This post is the first in a series of posts I am writing to guide you in getting started trading. You could skip this post and go straight to the next posts if you feel that the answer to the question “Why Trade Forex” is not of value to your trading. But for me personally answering this question changed me from being a break-even forex trader to a forex trader with an edge in the markets.
In this post, I will show you How to Trade by giving an overview of commonly used trading approaches. This is the second article in a series of articles I am writing to help anyone get started trading. If you haven’t read my first article in this series yet, then read that one first at:
Wallstreet, New York, Home of the New York Stock Exchange (NYSE)
In this article, I will discuss the possible securities you may consider for trading. After reading my previous posts you should have figured out why you want to get into trading in the first place and you have learned about ways to trade. Now it is time to look into what to trade. All trade-able paper assets have their own characteristics and come with their own pros and cons.
In this article, I will discuss Forex and CFD brokers and how to find one for successful trading. Many of the ideas that I share about Forex and CFD brokers will also apply to brokers of other securities like Bonds, Stocks, ETFs, and Options. I am a big proponent of building your own infrastructure. However, as a retail trader, there is only so much you can do. It is not cost effective to pay for direct access to an exchange and co-locating some trading servers right there at the exchange. That is not what this article is about. This article is about building a trading infrastructure that is flexible and independent enough to be able to execute trades through any broker you see fit. I believe that you should not get locked into a platform in a way that it will allow you to only trade with the broker that provides the platform. That is why I use spreadsheets, open source programming frameworks/libraries (python) and freely available charting software to do my trading analysis. But first, let’s go into what it is you should look (out) for in a broker.