In this blog, some of our past contest winners talk about their experience in LeoPrime's trading contests and share some valuable tips and trading strategies.
The demo account in the forex industry is like the simulator for airline pilots because just as pilots can practice flying a plane and ‘crashing it’ as many times as they can when they are practising to fly a plane without the risk of killing anyone or damaging a multi-million dollar aircraft, so in a similar way, forex traders can use the demo account as many times as they like without the risk of losing real money.
There has been a recent trend in the past few years of forex traders moving away from traditional trading with brokers and towards independently trading at forex proprietary shops. This basically means that they can put some of their own money into a deposit, and then get help with funding from the broker for some more deposit, but at the end of a certain period they get to keep 50% of the profits, with the other 50% going to the broker.
It goes without saying that there are quite a considerable number of currencies that forex traders can choose when trading. However, the vast majority of forex currency traders tend to concentrate on common pairs, such as the EUR/USD, GBP/USD, or USD/HKD etc. But there are certain types of currency pairs.
Here we provide a brief overview of some of the characteristics of four of the most common currency pair types, and why they are important for trading.
It goes without saying that in forex trading, when doing technical analysis, the price of a currency pair can move anywhere between zero and to an unspecified upper limit on the charts. For example, based on today’s prices in GBP/USD at around 1.298, a 1.37 would be regarded as a high price. However, how about 1.40, or 1.45? While these numbers may seem unrealistic (according to history), and they are all ‘high’ by definition, then we would have some degree of difficulty in placing a stop loss or assign a certain profit on the charts. There needs to be a more realistic and practical range that can be classed as truly high.
After you have downloaded and opened the Metatrader 4 software and started familiarising yourself with the platform, the first thing you will most certainly come across is the forex price quote for your chosen currency. The quote is basically a record of a previous transaction in which a currency pair changed hands.
As we have mentioned before that forex trading is most certainly not easy for new beginners. In fact, it can even be tricky for even the most experienced traders amongst us. If you get it wrong in forex trading, then you risk making huge losses and this can lead to a failure trap for many inexperienced and undisciplined traders. On top of the tips provided in this blog post, we are delighted to present some more inside tips on forex trading that you can use to avoid disasters and maximise your potential to win!1. Plan your goals