What are forex investments?

Forex market is the most liquid market in the world. It works 24 hours a day, 5 days a week and gives great opportunities of profits but obviously with a certain quantity of risk. Potentially the risk is 100% of sum invested so it’s necessary to put great attention in modalities and strategies adopted to carry on the investments.

It’s important to consider that potentially high gains are connected to high risks. If you choose to trade in forex market, trade only sums you can afford to loose. Forex investments are operations highly speculative in which you buy or sell currencies with the calculations that the price will raise (or go down) shortly, to make profit on the difference of price. Should the market move in the opposite direction, the equity of your account will go down. This is called drawdown and it’s the great fear of trading operators.

How choose the right broker?

Choosing the right broker is a crucial operation. There are severals details to take in considerations. The most important are the following:

• low spread. Infact only with low spreads you will be able to do scalping operations on the account
• scalping operations allowed
• account leverage
• minimum deposits
• onshore account or offshore accounts
• jurisdictions of regulation of the broker

For all the considerations above, we suggest fxopen as broker. A serious broker with minimum spread and slippage that makes possible for you to start with trading operations even in scalping mode.

How to register for autotrading

As you know forex market is something very hard if you dont have enough experience in trading. The risk of losing big money is very high. This is because the autotrading exists. For autotrading we mean signals sent to your account from external sources driving the trading operations on your account. This is very useful to reach good results without having great competence in the matter. Clear that the sources must be of high level and driven by high skilled persons. The platform most used to get such signals is zulutrade. The service is free (zulutrade gets a commission from your broker), you have only to choose the right signal providers and the right configurations setups, like money management parameters.

We can assist you in choosing best signal providers and correct set you account. We also have high quality signal providers account for your account from which you can get best results and minimize trading risks.

Long terms trades versus scalping

Many traders prefer scalping operations. We mean operations in which we want to catch from 3 to 5 pips. So small operations with few winning trade and short stop losses. This is preferred by many traders (scalpers). But many other instead prefer longer operations that can carry from 10 to 30 pips and more. It’s clear that such operations probably would have a higher drawdown on your account, but finally, when winning, will make higher profits. To execute long terms operations, it’s really recommended to use a signal provider or an expert advisor that would put trailing techniques.

Choosing right money management

Money management is key in forex trading. To minimize risks and avoid your account to be wiped out, you must choose the right money management that fits your balance and equity. This is very important. Normally it’s suggested to open maximum 0,1 lots for 500 USD of equity. In this way the risk is lowest possible and it’s easier to avoid great losses. Also it’s very important to choose a stop loss value that is adequate with your equity. Never set stop levels too deep for your equity or you’ll risk the wipe out.