Scalpers need all the up to the second information they can get and therefor use very short time frames on their charts such as ticks, 1, 3 and 5 minutes. The purpose is to spot easy and quick entry and exit points. Scalpers thrive on high liquidity and do not look for long term patterns. This is why the short time frame is preferred.
Firstly, if you are a newbie for doing trade, it would be more convenient for you to take the help of the choose forex broker parameters of the best brokerage firm who will provide you the best platform. Once you will get the best broker it will help you to have the trusted online associations in future. You will get the best broker to proceed your trading.
A dozen or more will come up and you should visit the individual websites and save three or four that you like in a Favourites Folder. Then write down there names, for example, AC Markets, and type into the SE: ‘AC Markets problems’. You may want to discard a few from your chosen ones after doing this. Anyway, ultimately, you will come up with a Forex broker that you are happy with.
You will find countless benefits of trading Forex fairly than stocks or futures. I prefer to go about only a several of them with you today. For starters, most brokers are commission free. There is certainly no fees whatsoever with your transactions! Retail brokers are compensated by a thing identified as the “bid-ask spread” which is certainly usually no a great deal more than some pips. Its typically a lot less than 0.1% in the total price under normal industry conditions. Unless you happen to be the type of trader that’s scalping, this really is a negligible cost along with a very fair price of working on business.
The next step is to look at the platform the broker uses – is their software reliable? If you can’t connect when you want to trade, this is a serious problem and can cost you money. If the broker’s platform isn’t reliable, then keep looking. You can get some advice from looking at Forex trading forums to see what other investors are saying. However, read several different forums and take what you read with a grain of salt – some of these forum users may have their own interests in mind when appraising a certain broker or platform. Some unscrupulous brokerages will even post positive comments about themselves on these forums, so as always, caveat emptor.
If you’re in the US, check if the broker you’re thinking of opening an account with is registered with the CFTC (Commodity Futures Trading Commission) as well as the NFA (National Futures Association). The NFA and the CFTC are the regulatory bodies governing Forex trading in the US. Each country has its own agencies who govern Forex trading, so look for the equivalent registrations in your country if you are outside of the US. Look into any complaints which have been filed with the NFA against the broker you’re examining; you should try to find a brokerage who has as few complaints as possible (preferably none).
Simulated Results – Watch out for systems that show extraordinary results, especially “black box” indicator systems. You’ve probably seen systems like this that show a green dot when it’s time to buy and a red dot when it’s time to sell. When you look back on the charts they look amazing, what you don’t know is that often they “re-paint” which means that the wrong signals are deleted so you are not seeing the true performance history.
Regardless of what type of a trader you are (day or swing) or the type of strategy you end up using, there’s one tool that you should use to your advantage and that’s the demo account. The demo account is basically a test or practice account provided to you by a Forex broker. A demo account allows you to refine your strategy, determine whether you’re a day or swing trader, and learn all sort of other things about Forex without costing you any money. Any tool that’s 100% free and allow you to simulate Forex activity is one you should use.