One of the most interesting things to note about trading is the wide variety of methods and mediums that people use to achieve the same ends. As brokers like AxiTrader can attest, although the majority of traders will be aiming for almost identical goals, no two will achieve them in exactly the same way.

We categorize the way that traders obtain their goals into various styles, with these styles able to be molded to an individual’s time availability, financial goals, and strengths and weaknesses.

This means that when new traders ask which style would be best for them, there is no easy answer. Different models will suit individuals to varying degrees, and it’s a case of identifying which best complements your lifestyle and personality.

To help you work this out, here are some brief explanations to assist you…

Long and Short

Before you can understand anything else, you need to understand the concepts of going ‘long’ and ‘short’. Irrespective of the asset class, these are the only two types of trade that exist, so you have to know the difference between them.

When you participate in a long trade, you buy a financial instrument to open your position (enter), and sell it to close it (exit). The idea is that you will have sold it for more than the price you paid, and thus made a profit.

When you’re involved in a short trade, you short sell to open a position and then buy it back to close the position. This is known as covering, with the intent being to cover at a lower price in order to earn a profit.

The former is the more widely practiced of the two, but both can be profitable if done correctly.

Day Trading and Swing Trading

Long and short are the two types of trading that exist, but there are also two styles that you need to be aware of: ‘day trading’ and ‘swing trading’. Essentially, the difference between these is the position holding time.

With regards to the former, day trading tends to cover a single 24-hour period, or a single session from open to close.

Swing trading, on the other hand, is based on similar principles, but uses a longer holding time period. It tends to be performed either intra-day or daily, and will often have a larger trading range than its day trading counterpart.

Although these concepts may appear complex at first glance, it’s very important to understand the differences between them. Do your research and improve your understanding in order to choose the best style for you, and you’ll soon be reaping the rewards.

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The foreign exchange markets are incredibly complex. A thousand external drivers move them each and every day, and it takes a great degree of skill to master their intricacies. With a trading arena that’s so volatile, it’s little wonder that intelligent traders seek to simplify their task in any way that they can.

This is what trading tools have been made for, and it’s the job of your broker to provide you with them. The ones on offer to you should play a key role in helping you decide who to go with, so it’s important that you know exactly what you’re looking for.

To help you out, here are three of the most important tools when it comes to trading…

#1: An Economic Calendar

Economic calendars do exactly what they say on the tin: they provide dates for important political and financial decisions that are likely to impact the markets. This means that you have a head start on working out what’s about to happen to the values of your currency combinations, and can thus make all of the right moves to protect yourself. The more in-depth an economic calendar is, the better it will suit your purposes.

#2: A Trading Calculator

Trading currencies often involves thinking on your feet, so it helps to have a tool that can simplify all of your most important calculations. And when you choose to try forex trading with FxPro or a similarly reputable broker, this is exactly what you’ll get. The most accurate will automatically input the latest FX rates, and should offer you the option to change the values into any of your account currencies. Take advantage, and you’ll be able to makeinformed decisions every time that you trade.

#3: Stop Loss Orders

Last but not least, make sure that you take full advantage of stop loss orders. Commonly known as ‘the trader’s best friend’, these handy tools are the best way to protect yourself against catastrophe. Use them to automatically put a stop to your losses whenever they begin to spiral, and you’ll soon find that you’re setting yourself up for success in the long run. After all, individual gains and losses matter little, so long as you’re still in the black at day’s end.

Forex trading tools have been specially designed to help secure your successes, and that’s why it’s so important to use them. Don’t pass up such a golden opportunity; take advantage of them today.

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Put simply, now isn’t a good time to be young. With the majority of people now living longer than ever before, the retirement age is increasing, and there’s a good chance that people may have to work for an extra seven years before they retire. The younger you are, the bleaker the picture looks, and it appears increasingly likely that you’ll have to work for longer than ever before.

One way that this can be countered is through successful long term trading. This, however, is not without difficulties. In this post, we take a look at these difficulties and suggest ways they can be navigated.

Gains Lessened

According to a recent report, investors of all ages may need to resign themselves to diminished gains.

According to this theory, the last 30 years or so can be seen as a “golden era” for investors due to inflation adjusted rates influenced by factors that are unlikely to be repeated, such as falling inflation and interest rates, swelling corporate profits and expanding price-earnings ratios in the stock market.

As such, it is recommended that investors lower their sites and reassess their strategies to reflect this realignment. This is because the economic and business drivers of equality and fixed-income returns are shifting, meaning that:

-        Inflation is likely to rise

-        Interest rates will increase from their historic lows

-        Employment will weaken because productivity gains will not strengthen

-        Emerging markets could cut margins

All of this means that the next decade or so won’t be anywhere near as lucrative for investors.

Opportunities for Growth Still Exist

However, in spite of the negativity surrounding the forthcoming decades, a number of opportunities still exist in the markets.

For example, if growth slows, the GDP of the United States should grow by around 1.9 per cent per year, leading to a number of investment opportunities emerging.

If the economy recovers as many predict it will, US growth should also match the 2.9 per cent average of the last 30 years, with non-US GDP rising by as much as 3.4 per cent.

Due to this, it is apparent that opportunities will still exist, you’ll just have to be more realistic in your expectations. In spotting these reduced opportunities, doing your research will be the key.

As such, you should invest in your education. By using a respected broker like ETX Capital, not only will you be able to use a bespoke platform, but you’ll get free education, too. This way, you’ll be able to spot opportunities before anyone else.

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5 Rules Millennials Must Follow to Grow their Wealth

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Millennials are the group of people born in the early 80s up to late 90s. They’re the generation of massive student loan payments, living at home until their mid-20s (or later) and spending their day texting their friends. Though this may describe some millennials, it most certainly doesn’t describe them all. Millennials are also self-starting [...]

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