Best Forex Trading Hacks for Newbies

In the world of foreign exchange (FOREX) trading, time is of the essence. Every second counts in this trading arena. Considered as the biggest financial market in the world in terms of trade volume, the forex market is a worldwide market that operates around the clock (24 hours a day), Monday through Friday.    It’s a market that is constantly moving. Where every single day, trillions of dollars are changing hands.          

Knowing the volatile nature of this business, means that as a trader or investor, you always have to be on your toes. This is an arena where time is money, take your finger off the pulse and you could lose big time. So if you are thinking about venturing into the world of forex, here are some of the best trading hacks to save you time and maximize your potential for success:

•                Equip yourself with the knowledge on forex trading.  Initially, you have to gain a solid understanding of how forex trading works before you even venture into this market. Study the ins and outs of forex market. There are reliable introductory and in-depth courses on forex trading online, which beginners can avail of for free.
•                Get yourself an experienced and reliable broker/mentor. Find a regulated or licensed broker. Choose a broker that you can rely on and one that uses a trading platform that suits your trading style.

And on the subject of trading platforms, brokers have come up with a number of automated trading solutions to make forex trading easier and faster for greenhorn traders. On top of the list are social and algorithmic trading.  

Social trading, or mirror trading, allows the real-time sharing of information and collaboration among community members within the same platform.  It allows newbies to learn the tricks of the trade from the experts themselves. They get to witness in real time and in context how the experts do it.  So for the newbie, trading becomes much easier because you base your decisions on how experts and veterans do it. This saves you from the usual time consuming research and analysis needed before you even attempt to trade.

Algorithm trading (Algo trading), or variably termed as automated or box trading, is a process upon which a computer is pre-programmed with a set of instructions (based on price, quantity, timing, or mathematical model). These automatically start off a trade and generate profits at a speed and frequency far beyond what a human mind can normally do. Unlike those who employ social trading, traders who use Algo trading do not rely on what other expert traders in the market are doing before they place their trading orders. With Algo trading, the computer automatically initiates a trade on the basis of pre-programmed conditions, as set by the trader himself.

Mobile platforms available on iOS and Android. Mobile forex trading is becoming increasingly popular because of the convenience it provides traders. As long as there is internet connection, traders can control their trades from anywhere.

Demo Trading Account. Before you jump into venturing in live accounts trading, test the trading platform’s features through a demo trading account. It allows you to practice forex trading without risking your own money.