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For novice traders - forex trading is not easy at all

{}Posted in2023/2/24 20:23:31 | 6Browse

f cashback forexex has become the preferred bestforexrebatecompany industry for many investors because of its high liquidity, 24 hours a day rebatesforexbroker open to the public Open your computer or phone, control your money freely and make a profit, th forexrebatecommission is a good career for both recent graduates and professional traders However, as with all jobs, there are good sides to forex trading, but of course there are also bad sides Advantages ● Low fees: forex trading fees fxrebatecentral be very low in fact there are almost no commission fees, most brokers are profitable from forex spreads so traders do not have to worry about other additional brokerage fees while the stock best forex rebate company or other securities trading brokerage structure varies greatly. Traders will have to consider a variety of additional fees ● Suit a variety of trading patterns: the forex market runs throughout the day and traders can choose convenient time slots to trade This is perfect for short-term traders who prefer to trade in minutes or hours or so For example, daytime in Australia coincides with nighttime on the east coast of the United States Traders in the United States can trade the Australian dollar during Trading the Australian dollar during U.S. business hours because of the low volatility and stable price range of the Australian dollar during this time This type of trader can use a high volume, low profit strategy Because of the low volatility, the profit margin is also small, so they can supplement their profits with high trading volume at this time Traders can likewise choose to trade for long periods of time, ranging in duration from days to weeks Forex trading is very flexible in its mode & nbsp;● High liquidity: Compared with other financial markets, the foreign exchange market has a very large number of participants, which also makes the liquidity very high again large orders can also be quickly absorbed by the market this also greatly avoids price manipulation and chaos, and low spreads also help more efficient pricing investors do not need to worry too much about the opening or closing time of high volatility, or stagnant price fluctuations in the afternoon while these are The foreign exchange market is an over-the-counter market, so there is no central exchange or regulator Many countries central banks only intervene when necessary, but this is also uncommon and only happens during extreme market conditions, which are usually already known by the market, and prices have already changed This decentralized and unregulated market can The market is decentralized and unregulated to avoid any sudden shocks, while in the stock market, if a company unexpectedly announces a dividend or news of a company loss, then the stock price is changing dramatically with the foreign exchange market insider trading is still very small, because the currency market does not exist insiders For traders, in addition to focusing on the advantages of the currency market, its disadvantages must also be carefully considered  Disadvantages  nbsp;●Lack of transparency: It is because the currency market is unregulated, so brokers become the main protagonists a broker-driven market also means that the currency market is not transparent enough traders may not be able to control how orders are executed, whether they get the best offer, etc. The easiest way is to work only with regulated brokers the market may not be controlled by regulators, but the activities of brokers can be controlled& nbsp nbsp;● Complex pricing process: Exchange rates are affected by a range of factors, such as global politics or the economy, and information on these aspects is difficult to analyze, so the conclusions obtained are not always reliable Most forex trading occurs on technical indicators, and this is the main reason for the high volatility of the currency market technical failures, then losses are difficult to avoid ● High risk, high leverage ratio: Forex trading can use high leverage, meaning that traders profits and losses can be magnified several times the foreign exchange market allows a leverage ratio of 50:1, then traders with $1 can build a position of $50 leverage ratio can make a person more profitable, but also allows him to lose more leverage can become a nightmare when losses investors must know enough about the leverage ratio, know how to allocate funds wisely, and be able to control their The emotions ● Independent learning: In the stock market, traders can get professional help from portfolio managers, trading advisors or account managers, etc. And forex traders can only rely entirely on their own self-discipline and continuous learning is the path of every trader Many newcomers give up at the initial stage, mainly because of the limited knowledge of forex trading and unreasonable trading has caused a lot of losses  nbsp;● High volatility: macroeconomic and geopolitical factors can not be controlled, so traders in the currency market during high volatility can easily have huge losses in the stock market, if the stock does not perform well, shareholders will pressure management to seek change, they still have regulatory agencies can seek help while forex traders have nowhere to go for example, when Iceland went bankrupt, traders holding Icelandic krona can only watch 1 day 24 hours The best way to monitor price and volatility in a restless market is to set strict stops on all forex trades and then use a good method of systematic trading Conclusion People often think that forex trading is the easier way to make money, but in fact it is quite difficult to be persistent, continuous learning, adequate money management skills, risk management skills and a sound trading plan All of these are essential in shaping a successful forex trader