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4 Essential Tips to Apply on Day Trading

Day trading is an act of buying and selling the financial instruments or securities even multiple times within a single day. Doing it correctly, anyone can improve their trading skills. But it may consist lots of risks for newbies or anyone who doesn’t follow a well-thought-out strategy. Almost all the traders perform day trading but it’s not suitable for all of them.
Let’s see some of the tips to make your Day trading better:


1) Understand the market thoroughly
The traders can’t apply this tip to general trading procedures (although it is essential to know and understand them) but rather to major events that takes place daily. Every trader already know that important news and announcements have the potential to move the market. Remember that even when trading in shorter time intervals, fundamental factors can still affect the outcome of your deals


2) Allocate funds
No matter how much money you allocate to each and every trade, it should be thoroughly calculated. You should never invest a fix amount neither the whole of your investment. Rather you should make a strategy of investing 3% to 4% of your total balance. It should never exceed. You should keep yourself safe from a losing streak.


3) Set aside time
Day trading needs a scheduled time as it is a time-demanding pursuit. In fact, most of the successful day traders spend their whole day doing trade as a job holder spends his whole day working in office. Day traders do not have business hours and usually spend time monitoring the markets as much time as they can. Day trading is never an easy money, it needs time, effort and passion.


4) Time your trades
It is essential to see the right time to pick the right moment to open your deals. The experienced traders always enter the market when the volatility is high. Since Forex is traded 24*7 globally, with New York, London, Singapore and Tokyo being the most notorious exchanges, the highest volatility will be observed when there is more than one exchange is open. Certain specialist, however suggest novice traders to trade when the market is less volatile, to manage their risk properly.
Anyways, it is up to you to find a suitable entry and exit moment, trading style and develop your trading strategies accordingly.

Demo vs. Real Trading: Things to Know Before Making the Switch

It is generally suggested to practice your strategy and accuracy on a demo account while you are new in forex until you know inside out of all the conceptual strategies and nuances in this typical world of trading. And of course, demo account and real account are not different, means you can learn everything you need to learn to make profitable trades. In fact, it is always suggested to that trader’s transition to real account only after they have realized consistent results on a demo account.
New traders generally tend to start their journey with a demo account and yes, it makes sense practicing on a demo account as it is convenient and a practical way to gain knowledge and basics of trading. Here, things get a little tricky. Once the traders have consistent profit, they start expecting the same results from real accounts. But, not only these expectations are unrealistic, but they will also set you up for failure.
It is obvious to understand a sort of psychological block, and fear of losing real money can be scary and distracting. After some period of trading simultaneously, the thought of real losses won’t actually affect the traders’ minds much. If the trade fails traders unconsciously think of a better position with a new opportunity so that they can recover the loss they made instead of being agitated about the losing positions.
Before making the switch from practicing in a demo account to real trading, it is vital to understand and experience what makes these accounts different from one another. Considering these points and planning accordingly will better prepare you and give you the confidence to shift into a real account.

Let’s be conscious of some of the essential points:

Know the risks

You don’t have to face a monetary risk when trading demo. Losing streaks on a demo is not upsetting or discouraging as you have the comfort of knowing you can replace your account with more funds whenever you wish to do so.

Understand the psychological difference

The bottommost line is that trading on a real account reminds the rollercoaster of emotions, especially, during the first shifting from demo trading to real. You are bound to feel uneasy, restless, excited, nervous throughout your first couple of trades. Exaggerated feelings of frustration or anger may also make an appearance.

Accept the volatility of the market

The Market is volatile as it changes in the blink of an eye. Lots of traders are not prepared to handle volatility, while some traders may find it difficult to trade when the market is a little slow or within its sideways. Make sure you have plenty of plans and strategies for all types of market conditions before taking the leap into real trading.

4 must to do things traders should follow while trading

Trading can be seen as a sea of opportunity waiting to be explored. Nevertheless, traders who are not adequately ready to board on this adventure may find sinking instead of swimming. Just as the ship captain needs a map to navigate their ship’s path, traders need some strategies

and plan to lead them through their trades. We as a human don’t have any idea what is next? We don’t know whether there is any life going to exist or not? But, the human being has the capability to face the improbability of the future with curiosity and positivity. There is hope, the hope of living, hope of having a happy life and we make plans for our future and work on that to have one.
Similarly, traders cannot predict their next trade but still, the next step should be planned and strategized. The experienced traders already know that having a trading plan is essential for long term success.
What about you? Are you not aware of what is a trading plan entails? Let’s have look at some key points which are included in a trading plan to get started;


Goals
Take a moment to analyze your both short term and long-term goals before starting your trading day. Ask yourself which one you are about to achieve, and which one may need a bit of change. Are your profits realistic? Have you evaluated risk or reward ratios?
A trader’s success depends upon his goals, so it’s essential to reserve some time to think about your trades carefully.


Instruments to trade
Trading instruments generally refer to the different types of markets you can trade. Sometimes, it is called securities, they vary from commodity futures to stocks and CFDs, to currencies and metals and many more. So, choose the instrument you want to trade after studying the market.


Trading times
Time can be critical depending upon the instrument you intend to trade. For example, forex traders might want to isolate the times when the market is most active. When the market is highly active it usually translates into volatility, which increases upside potential.
Trading generally also depends upon mood. If you feel refreshed and energized in the morning it could the best session, if not, you can try the afternoon or evening sessions.


Entry/Exit rules
This is the place where your trading strategies and plans come into play. Make sure the strategy that you want to employ is compatible with the instrument you have chosen to trade. Plan the entry signals you will look for, and form potential exits. It may be brilliant to use the two exit rules: the first should be your stop loss (LS), and second should be your take profit (TP). The creation of these signals prevents you from being a victim to the emotional trading.

Why do traders keep losing money in Forex Trading?

To be honest, getting consistent returns as a trader is not easy. Around 90% of people who have entered the financial markets lose money and leave empty-handed. There are lots of reasons for losing money. For example, some people are not that serious about their trades, and they just do it like playing a game, others take it as entertainment and not as hard work, the rest feel lazy to gain knowledge and acquire new skills.

So, why do you keep losing money? Your answers are below;

Being ‘too smart’

Being too smart is hardly the reason that makes you keep losing money. Nevertheless, it is the brilliant investors who are more successful in the financial markets. If you think you are too smart, on the contrary, it could get unpleasant.

Now, what do most ‘smart traders’ do? The smart traders believe that they can defeat the market, which is not easy and happens pretty rarely. They believe that it depends upon luck and not the skill. Most of the traders enter the deal at the least suitable time and end up with a position that is intended to lose.

Very less people out there can brag the ability to be smart with the market. One stay humble, trade with the trend and don’t act over smart while going against the market rather you should embrace it. You should rather embrace it instead of beating and going against it.

Being emotional

Trading cant’ be considered as your life. Here one needs avoid both positive and negative emotions as they can hamper trading progress. Try to stay relaxed and patient. It will help you in your next trading.

No risk management

One can bet his entire investment on a single trade and may even earn some profits. But, after a few more trades, he will eventually end up having massive losses. Unlike those traders who follow proper risk and money management & as a result lose just few shares of their investment, you can lose the entire capital at the moment. No more funds equals to no more trading.

Conventional investors suggests that one should risk just 2% of his trading equity on a single trade. Go for 4-6% if you really feel lucky, but under no conditions assign 100% of your funds to even “the deal that will make you win for sure”.

Controlling your emotions place a big role while trading, as said by warren buffett -“If you cannot control your emotions you cannot control your money”.

Trades Factory helps empower you with high tech trading tools and learning by industry leaders. Traders Factory is the hub of all your financial trading solutions. Watch, learn and get 70-80% consistent profit.

What Currencies are traded in Forex?

Forex Trading- Forex simply means foreign exchange trading. It is all about buying and selling currencies in pairs. You need to have information about the currency in the pair that how much worth ful are they to each other. A currency pair quotes two currency contractions, followed by the values of the base currency which is based on the currency counter.
An international code is always there that specifies the setup of currency pairs. For an example, a quote of EURUSD 1.23 means that one EURO is worth $1.23. In this pair, the base currency is Euro (EUR) and the counter currency is the US dollar, Hence, every currency pair is listed in most currency markets worldwide.
Tell me a market that never closes during the working week which has the largest volume of the world’s biggest business and with people from all countries of the world participating every day?
Yes, the Forex Market. It is the global premier financial market, which mirrors the financial dynamics of the world trade pretty clearly.
When you start trading Forex online, you may find yourself stunned and confused by the absolute number of currency pairs.

With over than 200 countries in the world, you can find handful of currency pairs to indulge with trading, though, these currency pairs may not have the potential to deliver the great results to traders.

So, what are the currency pairs
Before examining about the best currency pairs, it is good to enhance our knowledge on the most popular currencies that can be found
• US Dollar (USD)
• Euro (EUR)
• Australian Dollar (AUD)
• Swiss Franc (CHF)
• Canadian Dollar (CAD)
• Japanese Yen (JPY)
• British Pound (GBP)

Although, there are lots of traders who trade in exotic currencies such as the baht or the Czech koruna, the majority of dealers trade the seven most liquid currency pairs across the world.

Let’s have a look at the major currency pairs
• USD/JPY (dollar/Japanese yen)
• GBP/USD (British pound/dollar)
• USD/CHF (dollar/Swiss franc)
• EUR/USD (euro/dollar)
• EUR/USD (euro/dollar)
• AUD/USD (Australian dollar/dollar)
• USD/CAD (dollar/Canadian dollar)
• NZD/USD (New Zealand dollar/dollar)
Now, the question is, what is the best currency pair to trade?
The answer is not easy, you cannot get the straight answer as it varies from trader to trader. Take some time and analyze different currency pairs which is best suits your strategy in the best possible way, it may depend on Forex session you take and may vary accordingly.
So, decide wisely which currency pair you should trade in Forex Market.

What is the difference between Forex and CryptoCurrency?

There are many factors that make cryptocurrency different from forex, although exceptional aspects of both markets attract the traders similarly. Talking about the forex market as we all know it is the biggest financial market where almost every currency is traded by a huge voluminous amount of liquidity, which makes it very prone to the economical events of different countries such as political announcements, inflation numbers, and jobs reports. Being a global market, it is influenced by a number of features such as political announcements, inflation numbers, and jobs reports. On average, around $6 trillion is traded in the Forex per day.
The Cryptocurrency which is often referred to as ‘digital currencies’ and is not the same as the currencies like US Dollar, Canadian dollar or Japanese yen.
Whereas, currencies in the Forex are backed by the centralized Government but crypto is not. They are programmed online and reversed by a peer-to-peer verification that stops you from using a cryptocurrency (like Bitcoin) most of the time.
Features of Forex and CryptoCurrency:

  1. CryptoCurrency
    (a)Finite supply available
  • Demand gets increased when there is a limited supply. From the time when there is a limit on how many cryptocurrencies can be generated, the value often accelerates, As an example Bitcoin.
    (b)Quick and permanent transactions
  • Cryptocurrencies have low transaction costs as a central bank and other third-party vendors don’t take a transaction fee.
    (c)Available to anyone.
  • Cryptocurrency market is a platform that gives different levels of investment opportunities to both of the parties world-wide. This procedure allows individuals use and trade cryptocurrencies even in under Developed countries without nearby banking institutions.
  1. Forex Trading
  2. Unlimited supply.
    As The Forex market comprises of the world’s global financial markets, there is an unlimited supply of currencies that are available to trade.
    (a)Leverage.
  • Usually, the ratio of leverage provided in the Forex market is 100:1, meaning you can take a Forex trading position worth $100 for only $1. Though this also means losses can rise rapidly.
    (b)Very high liquidity.
    The number of participants are much more than any other market, hence, it is quick and simple to trade. In other markets, even a single investor can massively influence the market such as the stock market but it does not happen with Forex.
    (c) Influenced by global news, announcements, earnings reports, etc.
    Forex market is influenced by global news, announcements, earnings, reports etc which can make it easier to find trading opportunities.
    There is high volatility in both the Forex market and cryptocurrency. However, the more risk you take the more reward.
  • Bottom line
    Trading whether in Forex or in Crypto both involves a high level of management. It needs effective equity planning, the right strategy, proper risk management, perseverance and a strong desire to continuously learn.
    Trades Factory provides a platform with learning plus earning opportunities. Trades Factory prefers in following the correct strategies and provides the same to their students too.

What are the differences between Forex and commodity trading?

Generally, commodity market (also known as Comex) trades in goods such as, gold, silver, crude oil, coffee, cocoa and all the mined products. In global market, Forex is also shortened as FX which trades in currencies such as dollars, Euros, yen etc. Many of the analysis and approaches of both the markets can be stated as identical to one another. Whether you trade in Forex or commodity, you should feel yourself comfortable. Nothing in the world can be achieved without interest, hard work and passion.

The market which you prefer has a lot to do with your comfort level with the following factors:

Personal Choice

A number of people feel comfortable and relaxed with certain types of markets. Because, the commodity trading is physical market they can relate and communicate to, people feel easy and like to trade in this market.
As sugarcane and wheat can be seen in everyday life, many of the traders prefer commodities because they can connect to these things.

Differences in Regulation

The foreign exchange market is a slightly unregulated spot market and with such big volume it’s volatile like anything. On other hand commodity market are very regulated.

Leverage in Forex and Currency Market

There is a major amount of leverage in Foreign Exchange market and people don’t have to go through a complicated procedure to have it. All you need to do is fund a small amount or a few hundred dollars of account and you can have thousands of dollars in the end.
The commodity market also has an option of leverage but the leverage in forex trading is amazing.

Exchange Limits

While Forex is traded over-the-counters and with the help of brokers or in the interbank market, commodity trading can be done on exchange.
Commodity market has daily collection limits by trading on an exchange and these limits are called limit up or limit down and you cannot place a trade when these limits go beyond.

Compromise

If you are a trader and looking for an option you can probably trade commodity based currencies.
The commodity based currencies include Australian dollar, Canadian dollar, New Zealand Dollar, Russian Ruble, Colombian Peso and Peruvian Sol. As per history, the Australian dollar has an optimistic connection to the price of spot Gold (even if the strength of the connection varies eventually), the new Zealand economy correlate with the whole milk powder prices and the Canadian dollar has a positive connection with the price of crude oil.

What are the most profitable Forex currency pairs for scalping?

As almost all the Forex traders already understand, scalping conditions involves short-term transactions to make profit. It can be explained as a highly focused trading method, which needs strong knowledge of technical and fundamental analysis and complimentary technical setup in order to make profit for scalpers.
As the strategy is leaning towards a special kind of movement in the market, it is compulsory for the scalper to know which currency pairs are most suited to scalping strategies. Normally speaking, it is accurate to trade the smallest-spread currencies which have the lowest costs too. Widely, it is suggested that one should use the most traded currencies as those have the top liquidity in the market.
We will classify 3 types of currency pairs most suited to scalping, to emphasize which currencies scalpers must pay more attention.
Note: This is just an example as at the movement the market is in consistent fluctuation and instability appears all the time. The unspecific currencies are the one that can easily change with time during certain examples.
Major currency pairs
The purported majors are the currencies by the most powerful and leading economic countries in the world. The main distinctiveness is liquidity and openness to the market shocks.
Major currency pairs contain the following pairs:
EUR/USD
USD/CHF
GBP/USD
USD/JPY
Carry currency Pairs
The main features of carry currency pairs are that they are traded in the entire world and they are very unpredictable. It can be easy to acknowledge that these are unstable pairs, but their progression and transformation straightly depend on the evolutions of the interest rate.
Let’s have a look at the examples of carry currency pairs category.
USD/JPY
EUR/JPY
USD/JPY
EUR/USD
AUD/JPY
NZD/JPY
AUD/USD
EUR/AUD

Exotic currency pairs
The important features of exotic currency pairs are that they are unique, less-liquid and less familiar Forex pairs than the other two earlier divisions on currency pairs.
Lets’s have a look at some of the exotic currency pairs.
USD/SEK
USD/ZAR
USD/TRI
NOK/USD
BRL/USD
Conclusion
It is actually suggested that only the experienced scalpers can trade this category as the unpredictable gaps appear frequently.
But, even beginners who have great knowledge of money management strategies may find them perfect for scalping as well.

How Reliable are Free Forex Signals?

People always prefer a service without a lot of effort or expense. People also do not want to make their own mistakes and instead rely on someone else’s thoughts and opinions. Same goes with Forex Trading. A lot of traders wish to make a profitable trade and in many cases, they wish to achieve this profit as quickly and effortlessly as possible.
This is when many traders will be searching Google for Free forex trading signals daily or other similar queries. Lots of beginner traders will be disinclined to pay for premium signals, as they hope to gain profits without any disbursement. What is essential to understand is that good free services are hard to come by, in fact, they are not reliable and Forex trading is no exception.
Generally, the cheapest broker or service provider will not be the best one and the same applies to Forex Signals. Usually, they are not reliable nor of high quality. Similarly, when trading with assured signals, you should know that while you may be able to find Free signals, they may not end up being free, they can make you experience losses.
What are Free Forex Signals?
Forex signals are generally short massage that includes information which can help in your trading decisions. They are created to be sent to the traders via emails, SMS, text messages and other all type of communications.
So, what does a signal look like?
Generally it’s so small that contains only key point and looks as follows:
• buy eur/usd @1.1240
SL@1.1220, TP@1.270

• Sell xau/usd @1546
SL@1550, TP@1529
Above you can see that the signals start with the direction of the order. It can be signified as Buy (Long), or it can be Sell (Short). Later on, the trading mechanism is shown. It can take the appearance of the currency symbol EUR/USD, or otherwise, a currency nickname like Aussie or cable can be used. And this is followed by the price reference, that is generally shown in either five or four digits after the dot.
You can find a lot of Forex signals that come without any charge, you still should certainly approach these signals with carefulness as not all the signals provider will be interested in your success.
Even if you can make profitable trades with free signals, it is not advised to completely rely on free signals the main source of your trading information.

How can you recover lost money in Forex trading?

Life is not always a bed of roses nor a bed of thrones, it’s a bed of roses filled with thrones.
You have to face problems and happy moments simultaneously. Similarly, Forex is also not easy neither impossible.
It’s not easy doesn’t simply mean very hard, so don’t stress. Forex trading is a clash against big money banking system who usually place traps for traders to get foreign money and less spend local money.
As a result almost all the traders, typically beginner lose their money on these battles. So, you shouldn’t give this moment if you want to make money and want to level up your living standard.
Following some of the steps, you can reduce your losses and accelerate profitable trades.
Let’s check out.
STOP Right Now
If it’s your disaster day then you should stop your trading daydream right now. Don’t ruin it and prevent yourself from stress. If you don’t stop or change your current strategy that is not going right, it can lead you down and will make you mentally exhausting.
When you find yourself angry then you should stop being that. Generally, people can’t control their emotions, but, in trading, if you don’t control your emotions it can lead you to fall down.
Reset your mind and refresh yourself.
A huge loss grounds stress, anxiety, anger and frustration, and hate comes up in the end. It can also bring suspicion about foreign exchange trading system. And you might also think about taking revenge against the broker or even the market. But, eventually, you will get to understand that there’s the least way to recover lost money without a clear mind.
Hence, what you have to do is refresh your mind. Omit your psychological self-harming problems and other dilemmas. You might get your key and ride towards the profit.
Find the real reason-
Is losing money your fault? Did you lose your way during trading? I mean, did you perform according to your strategy? If everything was according to your strategy what’s gone wrong? Is it a matter of technology? Or the breaking news made your trading fall down?
If a piece of sudden news changes the market it’s not your fault, don’t blame yourself nor your luck.
Do you give credit to your luck if something good happens? No. Then why blame your luck when it’s bad?
You will get many reasons to blame your luck, give excuses for the loss and some of these are definitely meaningful, I might understand so do you.
Fix issues-
Fix the issues and get your money back. The most important option in trading is Stop Loss (L/S) to get success. Don’t forget, do use it. Simultaneously, Take Profit (T/P) option should be used with stop loss.
Don’t over trade on losing trades. It’s time to learn that over trading is not for you. You are not a kid, stop and change your strategy.
Now, if your trading is going well and your new strategy is working, then you are the winner! Well, making lots of money is not a real destination. In my view, building your own method with a well-researched plan should be the real mission.
Happy Trading!