In ForexSQ we know that probably the best and fastest way to invest in the stock market is to do it through a stockbroker. Once an account is opened, the investor finds himself in a world of multiple trading and investing opportunities. However, opening an account is perhaps the easy part. The hard work takes place before, first when you have to choose the broker, and then when you start buying and selling equities.
A stockbroker brings you multiple opportunities. You can buy or sell stocks or any kind of financial asset. Opportunities go from buying Apple stocks to shorting Ford options. Also, most stockbrokers allow you to invest in currencies, commodities, bonds, rates and more. You can be an active intra-day trader, dedicating yourself 100% to the task, or be a daily trader who programs operations once a day or a long-term investor that trades once in awhile.
You can use fundamental or technical analysis as an instrument for trading. Another possibility is to contract a service that provides you with price signals. Whatever you choose, the key is your attitude toward your trades. Is the decisive point. Being a disciplined trader is what could make the difference between success and failure, between gambling and investing.
Risk management. Brokers won’t do it for you.
The stockbroker is a company that provides you a service, executing buy and sell orders, you ideally use it to obtain a return on an investment (earn money) but you can also lose money. Risk management is crucial and is up to the investor. It becomes practically essential, particularly if you deal with leverage, an instrument that allows you to increase the potential of your gains (and also your losses). The broker sets leverage limits but is the investor who deals with it.
At some point, when a trade goes badly, you will be tempted to blame the market or the brokers. When you point your finger to others but yourself for a trade that went wrong, you are probably wrong. Usually, brokers’ trading platforms work without problems and without trying to make you lose money. But sometimes they could experience malfunctioning or strange things could happen, usually under extreme market circumstances, like in low volume hours when spreads can explode, triggering a stop loss, that is reached for only a second just before price bounces back into the opposite direction. Experience can help a lot in order to avoid these circumstances and also it would help you know when you have to make a complaint to the broker and when not to.
Risk Disclosure Analyzing your financial situation, you should decide whether you should start Forex trading or not. Rates of currencies can go down or rise higher any day, any hour, any minute so you should risk only that much which you can afford to loose.
Editors’ Picks
EUR/USD hits two-day highs near 1.1820
EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.
GBP/USD reclaims 1.3600 and above
GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.
USD/JPY drops back below 157.00, as focus shifts to Japan snap election
USD/JPY is back in the red below 157.00 in the Asian session on Friday. The Japanese Yen recovers ground against the US Dollar amid some profit-taking ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates Premium
The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.
Gold: Volatility persists in commodity space Premium
After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.
GBP/USD: Pound Sterling tests key support ahead of a big week Premium
The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.
Bitcoin: The worst may be behind us
Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.
Three scenarios for Japanese Yen ahead of snap election Premium
The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.
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