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Forex Trading Articles

10 Factors You Must Understand Before You Opt In For An ECN Account

There are two basic types of brokers in forex market; one is the market makers and the other is ECN Broker. ECN stands for Electronic Communication Network. In simple words ECN is a financial expert who provide a direct route to its customers so that they can interact with other market participants. ECN is a type of computer software that facilitates the trading outside the market so ECN broker only acts as a middle man between your trades, not as market maker.

We are sharing some advantages and disadvantages of using an ECN broker. These points will help you in taking right decision in choosing a forex broker.

Advantages of using an ECN broker:

By using an ECN broker you can claim a number of benefits such as:

Privacy of your trades:

The role of an ECN broker in trades is only as a middleman. So when you make a trade on ECN network, you are completely secured and you account cannot be distinguished and not traced. You can protect your trade strategy by using an ECN broker because you are using the name of broker for your trades.

You are your own market maker:

You are autonomous to set your trade limits and spreads by using an ECN broker. The ECN will match your bid with the other participants and through this you can gain some extra pips. There are no restrictions and limitations about placing and canceling an order. In this way you can perform as your own market maker.

Continuous trading:

ECN provide you the liberty to trade during news and events. Continuous trading increase the price volatility and at ECN, trading always remain continuous, so you can get the benefit of price volatility.

Enhance the execution of orders:

Always keep it in mind that you are trading with ECN actually you are placing your order by using ECN. The ECN is only matching your order with the other market participant on the ECN as quickly as possible. With the help of ECN, you can easily compare your orders and also check the best price level of a currency pair offered in the market. Through this you can improve the execution of your orders.

Price volatility:

In ECN prices are not constant and change can occur too quickly. Quick changes increase the price volatility. In this situation the scalpers and the short term traders can quickly claims large profits. ECN brokers are fit for scalpers.

Greater liquidity:

ECN has eliminated the geographical distances, now different parties can trade across the world without any geographical limits. This leads to greater liquidity (i.e. there are more buyers and sellers) which increases the efficiency of the markets.

Disadvantages:

Few negative point of using an ECN brokers are:

Commission:

ECN charged commission on every trade. Sometimes due to low spread the traders have to bear loss because their earning is less than the commission they paid.

High capital:

ECN allows you to act as a market maker. High capital is needed to influence the market parameters. ECN is not a perfect place for small investors and traders.

Corrupt market makers:

Every person is acting as his market maker on ECN. So there are chances that some dishonest persons can easily influence the market by introducing a great volume of trade. Some people are also giving deceive to others by showing them the ECN broker but in fact they are not.

Conclusion:

An ECN forex broker is a financial expert who acts as middle man between buyer and seller in their trade. The advantages of using ECN forex brokers are low spread, greater volatility and high privacy. But the disadvantages attach with it are high capital and commission. Have a look at your trading strategies and financial status, then choose properly.

Forex Trading Articles

Forex Trading – if You Want to Win Understand These 3 Key Points

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It always amuses me that people think they can make money easily in Forex trading, despite the fact that 95% of traders lose. If you want to win, you need to make an effort. So forget Forex robots and other sure fire methods and get the right Forex education and win…

Let’s take a look at the 3 key points, you need to consider to get on the road to success in Forex Trading.

1. Your Method

This is the easy part of Forex trading. Simple methods work best in Forex and if you are a new trader, look a breakout trading method, its simple to understand and easy to make big profits with. Complex systems, don’t work in Forex. Forex is an odds based market and if you make a system to complicated, it will have to many elements to break and your account equity will get wiped out.

So getting a system together is easy now, let’s look at the two points that are harder, you can however master them and if you do, you will be on the road to Forex trading success.

2. You need to Lose short term to Win Long Term

Most traders believe the myths put about by system vendors that losses can be very small and only last a few days but this is not reality of trading. Losing periods can last for weeks on end and this happens to the world’s top traders and will happen to you.

Of course you can win over the longer term but dealing with short term losses and keeping them small, is a major problem for most traders. It’s hard to take losses as your ego gets hurt and you look a fool. You will want to deviate from your system rules, as your emotions come into play or throw in the towel and of course if you do this, you have no system. The key to success, is to stay on track until you hit a home run and that requires the personaility traits, we are going to look at next.

3. Discipline and Confidence

To stick with your system through losing periods you need discipline. It’s a fact that most traders cannot trade with discipline and lose. Discipline only comes from education which gives you confidence in what your doing. Success really comes from within you and is about not just having a good trading method – but having the right mindset to apply it.

In forex trading anyone can learn a method but very few can apply it with discipline in conclusion, it’s not actually the market that beats the trader, the trader beats himself.

You can Win if you do this!

Forget about all you have heard that Forex is a walk in the park or a $100 robot, will make you rich without effort, it’s not true. Just like in all areas of life, to succeed you need to learn skills and you need the confidence to apply them.

If you understand this article, you can enjoy currency trading success and get on the road to a great second or life changing income. Sure you have to make some effort but the rewards for that effort are huge.

Forex Trading Articles

Forex Trading Fact – a Startling Fact Which if Understand it Can Give You Success!

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Here we are going to look at a forex trading fact which can lead you to forex trading success, if understand its significance. Here it is…

30 Years ago 95% of traders lost money and the same ratio lose today and the reason this fact is so startling is if you think of all the advances in computers, forecasting methods, the power of software, the wealth and quality of news – it hasn’t helped traders win and this leads to some conclusions:

– Technology is not the answer to market success

– Being clever is not the answer to market success

– Having a complicated forex trading strategy wont help you win

– Forex news will not help you win.

Success in forex trading is not dependant on being clever, being complicated, working hard, or having a forex trading robot, it depends ( as it always as done) on a combination of a simple forex trading system and having the mindset to apply it with discipline.

There are plenty of vendors telling you that you can make money with no effort and follow a junk robot or their predictive advice – but it’s not true, most of the systems sold are junk anyway – but even if you have a good one, its clear – success depends on you! Its you that is the key variable.

The Only Way to be a Winner

Sure you need a sound forex trading system and it needs to be simple so it’s robust. A complicated one will simply have many elements to break – but you have to apply it and this is not as easy as it sounds, as you have to trade through losing periods.

Technology can Never Overcome the Need to do This!

There is a huge market in telling you that technology and advances in forecasting, mean you won’t suffer much drawdown (if at all) but it’s not true.

Even the best currency traders will suffer losses for weeks on end and you must trade through these periods, to emerge a winner.

Anyone who says it’s easy to trade through a strong of losses, hasn’t traded – its hard! You need to keep taking losses and watch as the market make you look a fool – but if you can do it you can win.

Why 95% will Always Lose

Forex trading can be learned by anyone and that’s a fact – but 95% of traders lose and the reason they do is, they believe the easy route to profits sold online or, they have a good system but cant apply it with discipline. They don’t understand to win, you have to lose for periods and maintain your discipline.

Always keep in mind that it’s not the markets that beat the trader, the trader beats himself and that’s a forex trading fact too.

The Route to Success is Simple

If you get the right forex education and have the mindset to succeed, gain confidence in what you’re doing and can trade with discipline, you can do what 95% of traders can’t – and as a result, can enjoy spectacular currency trading success.

Forex Trading Articles

Forex Trading Tips – 4 Tips You Must Understand to Win at Forex

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Here are 4 Forex trading tips that if you understand them, can allow you to enter the elite 5% of winners who make big long term consistent profits. Anyone can learn currency trading and win but these 4 points need to understood – here they are…

1. You are Responsible

If you think you can buy success think again, you can’t. Most traders think Forex trading can be done with no effort buy a junk robot with a simulated track record and think they will make the same gains sorry, it’s not that easy. Forex trading sees 95% of traders lose and is not a walk in the park.

While anyone can learn Forex trading, you need to get the right education and skills but first you need to understand what the Forex market and how prices move, which leads to the next point.

2. Understand Markets are an Odds Game

Many traders think you can predict prices and believe so called experts, who say it’s possible. Its not and your predictions will be as accurate as your horoscope if you try. Neither do they move to a scientific theory as many claim; if they did we would all know the price in advance and there would be no market!

You need to understand that winning at Forex, is all about trading probabilities not certainties. You need to understand you won’t win every time and will have periods of losses – but if you always trade the odds, you can make a lot of money. Now let’s look at the type of Forex strategy you need.

3. A Simple System is All You Need

Your Forex trading system should be simple, robust and easy to understand.

Don’t believe anyone who tells you complicated methods are better there not, as they have too many elements to break and science (no matter how clever) won’t help you when you’re trading an odds based market.

Get a simple trading system – it’s easy to do and now we will move onto the final point which is the challenge you must overcome and if you can, you can make huge profits.

4. Discipline is the Key

A method by itself is not enough, you must have the discipline to execute it through periods of losses, until you hit profits again and this can be tough. It’s hard to keep executing your trading signals when the market gives you losses and makes you look a fool. Most traders simply let their emotions and ego get involved and lose.

Being disciplined at all times and employing strict money management, is the key to winning longer term and its not easy but it can be done, if you have confidence in what you are doing and have the right forex education.

It’s Not easy to Win

You can win though, anyone can. The fact it’s not easy to win, means the rewards are huge and you can get your share of them, if you want too.

Forex trading means you have to get the right education have confidence in what you are doing and trade with discipline. Accept this and take responsibility for your actions, and your on your way to Forex trading success.

General Forex

Eliminating the myths will help you understand more about scalping forex

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Getting enough background when it comes to the complexes of foreign exchange will help you earn more from your investment. While you have the desire to learn forex trading online, you are faced with several challenges as well. In fact, there may be myths associated with the subject matter which makes the learning process even harder. In the light that you want to separate truths from fallacies, you need to be provided with how you may do away with it. Scalping forex has its own share of myths which you want to know about as well.

Forex scalpers do not rest. This is one of the misconceptions when it comes to scalping forex. You should not expect that forex scalpers sit down all day just to give you your every penny’s worth. In fact, they are just regular human beings who are allowed to go through some other tasks or routines. If you want to learn forex trading online at its best, you should eliminate this thought in your mind. Forex scalpers are not your typical long-term traders since they only do their jobs when the market opportunity is at its very best.

Scalping forex is an inclusive system. A lot of people think that the concept is distinct or separate from the usual things to learn forex trading online. Well, to make you understand the reality behind forex scalping, it is just one of your options when it comes to forex trading. It is actually a form to manage risks pertaining to the forex market. While a lot of techniques may mean you win at times but lose in other instances, this technique will help you eliminate the chances of losing money in the end.

Trading through this technique will put you at a greater risk. Scalping forex will only put you at risk if you do not know completely what the system is about. The truth is that it is less risky than other forex techniques out there. With your desire to learn forex trading online, you will find out that this may even be the best way to manage risks in the forex market. Since your forex scalpers will only do the work when the trading system is on its best, then it simply means that there is no possible room for any loss.

Scalping forex leaves you to do the work on your own. It is true that you may learn several techniques on how to manage your money through forex scalping. However, despite this fact, you are allowed to seek help from forex scalpers instead of forex brokers. The latter are considered long-term traders sitting all day on the computer to provide you your needs while the former focus more on the safer days in the market. You may always favor forex scalpers more than you do want forex brokers to help you learn forex trading online.

Scalping forex has a lot of strategies which will best suit you. Since you want to make sure that you really earn from your investment, you may choose from a list of techniques that will work for your benefit. As you learn forex trading online, you will be presented with available strategies on this area. From there on, you may select your very own software. If you have any doubts in mind, feel free to consult your chosen service provider.