17:27Trading is the way to the young?
New traders are constantly coming to the currency market. Every day, the number of speculators involved in Forex is increasing. Here you can meet and students who want to be able to earn money while they are busy with their own education, as well as retirees who have free time. There are no age restrictions that would prevent people from participating in trading. Previously, the main clients of brokerage companies were middle-aged people who have the financial ability to replenish the deposit with a significant amount and trade, but now anyone can begin to engage in speculation. The customer accounts have opened access to Forex to everyone who wishes.
What skills do you need to own in order to successfully work in the market? In fact, it is difficult to identify certain criteria for assessing the prospects of newcomers. In addition, it is practically impossible to have knowledge useful for trading, if you have not yet faced with the foreign exchange market. Too specific is an occupation that is fundamentally different from other activities. There are no clear guidelines that would help a person earn money. All information is available, but at the same time, obviously useful, as clearly not suitable for use. Each trading strategy is based on different principles.
Of course, if a person has mastered the statistics, it will be easier for him to understand some of the details of work on the market, but at the same time, this is still not enough for successful trade. Every newcomer, just taken over the development of trading, begins his way from almost zero, regardless of his age or abundance. Interestingly, each of the ages has its own advantages to help you get started on Forex. Older people with a life experience may be more attentive and thoroughly suited to studying the market environment. At the same time, young people are more likely to learn.
Another observation concerns the development of the market, it also quite logically fits into the general situation. The fact that the young people who were gaming gamers are able to quickly understand the nuances of commerce. In other words, fans of computer games perceive trade as a game, quickly getting to know the terminal and working conditions. Such speculators may prove to be most successful, especially in the first time after starting to work on the market. Of course, it is not quite right to compare Forex trading and computer games, but from a technical point of view, the similarity is evident.
All the above considerations do not mean that the elderly are not able to succeed. In fact, every person who has a desire to trade, able to learn, and also is quite purposeful, so that he does not give up, can become a professional in the long run. It turns out that young people, of course, are capable of demonstrating successful work, however, they do not have clear and significant benefits to the elderly.
Based on history
For example, meetings that remain for several months may become rather unpredictable factors of influence on the market price. There is no need to talk about all sorts of cataclysms. Moreover, the policy of countries is often a policy of individuals who can equally change in key positions. To construct a high-quality forecast for a long period of time is rather difficult, which can often be considered a matter not at all grateful.
In any case, historical data is extremely important for a speculator to build a prediction for the future. Here we are talking not only about technical analysis, which fully rests on the events that have taken place in the past, but also about the fundamental analysis, too. How is fundamental analysis linked to market history? Everything is very simple, because any event that has occurred in the world can affect the market. Of course, we are talking only about those factors that are really related to the political or economic situation in the world.
When there is a certain event, the speculator already predicts its impact on the market quotations. How is the decision to buy or sell a trading instrument? The trader compares the current situation with the one that was before. Recalling the consequences of the previous news of a similar nature, a person assumes that most likely this time we will watch something similar on the market. That is why, when the data are important for the currency market, a person compares them with the values obtained in a similar situation before.
Market history allows you to find regularities in the behavior of prices, see the sequences that are manifested over a long period of time. Such discoveries become part of the basis of the trading system of the trader, which he uses in his further work. The greater the period of history is with us, the lower the value of error, we allow in assessing the stability of regularity in time. Statistics are important not only for admirers of technical analysis, but also for those speculators who prefer a fundamental analysis of the market.
Choose the currency for the account
Another factor affecting the size of the deposit is the currency chosen for the account. At the moment, various brokerage companies offer currency options in which you can keep your account. A small number of organizations are not limited only by money signs, but also offer clients to open deposits in gold, silver, and so on. The selection of a trade balance unit, at first glance, does not play a significant role for trading. On the other hand, as practice shows, even profitable trade over the chosen period of time can be completely eliminated by the decrease of the exchange rate in which the account was opened.
Imagine the situation that a person lives in Russia, and all the earnings received from trading in the market, plans to spend in their country. A trader can choose as a deposit currency, for example, the euro. Having opened an account for EUR 2,000, a man spent 84,000 rubles. It was 3 months for which the speculator earned 15% of the account, that is, 300 EUR. Having decided to withdraw all the capital, the trader changes his 2300 euros in rubles, for which he plans to buy interest in his goods. Unfortunately, over the past 3 months, the euro has changed. Now for 1 EUR is offered not 42 rubles, as before, but 39 rubles. Thus, when exchanging 2300 euros, a person will receive 89,700 rubles. On the one hand, the man received a profit, but if you look at its size, then you can immediately notice that it turned out to be irrelevant.
Changing the exchange rates affects not only the market quotations, but also the value of the deposit of the trader. Having selected as a balance a certain currency unit, it is desirable to build a forecast for its future. It is worth choosing not the names that are in a difficult position at the moment. For example, in 2012, a very difficult situation around the euro, when the currency could not only quickly lose market position, but disappear altogether, even theoretically. Of course, not every currency speculator can predict the future of a trading instrument, but it is still desirable to assess the stability of the economy of the country whose currency we decided to use in its work.
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