A method of scalping is very popular among Online traders. It is applied by traders who have the profit from the price fluctuations during one day. Usually the time between the position opening and closing is very short and may last only few minutes. Accordingly the profits gained from these positions are low too, but the total profit achieved by the large number of positions can be high enough. Some traders may do up to 200 positions a day.
It is evident that not all of these trades are profitable, the goal is to have the profit in total, that is quite possible. While making scalping the stop-loss order is placed closer to the price of position opening in order to guarantee the diminishing of losses if the market changes its direction.
All Forex traders know about the changability of the online market. Even the price within one day moves on a certain cycle with its ups and downs. If during one day the average price change is about fifty pips, the difference between the minimum and maximum prices will have much greater value. Once you get a small fluctuation, you will have a chance to significantly increase your profit.
Novice traders often get a false impression of the fantastic opportunity to grow their profit as there is an opportunity of reinvestment. Unfortunately this first opinion may be wrong as without any proven strategy, this tactic is doomed to failure. First of all you need to know on how you place the stop-loss orders. Because if you put it too close to the price of opening, it increases the risk of losses in the market during the movements even if you can predict the direction of trend correctly. In order to diminish this risk, we recommend you to avoid placing the stop loss if you make scalping. But you must always be in front of the trading platform and watch your positions. In case of a strong movement against you and there is no vivid marks to roll back to initial levels in the next few hours, you must close the positions, otherwise you may lose all. More than that, if you have a big investment and trade without the stop loss, your total balance may be lost and you will get a margin call.
The other reason of the novices’ failure might be in the emotional side and the tension that arises when trading with real money. We recommend all newbeis to try scalping trading on a demo account first, since there is virtual money there is no fear of loss.
Every scalping trader must be careful while choosing a Forex broker to trade with. Not all Singapore brokers allow scalping. We recommend you to review the best Singapore Forex brokers list and join the one that meets the needs of your trading technique.
It is not important with what Singapore brokers or trading platforms you are trading. If you don’t have your own trading strategy, it will be very hard for you to make a constant profit on Forex market. Before you start trading with large amounts of your own funds, we suggest you to take your time and create your own trading strategy using demo or mini real Forex account. Once you invent a trading strategy and make sure that it works for you and lets you make money on Forex market, you can go ahead and invest your funds in trading.
Pay attention that almost every trading strategy is based on two main points, that are central in Forex trading in Singapore: the point of entry the market and exit from the market. In order to secure yourself success in trading Forex online the first thing you need to learn is when it is best to open a trading position and when to close it. This is exactly what you need to aim while making your own trading system. The knowledge about the market and the information when it is better to start your trade can be gained with the help of both technical and fundamental analysis and of course practice. In general your trading system must provide you with signals for certain actions that you have to make. The target of the strategy is to help you find the market situation, when starting a trade gives you the biggest potential for income with smallest risks.
When trading on Singapore Forex markets, every person must look for the way to minimize his risks and at the same time make income. The professional traders define the risks by the levels of support or resistance. They usually use the stop-loss and take-profit orders to secure their trades. The stop-loss order must be set on no closer than 20-30 pips from these levels on the condition that you don’t risk more than 5% of the total investment in this position. The take profit order must be set on the next level of support or resistance in the direction of price movement. As the price changes your direction, you replace the stop loss further from the losing area to the break-even zone. The most important aspect using this system is to find the right entry point.
The target of the exit point is first of all the safety of your main investment and of course generating income. The successful trading strategy must be targeted for reducing the risk of losses but not seeking for high profits. If you learn how to reduce your risks while trading Forex, you will definitely make money while trading online. Those trading strategies that are based on the analysis of Elliott Waves, provide with an accurate way to find the optimal entry and exit points with the lowest risk or trading losses.
There are numbers of many Forex materials online that teach new traders how to trade using the levels of Fibonacci, Elliot Wave, etc. Of course these materials are very good for any new Singapore trader, but the problem is that the authors of these books give 100% guarantee that if you follow them, you will make profit.
Unfortunately the reality is not so easy and to justify himself in the loss, a trader begins recklessly recall all his decisions in order to make sure there is a reason of his mistake and loss. Someone may has forgotten to take into account a very important indicator while opening a trading positions, another one has miscalculated the Fibonacci levels – and now such traders are making a sad conclusion: “No, the online trading is not for me…” And of course everyone who thinks this way is not right, as Forex in Singapore has many methods and some of them are very easy like trading with reverse orders that can give you more than 500 pips every month.
The benefit of trading with a reverse orders strategy is that you have a good opportunity to catch the market disregarding of its direction. I suggest many of you have faced a problem when you research the direction of the market and open a trading position. But the market moves against you and your position is closed by stop loss order with a loss. And after that the direction changes and goes your direction. How sad we are when it happens.
In order to diminish the chances of losses in such situation a method of reverse orders was created. It is a very simple trading strategy and every newbie trader may apply it. What you must do is when you open a position on Buy instead of stop-loss level after 25 points you place a position for Sell. The same you do for a position for Sell, you secure it with a position for Buy. The point is that you don’t use a stop loss and if the trend goes against you, you will still remain in the market.
By using this method you have a opportunity to correct your trading position any time disregarding of the market’s direction. The correction works the following way. If one of the orders shows a profit of 10 points you should place another order in this direction. This method will let you to reduce the losses. When you have three orders (two sell and one buy) where in general you are in profit you can start closing the profitable positions if you see that the market turns and goes another direction. Trading this way lets you open many positions and you can also use high leverage for it. This trading technique may be applied on any platform and with all Singapore brokers.
Forex trading is a very sophisticated system and only its good understanding, knowledge and experience can help you trade Forex successfully. The interest in technical analysis is growing in Singapore Forex and other Asian countries and sometimes it totally replaces the fundamental analysis. But it is apparent that technical analysis is not enough for a profitable trading in Forex market. The world economy is so dynamic so any information can have a big and sudden influence on the market and cannot be predicted by just looking at the graphs.
Financial calendar is a good instrument for the fundamental analysis .You can watch it in order to be updated with all economical news and events and be ready to the movements in the market when something important happens in the world. You can see a calendar with financial events on many economical sites as well as on the sites of all Singapore brokers. The most influencing the market events usually occur in USA (USD) and Euro zone (Euro). That is the reason why 60% of global trading is done on EUR/USD currency pair. This is the most traded currency pair in Forex as Europe and USA have the biggest economical systems that influence all the world economy. Though trading in Singapore is mostly concentrated on such currency pairs as AUD, JPY, SGD and USD, still the currency pair EUR/USD has a big popularity among Asian traders as well.
The Euro zone Governing Council has a meeting every month, on Thursday of the second week when the Europe interest rate is announced. During this meeting the economists give the average review of euro zone financial development prospects and rates of interest that is the most important aspect to control liquidity.
The similar broadcast of the interest rates in USA is also important for the fundamental analysis of USD. Interest rate of both USA and Europe is a good indicator for the currency pair EUR/USD. We also recommend to watch the cross-currencies that don’t include USD for a detailed picture of a fundamental analysis. While trading with EUR/USD currency pair there is a good reason to pay attention on the cross-currencies such as EUR/JPY and EUR/CHF. The Swiss (CHF) economy, for example depends on Euro zone economy. That’s why the fall of EUR/CHF causes the fall in rate of EUR/USD.
There are numbers of traders who focus on both technical and fundamental analysis while trading on Forex market. Though these analyses are very different by way of analysis, they give a broader and detailed picture of the market. It is important to be regularly updated in the world political and economical events while trading in Forex market, as any event in one of the country’s economy may result the chain of movements in Forex market charts.
As more and more people in Singapore are interested in currencies trading many of them are not sure if online forex trading can really be profitable. Let’s discuss if it is really possible to not to loose trading Forex in Singapore and in general. If you search online you can find many negative and positive feedbacks about Forex trading in general. Some of them assure that it is a profitable business, some of they say that Forex is a scam and traders always loose. The thing is that it all depends on a person and the level of his or her trading experience. If a person visits the world of Forex without any experience about the Foreign Exchange Market, so he has more chances to loose his funds and be disappointed.
Forex trading may look very simple for the beginners. Actually it is really simple and you can quickly learn how to open a trading position and how to close it. The most complicated part is to open a trading position in a right time and close it with profit. This may take you a long time to learn.
Those traders who really think serious about Forex trading in Singapore and are looking forward to learn online trading, have a big chance to become professional traders and succeed to make profit trading Forex online. It is very important to learn to stay cool while trading in the Forex market. Emotions are what kill your profit. If your own real investments are involved in the game, you become very sensitive to every market’s movement and can make mistakes while opening or closing a trading position in a bad moment. As market is moving all the time it is crucial to learn when to enter the market and when to leave it.
In order to try yourself in online trading and know if this kind of business fits you, we advise you to gain some information about Forex first and then trade in demo account with one of the brokers. Some people are making a mistake by starting trading with their real money if they don’t have any knowledge in trading at all. Don’t be impulsive, emotions and Forex trading cannot live together. Once you practiced enough, you can go ahead and start trading mini Forex. Mini Forex doesn’t demand big investments. You can deposit as much as $100 and receive good trading experience for trading your own real money. After some time when you feel that you are ready to start real and big, you can register a trading account with one of the best Forex Singapore brokers and deposit your funds to the real trading.
Today currency trading became so popular among traders from Singapore and all the countries, so trading brokers make their best to adjust the Forex trading conditions to different needs of every trader. It makes the traders to fit the serious financial trading with their own investment and trading skills. Singapore brokers offer their traders not only a great selection of trading tools, but also traders can select different types of the trading accounts that let them to trade with different trading volumes.
The standard Forex trading account is known as an account type where one trading lot is 100 000 units. So if you open a trading position with a leverage of 1:100, you will need about $1000 of your own investment in order to open a position for 1 standard lot. Apparently if you open the standard account you need to invest tens thousands of dollars in order to have safe and systematic trading.
As many users are not able to make high investments into online trading, today beside standard account, many brokers offer also a mini Forex and even Mirco Forex accounts. The main difference between these kinds of the accounts is that they involve less trading volumes and at the same time require less money. For example mini trading account has a minimum of 10 000 units and requires $100 investment for one trading position. At the same time micro trading account has 1000 1 lot units and it is enough to have only $10 in your trading account in order to be involved in the real online trading.
The development of mini and micro trading accounts is a great help for those people who are new to Forex trading and are not interested to risk high investments. Though almost every broker provides the customers with a unlimited practice trading account, you cannot compare the demo trading with trading in a real account where your own money are involved. Many people who succeed making money in demo, fail trading the real funds. The thing is that when trading with the real money, the traders become more sensitive and usually make mistakes on their trading actions. In this case mini and micro Forex accounts are very useful as they let the traders to enter the complicated Forex world with small amounts of real money in order to feel the real trading and learn to manage with their emotions and don’t let them interfere in their trading activity. Trading with small funds, traders can practice the real trading as much as they want without a risk to lose a lot of money of their own.
Today each Singapore trader as well as a trader from any other country can begin his real trading from as little deposit as he can afford. We will be glad to share more articles about trading in Singapore and other countries in the future.
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