Getting Started In Forex Singapore

Posted by admin 29/10/2013 Comments are off 1005 views

Basics of Forex Singapore

This article is about getting started in the forex Singapore trading market and what is required to do so.

Although the forex Singapore is quite a complicated market to enter, many individuals are able to find their little spot in it.  There are many factors you have to consider and steps you have to follow before you find your comfort zone, but it is possible.

Forex Basics

Each transaction you enter in the forex market involves the sale of a currency and the purchase of another.  The spread can be determined as the difference between the amount you pay when you purchase a currency and the amount you sell the other currency for.  This variance is calculated in pips or points.  Your forex broker earns his income on this variance.

Before you start trading, you have to register with a forex broker.  It is advisable that you test the trading platform of your potential broker to ensure that it suits your needs.  The main differences between the trading platforms are the charting and reporting methods.

Leverage

This is the main attraction for many traders to the forex market.  It is a ratio that is used that shows the available capital amount to the actual capital amount.  You can think of it as a loan from your broker to allow you to enter a trade.  An example of this is when you are offered a ratio of 100:1, it indicates that your broker is prepared to offer you $100 for every dollar you have deposited into your trading account.  The leverage offered by brokers varies from one to the other.  Some countries have placed restrictions on the leverage ratios offered, but this does not apply to all countries.  The one disadvantage to using leverage is the high risk.  It can offer you huge profits if your trade is positive, but if you experience a negative trade, you stand to lose all the funds in your trading account.

Forex Singapore Market Analysis

Irrespective of your trading style, you should include some form of market analysis to your trading method.  You should be aware of the wider fundamentals of the trading market, whilst making use of technical methods to find the best entry and exit points for your trades.  The fundamental issues you should keep up to date with include consumer price index, durable goods and retail sales, among others.  The technical analysis indicators you can make use of include pivot points, Fibonacci studies and Elliott Waves, among others.

Trading Strategy

There are several strategies you can make use of to achieve your goals in this trading market, but your first step is to determine your strengths and weaknesses.  This will help you determine the best strategy for your personality type.  You have to decide on a short or a long term strategy and the ways in which you will utilise your analysis methods.

Practice

Before you start trading in the live forex market, you should ensure that you are comfortable using the trading platform at hand.  This can be done quite easily by opening a demo account with your broker and trading in it until you are more confident and comfortable trading at a reasonable pace.

 

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