Why You Should Consider Day Trading In Forex?

One of the most famous approaches in Forex, day trading is the go-to strategy for thousands of traders. However, many don't know what makes this such a sought-after approach. In the Forex trading markets, there is absolutely no shortage of strategies. Each method is lucrative in its own way when implemented right. But the beauty of day trading lies in its intensity and profitability. 

Forex demo in Pakistan

This is one of the best Forex trading strategies you can work with. With technology having developed so incredibly over the past few decades, we now have a number of augments like signals and EAs that will help make the day trading experience even better. 

The primary advantages of day trading are:

1) There is no need to pay overnight dues and hold positions at night. With a day trading approach, you will be trading in a market that has great risk. By exposing yourself to big risks, you also stand a chance of profiting higher.

2) Day trades, unlike other trades, last no more than a few minutes. And with the entire day your playground, you will have a number of trading windows to capitalize on. Don't make the novice mistake of assuming that day trading yields small profits since it's done on a smaller timeframe. Day traders can make a number of trades every day, and each one compounded will bring in ample profits! 

What's Needed To Succeed As A Day Trader?

1) Capital: 

While you can indeed manage trades with minimal capital, you will have to invest amply to win big. But if you're just starting off, trading with minimal capital is the wiser thing to do. Only after you've gained enough experience should you move to making big moves financially. 

2) Knowledge: 

Needless to say, working with Forex trading strategies of any kind requires a lot of knowledge. The foreign exchange markets are filled with a number of risks that will easily dismantle your efforts and send you towards big losses. But when you know what you're doing, winning will happen naturally. 

3) Discipline: 

Trading discipline is what keeps the trader from overtrading and losing all his/her capital over a single trade. Day trading is one of the most lucrative Forex Trading Strategies, but can be just as risky, which is why it is critical to be disciplined. 

Find unmatched success in your exchanges with meticulously crafted trading strategies in Pakistan! Reach out to WesternFX today and work with our experts. Known globally to be one of the best Forex brokers in the game, we will provide you with everything from Forex Demo in Pakistan platforms to cutting-edge strategies. Backed by our professionals, you'll see success in no time!

5 Forex Trading Myths That Most Traders Believe

Misconceptions have the power of driving you away from the reality, and in a field as risky as Forex, it can be more harmful than you think. When you invest thousands of dollars, a lot of time and a lot more effort, success has to be seen. However, as a beginner, there are a number of misconceptions and myths that will keep you from understanding Forex properly. Even knowledgeable traders sometime fall prey to silly myths that surround the Forex trading markets! 

Here are 5 dangerous Forex trading myths you should stay away from:

1) You Can Make 100% Profits: 

Not even the best of Forex traders can see 100% profits in their exchanges! This doesn't mean that Forex is a loss-laden domain; it's impossible to have a completely positive track record while currency trading because of the volatile nature it carries. Many enter these markets misguided by the idea that trading is ever-profitable, which it isn't.

 
2) Forex Trading Is All About Luck: 

Let's put it this way, you might win some trades out of luck, but this isn't the kind of luck people rely on while gambling. Sometimes the markets just move in your favor, letting you pocket profits. But for the majority of your trades, emerging victorious rely on your skills, the Forex trading strategies employed and how well you manage risks. 

3) Demo Trading Is A Waste Of Time: 

There are several traders who dive into live trades without any practice. Now if Forex trading were like painting or writing, you could learn on the go. However, there's a lot of money involved in Forex and each trade comes with an abundance of risks. So practice your skills on a Forex Demo Account before going live.

4) Diversifying Will Lead To Losses: 

Some Forex traders tend to believe that trading anything other than a specific currency on a specific timeframe will lead to losses. But that's not the case! Depending on how the markets function, any currency pair can be profitable. 

5) Forex Markets Are Random: 

Currency trading follows a particular pattern, but since this pattern depends on a number of economic, social and political factors, they appear random superficially. 

Dodge these myths and you will be able to make the most out of each exchange. Get your trades the attention and guidance they deserve - call WesternFX! Avail our top-notch Forex brokerage and find stellar success come your way. With our Trading Strategies in Pakistan, seeing victory will be swift. Implement the best of approaches and master the art of currency trading with our guidance. Reach out to us today to get started!

How To Make A Winning Forex Trading Strategy?

Trading without a plan is one of the deadliest mistakes in Forex. Even novices know that without the backing of well-planned Forex trading strategies, seeing profits is impossible. This is why a majority of every trader's time goes towards strategizing. 

When participating in a financial market where your trades could crumble at any instant, it is necessary to have the foresight and plan ahead, keeping in mind the various risks and planning for them. Forex trading strategies do more than just giving you speculative precision; they act as a guiding light and help you achieve your trading goals. 

forex trading strategies

Here are 4 tips to draft winning Forex trading strategies:

1) Assess Your Risks: 

Succeeding at Forex trading is all about figuring out which risk is worth taking and which one isn't. To devise good Forex trading strategies, the first thing you should do is see how much risk you can afford to take. Strategies that have a high loss margin shouldn't be employed if you don't have the necessary capital to go along with it.

2) Plan Your Entries And Exits: 

A strategy is only going to be effective when you employ it on the right timeframe. Finding profitable entries and exits should be a priority when you are Forex Trading In Pakistan. Even a second's difference can cause you to see staggering losses! Always plan your trades out thoroughly and make sure your entries and exits are profitable.

3) Analyze Your Mistakes And Improve On Them: 

No trader is going to get it right in the first attempt. Devising winning Forex trading strategies is all about learning from one's mistakes. As a Forex trader, you will have to invest a lot of time in analyzing your methods. Only after a lot of trial and error will you be able to perfect your trading approach. 

4) Prepare For Risks And Losses: 

The strategy employed should take into account market risks and the various repercussions they cause. Always think two steps ahead while drafting Forex trading strategies, and keep in mind that there are risks to deal with. 

Equip yourself with some of the best Forex Trading Strategies - reach out to WesternFX today! Our experts know the nuances Forex trading comes with, and will help you perfect your trading approach. From strategies to platforms, we provide our traders with the best of facilities to ace their trades. Reach out to us today and find unrivaled success in your exchanges!

How Long Does It Take To Profit While Forex Trading?

The golden question that occupies every beginner's mind - how long does it take to see profits in Forex? Impatience isn't a bad emotion, it often serves as a catalyst to the fire traders have for success. However, too much of something is good for nothing. While wishing to see swift success is completely natural, getting consumed by the idea of it isn't! The reason behind this being a simple fact, that Forex trading isn't a get rich quick scheme. 

Becoming a successful trader doesn't have a fixed timeframe. A very simple analogy for this would be to compare trading with education. How long it takes to complete school or college isn't up to the school, nor to the syllabus followed - it is up to the student! Similarly, in the world of Forex trading, there will be a number of factors you can hold accountable for the lack of success - volatility, lack of capital and so on. But at the end of the day, an adept trader can make the best out of any situation. 

Forex Trading Strategies

If you want to figure out how long it takes to profit as a Forex trader, ask yourself these questions:

1) How Committed Am I? 

As mentioned before, there won't be overnight profits in Forex. To succeed and remain successful as a Forex trader, you will have to be driven by the idea of success! Many traders start off because they want money, but down the line, as difficulties set in, they lose interest in trading. For some, all it takes are a few losses and they quit! Measure your commitment before you delve into Forex trading. 

2) Will I Invest In My Learning?

A lot of learning is involved in Forex trading; profits don't come knocking on their own! From drafting sharp Forex Trading Strategies to picking the right indicators, a lot of time has to be invested to learn these aspects of Forex. You will only win trade when you've understood the basics! 

3) Is This What I Truly Want?

If Forex trading isn't what you want to commit yourself to, expecting success is but a daydream. Wanting to make money is great, but asks yourself if you want to make money specifically through currency exchange! 

Answer these questions, and you've also answered the golden question! For traders having difficulties, WesternFX is here to help you figure out the right answers. We house trading veterans who have gone through the same confusion as you! With our careful guidance and impeccable brokerage, you will be on the right track in no time. Reach out to us for Forex Demo In Pakistan today to know more!

What Is Mirror Trading And Why It's An Amazing Approach?

Mirror Forex trading is an approach where traders mirror, or copy the strategies followed by other, more experienced traders. In doing so, you're essentially trying to replicate the trade a more knowledgeable trader is pulling off, and aiming at making good profits. 

There are several occasions where traders don't have the time necessary to research or sit and make long trades. Similarly, you will find quite a few Forex traders participating part-time, either due to a job or studies. For such traders, mirror trading can be a great method.

forex trading strategies

Here are 4 amazing advantages of employing the mirror trading approach: 

1) Remove The Unnecessary Emotions: 

Emotional investment is a very risky aspect of Forex Trading. Getting too emotional can be detrimental, and not having emotions at all is unhealthy. Many novice traders get very emotional over their trades, even the smallest loss leaves them tensed! When emotions step in, confidence becomes overconfidence and fear becomes greed. Out of the fear of losing money, traders end up overtrading to make up for all the lost capital - but ultimately only see more losses.  

2) Measure The Performance: 

Mirror Forex Trading is often compared with algorithmic trading in that both methods leave you out of the trade. With algorithmic trading, it is very difficult to find out if the Expert Advisor employed is accurate and will bring in good results. When you employ mirror trading however, the performance efficiency can be measured with ease. The strategy you're mirroring can be monitored to ensure that it is bringing in profitable results for the original trader and will do the same for you.    

3) Replicate Profits: 

The idea behind mirror trading is to copy a profitable trader's approach and make the same profits he/she is making. While it isn't always possible to see wins in the trades you mirror, this strategy has a huge success rate and with some good research, you can get yourself hefty profits. 

4) Retain Full Control: 

At the end of the day, no one likes giving Forex brokers control. When it's your money on the line, it is you who should helm the boat. And with mirror trading as your main approach, you will be retaining full control. 

Always play it safe when mirror Forex Trading Strategies! There is no guarantee that one trader's profitable approach will reflect exactly when you implement the same. Keep the necessary fail-safe means in place and only when secure should you trade.

Sign up with one of the leading Forex brokers, WesternFX, and take to the top right away! Reach out to us today, avail our world-class trading approach and find big wins come your way.

How Does Foreign Exchange Differ From Stock Exchange?

Two incredibly famous investment domains, Forex trading and stock exchange are very profitable trading fields today. With investors crowding each domain in thousands, there is often a question among the beginners as to which option is better between stock and Forex trading. 

When it comes to profits, people will mostly prefer Forex trading. However, several believe stock exchange to be the more stable investment domain, which is both profitable and filled with opportunities.

Forex Trading Strategies

Here are the primary differences between Forex and stock trading: 

1) Different Assets Are Traded: 

A very evident difference between Forex and stocks is the asset being traded. In Forex trading, you exchange currency pairs and profit from the difference in their value. And in stock exchange, you buy stocks and sell them later when their value has increased. 

2) Liquidity: 

Between the stock and Forex markets, Forex has greater liquidity. Since it is open 24 hours a day, you will always find counterparty for your exchange! The same can't be said for stock trading. In the stock trading market, finding buyers or sellers take a longer duration. 

3) Technical Factors Affecting Market Value: 

While stock trading, the technical analysis done will consist of researching a company's history, its viability in the stock market, finding profitable conditions for trading etc. But in the Forex Trading In Pakistan markets, technical analysis comprises of studying a currency's complete historic price movement because the currency value is directly linked with the country's economy!  

4) Trading Hours: 

The foreign exchange markets are open 24 hours a day for 5 days a week, giving traders plenty of time to place their deals. This also allows for several provisions like overnight trading, and even helps increase the market's liquidity by a huge percentage. As a stock trader however, you will be limited by time heavily. 

5) Leveraging Facilities: 

Leverage is a provision Forex traders enjoy immensely. With a leveraged sum borrowed from the broker, you will be able to hold positions of higher value. In the stock markets, there's no leverage system. You trade consistently with the capital you have, without any further augmentations. 

Be it stock trading or Forex trading, with the right broker by your side, success will be yours without doubt! Reach out to WesternFX today; we will provide you with everything from the best stock trading platforms to proven Forex Trading Strategies. Our experts have years of experience, and will guide you through your many trades, ensuring profits are bagged consistently. Call us today to get started!

Forex vs. Options - Everything You Need To Know

Forex Trading

 
Known as FX trading or foreign exchange by many, Forex trading is a financial market where you can buy or sell currencies and make a profit out of the exchange. If you buy the EUR/USD pair and the EUR goes up in value, you can sell it for a profit. While Forex trading sounds simple in theory, it isn't so when done in real-time. Being one of the most volatile markets in the world, Forex is known to have riskier trades than any other domain. You can make profits one minute and see losses the very next - that's how erratic foreign exchange can get!

 
Options Trading 

 
Another incredibly risky domain, options trading essentially allows you to buy or sell options on assets like stocks, futures, etc. If you think that a particular commodity will rise or fall in value, you can make an appropriate move. Though it comes with a lot of risks, all you need is a good few months of experience to start making adept investments. 

 

Forex Trading

 Here are some of the major differences between options and Forex: 

 
1) Round The Clock Markets: 

 
The markets in Forex are 24 hour-long. This means that you have a lot more time to trade than options and other markets allow. Though it is advised that trading too long is detrimental to health, if you can balance your trades, you'll be able to double your profits! One of the major benefits of having round the clock markets is when a big financial event happens; while typical investment markets close, Forex trading remains open and allows you to capitalize on such events. 

 
2) Liquid Markets: 

 
A liquid market is one where you can always find counterparty to your trading deal. And Forex is one of the most liquid markets in the game today. As a Forex trader, there is no particular period of time when you won't have a buyer/seller for your exchange. 

 
3) Swift Trade Execution: 

 
There are no trading delays while trading currencies. The slippage that you will notice in options trading market won't be found while trading Forex! Since the liquidity itself is so high, slippages rarely happen. Forex brokers today employ high-frequency strategies to ensure your trades are executed almost instantaneously. 

 
4) Leverage: 

 
Finally, leverage in Forex trading allows you to massively amp up your trading capital by adding the borrowed sum to your existing Forex capital. With leverage, you'll be able to hold positions of higher value than you otherwise would with your capital alone. 

 
Intrigued by Forex Trading? Reach out to WesternFX today and start learning on our Forex demo account! We provide our trades with the best of currency exchange solutions - from top-notch Forex trading strategies to platforms. Call us today to get started!   

4 Amazing Ways To Minimize Your Forex Trading Losses

Making profits as a Forex trader isn't the key to success, success in Forex boils down to how well you manage your losses. The ground truth about currency trading is that the markets bring in more losses than profits. With the massive volatility that surrounds Forex, it is difficult to keep the profit-flow consistent. The only way you can see big profits is if you take risks just as big, but risking too much might also lead to irreparable losses! 

 

Forex trading is often paradoxical, but there are always ways to optimize your trading approach and curb most, if not all of the losses.
 

Here are 4 tips for risk management and loss minimization in Forex: 

 

Tips to Prevent Losses in Forex Trading

 

1) Perform Strong Market Analysis: Why does a trader lose money on a trade? Because he/she doesn't have ample knowledge about it! You will only lose your trade if it catches you by surprise. When you dedicate ample time to analyzing the markets and researching the current trading conditions, you will be amply prepared for when you have to trade. Since the Forex trading markets are so ridiculously volatile and traders fail to analyze them thoroughly, they see early losses.
 

2) Don't Risk More Than Needed: You will always hear many Forex traders see that big profits only come with big risks, but only the battle-hardened ones will tell you that with big risks you also stand a chance of making harrowing losses! Risking more than necessary is the reason behind the downfall of several traders. Driven by greed, they risk big on trades, wanting to win back just as big - but the erratic markets won't allow for this! Always keep your risks minimal and only risk big if you are thoroughly protected.
 

3) Place Stops Thoroughly: Stop-loss orders are the protection Forex trader’s use. As the name suggests, a stop-loss order stops losses by withdrawing your position out of a trade. When you place a stop order at a particular point in your trade, it will monitor the charts and automatically pull you out when you lose money beyond the point of its placement. This ensures that your losses are minimal at the most and you live to trade another day!
 

4) Keep Greed At Bay: Getting greedy often happens as a result of getting confident, or scared. When a trader starts seeing profits, he/she is bound to strive for more. Similarly, the fear of not making enough money also leads many traders towards getting greedy! This vile emotion begets nothing but evil. Find contentment in wins, be it grand or nominal, and stay away from greed.
 

Try a free Forex demo today and see where your approach is flawed! Money management can get tricky while trading currencies, but our experts at WesternFX will provide you with all the assistance you need to dodge losses and pocket big profits! Call us today to talk with us.

7 Forex Trading Mistakes Every Beginner Traders Should Avoid

Rid yourself of the misconception that the Forex trading professionals get everything right, they don't. Forex trading is an incredibly volatile field and even the most knowledgeable of traders fall prey to the erratic markets. All the trading experience in the world won't equip you enough to manage a slipping trade. As Forex traders, they will have to learn from the mistakes their peers make. Succeeding at currency trading is mostly trial and error, and improving on your techniques once they hit a roadblock. Don't think of mistakes as a sign of inadequacy, they are but stepping stones to help you evolve into better traders.
 

Here are 7 common Forex trading mistakes several professionals make:
 

Common Forex Trading Mistakes by Beginners

 

1) Trading Without Enough Knowledge: One of the most basic mistakes a trader can make is entering the markets without knowing enough. As a beginner, it is enough to know the basics about the next trade you're making. But down the line, everything from currency viability to economic stability has to be studied before making a trade! Out of excitement, several newbie Forex traders rush to the trade, without enough knowledge. Always keep your beginnings small.

 

Get a Forex demo account and learn all you can on it before taking to the real-time trade markets. On a demo platform, you'll be able to learn how to trade without risking a single dime! And with this knowledge, trading currencies will be several times easier and far less risky than it would be if you tried it without practice. 
 

2) Lack Of Proper Market Analysis: Analyzing the Forex trading markets makes up for over 70% of a trader's job! And poor analysis is the main reason behind the losses of several novices incur. Due to inexperience and the absence of good brokerage, traders fail to read the markets right. Starting off, it might be difficult going through various market nuances and studying its different shades. But with the backing of a knowledgeable Forex broker, you will be able to keep the markets on the tip of your fingers!
 

3) Holding A Lost Trade: Once a trade has crossed a certain loss threshold, it is beyond redemption. And yet some traders hold on to it hoping it will turn back in their favor! While wishful thinking is something all Forex traders do, after a particular point, things have to be approached more rationally. While you might stand a good chance of profiting from a bad trade turned good, you can't bank on bleak chances! On many occasion, several trades have led to big losses despite the placement of a proper stop-loss order. Some slippages can't be contained, just like how some trades won't come back!
 

4) Trading Without Well-Placed Stops: Stop orders are a trader's best friend. With a Forex trading stop-loss in place, you can trade brave without a single fear! What a stop does is essentially pull you out of a trade whenever you lose some money; the loss threshold is decided by you. By doing so, the stop order ensures you don't suffer huge losses, only affordable ones. While some losses do get past, stops are effective on most occasions. It is very important to place these rights; when a stop is too early or too late, you can't expect the same result!
 

5) Getting Overly Greedy: Greed is good up to a point in Forex trading; greed gets you to take risks that bring in hefty profits. But after a certain stage, greed becomes toxic and will make your trade rashly, ignoring all the red flags! Greed begets no good. Several professionals suggest traders to find contentment in their winnings because getting greedy will often lead to losing all the profits earned!
 

6) Employing Too Many Indicators: Indicators to a great job at helping you identify trends right and bag wins. But having 10 indicators crowding your charts doesn't increase your chances of success! As an adept Forex trader, you ought to pick a handful of indicators that synergize with each other and employ them only as needed. An indicator in itself is nothing, only when used right will it be effective.
 

7) Poor Risk Management: When you take the leap and risk things, you have a chance of seeing bigger profits. Let's say you leverage 500:1 on a trade, the profits you might make are 500 times the normal amount. But the same trade if lost will leave you incurring 500 times the losses! This is why it's important to manage your risks effectively.
 

Make mistakes, but ensure you learn from them because some mistakes in Forex can get scarily expensive! Before you trade on live markets, get yourself a Forex demo account from WesternFX today. With a stellar demo platform to learn on and the expert guidance of our professionals, you will be able to attain a firm grasp over Forex swiftly! Join the ranks of pro Forex traders; call us today to get started.

Top 5 Ways to Protect Your Forex Trading Capital

In Forex, stocks or any other trading market, the one salient requirement is capital. You can't make money without owning it in the first place. The lucrative domain of Forex trading doesn't give profits away as freebies; they have to be earned by trading right. Being the risky field that Forex is, it sees many a trader lose money on risky trades. Unable to manage their investments, these players burn out all their cash quickly and are left with no choice but to stop trading!
 

Managing your trading capital wisely will help you go a great mile in Forex. 

Here are 5 amazing tips to keep your investments secure:
 

Ways to Protect Your Forex Trading Capital

1) Avail The Right Brokerage: Without the assistance of a professional, managing your capital will be difficult. Your focus will be on trades while there are no eyes on your capital! With a reputed Forex broker to help you, you will be able to trade and ensure your capital stays secure through trades good and bad.
 

2) Demo Practice Before Going Live: Get yourself a good Forex demo platform and begin demo trading. One of the main reasons traders lose money early is because they dive headlong into trades without any practice. With a demo trading platform, Forex traders are able to learn how to invest right and make the best use of their capital
 

3) Know When To Call It Quits: If you want to save money, avoid spending it unnecessarily - it's just that simple! As Forex traders, it is natural to be tempted on many an occasion to trade a bit longer, but that's only going to be more detrimental. It is of paramount importance that you know where to draw the line. 
 

4) Keep Stop-Losses In Your Trades: With a stop order in place, you can mitigate a huge majority of the losses that come your way. Stop-loss orders essentially take you out of trades once some amount of loss has been incurred, thereby keeping you from incurring any more.
 

5) Never Get Too Greedy: The idea of making more money is never a bad one, but you have to look at the underlying costs. Earning $100 at the cost of $500 isn't profit! And getting greedy will put you in a spot where you lose more and earn less, so keep your greed in your pockets.
 

Perfect your approach on an amazing Forex demo platform today and start with live-trading right away! Be it proven Forex trading strategies or world-class trading platforms, we've got all you need at WesternFX. Our experts will design approaches to fit your trade style and ensure you have fun trading and making profits! Reach out to us today and let's have a talk!

How To Keep Away Loss While Practicing in Forex Trading

Practicing strategies is an essential part of every Forex trader's career. Down the line, after ready-made strategies have been employed long enough, you will have to start making your own strategies. Practice plays a key role in growing as a trader. Many an approach will have to be tested out before employing it on real-time trades. However, a live trade market is extremely volatile with no saying what'll happen next. Implementing a strategy for the first time directly on a real-time trade might leave you incurring heavy losses!
 

Here are 3 ways to limit your losses while practicing in Forex:
 

Ways to Limit Your Forex Trading Losses

1) Test It Out With A Paper And Pencil: With some basic Forex trading knowledge, you will be able to test out your strategy on a paper easily. The simplest and easiest approach, a paper-pencil testing demands nothing of you! This is also perfect for beginners who don't have access to sophisticated software and want a simpler method. Similarly, traders who have yet to avail brokerage can first test their Forex trading strategies on paper before taking it to the live-trade markets.
 

2) Practice On A Demo Account: A platform where trades are simulated to resemble real-time trades, on a demo trading account you can practice all you want. You can get a demo trading account from brokers. On this Forex trading platform, you're provided with virtual money to see and learn how trades function. With a demo account, you can learn more than just the trade mechanics! You can implement your Forex trading strategies and see how it plays out, and also get used to the trading platform and learn how it works. 

With a reliable broker by your side, you can even avail in-trade guidance to correct your mistakes then and there. Forex demo platforms are a great way of learning in a risk-free environment without having to waste a single dime.
 

3) Try It Real-Time But With Low Capital: A risky approaches but effective nonetheless, once you have mustered a good amount of confidence, you can move towards real-time Forex trading in Pakistan. Keep in mind that testing a strategy in a live trade is risky, which is why you do so with minimum capital. Trade just enough so that even if you lose money, it isn't a monumental loss.
 

Get started with Forex trading in Pakistan today by employing your own tailor-made strategies! With the experts at WesternFX by your side, you needn't fear any loss! Our seasoned veterans will support you with constant guidance and help bounce back after bad trades. Backed by their expertise, you will be able to make profitable trades in no time. Call us today to know more!

5 Novice Mistakes To Avoid While Forex Trading in 2019

Saving the money earned is more difficult than earning itself, in Forex markets. An erratic trading domain, foreign exchange is mighty profitable today. Several try their hand at Forex trading in Pakistan, a good portion of them stick around long enough, but only a handful succeeds. Success in Forex can be a very confusing concept. Some traders see minimal profits, but a greater number of wins as a success. Others see profits as defining criteria. Regardless of how one measures success, the path to achieving it is always hurdled.
 

Forex traders often wrongly believe that foreign exchange is for the rich, that only people with big money can trade currencies. With just $500, you can get started right away - that's how easy Forex trading has become today. The start is never the problem here, it is what follows that becomes difficult. Mistakes once committed become expensive, and some errors can cost a good amount. To thrive as a Forex trader it is of paramount importance that you understand mistakes are natural and that some mistakes shouldn't become repetitive. 

Here are some fatal errors currency traders make that you should be aware of and try to avoid:
 

Forex Trading Mistakes by Novice Traders

1) Not Analyzing The Markets Enough: Analysis lies at the heart of Forex trading. Without knowing what's going on around you, in the markets, profiting is but a far-fetched dream. This is why professionals urge newcomers to spend more time learning than earning. A poorly-made trade might fetch you a few extra dollars, but one backed by thorough research can net thousands. The foreign exchange markets are known to be scarily erratic and chaotic beyond compare. Trading on such shaky grounds requires you to have more than just a Forex trading strategy. 

Give time to market research, trend analysis and back your trades up with knowledge.
 

2) Absence Of Stop-Orders: Winning Forex trades is impossible without mastering stop-loss placement. Maybe your first few trades will see profits come by even without a stop order, but when you enter the high-risk exchanges, the absence of a stop will drain your account completely. A stop order is a simple mechanism - when in play, a stop-loss order will pull you out of a trade once a certain limit of losses has been incurred by you, or if a bad trend is speculated. This gives you a lot of control over your trades. You can monitor multiple charts and multitask with a stop order to guard your exchanges!

Not placing a stop has resulted in more losses than countable at this point - don't make that mistake. 
 

3) Letting Emotions Run Rampant: Emotions play a huge role in life itself, leave behind trading and the other stuff. They make us more human! This is exactly why a good amount of control has to be exercised on them. An example of letting emotions get the better of you is when you lose a trade and that loss turns into fear immediately. This fear becomes desperation, and before you know, you're holding on to losing trades and making rash exchanges in an aim to win back the lost money. 

Govern your feelings and think rationally - this alone will take you a good many miles ahead while Forex trading in Pakistan.
 

4) Leveraging More Than Required: A very powerful ally in Forex trading is leverage. It will either help you reach the very top, or throw you off into the abysmal bottom. Leveraging has to be done in healthy amounts, not too generously, because when you lose a trade, you lose all the money put in by you and your broker, and the losses have to be borne by you alone. 
 

5) Lack Of Originality In Trading Approaches: Following another, probably better Forex trader's approach might give you some early mileage. However, as you keep trading on, you will realize that you don't have a style that belongs to you. Another thing is that the Forex trading strategies and methods someone else uses might not necessarily work out for you! So always try to add some flavor of your own. While professional trades offer a lot of guidance and insight, they shouldn't become something you blatantly mirror all the time.
 

Hardships are a part and parcel of the package. While you progressively improve at Forex trading in Pakistan, mistakes and their repercussions are all an element of the journey. Let mistakes only be a teacher and let the lesson learnt never to be forgotten. Partner up with a mentor you deserve! Someone who will assist you through bad trades and guide you towards good ones - partner up with WesternFX today. 

Backed by our veteran traders and their years of experience, you will find your path towards success illuminated - and you will reach your goal in no time. Call us today to know more!

What is Copy Forex Trading? | Pros and Cons of Copy Trading

There are a few Forex brokers in the markets that facilitate copy trading. Copy trading is a technique where traders imitate the trades made by successful traders in hopes of getting the same outcome as the latter. Once a professional trader publishes his/her trade, the settings are mimicked on other traders' accounts. An approach growing in popularity, copy trading opens up a number of windows for traders in Forex trading markets!
 

However, is copy trading viable as a long-term trading approach? Let's find out. Here are the major pros and cons of Forex copy trading:
 

Advantages of Copy Trading:
 

Pros and Cons of Copy Forex Trading Strategies

1) Learn How The Professional’s Trade: Mirroring another trader's moves will allow you to observe how professional traders function. Doing so consistently will allow you to imbue yourself with those qualities and implement them in your own Forex trading approach.
 

2) Make Use Of Other Traders' Knowledge: When an expert trader is at the wheel, you can gain a lot of contextual knowledge, which would on a normal day be a very intensive job. Understanding how trades function and responding to them in real-time is something you can observe first-hand while copy trading.
 

3) Perfect For The Busy Trader: Some dedicate a lot of time to Forex trading and pursue it full-time while others like students or office-goers prefer participating part-time. For part-timers and busy traders, copy trading is an incredible approach to follow.
 

Copy Trading Disadvantages:
 

1) Mimicking Doesn't Always Bring In Identical Results: What works for someone else might not work for you. Mirroring the Forex trading strategies a professional follows is viable, but only up to a point. If you blindly follow another trader without the necessary stops and measures in place, any sort of backfiring will cost you a lot!
 

2) Lack of Proper Brokerage Might Cost You: Many times shoddy brokerage has led to traders following the wrong trades to mirror - which ultimately ends up bringing in losses. 
 

3) Mirroring Risky Traders Will End Up Badly: Not all traders follow a steady approach; some are erratic, and copying these traders won't work out too well at the end of the day.
 

With a good Forex demo account, you can see how to copy trading works and if at all it'll work for you. A number of such stellar approaches exist for traders to follow and succeed! Our experts at WesternFX provide traders with world-class, tailor-made strategies to make sure they love their trades. Backed by us, you will be able to zero in on profits and bag them swiftly. Call us now to know more!

A Book or B Book in Forex Trading? Which is Better & Why?

We seldom worry about the growth of coffee beans or the milking of cows, all that concerns us is the quality of the coffee we drink. Forex trading follows a similar analogy. As a trader, you don't think about the underlying brokerage processes, only about the smooth conduction of currency exchanges. Traders don't feel the need to understand the functions going in the background, but is such a mentality beneficial?
 

A books, B books - these must be sounding unnecessary to most Forex players. However, these are substantial elements that will help see the bigger picture in a much clearer fashion. A very simple reason is that as a Forex trader, you should know how your trade is executed. Since the trading majority is ever-keen on improving strategies and analyzing trends, not much focus can be driven towards seeing how the trade is made by the broker.
 

Some basic level of transparency should be strived for. Else, as you start making increasing profits, you will end up shelling just as much, if not more, too fishy brokerage processes. Fortunately, however, traders are beginning to see the importance of being aware of what goes on once their trades are placed. 

A Book or B Book in Forex Trading in Pakistan

A Book Trading:
 

An A book isn't a book in case you were wondering, it is a trading model (Straight Through Processing) aimed at trading without having the broker as the counterparty. When trading with this model, your order goes directly to the liquidity pool - here there are a number of bodies to serve as your trade's counterpart. A big chunk of Forex traders don't like trading with their broker as their counterparty since there isn't a conflict of interest.
 

Despite there being a transparent brokerage method available, why do the majority of Forex traders go for the more dubious ones? This is because a book brokers tend to charge higher spreads in most cases. Spreads can be tight when availing the brokerage provided by a book brokers, more so when trading exotic pairs. The problem with this isn't just the expense, it is the risk held by open positions that are the bigger issue.
 

B Book Trading:
 

The opposite of A book Forex trading, B book trading essentially allows you to avail brokerage where your broker is the trade counterparty. What this basically means is that you will sell to and buy from your broker. Doing so puts you in a position where your broker is more or less aware of your trading styles, the information of which can be used against you.
 

What's beneficial, however, is that the spreads are fixed in this type of brokerage. This means that irrespective of market hours, you will be paying the same amount to your broker for the trades. Another advantage of B book Forex trading is the guarantee of fills. Be it liquid markets or completely stagnant ones, with your broker acting as the market maker, you can bank on the fact that a good number of orders will come by.
 

Hybrid Model:
 

A subtly advantageous mix of A and B, this Forex trading model is of incredible benefit to the broker. By taking selective elements from either style, the hybrid model essentially allows the broker to decide which style of brokerage to follow with a particular trader. This means that depending on their decision, you can be subjected to STP brokerage or fixed spreads, and you won't be able to find out which! Traders who are working with a large capital are typically given the B book brokerage since this is more advantageous to the broker.
 

What's The Right Type For You?
 

When choosing a good brokerage solution, first importance has to be given to your expectations from a trade. If you are trading on stable grounds with little to no volatility, a brokerage with fixed spreads will work perfectly for you. Likewise, another aspect to be kept in mind is the trading expense borne; commissions and spreads aren't in your control but are mandatory. Sign up for services that charge honestly and don't rob you in broad daylight. 
 

How Do I Find The Right Broker?
 

Start off by going through user reviews. One of the best ways to study a broker's efficiency is by filtering out reviews. Be aware of the fact that some reviews, good or bad, are going to be fake! So having just one measure will not suffice. Take a demo test from the broker and avail their live assistance - this will give a clear idea of whether or not the broker is sincere in his/her approach.
 

Be it A book or B book, WesternFX strives to always be in your good books by providing you with high-quality brokerage! Of the various Forex brokers in Pakistan, we continue to be the crowd favorite. How? By keeping our promises and delivering excellence. Try a demo with us and see for yourself, call us!

What is Trendline & How to Trade with Trendline in Forex Trading?

"The trend is your friend." - You will come across this saying a lot in foreign exchange markets. As a Forex trader in 2019, you have to be extremely meticulous in your approach and have a keen eye on the charts. Opportunities, though plenty, have to be caught properly to make the most out of a trade. The competition is getting stiffer by the day, and traders have to be immensely adept if they want to have a profitable run! 

This is what makes catching trends an important aspect of Forex trading in Pakistan. Being an extremely volatile and liquid market, trends are always on the rise. The challenge is to net in ones with healthy strength and momentum, so you can ride them long enough to see good profits.
 

What's a Trendline?

 

Forex Trading Using Trendlines

Take a candlestick chart and draw a line through a point, and voila - you have a trendline at your disposal. What makes trendlines a substantial element of every Forex trading strategies are a simple fact that they are used to construct several other technical concepts. Once you start employing trendlines, it becomes a subconscious act after a point of time, allowing you to visually study charts and observe Forex trading movements swiftly.
 

A simple example would be working with candlesticks, with the sticks all moving downwards like a flight of stairs. When you draw a line between the first candlesticks on top, all the way till the one on the bottom, you can gauge the momentum and also deduce what's obvious - that the market is seeing a downtrend.
 

With a trendline to work with, you can land profitable trades and avoid letting erratic market movements catch you off-guard. The simple knowledge of a trend's strength and momentum can help you decide if it's going to be profitable, and if you should invest in it.
 

Why Trendline Trading is Advantageous?

You might wonder at this point, that if a trendline is just a simple line, why to spend so much time reading about it when one can just draw a line across the chart. A point fair enough; but how will you measure the value of a trend when it sees continuous ups and downs? When the Forex trading markets are seeing a mix of uptrend’s and downtrends, that's where a trendline truly helps. You can figure out if you should go long or short, or not trade at all! Likewise, the strength of a trend will show you if it's a valuable investment to make.
 

Want to get more tips on finding profitable trades while Forex trading in Pakistan? Sign up with WesternFX today! Our seasoned veterans will help you perfect your approach and see increasing profits in no time. Call us today to know more.