A newbie’s guide to learn Forex Trading

6225881707_9afb3cc3bb_zAs a newbie starting to learn Forex trading, you will need to understand the basics before you delve deeper into trading. If you are entirely new to this kind of trading, never  commit any money without learning the ropes first.

Understand how exactly the whole Forex market works

In order to learn forex trading, you have to first understand exactly how the whole market works.  There is more to Forex trading is more than meets the eye. It involves the trading of any two currencies as against each other. You will purchase a currency of a specific country, then sell it later for the other currency with an expectation that it will strengthen over time. In so doing, you will realize profits from your currency trading.

Learn what impacts the Forex trading market prices

The leading factor that impacts the rise and fall of foreign currencies is the country’s economic status. You will see that the country’s economic status is directly proportional to the strength of their currency. This is one important information to put in mind when you want to learn Forex trading as a newbie. Take note of government changes, vital statutory announcements, etc. These will dictate the market prices. Neglecting these pieces of information can lead to a loss on your part.

Learn to limit the time you trade

As you may have known the foreign exchange market works 24/7. It is a non-stop enterprise. But, despite the 24 hour trading period, it is important that you set the right timing and devote the exact amount of time you do Forex trading. Timing is everything. When your mind is overwhelmed, chances are this can result to indecision and confusion on your part. Avoid information overload at all times and learn to limit your trading times. Carefully trade on a give set of time and watch what happens next.

Use stop losses and learn Forex trading in-depth

You do stop loss when you want your broker to place on hold your order so you can have full control over potentially big losses that are impending. The Forex market is so volatile and losses can happen very fast. In this case, you can stop losses that will prevent any further damage to your trading account.

Always go with a reputable broker

Regardless of the broker you finally choose, make sure you opt for one that will offer you 24/7 support in order to learn Forex trading properly. Since the Forex market is up day and night, it will help you if you have access to help anytime you needed it the most. Your broker must be able to support trading in various major currencies such as USD, AUD, CAD, GBP, and more. This is crucial as these are the most liquid and highly traded currencies of all.

These are just a few of the useful tips and advice that you can use when you want to learn Forex trading as a newbie. There is so much information overload when it comes to Forex trading, you have to take time to learn all of them. Utilize online demo Forex trading accounts for this purpose or signup for trial accounts and learn Forex trading in no time at all.

5 Ways trading can benefit your business

chart-594212_640Choosing to go public and float your company’s shares on the stock market is a decision that shouldn’t be taken lightly. After all, the organisation’s financial dealings will essentially go from under your control to being dependent on economic conditions and market fluctuations.

However, if you have a decent amount of knowledge about public markets and confidently know your way around a trading glossary, it can be a very worthwhile decision with the potential to bring about various benefits.

  1. Access to more sources of capital

One of the main reasons for a business deciding to go public is because it opens up the possibility to raise additional finance and capital. Public companies can usually raise money for growth more easily and at better rates than private organisations of a similar size.

Its shown clearly in “Why Do Companies Go Public?” (Pagano et al. 1998), that companies that went public were able to borrow more cheaply after their Initial Public Offering (IPO). What’s more, a number a banks were also willing to lend a company increases after its flotation.

  1. Liquidity and an increased share price

Seeing as the information contained within an IPO prospectus and subsequent annual reports can reduce uncertainty around performance, companies listed on the stock exchange are typically worth more than privately held organisations.

On top of that, investors are willing to pay a premium for liquidity, or the ability to easily buy and sell shares. It is thought that listed companies will typically be valued 30 per cent higher than private organisations in the marketplace by investors.

  1. Management and employee motivation

Attracting and retaining the best talent is a challenge that businesses in every sector will experience. However, one way to ensure your staff don’t jump ship in a hurry is to offer them stock options and bonuses.

Employee ownership and equity-based awards are usually more broadly spread among the workforce in public companies than private organisations. Also, management and employees can actually witness the results of their efforts in the company’s share price, making success a joint goal.

  1. Putting together a plan for the future

Even though the flotation process requires a lot of effort and upheaval, this can actually help your business put together a comprehensive and coherent plan for future prosperity.

Many companies will improve their management and financial structure in anticipation of public ownership too. On the other side of the coin, private organisations don’t always review their internal infrastructure regularly, which can be the difference between success and failure.

  1. Enhanced brand image

Not only do public companies benefit from increased visibility through ongoing disclosures to the stock exchange or securities commission, they also attract more press coverage. This is turn can lead to an enhanced brand image among market analysts and job candidates.

In “The Ernst & Young Guide to Financing for Growth” (Garner et al. 1994), it states, “A public company that is well run and compiles a record of success can gain a first-class reputation that can prove an immeasurable benefit in many ways.”