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What Is Forex Trading?
Some times ago Forex trading was considered to be a game of big capitals and players. But times are changing and today almost anyone can try his or her hand at making profits on the price changes of the Foreign Exchange market without have a huge capital or making an impressive investment.
For many people in Singapore Forex trading has become a business or just an additional source of income. Today Forex trading is attractive, accessible and provides an opportunity to earn extra money or even a full time income. But with all its glory and attractiveness, why only a little part of traders manage to “hit the jackpot”, while the majority of Forex traders are staying in a changing position between a success and failure? Is it because of luck? Knowledge? Strategy? What do you need to trade successfully?
Of course, you need luck, the right strategy and the knowledge, these are important ingredients for successful Forex trading. But do not forget that the Forex market has a very high volatility, and the possibility of big profits is always fraught with risks. Therefore, before you start trading, you need to be prepared to take risks, not to invest your last money, have patience and know the rules of trading on the Forex market.
What do you need to trade Forex successfully?
The main principle of Forex trading is to buy a currency at a lower price, sell it at a higher and make a profit on the difference. But, in spite of its speculative nature, Forex is not a game of chance or gambling, it is a serious work that for many Singapore FX traders has become a stable source of income.
Importance of education
Some newbie traders imaging the Forex trading on the stock exchange, as extremely complex and confusing process, and believe that it does not make sense to start this business without special education. Of course, if you have some financial education this is a huge plus, which can be one of the most important foundations of successful trading in the Forex. But in case if you don’t have a financial education, it does not mean that you have no chance to succeed.
In order to be successful in trading, it is not necessary to know all the secrets of Forex trading. It is enough to have an analytical mind, being able to study and understand the main factors affecting the exchange rates, learn the basics of Forex trading, and also know the basics of technical and fundamental analysis. Getting the necessary knowledge in our time is not difficult at all. Almost every reputable brokerage company offers their customers training materials, courses, seminars, and general information about online trading.
Practice and experience
If you have no experience in the Forex market trading, this is not a problem. You need to start with something. Therefore, in order to safely open a trading account, we recommend that you practice on a demo account first. So you have no risk of losing real money and get the opportunity to apply your knowledge in practice, understanding how Forex works and choosing the best strategy for yourself.
Demo account can be opened in almost all brokers. And remember, most of expert Forex traders are ordinary people of different professions. The key to their success is in hard work, patience, willingness to learn and a belief in themselves. Never stop learning Forex trading, always try to improve your knowledge, strategies and be updated in the recent Forex events.
Forex trading strategies
Successful Forex trading is usually based on different strategies that help optimize the work of a trader and to help him achieve the best results. In other words, it’s all kinds of strategies. Let’s look at the most popular ones:
Intraday Forex trading or scalping
It is a relatively young system of trading in the Forex Market, which has already gained its popularity among beginners and professionals. The strategy has been developed for short-term trades that last from seconds to minutes. Because of such a small time interval it is impossible to obtain greater profits, and, at the same time have significant losses, therefore this kind of strategy is suitable for those Singapore traders who do not have an impressive start-up capital, but are willing to trade in Forex to earn a little, but often.
Of course, using the intraday trading, you will not lose much in a single transaction, but be careful not to get carried away by frequent transactions and for a short period of time. Remember that a short-term strategy is more risky than the medium-term Forex trading, and the long-term trading, according to statistics, brings much more profits. And do not forget that frequent and minor losses in total can lead to a big loss. Undoubtedly, this strategy works, but you need to follow it “wisely” and with caution.
If you like a calm, unhurried trading, you can pay attention to this Forex trading method called “Forex night.” For example, if you trade in the night Singapore time, starting from 00.00 hours, you will find out that the market is almost still. It happens because at this time all major players (the US and Europe) are asleep, while only Japan is “awake”. Therefore, strong fluctuations of the price only occur in pairs with the yen. The rest of the currency volatility in this period is insignificant. Thus, currency rates are slowly changing, which makes it possible to make good money on “fast transactions.” “Night Forex” is good for pipsing, and you can operate successfully in the flat market.
Trading on the news
It is clear that the Foreign exchange rates are influenced by many factors: the economic situation in the country and the different fundamentals (GDP, inflation, unemployment, etc.), the statements and speeches of the first persons of the state and natural disasters. And if you master the art of understanding of what the consequences may result in one or the other news, the Forex news may well be the key to your success and bring you good and steady income.
Forex trading software
To make your Forex trading successful, you must be operational, that is, to know the currency pairs quotes in real time, be aware of the latest market news, analyze them and enter the market on time. It is clear that to carry out all these actions manually is practically impossible, therefore many Forex traders in Singapore use automated trading systems, i.e. special software for trading in financial markets, which analyze the market and make trading transactions.
These programs are called “trading platforms” or “trading terminals.” They are applications for your computer or Smartphone, and usually have a set of tools for technical analysis, e-mail, displaying financial news and much more. There are a lot of similar programs for Forex trading and they can be found and downloaded on the internet without a problem. Almost all of them are created on the same principle, so mastering the functionality of one of them, you will be able to work freely with others.
All Forex trading software are designed to simplify the process of trading, but do not think they will make the right decisions for you. Mechanical trading system requires constant monitoring and tracking parameters of its performance. Remember that mechanical trading systems help a trader to trade better but do not work for him. For example, many FX Singapore traders use several automated trading systems in order to achieve the best combination of technical and fundamental analysis.
Why People Trade Forex In Singapore?
Singapore is one of the biggest financial centers in the East. Singapore trading volume takes the 5th part of the global Forex trading circulation. The famous Singapore FX trading center Mustafa Forex produces milliards of dollars investments and deals on a daily basis. With such huge funds circulation, it is not surprising why Singapore turned to one of the biggest Forex trading center in Asia where Singapore brokers and traders trade currencies, commodities, stocks, and indices 24 hours a day.
Forex Trading in Singapore website provides you with all tools and materials that every Singapore online trader needs in order to succeed in trading Forex and Binary Options. We offer a full guidance of Singapore online brokerage firms with their detailed reviews, which will help you in choosing a Forex and Binary Options broker that meets all your needs. In addition you can benefit and improve your trading skills with the help of the news, articles and trading strategies.