As already indicated, there is some risk for the total loss of the deposit in trading financial products. And so it is with the use of automatic trading helpers. No matter which financial product or strategy the trader chooses - no trading software is infallible.

After all, even these finely sophisticated systems can not look to the future, but simply rely on empirical values and the resulting guidelines from the past. This means that erroneous trading decisions can happen here, too, but they were right based on the facts at the moment of the decision. The traders place their entire investment in the hands of automatic trading systems and this should be well aware of the traders.

Whats your opinion about it?

DEMO ACCOUNT

Beginners in foreign exchange trading can lose all their assets within seconds. That's why a demo account is the best way to learn how Forex trading works without directly risking your own capital. Almost all major brokers offer the option of a free demo account.



INFORMATION AND ANALYSIS TOOLS

The foreign exchange market never sleeps, as the time difference permanently causes new foreign exchange and exchange rates to be determined on world markets. Therefore, forex investors have to keep an immense amount of data in view, which is constantly changing.

If you do not want to completely lose track, you need good and clear information and analysis tools such as charts, curves or price charts. Many Forex brokers provide their clients with a variety of these tools on their platforms.




SERVICE

If you entrust your capital to a broker, you should make sure that it can be reached quickly and easily when questions and problems arise. Nobody would like to For example, after a data theft or forgetting of personal data, you can play a "ping-pong" for days or wait a long time in a waiting loop.
Personal advice, support via phone or chat, and a fast response rate are some of the features that make a good forex broker.



TRAINING

For newbies in the FX market, it would be a real challenge to want to survey all facets of the global currency market at once. That's why many brokers offer a training and education offer that is mostly free and can include: Live trading and video tutorials.

The supply of forex brokers is large and continues to grow. While large providers lead FX trading as one product among many others in the service portfolio, other brokers such as the German company FXFlat have specialized in foreign exchange trading.


TRADING FEES

"Small cattle are also crap" - This sentence fits perfectly with the fee regulations of many FX brokers. Even though individual trades or spreads appear relatively cheap in foreign exchange trading, a high number of trades can nevertheless result in a considerable fee item.




USER FRIENDLINESS

The functioning of the global currency market is complex and complex. It may therefore be difficult for new investors to at least comprehensively grasp the extensive international mechanisms and dynamics. That is why unnecessary interfaces should be avoided on the interfaces and platforms of the various FX brokers. Therefore, pay particular attention to a simple and intuitive operation of the preferred provider, as well as a high degree of user-friendliness and comprehensive help and service functions.




SECURITIES COUPLES

If you only refer to large and relatively stable currencies, such as the Euro, the British Pound or the US Dollar, you will be able to sail in relatively calm waters. He deprives himself, however, by the abandonment of trading in smaller and more volatile currencies to various speculative possibilities.

Investors should therefore pay attention to the following when choosing the FX Broker:

On the one hand to the highest possible number of available currency pairs.
On the other hand, the presence of rare and exotic currencies and currency pairs.

In the trading of these currency pairs, newcomers should, however, only enter the currency trading, if they have already gained some experience in FX trading. Because the price development of more unknown currencies can be forecast particularly difficult, the risk of loss in these currencies is particularly high.

Micro-trades fast trading: While ordinary trading in equities, commodities and ETFs can be a real test of patience for some investors, as prices may only change very slowly, trading with forex brokers has a much faster pace , With currency rates changing daily and foreign exchange trading around the clock, the FX market is one of the fastest markets in the world. This pace is accelerated even faster by the use of levers and other financial instruments that allow even small price changes to have a major impact. Thus, there are not a few investors who open and close their positions several times a day to profit from short-term price developments. As risky as this business model is, foreign exchange is ideal for such micro trades.

Levered Trading: If you have a small amount of capital, you can trade levers in forex trading. This makes it possible to profitably exploit even small price movements (in currency trading, these are sometimes a fraction of a cent).

Short-term capital commitment: Since the capital is tied to forex brokers, especially in the field of micro trades sometimes only for a few minutes or hours, FX trading is also suitable for investors who can dispose of only relatively small amounts of freely available capital. In this respect, the forex investment differs so much from the classic ETF or equity investment, in which the own assets are usually bound for months and years. But beware: The ability to enter into FX trading even with small amounts of money available is also his greatest temptation. So before any FX trade, consider whether you can handle the total loss of the invested investment in the extreme case. Otherwise, be sure to invest in lower-risk investments that tie your capital longer but less risky. Because the danger of the complete loss of the invested capital is always given with the Forex trade.

Dow Jones Daytrading

A common way traders can measure or rate trends is the 200-day moving average. This is simply a moving average over a period of 200 days applied to the daily chart. As prices move above this level, traders may consider bullish strategies for shorter-term trading approaches. By contrast, when prices fall below this level, traders can reorient themselves into bearish strategies, expecting prices to fall further.

Website option888. "Real-time trades - uncomplicated payouts" states on this page, with just a few clicks, the Forex account is opened, "for free and in just a few minutes". Anyone who completes their registration with such a dubious trading platform runs the risk of being caught in a novel, systematic Internet fraud scam. The invested money stays mostly with the alleged broker - from payments to the customer is rarely heard.

As many investors describe, the mesh they are lured to these trading platforms is often similar. Initially, a small starting capital of usually 200 euros or dollars is required. How the investment works, the online retailers do not explain. Users report that they then made some very high profits and a "personal broker" convinced them to make even more profits with higher deposits. As soon as a higher sum has been entered into the account of the trading platform, the problems begin. The disbursement of credits is delayed, the brokers are then usually no longer available. Or the forex providers are bothering consumers who want to quit the trade with phone calls.

A correct imprint consumers look for the websites of these platforms mostly in vain. A review of the Internet domains also shows that behind different platforms, the same backers stuck. The fact is that the providers transfer the funds to various accounts abroad, that the operators of the trading platforms change frequently and that the offices are often offshore mailbox addresses. Consumers thus have no chance to get back their money.

Momentum indicator forex strategy

The momentum indicator takes the latest closing price and compares it to the previous closing price. This is then displayed as a single line, usually on a single chart below the main chart.

The indicator moves to the centerline with the value 100 and moves away from this value again. The distance length of the indicator above or below 100 indicates how fast the course changes. For example, if the value were 102, it means that the market moves up faster than it does 101. In contrast, a value of 98 points to a stronger downtrend like a value of 99.

Momentum indicators can be a useful tool for identifying signals that indicate whether the market is overbought or oversold. Forex traders can use these indicators to gauge the strength of price movement in the market and determine if the price will go up or down.

It is important that the market has included the momentum indicator on previous occasions and set out the exact terms that seem to work.

In breakout trading, you take a position in a particular trend as early as possible. A breakout or breakout occurs when the price "breaks out" of a consolidation or trading range. It typically occurs when reaching or exceeding support or resistance points.

Trading breakouts are an important strategy, especially in the Forex area, because the fluctuations indicate the beginning of a volatile phase. Traders wait until an important brand has been reached. Then they enter the market right where the "breakout" occurs and stay in the market until volatility fades again.

Normally, such outbreaks occur on historical support and resistance marks. Depending on how strong or weak the market is, this can change as well. Your stop-loss should be set at the point where the market broke out.

The breakout trading strategy is based on the fact that the trading volume of the trades traded in the market are known. However, there is no way to capture the full trading volume in the Forex market, as this is a decentralized market. That's why it's all the more important to use an effective risk management strategy.

Fractals refer to reoccurring patterns in the midst of major price movements. The fractal indicator identifies turning points in the market that can be found around the central points of support and resistance. With the fractal strategy, forex traders can get an idea of ​​where the trend is heading when a fractal occurs at these key levels. Fractals are very common and commonly used as part of a wider forex strategy with other indicators.

The fractal pattern itself consists of five candle tips and indicates where the price movement up or down was difficult. A fractal must have a central candle that has a higher high or a lower low than the two candles on each side.

In a rising fractal, the focus is on the highest candle, with a descending fractal on the bottom candle. A forex strategy based on the fractal indicator would provide for a trade as the market evolves beyond the high or low of the fractal signal.