Trading Forex can be exciting, and has the potential to provide a little extra positive cash flow on the side. However, there are certain things traders should do when dealing with the markets, especially if they are going to be trading someone else's funds. Here are some tips for trading responsibly.
The currencies market is widely unknown to many, and may seem as foreign as the currencies that are being traded by the thousands every day. There are several pitfalls a trader can meet if they don't understand some basic truths about the market.
Here are four delusions Forex traders might face that can lead to setbacks on their journey to success:
The trading term "swap" is a sort of vague for both new and experienced traders. You might have noticed it listed on your trade history before, and depending on your trading style it may or may not have affected you. In any case, it's always nice to be able to understand and use a new concept/term.
So what is swap?
The short answer is the difference between interest rates.
When you borrow money, you pay interest; when you deposit money, you earn interest. When trading forex, you’re constantly doing both. (for Apiary Traders: view module Lots and Leverage). However, the interest rates being charged or paid out is different for each bank, and each country sets their own rates. Every day at 0:00 GMT, the interest is calculated and the total is either added or deducted. This is called “Swap,” or the amount you make or spend due to a difference in interest rates.
One of our favorite things about the Apiary Community is how diverse it is; we have traders from all walks of life and from all over the world learning to trade online. We interact with our traders through online chat rooms and classes, but the highlight of teaching, to us, are Apiary Summits where we are able to meet and work with our traders face to face. So the question is, is learning online or in a physical classroom better? What are the strengths and weaknesses of learning to trade online?
Some of the best market conditions might not be the most convenient to trade in; this is one of the natural consequences of participating in a world based market. There are always different markets open, and you might need to sacrifice some sleep in order to trade your favorite session.
We are approaching our 10th semi-annual Apiary Summit this September; so we decided to have an interview with head trader Shawn Lucas about Apiary Summits. As we learned from an earlier interview with one of our experts at pulling off these big events, there is a lot that goes into planning the perfect Apiary Summit. Now, get a glimpse into Shawn's thoughts on Apiary Summits.
Shawn Lucas teaching at an Apiary Summit
One of the most common terms you'll hear as a forex trader is the term "pip." However, sometimes we might use and understand the word with out being able to define it. Now, you could go to lunch with your trading buddy and discuss pips, trend, and breakouts...but what happens when you're asked to explain what pip stands for?
Don’t worry. We’ve got your back! Read below to find out all about pips.
You might have noticed us getting excited over here at the Apiary Fund for our upcoming Apiary Summit. If you’ve ever wondered exactly what happens at Apiary Summits, then this is an article for you.
Sometimes the stress of trading Forex may feel like it results in the development of "patients" rather than patience.
Which is good for doctors...not so much for the Forex trader.
Some might imagine the markets as a high-risk, stressful, and rushed environment where papers are being thrown and people are yelling. Your trading does not need to be this way. With a well-thought-out trading plan, and the patience to follow it, you'll begin to find a sense of peace in the markets.
People need the power of collaboration, even forex traders (we’re not the lone wolf of wall street here). The Apiary Fund has an innovative business model that crowdsources money management; the combination of both the trading skill and knowledge of our many traders results in an ever growing fund. As beneficial as crowdsourcing is, collaboration (working with a group produce or create) is just as important for our traders. We present many opportunities for our traders to collaborate here at the Apiary Fund, one of the biggest being an Apiary Summit.