Nov. 27, 2019
Forex traders are well aware of the trading risks. A smart currency trading strategy can skyrocket you among the wealthiest people on the planet, but it can also lead to your worst financial nightmare. Digital wallets can become the safety net for forex traders. In this article, we explain the risks in forex trading, which forex calenders to consider when planning your trading activities, and how you can create a safety fund through Skrill and Neteller with your regular trading activity are.
Trading foreign exchange carries a high level of risk, and forex can work against you as well as for you. Before embarking on a career as a forex trader, carefully consider your knowledge, experience, and personal objectives. In foreign exchange, your losses can quickly exceed your initial investment.
Risk is the difference between your entry price and stop-loss price, multiplied by the position size. Traders should aim for this percentage to be less than 2% of account equity. Ben Lobel at DailyFX
Understanding the principles of risk management is vital if you want to survive in foreign exchange trade financially. Therefore, plan your trades and predict price turbulence according to the upcoming events. The events listed in the economic calendar should be your trading milestones. Study them carefully based on past events and price behavior.
Among the high impact events are GDP, interest rates, consumer price index (inflation data), and unemployment reports. Major political events have an immense effect on the markets, as well.
Let us take the example of the State of the Union Address, the most important political event in the US. Annually, the President of the United States delivers a speech to the US Congress, in which he touched upon the economic state of the nation. Most importantly, on this occasion, the President also talks about the national budget, priorities, and legislative agenda. President Trump has shaken the foreign exchange trade more than once with his direct statements about world leaders, international relations, trade positions, and sanctions.
However, not all of the events have the same impact. State of the Union Address is a high-impact event, while retail sales reports have a medium impact.
A forex economic calendar is an essential tool for all forex traders. The most successful traders plan a day in their trading schedule for economic and political analysis. Understanding the upcoming economic events help traders prepare their trades days ahead.
The more thorough your analysis is, the more effective strategy you can develop to mitigate trading risks.
Forex traders can choose from numerous fx calendars. Currently, the most popular economic calendars are:
2019 has been a turbulent year for forex trading, but it is not over yet. You can still set a trading goal for 2019 and mitigate risks effectively by using an economic calendar for forex traders. Through research, you will be in a position to plan and develop a successful strategy for achieving your goals.
Knowing how to read the forex economic calendar properly is essential to maximize your trading. Make your analysis of the economic calendar, based on your focus currencies and time-frames. David Jones at Trading 212 has a great video on the basics of economic calendar.
Regular planning based on the economic calendar is one strategy to mitigate risks in forex trading. If you know which indicators move the market, you can plan and foresee price-action.
On the other hand, forex traders have been looking for securities in digital wallets. For example, if a forex trader with a network of clients, students, or just regular followers set himself up as an ewallet affiliate, he can create an additional revenue stream. Every time his clients deposit with Skrill or Neteller to a forex trading platform or any other merchant, he will be entitled to a revenue share or cashback.
You can add instruction for your viewers or readers, such as: “Forex traders use digital wallets to deposit funds to a trading platform. You can open your Skrill (or Neteller) account here.” And add your link.
Although forex trading is a very lucrative business, in which you can yield high profits, the risks are also immense. Having a strategy to mitigate high trading risks is equally important as having a strategy to achieve trading goals. Through the Paynura affiliate program for ewallets in trading, Skrill and Neteller, you can create a lifetime revenue stream that can serve as your backup plan or college fund for your children. Be smart about your trading, but be even smarter about your lifetime investments.