.  Always place your stop loss at the outset of each trade.  This will protect your account from huge losses (drawdowns) and will help you manage your trading risk appropriately.

Whatever the action is that you need to take, I encourage you to go and do it now without any further delays. Only study and focused action will move your trading success forward. Let me know what you personally are going to do today to better your trading business—I can’t wait to hear what you will do with this information and encouragement!  Good trading to you this week ahead!

Forex Pip: How To Maximize Pips And Minimize Losses

Tuesday, 15 December 2015

Forex Trading Checklist

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Forex Trading Checklist

Trading Checklist

The aim of a Forex trading checklist is to prevent impulsive trading and accidental mistakes. An essential checklist for smooth execution of a basic Forex trading entry is presented below. Feel free to build on it and modify it according to your trading style.

Do you already know the basics of forex trading when you get into it? Those basics are the necessity if you want to win in forex. Otherwise, your forex investment may down the drain. A lot of forex traders who failed in trading all the time is because they lack planning.


That's the primary homework that all traders must do. Without any planning, you will probably unable to see what and why you are trading.

1. What skill level are you in? If you are a beginner in forex trading, then you might want to take a step at a time. Do not rush to trade because a good forex strategy is always using probabilities. In the first place you should know that in currency trading business, there are no certainties, only analysis, and judgment no matter what kind of forex trading systems you are using. Professional traders are good in high probability trades by using a simple trading strategy.

2. Are you a risk-taker? I have to remind you that forex trading involves some risk and do not go into trading if you can't take a risk at all. Like I have said, trading will definitely involve some losses because you can't win all the time. But what I can assure you is that if you take the right approach in trading and follow all the rules, you will have much more winners than losers.

So be prepared to take some risk and make sure that your trading capital can withstand it. Minimize risk by looking out for high possibilities trades and not by quantity trades.

3. How do you target profits? If you want to trade forex the profitable and correct way, then you will have to follow the forex trading strategies that I give advice for. I recommend traders to have a health risk to reward ratio of at least 1:2, which means that if you risk 1 pip, you should target 2 pips of profits.

This may sound quite difficult to achieve when you are a beginner, but I can tell you that once you get experienced in the forex market, then you should not find that too tough. With a good risk to reward ratio, then you can develop a forex strategy that allows you to achieve that, e.g. a more advanced intraday or swing trading strategy.

Below are some of the forex tips and important questions you need to answer yourself if you really want to succeed and make money online.

Here is my Forex Trading Checklist

1. Are you risking a fraction of your trading capital?
2. Are you trading with the trend?
3. Are you trading from an area of value?
4. Do you know what's your entry trigger?
5. Do you know where to exit if you're wrong?
6. Do you know where to exit if you're right?
7. Do you know how to manage your trade?
8. Are you following your trading plan?

After these steps are in place I then place the trade and log them in my forex trading journal. I think you will find that something as easy as a simple forex trader checklist can dramatically improve your trading. Trading doesn’t have to be complicated to be successful. It is best to keep it as simple as possible so not to outsmart yourself.

Forex Trading Checklist

Friday, 11 December 2015

Successful Trading – Establish Your Risk Level

Successful Trading – Establish Your Risk Level

Before you embark upon a journey of trading stocks or futures, and before you make any trades, you MUST determine and establish your risk level. Traders that fail to do this are usually doomed from the start. The fact is that most trading accounts that go bust are because of the failure to determine at what point the trader will cut their losses and move on to the next trade. Rookie traders are particularly prone to do this. They hang on to losing positions hoping that they will turn around – only to watch the price drop even further. Too much thought and effort are expended on the buying decision instead of the selling decision. The sad truth is that it’s the selling decision that will determine your fate as a successful trader. And successful trading is dependent on how long and how well you can protect your account against loss until the big profit comes your way. Setting a risk level for your account and for your trades will provide such protection.

If you’re like everyone else, you’ve got an online trading account and you’re free to move in and out of positions without the input or interruption of a broker. If you’re not doing this, we recommend that you do. So when you buy a position, have you determined where you would to sell it if the price would fall? Many traders only think about the price going up – they never think about what they’ll do if it goes down. You MUST determine this limit BEFORE placing a trade.

We recommend that get out of the position if it drops anywhere from 7% to 10% from where you purchased the stock, option or commodity (or any other market derivative). Yes, it could rebound and take off 100 points after you sale, but it could also drop 100 points and your account would be wiped out. Consider this, if your account drops 50%, then you need a 100% gain to get it back where you were! This is why you MUST place a stop-loss after every trade you place with your broker. Do this without fail IMMEDIATELY after placing a trade with your online broker. Once you’ve placed a stop-loss level with your online broker, the system will automatically sell your position when that level is reached. Remember, stay in the game until you hit that big trade!

Online Trading: Determine Your Risk Tolerance

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Online Trading: Determine Your Risk Tolerance

Online forex trading. How to determine your risk tolerance in your forex trading? Read this simple forex blog from forex friend loan. Each forex trader has a risk tolerance that should not be ignored. Any good trader or financial planner knows this, and they should make the effort to help you determine what your risk tolerance is. Then, they should work with you to find investments that do not exceed your risk tolerance.

Traders should always have a plan of action to exit the market. Not only is this a bad trading practice, this can be devastating to your account balance if the market continues to move against any open positions.

What is risk tolerance?
Risk tolerance is the degree of variability in investment returns that an investor is willing to withstand. Risk tolerance is an important component in investing.

Determining one’s risk tolerance involves several different things. First, you need to know how much money you have to invest, and what your investment and financial goals are.

For instance, if you plan to retire in ten years, and you’ve not saved a single penny towards that end, you need to have a high-risk tolerance – because you will need to do some aggressive – risky – investing in order to reach your financial goal.

On the other side of the coin, if you are in your early twenties and you want to start investing for your retirement, your risk tolerance will be low. You can afford to watch your money grow slowly over time.

Realize of course, that your need for a high-risk tolerance or your need for a low-risk tolerance really has no bearing on how you feel about risk. Again, there is a lot in determining your tolerance.

For instance, if you invested in the forex market and you watched the movement of that forex daily and saw that it was dropping slightly, what would you do?

Would you sell out or would you let your money ride? If you have a low tolerance for risk, you would want to sell out… if you have a high tolerance, you would let your money ride and see what happens. This is not based on what your financial goals are. This tolerance is based on how you feel about your money!


Again, a good forex trader should determine the level of risk that you are comfortable with, and help you choose your investments accordingly.

Your risk tolerance should be based on what your financial goals are and how you feel about the possibility of losing your money. It’s all tied in together.

How to figure out your trading risk tolerance personality (and why it matters)
If you are struggling to become a consistently profitable forex trader, then pause for a second, take a step back, and ask yourself if your forex trading strategy matches your personality.

What is your trading risk tolerance personality?
The bottom line is that everyone has a certain level of risk that they are comfortable with. However, most traders don't take the time to figure out what that level of risk really is.

How do you figure that out?
One of the steps in this process is figuring out your Trading Risk Tolerance Personality.

So your task is to figure out how much you are comfortable risking on each trade. This may seem like a simple thing, but it is immensely important to your success.

You may think that you should risk 10% or maybe even 20% because you think that you can make 50% or even 100% in profit. But the reality is that you shouldn't be risking more than 2% per trade.

Yes, you can still be consistently profitable, even when risking less than 1%. In fact, a lot of professional traders recommend it.

So how do you figure this out?

There are two ways that you can do this. First, you can open a demo account that is the same size as the real account that you are currently trading or you plan to open.

Then start taking trades with the following risk levels. Test each risk level for about 25 trades in a demo account and see how you feel.


In fact, it's probably better that you lose more trades than you win.

Just take random trades and focus on what it would feel like to lose that amount of real money per trade.

It can be tough to properly simulate how it feels to lose real money but do your best. This is the preferred way to figure out your risk tolerance.

Another way that you can do this is to put a very small amount of money in an account that allows you to trade nano lots. With nano lots, you can deposit as little as $100 and still take the risks listed above, on each trade.

Since you are trading real money, you should use a trading strategy and do your best to make money. But again, that should not be your primary goal.

You are trying to figure out which risk level is the best for you. For some traders, having real money on the line, no matter how small, is the only way to experience the true effect of a loss.

Only you can make the decision as to which method is best for you.

It can be hard to take the exact amount of risk when you are trading micro or mini lots. But nano lots make it possible.

…and mathematically speaking, you will make more money when you take the exact amount of risk on every trade.

The good news is that forex traders can work on preventing this worst case scenario by following some simple risk management guidelines. Let’s get started.

Trading Tips For Online Forex Trading: Determine Your Risk Tolerance

1. Follow The Position Sizing Rule
No discussion on risk and money management can be completed without understanding the basics of position sizing. Position Sizing is among the most basic and fundamental rule and it should be understood and used by each and every investor. It implies that a trader must be aware of the maximum amount of capital that he is willing to invest in a particular trade (order volume). A trader is more exposed to the risk if he invests more capital for one single position.

Position sizing is important for every trader. It does not matter if you are a newbie with just a few hundred dollars in your account or you are a FOREX giant with few million dollars. Similarly, it does not matter whether you are trading a higher or smaller time frame chart.

2. Setting A Stop
The first step in risk management is setting your stop orders. This is a step forex traders should take regardless of the strategy they are executing. One easy method to stop placement is to find a line of support or resistance. These areas can be determined by price action, pivot points, or other methods and should be easily identifiable. The logic behind this is that if you are selling the forex market, traders will want to exit the market if resistance is broken, and price moves to a new high.

3. Risk By The Percentages
Setting a stop is only a portion of the risk management equation. Once an area is selected for stop placement, traders need to determine the amount of their account balance they plan to risk per trade. One easy way to do this is to consider what is known as the 1% rule. This rule stipulates that traders should never risk more than 1% of their account balance on any one single open position. That means, using the math if you are trading a $10,000 account you should consider risking no more than $100 on any one trading idea.

Next traders should also consider the 5% rule. This means traders should never have more than 5% of their account at risk at any time. Using this rule, in the worst possible trading scenario, if all of your trades are closed out at a loss you will only lose 5% of your account balance. Using the math below you can see that on a $10,000 balance, this would be a loss of $500. While no one wants to lose $500, that will still leave $9500 remaining in your trading account balance to continue looking for other opportunities.

4. Have An Exit Plan
A trade is comprised of two main actions: an entry and an exit. Most traders stare at charts all day planning an entry yet few put that same energy into planning an exit. As forex traders, it's important to have both an entry AND exit plan before entering a trade. Your exit plan should answer the following questions:

Where will I exit if the trade goes in my favor?
Where will I exit if the trade goes against me?

If you know the answer to both of those questions, the trade will go a lot smoother. You eliminate some of the stress of managing the trade by protecting yourself from indecisiveness. You also give yourself a better understanding of your potential risk.

5. Sticking With A Trading Strategy That Could Work
You may find a trading strategy that fits your personality perfectly. But if you risk too much per trade, then you lower the chances that it might work for you.

Even if the trader you learn it from says to risk X%, you can always risk whatever you feel comfortable with. That can help you stick with a strategy that you might have otherwise given up on.

Risk Tolerance Can Make or Break a Trading Strategy
You may think that a forex trading strategy is the only thing that will determine your success but there are so many more factors than that.

One example is the amount of risk that you take on one trade. The amount of risk that you take on each trade, can determine a few important things that you may not have thought about.

6. Don’t Overuse Your Leverage
Leverage allows you to take a FOREX position for a much greater amount than your deposited capital. This is obviously a great way to multiply your profit. However, it comes with severe risk. It is common for new traders to get carried away by over-leveraging their trading account simply by opening too big orders. It is crucial for long-term success to understand the true purpose of leverage and respect it by not overusing it. Moderate leverage, in general, is a good thing, but it has to be used very wisely.

Your risk tolerance might change over time, and that's OK. But in order to get off the forex trading and get closer to consistently profitable trading, you need to figure out what works best for you right now.

Focusing on nailing down a specific risk level that you are comfortable with is one of the three parts of the trading foundation. It is the groundwork of successful trading.

Online Trading: Determine Your Risk Tolerance

Tuesday, 8 December 2015

How To Get Started Trading Currencies

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How To Get Started Trading Currencies

Learn to trade currencies (FX, Forex). How to get started trading currencies? This forex blog from forex friend loan outlined what to look for a beginner. The forex market is one of the most dynamic and liquid in the world. Millions of people participate in it every day, some without even knowing about it.

Who’s trading currencies?
A lot of people. currency trading (Foreign exchange) is most commonly known as Forex and Forex is the world’s most traded market. According to CityIndex, there’s an average turnover in excess of US$5.3 trillion every single day. That’s 4.24 trillion pounds at the time of writing, although as will be seen that can change.

A lot of different people are trading, from large companies to part-time traders operating out of their bedrooms, something that only became possible with the proliferation of the internet.

How does it work?
When trading Forex, currencies come in pairs, for example, sterling/US dollar. The trader predicts how the exchange rate between the two currencies will change. So, if the trader believes that US dollars will strengthen against the pound then they buy dollars, which means they are also ditching their pounds.

If they are right then the value of their currency rises and they can sell for a profit. If their hunch was wrong then they lose.

For example, the GBP/USD rate shows the number of dollars one pound can buy. If a trader believes the pound will increase in value against the dollar then they use dollars to buy pounds. If the exchange rate rises then they can sell the pounds back for a profit.

One of the reasons Forex trading is so popular with hobbyist investors is that the markets are open pretty much 24 hours a day, following the different countries’ time zones.

What drives currency movements?
Most people already know that the values of currencies shift, that’s why exchange rates change. And the changes in those rates are determined by a multitude of traders buying currencies with other currencies and making judgments on what each is worth in relation to each other.

Prices can change at incredible speed in response to news and global events. Traders look at key factors, including political and economic stability, currency intervention, monetary policy and major events such as natural disasters.

Will I make any money?
Forex, trading in the currency market is highly risky. It’s so risky that many commentators have likened home traders to professional gamblers, arguing that the idea an individual can reliably predict the movements of currencies is nonsense.

There is an abundance of platforms and guides and books and investment tutorials that suggest it’s possible to make a small fortune trading currencies. However, spend any time reading forums and there are hoards of bedroom Forex traders losing money day after day.

It can be very expensive to make currency transactions and individual traders usually don’t have a large enough pot to make anything other than small gains.

It’s essential that would-be traders don’t invest money they can’t afford to lose.

Why Having A Trading Mentor Is A Good Idea

To get started, you need to have a lot and lot of interest in the financial industry. By this, you need to be ready to spend your times reading financial news and learn to trade currency market. If you don’t have such interest, it will be impossible to succeed as a forex trader.

Many futures and stock traders are aware of the excitement surrounding the currency market. However, because foreign exchange trading was until only recently limited to multinational corporations, money-center banks, and the largest investment firms, forex remains a new and unfamiliar market to many self-directed, retail traders.

As a consequence, despite the undeniable advantages that the forex market offers, some online traders are no doubt apprehensive and reluctant to participate. With the passage of time, the benefits will undoubtedly become more widely known and better understood, and more traders will almost certainly migrate from the equity and futures markets. In the meantime, interested traders can take steps to bring themselves up to speed and learn more about this exciting market.

Having A Trading Mentor 
You’ve heard this advice before. Almost all successful traders have had some kind of role model to show them how it’s done. I’ve had a mentor too, I wouldn’t be here today writing forex blog and forex trading tips without my mentor. Here are some of the best reasons why I believe having a trading mentor is a good idea.

Trading is not about immediate gains or immediate trades. It’s all about the process, which is why trading mentors can be so valuable. They have had the experience and the ups and downs you have yet to experience. Chances are they’ve blown a few accounts and understand how to avoid it. The difference is what they decided to do once that account was blown. This little tidbit and many more are why the experience has and will always be respected.

Save Yourself Time
Learning from their experience can save you a lot of time. A forex mentor may have spent years learning trading and the different phases of the market. He can share what he learned and cut your learning curve in half. The time spent to figure the little things out can be better spent on understanding your trading style, psychology, and the market.

Save Yourself Money
There are some real dangers out there in trading. You hear trading horror stories all the time. First thing I learned when I got a mentor is to never hold through earnings. But you see people still breaking this rule left and right. This and other valuable advice can save you thousands of dollars that will keep you from making that one fatal mistake.

Trading is hard. Seeing someone who has gone through it and come out of the other side shows you it’s possible. Talk to them, spend time with them, and ask them questions. Then you’ll realize that the potential is real and not a distant dream. Feed off of their passion and internalize it as your own. This way, when the going gets tough you have someone to turn to and know they also went through the same pain.

Take A Currency Trading Course
Almost all forex trading courses available today fall into the webinar, self-study, forex blog or seminar categories. They have important strengths and weaknesses. The self-study camp is generally comprised of web-based courses, CD-ROMs, workbooks, or any combination thereof.

While self-motivated and highly disciplined traders might find self-study courses to be perfectly satisfactory, many traders require the structure of a more formal learning environment and would benefit greatly from individual instruction. Webinar, hosted by various brokers and financial market mentor around the country, typically run 3 months to years in length. Most beginner traders learned to trade forex 3 to 8 months on the webinar.

Most walk traders through at least a fair range of important topics in a more or less methodical way. The drawback, of course, is that in addition to the cost of the seminar, traders must absorb travel and accommodation expenses. And at many seminars, the number of attendees makes personal instruction impossible.

Happily, the latest trading courses make use of webinar technologies to offer a complete curriculum, a perfect mix of convenience and structure, and all the benefits of a classroom environment and one-on-one instruction at an economical price.

A complete trading course can be put online and broken down into daily lessons (for example, one lesson per day for a full month). Though the trader must log into the website to view each day's lesson, he may do so at any time that's convenient. After each lesson, students have the opportunity to post questions for course instructors and to discuss ideas with fellow students in a virtual classroom.

Brief daily assignments and quizzes and even individualized feedback from instructors based on the assignments. all play an important role in reinforcing the material and help traders learn each day's lessons. And when a complete online course is combined with a practice trading account, the trader has a risk-free opportunity to apply the lessons and strategies learned, and mentor can offer trading tips, and suggestions to help refine and improve trades. This new type, of course, represents a quantum leap forward in forex trading education.

Find A Forex Broker
Next, you need to find a good broker. A broker, will provide you with tools to learn about trading, deposit money, and start trading. You need a broker that is regulated by the leading regulators like FCA and CySEC. Using an unregulated one will only expose you to huge risks. In the past, many traders have lost millions of dollars in those schemes.

Practice Trading Currency In A Demo Account
Many online forex brokers today offer demo trading accounts, and there's simply no better way to familiarize oneself with the currency market and the broker's trading platform. Generally, FX paper trading accounts are identical to live, "real" trading accounts, in that the demo trader enjoys all the same tools and features that are available on the broker's actual system. The trader will get a feel for real-time, continuously-updating bid/ask prices.

He can experience order placement and execution. Account balances, margin requirements, and P&L are usually updated in real-time, as well. The only difference, of course, is that demo trading accounts are "funded" with anywhere from $1,000 to $1,000,000 in hypothetical money, which means that trading methodologies can be tested and evaluated under actual market conditions without having real capital at risk. You'll likely find that most demo accounts have limited lives and expire in anywhere from two weeks to one month. But for most traders, that's perfectly acceptable. after getting the feel of forex trading in a demo account, most traders are enthusiastic about taking the next step and opening a real account.

Consider Trading Mini Currency For Starters
Several forex brokers now offer mini currency accounts, which are designed for those new to online currency trading and those with limited trading capital. Such accounts can be immensely helpful to traders who wish to learn currency trading while minimizing their risk.

Instead of trading full-size currency lots (100,000 units), downsized lots (for example, 10,000 currency units) may be traded. Though the leverage in a mini FX account can still be substantial, the smaller lot sizes with correspondingly smaller tick values mean that the trader will be assuming a less total risk.

For example, while a 20-pip loss on a 100,000 EUR/USD position would be $200, the same loss on a 10,000 EUR/USD position in a mini account would amount to only $20.

The Mini FX account can be useful in helping traders develop a disciplined, rational forex trading strategy without excessively focusing on profits and losses. When trading 100,000 currency unit lots in a regular, full-size account, traders with relatively small balances tend to fixate on their equity fluctuations and sometimes base trading decisions on emotional reactions to these fluctuations.

Many traders, for example, resist closing-out unsuccessful trades at a loss, because they hope that the market will turn in their favor. Conversely, many tend to immediately take profits when the market moves in the desired direction, rather than maximizing their gains by allowing profits to run. With less capital at stake in a Mini FX account, however, the trader can develop a disciplined trading methodology as well as the confidence needed to be a successful currency trader without the anxiety and distractions that come with large P&L swings.

What next?
This whistle-stop tour of currency trading is not enough to equip a would-be investor with everything they need to know to stand a chance of making an actual return. It’s a complex area and one that, even with extensive reading and knowledge, is full of risk.

There are stockbrokers and financial advisers available to discuss standard investments and degrees of risk, but for individuals trading currency, it’s largely self-taught and fraught with risk.

Before undertaking any kind of online trading, it’s a good idea to spend time reading more and talking to other investors. Just be aware that any book, tutorial or guide that promises large returns is not being entirely honest about the level of risk involved

How To Get Started Trading Currencies

Monday, 7 December 2015

Forex Trading - Should You Invest

Forex Trading. Should You Invest? Forex Blog, Forex Friend Loan, Trading, Forex, Forex Market, Rich Scheme, Invest, Money, Currencies

Forex Trading - Should You Invest

Forex Trading. Should You Invest? Read this forex blog from forex friend loan, why should I invest in forex. Good question. Trading forex in the forex market is not got quick rich scheme. Forex trading is all about putting your money into other currencies so you can gain the interest for the night, for a time period or the difference in trading money all around. Forex trading does involve other assets along with money, but because you are investing in other countries and in other businesses that are dealing in other currencies the basis for the money you make or lose will be based on the trading of money.

Is forex trading a safe investment? 
Trading Forex is not, strictly speaking, an “investment,” in the sense that investing in a bond or a stock is. When you trade forex, you put your money at risk in an investment strategy. However, the risk can be managed with a prudent trading strategy.

Can you get rich by trading forex?
Forex trading may make you rich if you are a hedge fund with deep pockets or skilled currency trader. But for the average retail trader, rather than being an easy road to riches, forex trading can be a rocky highway to enormous losses and potential penury.

Can you make a living out of forex trading?
The short answer is yes. The longer answer is, trading is a skill. You have to learn. yes, you can make a living trading the Forex market but you have to consistently do a lot of things right. Most traders simply do not yet possess the necessary trading skill, discipline, patience, or realistic attitude to succeed long-term in the markets.

What is investing in forex?
The foreign exchange market, also called the currency market or forex (FX), is the world's largest financial market, accounting for more than $5 trillion average traded value each day. The Forex market is a 24-hour cash (spot) market where currency pairs, such as the Euro/US dollar (EUR/USD) pair, are traded.

Constant trading is done in the forex markets as time zones will vary and the markets will open in one country while another is near closing. What happens in one market will have an effect on the other countries forex markets, but it is not always bad or good, sometimes the margins of trading are near each other.


A forex market will be present when two countries are involved in trading, and when money is traded for goods, services or a combination of these things. Currency is the money that trades hands, from one to another. Often times, a bank is going to be the source of forex trading, as millions of dollars are traded daily. There are nearly two trillion dollars traded daily on the forex market.

Should you get involved in forex trading?
If you are already involved in the stock market, you have some idea of what forex trading really is all about. The stock market involves buying shares of a company, and you watch how that company does, waiting for a bigger return. In the forex markets, you are purchasing items or products, or goods, and you are paying money for them. As you do this, you are gaining or losing as the currency exchange differs daily from country to country.

To better prepare you for the forex markets you can learn about trading and purchase online forex mentor. You will log on and create an account. Entering information about what you are interested in and what you want to do. The 'game' will allow you to make purchases and trades, involving different currencies, so you can then see first hand what a gain or loss will be like.

As you continue on with this demo account you will see first hand how to make decisions based on what you know, which means you will have to read about the market changes or you will have to take a brokers information at value and play from there. If you, as an individual want to be involved in forex trading, you must get involved through a broker or a financial institution. Individuals are also known as spectators, even if you are investing money because the amount of money you are investing is minimal compared to the millions of dollars that are invested by governments and by banks at any given time.

This does not mean you can't get involved. Your broker or investment advisor will be able to tell you more about how you can be involved in forex trading.

4 The Reason Why You Should Invest In Forex

In reality, Forex offers many advantages that other markets cannot produce on your capital in an economic calendar.

The advantages of getting involved with Forex investments are that you have:

Few Options:
Investing in Forex will give you few options to select from. This will give you rest of mind because you won’t need to be monitoring thousands of stocks. Unlike the stock market, you have literally thousands of choices to consider which put you at risk.

Trading Days:
Investing in Forex will allow you to make money as much as you want to make because it is always available to trade. It is 24 hours a day except on weekends. This is another reason people prefer to invest in Forex. You can sit down in the comfort of your room any time and trade even after your normal day’s job.

The flexibility of Forex trading makes it another unique reason to invest. This is because you can decide to leave the market at any day and any time. It allows traders to exit the market quickly if there are signs to leave.

You Decide Your Profit:
In investing in forex, your future is in your hands with the type of trading strategy you use.
In other to invest in Forex, there are some Fx trading strategies that you will have to be familiar with, this is to reduce your trading risks to a minimum.

Trading Strategy
Scalping Trading:
Scalping trading strategy is a short-lived trade. Scalping works with profit through purchasing or selling currencies by holding a position for a very short period of time and closing it for a small profit. In this trading, there is less risk exposure.

Swing Trading:
This is another type of Forex trading that is opposite to Scalping. In Swing trading, you hold positions for several days looking forward to making a profit from short-term price patterns.

Positional Trading: This is for a long-term trader. It has been having been described as a kind of fundamental trading in which positions are held for longer than a single day

Fundamental Trading: In this method, a trader focuses on company-specific events to determine which stock to buy and when to buy it.

Forex Trading - Should You Invest