1. Forex Trading with 1:3 Rule
Do you know the “1:3 rule” while trading Forex online?
Here you will find tips on the trading world, and how to make the most out of trading stocks, Forex, commodities and indices.
There will also be information on breaking news, and how it might affect the market and your trading.
For our first post, let’s start with a Trading Tip.
We know that when placing a trade, it’s important, and always advised, to set a Stop Loss and Take Profit limit.
Doing so minimizes your risk, and helps you lock in potential profit.
But how do you know what limits to set?
In general, you want your Stop Loss to be at least as big as the average daily pip movement for the instrument you are trading.
For example, if you are trading GBP/USD, the average pip movement between the London and New York trading sessions is 115 pips.
You want your Stop Loss to be bigger than this number so your trade has some leeway and time to make money. But what number should your Take Profit be? Follow the 1:3 rule.
“When trading, there will be time when you win, and times when you lose”
says Patrick Orini, chief trading analyst.
“What makes a good trader is someone who lets their winning trades win all the way. That is why we recommend setting your Take Profit level three times higher than your Stop Loss.”
Why does this help? This strategy lets your come out on top, even if you only place a winning trade 1 out of every 3 times.
So when you trade smart, you take all you can.
When setting your Stop Loss and Take Profit limits, keep in mind both the average daily pip movement, and the 1:3 rule. Happy trading!
2. Micro Account with larger trading volume
Why should investors and Money Managers care what “Micro Accounts” are?
Because they allow small investors to have similar opportunities as the larger ones!
Is it really necessary to have 50k+ USD to invest in a Great Strategy?
In Forex industry you can find many trading strategies and signal providers that promise amazing profits for only 99 USD subscription price.
But unfortunately most of those strategies do not work well and they usually end up with bad results for the investor.
Cheap strategies can simply not work on a long-term basis since they are usually not being monitored and adjusted by its developer.
On the other hand, there are very interesting solutions for advanced investors, that start from 50,000 USD minimum deposit and that include for example more than 5 profitable strategies mixed into one basket, which gives investor the opportunity for stable profits with limited risk.
But if you don’t have 50,000 USD on your account you are usually not able to use such a solution.
The reason is often strictly technical – because if you put 5 strategies into one 50,000 USD basket it means that every strategy then trades with 20% of the capital, which represents 10,000 USD.
And even if just single one of them trades with 0.01 lot positions per 10,000 USD, the technical minimum for the whole basket of 5 strategies is those 50,000 USD, so that it can work properly.
But is there any chance for smaller investments?
Forex Brokers with Micro Accounts solve the problem
By using latest technology and business model, recent online brokers are able to provide possibility to start investing with as low as 1 USD minimum deposit for a strategy or portfolio that is normally available from 50,000 USD in standard conditions.
And how is that possible?
Thanks to the wide range of investor base, now brokers can put orders from more customers together into one bigger order and then pass it to the market.
And all that is done within milliseconds on trading servers. In the end, their liquidity providers get the minimum order size they are able to execute (usually it is 1,000 units) and they internally distribute such trade among customers in micro lots (or nano lots).
Online Brokers are always giving investors a unique solution
This solution is something you will not find anywhere else because a single strategy provider or money manager is not able to do this without advanced technical background they have and without close cooperation with brokerage.
Thanks to this modern technology environment they are able to destroy boundaries and limits that the smaller investors usually suffer from.
Instant Deposit from $1 and Commission-Free
Together closing to the beginning of the new year, FBS prepared another amazing news for its clients!
After many weeks of hard work of our finance and technology team they are proud to introduce more than 30 different worldwide deposit options.
This solution originates from one of our basic values – “Simplicity”.
Depending on your preferred currency basis and on the country you are coming from the Personal Area will show you all the possible online deposit methods suitable for you at that moment.
Great advantage of the credit and debit card deposits is the fast transaction of your funds to your trading/investing account.
Your deposit transaction will take just few minutes during working days!
Here are the 4 main types of deposit methods you can choose from:
- Credit/Debit card deposit options
- E-wallets deposit options
- Real-time Bank Transfers
- Prepaid cards
3. Social & Copy Trading
Now that the market of online trading has obtained its growth rate, new players have emerged.
They propose a new model that pretends to reconcile two worlds which a priory seem far apart from each other: social media and trading.
Sharing Knowledge/Information for Free to Profit
At present, social trading has settled in France and has become an integral part of the financial landscape.
At the core of the concept: shared knowledge Born in 2007, social trading marks a turning point with regard to how traders determine their positions.
These considerations relate not only to analysis of the markets, rather how traders share their information as well.
Created from platforms mirroring the model of social media, social trading enables simulation of the positions of professional traders, and profiting from their market expertise.
All this knowledge is shared for the benefit of all parties involved.
Social Trading brings Many advantages for the traders
The advantages are numerous.
First of all, social trading enables the opening of the world of trading to beginners, attracted by the profit opportunities that the stock markets offer.
It is ideal for those who lack the knowledge required in order to work alone.
With no previous knowledge of the stock market, all they need to do is copy the trading positions that the best traders opened with.
The performance of these professionals are published and updated in real time.
They just need to select the ones showing the highest profits.
By working according to the same principle as social media, stakeholders have the feeling that they are actually part of a community.
Sharing never stops. Members share their expertise, ask questions and answer all queries.
The potential profit is so lucrative that even confirmed traders adhere.
In order to attract the best, some platforms propose remuneration for those showing the higher number of followers.
A landscape where three players prevail
While there are several platforms that offer social trading in the world, three important players dominate the market.
What the three companies offer may appear similar in principle.
However, each one offers its customers specific items that need to be evaluated before selecting the platform.
Social & Copy Trading Platform Provider – FBS CopyTrade
Its platform is especially complete and adapts to all traders, from beginners to expert professionals.
Among its strong points worth noting, the training programs enable beginners to start trading online and initiate financial analysis.
It is the most active in terms of number of traders, tools and market indicators proposed.
Another significant elements the customer service the company has implemented: people may be easily contacted, particularly by phone, an aspect far from being negligible, especially at the beginning.