Three Steps to Take to Ensure the Highest Return on Your Forex Trading Venture

by Andrew McGuinness  //  mrt. 23, 2018

Did you know that the Forex trading market is the biggest in the world? It's true! Unlike the New York Stock Exchange, the Forex trading market is open twenty four hours a day for five days a week, leaving plenty more opportunity for money to move into and out of the market. As a result, the Forex trading arena sees an average of $1.8 trillion move in as little as a single day. Talk about opportunities for making money! While the Forex trading sphere offers a mass of opportunities to make money, there are a few simple steps that every smart trader knows to make before jumping headfirst into the volatile world of Forex trading. Prior to making your first trade, take these three steps to ensure that you'll have the highest chance possible of making money on the Forex...and get ready to start trading on an international level while grabbing your slice of this trillion dollar pie!

Get the right education. One of the most expensive mistakes that you can make Forex trading is to jump into the market without any kind of education. There's no excuse to not do your research and learn both about how the Forex trading market works, and also about how to best make profitable trades on the Forex because there are a number of free advice and education websites designed for beginner traders. Head on over to Trading101.com or any one of the other accessible trading education sites before you even think about making your first trade.

Raise your credit score. For years, the Forex market was closed to individual investors because there was simply too high of a price to enter the market. An average trade on the Forex, referred to as a "lot," is equal in value to $100,000. As you probably already know, this is far more money than any one trader who isn't a venture capitalist has on-hand at any given time and is prepared to lose. Instead, individual traders trade through the assistance of a broker, who helps them enter the market at a lower cost by offering them "leverage." When you trade on the margin, you'll be able to "borrow" money at a ratio for the sake of Forex trading. Brokers will offer you different ratios of leverage, the most common of which is 100:1; this means that, for every $1 you give to your broker, you can trade up to $100 on the Forex. That means that if you put $1,000 into your account, it becomes much more assessable to trade a lot than putting up $100,000.

The problem comes when traders who are interested in Forex trading have a low credit score or rating. A potential trader with a low credit score is known to investors as a "high risk trader;" they may be irresponsible with their money and less likely to make informed trades. Thus, brokers will offer those with a lower credit score less leverage, while those with a credit score over 780 can easily garner up to a 250:1 leverage score. You'll need a lot of leverage if you want to make big money Forex trading, so it's worth it to take the time to review your credit profile. If your credit score is low, take a few months to pay off your accounts, close outstanding inquiry lines, and do more to ensure that you show a positive credit report to increase your chances of gaining more leverage.

Find an unbiased news site that you enjoy. If you live in the United States, you've no doubt already heard the phrase "fake news" echoed over and over again on your television. No matter how you feel about the current presidency, it's a well-known fact that every new outlet has their own "spin" or "bias" that they place on the news. Finding an unbiased world news source that you enjoy reading (like Wikinews, BBC, or CSPAN, each of which do not endorse any political party) can help you keep up-to-date with reliable information that will help you make viable trades on the Forex.





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