The Forex trading market has been hailed as the most exciting online trading boom. Trading forex can be a potentially lucrative endeavor with massive profits being yielded in double quick time. Astute traders – those who are able to read the market effectively – can prosper immeasurably by using the state-of-the-art trading platform at eToro. The beauty of trading forex online, is that this market is dynamic: it’s fluid and ever-changing which means that potential for profit realization is ever present. Traders can enjoy a veritable mix of top tier trading tools, expert advice and around- the-clock service from the world’s premier Forex trading platform – eToro online. Signing up to trade at eToro is a snap. Investors will be buoyed by a series of top-tier signup bonuses, promotions and friend referral bonuses which are readily available online. But arguably the best component of signing up to trade at eToro is the presence of a practice forex trading platform, CopyTrader and OpenBook software.
As the world focuses more on social networking, eToro is rising in prominence as the premier currency trading platform. Traders have a wide range of social networking channels to access including YouTube, Twitter, Facebook and Google+. Trading forex is especially lucrative when investors opt-in for the CopyTrader approach. This allows traders to see, follow and automatically copy the very best traders on the market at the simple click of a button. CopyTrader brings a whole new dimension to forex trading. Investors can choose currencies, commodities, indices and stocks at eToro and they can do so by copying the most successful gurus online. The success rate has been listed in the region of 80% to 90%, when doing so.
Intraday trading and investing in stock trading market are defined differently in stock market. Nonetheless, many people remain confused about the terms and use them interchangeably. Traders are people involved in intraday trading or what is also referred to as day trading. The other category referred to as investors are people who put money on stock for long period and wait for the shares to increase in value. They sell their stock after it appreciates to make profits.
Intraday trading is rather complicated unlike investing in shares where you only require considering the fundamentals of the company you are investing in. Day trading is risky. The trader is supposed to be quick in determining the technical view of the company as the markets are volatile and the levels change fast.
Smart intraday trading starts by identifying the right brokerage. Consider the features being offered by the software, the available markets, commissions, fees and market data feeds required. Simplicity of the software is indispensable to consider. Avoid software that includes a lot of factors since it will be difficult for you to identify the leads.
Choose your market wisely. The markets are suited for different kinds of trading thereby the importance of determining the correct market for you. Factors that are considered when determining the best kind of market for a trader include tick sizes, starting and maintenance margin requirements, volatility and values.
The stocks to invest are another important factor an intraday trader should not disregard. Volatility and liquidity of the shares should be considered. Liquidity refers to stock volume and allows you to enter and leave the market at the right price. On the other hand, volatility refers o the changes that shall occur in the market in the course of the day. Since you are looking for profits, you will need to purchase stocks when they are at a lowest price and sell them when they are at the highest price.
Investors are advised to consider investing in stocks that have high volume. These stocks are generally referred as liquid stock. You can start with paper trading and then proceed to other forms of technical trading once you gain some experience in the market.
In intraday trading it imperative to understand that stocks which are strong or weak today may not remain like that tomorrow. This means that you should avoid taking trades to the following day if it is possible. You should also stay updated with the latest news since the general public psychology is highly influenced by the media.
Breakout trading strategy can be implemented in any financial markets whichever you like, for instance foreign exchange market or forex. And as we all know, breakout trading strategy has a relation with trend-following trading strategy, thus it will be beneficial if we also have good knowledge and skill on trend-following strategy. We can also make us of all tools which widely used by all trend-following traders, such as Bollinger Band, MACD, Moving Averages, ADX and any other else.
As our focus now is forex market, we all know that the market provides us many trading opportunities within a trading day. Unfortunately, not all of those opportunities can be taken with breakout trading strategy. We need to select which one of those opportunities where breakout trading strategy can be applied.
First is forex market condition. We need to know what the current trend condition is we deal with, if the trend is in consolidation phase or sideways then without a doubt it is not the right time to put breakout trading strategy on to the market. We can be prepared anyway, determining significant levels of existing supports and resistances while waiting for other triggers to release our breakout trading.
Second thing is trading hour. Forex market runs 24 hours a day and 5 days a week, but not all the time we are the right time for breakout trading. Usually the most hectic market during a trading day in forex is European trading session. This commonly can be good time for us as currency price momentum and volatility rise, especially when there is any market moving event takes place. Of course this scenario is suitable for breakout trading and day trading at the same time.
Third thing we should consider is currency pair as not all of the pairs are exotic. Some of them are not interesting in the eye of currency traders except when there are big events or factors affecting the market. Currency pair such as AUDUSD, in my humble opinion, is not suitable for implementing breakout trading and day trading at the same time, unless you do it for position trading and or swing trading.
You have to invest your time to learn and practice breakout trading strategy as it can give you low downside risk of trading in forex market. Soon after you master this trading strategy, your forex trading account will gain significant improvement.