NEW YORK, August 25, 2011 /PRNewswire/ --
Leading foreign exchange broker FX Solutions (http://www.fxsolutions.com/) was recently named 'Overall Best Forex Broker' for veteran traders by financial magazine SmartMoney. Here, the company provides four expert tips to maximize your currency trading and forex potential whatever your level of experience.
- Choose your trade sizes carefully
Some traders have a tendency to get caught up in quick price movements and open positions without thinking about sensible entry and exit points, stop loss positions and so on. This means they will often end up supporting positions too large for their accounts. Instead, you should always trade with a strategy based on thorough market analysis. Never let the adrenaline and potential for profit rule your head.
- Limit your losses
Another effective way to minimize your potential downsides is to employ stop-loss orders on every trade. Stop-losses automatically exit a position when a trade reaches a certain price point, therefore limiting losses or locking in profits depending on the point at which they are applied.
For example, imagine the euro is about to rise against the U.S. dollar, and that you have opened a position of 100,000 units at $1.4500. Placing a stop-loss order at $1.4460 would limit your maximum loss to $400 while also giving the trade room to potentially turn around should the market start to move against you.
- Analyze the markets and the activity around them
As Sandy Jadeja, Technical Strategist of FX Solutions, states: "The methods of utilizing technical analysis are many and varied. They include such ubiquitous concepts as head and shoulders, support and resistance, trends, moving averages, and double-tops."
Fundamental analysis also brings a host of potential catalysts into consideration in the form of major economic reports and news events. Analyse both past technical data and news feeds to gain a clearer picture of the state of a currency.
- Diversify your trades
Though you should only trade currencies you know, many traders find it safer to speculate on a number of different pairs than to put all their eggs in one basket. Understanding a range of currencies can help to diversify your risk and increase your knowledge of the activity beyond your trades. Try a free forex demo account to practice trading with a virtual cash balance.
For more valuable trading insights from FX Solutions, visit the company's education center at:
Forex trading involves substantial risk of loss and is not suitable for all investors.
About FX Solutions
FX Solutions is a leading foreign exchange broker with a focus on advanced forex trading technologies, transparency of transaction and unparalleled customer service. FX Solutions serves retail clients, white label partners, institutional trading partners and introducing brokers in over 140 countries.
FX Solutions' products are regulated in the United States, United Kingdom and Australia. FX Solutions in the United States is regulated as a member of National Futures Association, and registered with the Commodity Futures Trading Commission as a Futures Commission Merchant. In the United Kingdom, FX Solutions is a registered trading name of City Index Limited which is authorized and regulated by the Financial Services Authority. FX Solutions in Australia is a registered trading name of City Index Australia Pty Ltd. which is authorized and regulated by the Australian Securities and Investments Commission.
SOURCE FX Solutions