Share Market

Steps. Choose an online Forex Firm

What to look for in an online Forex Firm:

1. Low Spreads.

In Forex Trading the ‘spread’ is the difference between the buy and sell price of any given currency pair. The lower the spread saves the trader money. Most firms offer 4-5 pip preads in the Major Currency pairs. The best firms offer clients 3-5 pips.

2. Low minimum account openings.

For those that are new to trading, and for those that don’t have thousands of dollars in risk capital to trade, being able to open a mini trading account with only $200 is a great feature for new traders.

3. Instant automatic execution of your orders.

You want instant execution of your orders and the price you see and ‘click’ is the price that you should get. Don’t settle with a firm that re-quotes you when you click on a price or a firm that allows for price ‘slippage’.This is very important when trading for small profits.

4. High Leverage

You want high leverage—the ability to trade a large amount with a small margin deposit. Some of the best firms offer .25% or 400:1 leverage.

5. Hedging Capability

You want the flexibility of opening positions on the same currency pair in opposite directions without them eliminating each other and without margin increase!

Steps: When to Enter and Exit Your Trades:

We will be looking at 3 different ways to day trade the Forex Markets. In a trading session, you may look for 1 or more of these approaches.

The 3 techniques are as follows:

1. Trade the Breakout

2. Trade the Trend

3. Trading Tops and Bottoms

When is the best time to trade?

Because the Forex Market is open 24hrs a day, and traded on a global scale, the question to ask is, ‘when should I trade?’. The good news is that no matter what time zone or hemisphere you live in globally, there are always good opportunities to trade.

The three major trading ‘sessions’ are as follows (all in Eastern Standard Time):

1. New York open 8:00 AM to 4:00 PM

2. Japanese/Australian open 7:00 PM to 3:00 AM

3. London open 3:00 AM to 8:00 AM

Often, the best times to trade is at the beginning 3-5 hours of the above mentioned opening times, because the major currency pairs tend to move the most in a particular direction.