Foreign exchange is possible throughout the day and night due to its global nature. The convenience that comes from working from home and being your boss is excellent and not easy. It’s hard to learn how to properly trade currency pairs, and it’s even more difficult to get to earn on a regular basis.
Due to the complexity of the Forex, it’s advisable to go through several investment courses and read numerous books to prepare for trading. If you can’t handle few months of learning, then start trading binary options. Use Millionaire Blueprint or similar software, and you won’t have to spend even a day in education, and you will still make money. It’s not as simple as that, but you can’t compare the complexity of these two exchange markets.
Forex has its Pros and Cons, and they should be the factors that will either attract or repel you from trading currency pairs.
Pros of the foreign exchange
The Forex isn’t a centralized market, and thus there are no regulators. A central bank will interfere, but the chances of that happening are very small. This lack of regulation prevents surprises from ruining trades.
The size of the Forex translates into a high liquidity. Even the largest deals have little to no impact on the currency values. Due to that there is no possibility of the price manipulation and it gives the traders the ability to trade with tight spreads.Forex has the lowest trading costs out of all exchanges. Forex brokers earn their share through spreads between currencies and thus there are no additional fees. Other markets are different, and trader has to pay various fees, from trade fees to other brokerage charges.
Cons of the Forex
High leverage means high risk and a day of casual Forex trading can turn into a nightmare without an end. The very nature of the Forex forces the people to use leverage due to low-profit margins. Trade in which you risk 100 dollars to earn 50 bucks is far from being worth the risk. Enter the same trade with 10 dollars, with the leverage of 10:1, and you will be able to earn the same amount of money far inferior investment. Do remember that leverage works in both ways and you will risk more than just your investment.
This market isn’t transparent, and that is mainly caused by the lack of regulation. Whenever you enter a trade, you are trading against professionals, and that increases the risk. The broker may give incomplete data about a currency pair, or they may give the wrong price, and a trader can’t do anything to prevent that. Things could be easier using robots you can explore at Top 7 Binary Robots.
Other markets have advisors, and other forms of help and Forex has none of that. When you enter the Forex, you are on your own. There won’t be anyone who will offer some advice on how to trade and when. Trading on the foreign exchange is all about trial and error, so start with small trades and limit your losses until you learn enough to earn some money.
Developed by Charles Le Beau and featured in Alexander Elder's books, the Chandelier Exit sets a trailing stop-loss based on the Average True Range (ATR). The indicator is designed to keep traders in a trend and prevent an early exit as long as the trend extends. Typically, the Chandelier Exit will be above prices during a downtrend and below prices during an uptrend. The Chandelier Exit formula consists of three parts: a period high or period low, the Average True Range (ATR) and a multiplier. Using the default setting of 22-periods on a daily chart, the Chandelier exit will look for the highest high or lowest low of the last 22 days. Note that there are 22 trading days in a month. This parameter (22) will also be used to calculate the Average True Range. The Chandelier Exit is basically a volatility-based system that identifies outsized price movements. Le Beau defined volatility by using the Average True Range, which was developed by Welles Wilder, creator of RSI and the Average Directional Index. ATR uses the prior close, current high and current low to determine the “True Range” for a given period. After some smoothing, the daily True Range values evolve into the Average True Range for a given period of time. By setting the Chandelier Exit for longs three ATR values BELOW the period high, the indicator provides a buffer that is three times the volatility. A decline strong enough to break this level warrants a reevaluation of long positions. The opposite applies to short positions. The Chandelier Exit for shorts is set three ATR values ABOVE the period low, which provides a volatility-based buffer. An advance strong enough to exceed this level warrants a reevaluation of short positions. ...