When a forex trader tries tostart business in the forex market, every naïve trader has some questions. Such as:What will be the desired amountfor making investment? How can a trader manage his risks? Which trading approaches a forex trader should use? What is the best leverage for him? Or how he will manage his risk management tools? etc.
Only adequate trading expertise can help him to get the answers of allsuch questions.
there are many questions that comes up as a beginner. Where do i start? it looks so complicated! how do i start? where do i begin?
in the states, financial regulations and trade secrets are abound. Forex.com for example doesn't want you to learn much forever and keep bothering forex.com with demo accounts. They do such limitations as 30 day demos. Derivatives such as options and stock simulators are also being phased out as the Americas are restricting anything that has to do with financials it seems. Options learning has their simulator taken offline. Stock simulators are left to tc2000 and other proprietary companies such as td ameritrade with limited demos.
So it goes to say it is becoming increasingly difficult to have the training and expertise to become a self trader. The regulations of such trading are left to the professional series licensed and wholesale trading houses. The retail sector is becoming increasingly disappeared. Other options however for the retail sector are burdened by the apps similar of robinhood whom does not offer demo accounts for trading and virtual practise.
When dealing with the likes of nation states instead of inter nation stock trading the difficulty becomes increasingly clear. The objective is to offer less and maintain the profitability margins. At least so it seems to be from a new founder's perspective. Only the likes of free financial regulations from outside the states offers high leverage above 1:50 and it comes at the cost of delayed depositing and withdraw. Sometimes costly depositing and withdraw. So to say the least, finding the broker with the intention of processing your funds is also a cause for fees as much as the spreads and commissions.
When it comes to the actual trading the idea is simple in theory. Arbitrage is also forbidden in the states by reason of definition so let's call it exchange. The exchange of money is much faster electronically and more profitable than the currency exchanges at the queen's exchange. Although this provides a formidable challenge as the prices are not updated instantaneous and electronic trading does not give me cold hard euros to redeem. The actual monetary notes are secured electronically and the paperwork for such a loan is simplified to be strictly online.
Within the control of the ib of course. Take a look at the real nuts and bolts of the matter of theoretical positioning in discreet mathmatics - CA plate 4xjw026 beetle. Do you know what I am referencing? How does the motion and movement with swiss precision of this motor really operate? How does the fibronacci levels act as a future predictor of mass movements of currency within the closed loop circut? Does a close option actually exist or is it really an open ended system of inter dependencies waiting for the quantitative easing to transpire? Have a look at the past historical trend. America puts qe1 into action and it falls a little bit trading against the euro whereas Turkey it remains relatively stable. Does QE1 work and to what degree of affect does it take for the us to begin QE2 for repayment of the Europe debt crisis? Does the states need a period of suffer to also fall in line of limited regulations for the free market system to encourage its growth? How about interest rates and the complexity that while fighting inflationary roots , less jobs are deemed necessary thus equivocating to the investment output of supply. In other words, so to fight inflation of the states it is necessary to encourage investments? These common fallacies of the determinate system are causes for the every day investor to ponder as a class not because they can make money and vote with their products but rather with their money the way they vote will determine the outcome of inter nation dependency models.
For many forex traders I have come across is to use some type of aid in progressing their knowledge of forex complexities. News cycles deems the necessary fundamental trade characteristics of macro economics. To understand where the money is going up or down by institutions are the rudimentary metrics of how a nation state operates. On a fundamental level it is observed that after let's say the international monetary fund invests money into xyz nation notes. They are traded on the forex exchange. Then the plundering continues to distribute wealth among those who were opportune for half an hour until of all is gone. This is a model the IRS and state taxes would be jealous of! To redistribute wealth amongst the population to achieve equality is the ultimate goal of separating the wealthy and the needy. Do we have enough to redistribute if so? IS the problem not enough people are looking financial management services as a fiduciary responsibility and if so do we need it part of high school curricula?
It has been stated for many generations schools do not teach the real true value of adulthood. Is this forex a marker to become socially adept into creating wealth needed for the individual? Perhaps it is a marker to become truly social as in to participate in forex is a knowledge of the note's denomination value.
To obtain to such a degree of knowledge demands a level of social engineering. Have you wondered what the 4xjw026 means yet? Perhaps it is the will of the FBI to be the world's police force simply by the exchange and involvement of the American Dollar as reserve. How will it affect the economy or the black market the moment Euro's 500 are removed from the currency stream to combat terrorism and AML? How does the Brexit fare economically and politically? Will the EU and UK stabilise with the Greek bailout which by the way is not traded on forex directly from the states. What happens when one nation decides to leave the EU, What happens then?
For the technical trader these events do not have merit and it is a loss of information that concedes. The knowledge of the forex market should have a lower bar of entry simply for the cause that its monetary value can be summed as what you can buy somewhere else. IF you went to target it is a euro but if you went to walmart it is seven tenths of a euro. Market efficiencies and subsidies to a political agenda causes these indeterminate flux in the foreign exchange market so long as they operate just like mom and pop's soda shoppe. A nickel for pop and ten cents for ice cream. Whereas the chain market might serve hundreds and they have their prices at four cents for pop and eight cents for ice cream. That is the likes of India and China with their mass populations. However let's take a look at how the Chinese economy fares with loan forgiveness to African countries whereas India has the largest disparity of its dichotomy.
Needless to say i can go on.
The questin is : how much of a beginner are R.U.?
Taking a look at the bare numbers of some of these robots on mt4 gives me one thought. aside from the money management aspect of risk to reward ratio why aren't some traders not on iq option? It seems fitting that even at the most basic scalper at the lower time frame would gain 70% return versus a 30% return (lin scalper, set at 10 points tp). Overwhelmingly however even large accounts where back testing has shown 5,200,000 returns have a loss of 3,800,000 setting a win to loss ratio less than binary options but still able to make a profit. That's great! However, take a look at the margin requirements and then I start to wonder what my fascinations with binary is. So to say, there really isn't much of a difference between binary and forex when it comes to the overall picture in analysis but since there isn't a direct opposing force it operates outside the convention of the markets. So then there is the question : NAdex binary options are direct peer to peer but when the price changes the price fluctuates also. Then who pays for the difference? Say for example I purchased a buy order at $25.00 on a double top expecting it to go down. Five minutes or twenty minutes later the other bet is takes $75.00. So there is market equilibrium. However, what if there aren't any purchasers or sellers at $25.75? Whom makes up the difference? So there must be plenty of entry and exits in the market to make it efficient.
There are plenty of topics to discuss such as how does the fibronacchi levels hold true. It seems to be a magical approach to how and when levels hold true. Do they? If we were to arbitrarily draw levels at 50%, 25%, 75% do they hold true? How did Elliot wave theory come about when he was analysing stock charts? Is this a phenomenon that hold true all the time or is it one of the many instances when mass hysteria shows its nature. I applaud the skills of the true trader whom makes fortunes predicting the unpredictable. It truly is an art form that is difficult to be able to discern from science. Take a look at all the entry and exits of the volumes indicator and truly you may see the complexity of this breathing entity showing its form in the market indication. This is the largest indicator of all the health indicators created and when the observer takes a step back and witness the creation of mankind manifest as the pulse of the psychological status of the population the observer is in awe. Close to five trillion exchanged daily is the statistic.
Of that five trillion we seek to gain a fraction. Crypto currency, stock certificates, intrinsic value all determinate supply and demand are built into the price action. These mega populations have to contend with the likes of preset values and movements within their borders. The products of one nation state exported creates the supply and demand for another nation state. As such the products are the only items that are exchanged for value. However we are only on the higher level of analysis attempting to produce something from nothing. Then are we not the hedge to inflation some may wonder. When will it be that we are truly a nation of wealth where there are no more homeless population would that model have a government intervention in it. There are many questions as a beginner and this is just a brief overview of the challenges that faces with the fundamentals. Then there is the topic of the technical right. The bare charting and purchase of currency for purely arbitrage , an illegal act by its own admission.