Whether you are new to the concept of Bitcoin trading or if you are an experienced trader, a trading system such as the Bitcoin Forex is a must have. It not only assists you in trading, but it gives you leverage to trade more aggressively. If you are new to it, you will need a strong understanding of the fundamental and technical aspects of the Forex market.
First, let’s look at the fundamentals of the Forex. The core principle of the Forex is that it is a market where two major currencies exchange hands on a daily basis. There are four major currencies, and there are different currencies involved in trades of gold, silver, dollar, and euro.
One of the most important aspects of the Forex is the price action. A trader cannot just watch his home currency trade the foreign currency to, if he wants to maximize his profits. So, when the Forex price moves up, it is in your best interest to buy more of the foreign currency, and when the price drops, you should sell your home currency.
So, how do you determine when to buy and sell and when to hold back? Well, if you are experienced, then you should look for the patterns to recognize when to trade and when to hold back.
Let’s say the foreign currency is USD and the major currency is GBP. If the EUR/USD moves above the 50% level for over 24 hours, then it is a signal to buy, if the level falls back below the range for a while, then sell. So, the buying and selling strategies are dependent on the level.
The second principle of the Forex is to keep an eye on your leverage and how much you have to risk. This is particularly important for beginners who often have an irrational fear of losing money.
Many traders are leery of using leverage. You may have heard about the term “penny stocks”, which are penny shares sold to large institutional investors. Although they have a low price, they are a good place to start if you don’t know what you are doing.
On the other hand, there are no pips in the Forex. You can trade with only pennies. As an example, if you bought one ounce of gold for two dollars and sold it for ten dollars, you would have made three dollars in profit.
So, the next principle of the Forex is the speed of your money, how quickly can you cash out of a trade? You can have a lot of leverage, since the price movement is limited.
However, if you are new to the Forex, then you may want to use all your leverage to protect yourself. The speed of your cash is what really matters, because in this trading environment, the margin requirements are huge.
So, if you are interested in trading on the Forex, you need to learn the fundamentals of the system. Once you get the basics down, you can choose to trade with a system such as the Bitcoin Forex.