Category Archives: Forex

Forex alert for rookie traders 2018

Forex Alert For Rookie Traders 2018

The foreign exchange market is huge, all-encompassing, the premier financial market in the world; it never sleeps and involves the world’s largest volume of business and, not surprisingly it accurately reflects the planet’s financial dynamics in terms of its pairs of currencies. There are, of course, many tools and alerts available for the trader new to this market and the decision which pair to choose for your trades will depend on your circumstances and also on your own financial plans and needs. It does, however, also behove you to consider what future developments in other markets will have on forex trading, and vice versa.

For instance the forex market is dominated by the behavior of the US dollar, not surprising considering the still dominant position of the US economy. If one of the components in the pair you hope to trade is the dollar, then it will pay you to learn what people are saying about the future behavior of the world’s dominant reserve currency. There was much speculation all across the financial world at the start of 2018 about what the new year would hold for the dollar. The general consensus seemed to be that the weaker dollar evident since the end of 2016 would continue for the next twelve months. There were many reasons for this, some connected to the price of crude oil, some with matters such as internal American concerns about the rate of the Federal Reserve’s rate hike programme, the less than predicted resulted of President Trump’s tax cuts and the tightening up of the Euro-zone’s interest rate policy (the looseness of which had, for some time, almost been a joke.) The weakening of the dollar had been placed into sharp relief by the decision of hedge fund managers to start shorting the dollar against the euro from the beginning of 2017. Here is an indication of how forex trading reacts to events in the wider financial world and vice versa.

It was widely predicted that the weak dollar would jibe with an increase in the value of gold and other precious metals and also perhaps provoke spikes in the popularity of various cryptocurrencies; the former were already enjoying spikes as fears of a large-scale stock market correction increased. The volatility of the latter in some ways matches that of gold and is used by some investors in a similar fashion. The weakness of the dollar might, it was speculated, cause an upturn in the price of crude oil, predictions for which were cautiously optimistic for 2018.

Of course, all of this might seem rather remote and academic to the rookie forex trader who simply wants to choose which pair to invest in, but in such a market and trading such products, often leveraged, you can never know too much. This was especially true for the first weeks of 2018 when the situation in many of the world’s financial markets was fluid and fast developing.

Spread betting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

The Dollar wobbles after soft results and political fears

The Dollar Wobbles After Soft Results And Political Fears

The week ending the 16th June saw the EUR/USD pair achieve a yearly high at 1.1295 o0n the 14th but ended with the figures flat at 1.1197 after the announcement of inflation figures from the United States that seemed disappointing to all concerned, including, many suspected, those actually making the announcement. This came after a week in which the US Federal Resave continued to strike a hawkish tone, especially with its unveiling of a twenty-five basis point rise. The Fed Reserve, showing a commendable commitment to seeing the bright side in a climate where such views are hard to find, focus on the improving US labour market. This is undoubtedly an important factor though it could really be set against increasing political turmoil and softer than expected economic results remains to be seen. In particular, the continuing controversy surrounding President Trump and investigations into the allegation that he attempted to obstruct justice during the Comey affair seemed set to bring about stagnation in US economic policy, especially in those areas which caused confidence to burgeon in the US dollar in the first instance. It will be hard to for the President to keep his manifesto promises about tax reforms and large scale infrastructure investment now that he is under investigation by a special prosecutor and even his own party is beginning to cautiously distance itself from him. Further adverse signs for the dollar came as other central banks indicated that they would be looking towards a normalization of policy in the immediate future, the Bank of Canada leading the way and even the Bank of England making hawkish sounds, despite the looming Brexit negotiations and the UK’s own plentiful political turmoil.

Friday the 16th June saw the announcements that further confirmed the somewhat gloomy prospects for the US dollar, at least in the immediate future. While both housing and building permits were up, the degree of the increase was far lower than had been expected by most. Perhaps most worrying for the dollar, consumer confidence had fallen to levels not seen in this presidency. The President further set the cat among the pigeons by announcing in a speech in Florida that he would be seeking to roll back the deal with Cuba achieved by his predecessor’s administration. Observers emphasised that the reforms to the deal would be small scale and cosmetic, and thus unlikely to have lasting consequences but in the present state of the US, it seems that no announcement can be small enough in scale not to have fairly hefty political consequences. In contrast, the Euro seemed buoyant especially in light of the news that Greece had, after its extended crisis, at last, come to a deal with its many creditors on the next stage of its equally protracted bail-out.

Spread betting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

Top Reasons Forex Traders Fail

Top Reasons Forex Traders Fail

Most people will have heard about the forex market considering it is one of the largest, as well as one of the most accessible, financial markets on the planet. However, despite there being many forex investors, there are only a few who are considered to be truly successful. The climates of the market, combined with the leverage of borrowed capital, means traders have no room to make mistakes. With the factor specific circumstances and risks relating to trading currencies, many traders face more risks within the world of forex than elsewhere.

 

There are several common mistakes that stop investors from realising their investment goals. Read on to find out some of the more frequently occurring mistakes that can deteriorate profits.

 

A frequently committed sin within trading is letting emotions influence your decisions. If you do not maintain your trading discipline, you will turn those small losses into significant financial hits. Many successful traders suffer small losses before achieving a few big wins. If you give in to emotions and lose control, divert from your plan and focus on the short term, you stand to lose a lot more than you may be able to afford.

 

You may have also heard the saying “failing to plan is planning to fail”. When it comes to the forex markets this is especially true. If you create a strong risk management plan and have strategically placed goals to achieve, you can navigate the choppy waters and avoid the common pitfalls.

 

Furthermore, many traders fall when they fail to adapt to the ever-changing market. Forex is constantly changing, so without strategically having backup routes to take for every possible scenario, you can expect to be hit with losses. The market changing brings both opportunities and risks, by being able to adapt to what could happen, you won’t be in for any nasty surprises if it does happen.

 

Many things in life are best learnt through trial and error. It is perhaps one of the fastest ways to learn a new skill, but when it comes to forex trading it is a categorically monumental mistake. Efficiency is key to get right, and learning from your own mistakes is much slower than learning from the experience of other, more professional traders. There are many formal trading certifications and even mentor relationships available which will get you up to speed much quicker than if you went it alone.

Expecting to get rich quick? If that is your plan you should not even attempt to start trading forex. This marketplace is more akin to a marathon than the 100-metre sprint.

Success is derived from experience and strategies, so do not expect abnormal returns and do not front capital with that aim in mind. This ties into your trading strategy and starting to trade through emotions. You need to have realistic expectations to be successful.

 

While the strategy is crucial, another key strategy that is often overlooked is risk management. You should always look to diversify your portfolio as well as implement stop losses. By knowing exactly the amount of capital that is at risk, you can assess whether you are satisfied with the risks compared to the benefits.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

Signs you have what it takes to be a Forex trader

Signs You Have What It Takes To Be A Forex Trader

The Internet is full of investment-related information, of which most is aimed at teaching you how to trade the Forex market. While the information at-hand is vast and comprehensive, you can be falsely lured into thinking you can easily learn the skills required to be successful.

 

Some believe to be a successful trader you have to be born with certain qualities. The ability to analyse all aspects of markets, as well as a love of working with equations, is by all accounts seen as a given. However, this combination itself is simply not enough. There needs to be an excitement in seeing the markets move, an interest in hearing the speeches of the central banks, and to enjoy the satisfaction of making the right forex trading decisions.

 

An underlying skill you also need is the ability to separate emotions from your actions. There is no point throwing good money after bad money, this requires a strong discipline. Furthermore, a Forex trader also needs to be able to comprehend the significant amount of data quickly. If you were looking at a day trading market strategy, you would need to analyse everything related to the market conditions quickly to allow for an entry and exit of the market within a day.

 

The most successful traders have learnt to be fearless, as well as to handle fear properly. With the high degree of risk, your investment is open too, it requires a strong person to manage the fear of losing all invested capital. When you are confident in your carefully refined trading strategy, you will know how to handle failure without being too afraid of falling for the same mistakes.

 

A successful forex trader will also understand the key aspect of timing when it comes to placing trades. Your strategy will only allow you to make a trade when it is appropriate, even if this opportunity doesn’t open itself up for weeks. You should never open a trade unless all the information available to you compels you to do so.

 

Binge confident, along with being a leader, not a follower is also integral to success. Staying loyal to the defined strategy you have laid out and not following the crowd will ensure you will not be intimidated or have second thoughts before placing a trade. When other traders are all following each other’s behaviour, you would think there is an underlying factor. However, there are many scenarios where traders follow the pack and get burnt for their decision to do so.

 

Finally, a professional Forex trader will also never stop learning. There is no such thing as having “too much knowledge” on the subject of foreign currency exchange. When a vast amount of profits can depend on your overall level of knowledge, you should also continue to grow the level of understanding you have. With constantly changing markets, the most successful traders will embrace the new situation, analyse it, and finally address it.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

How Forex Brokers Make Money

How Forex Brokers Make Money

The forex market (foreign exchange market) is where traders buy and sell a variety of currencies depending on whether they think such rise and fall in value. It is considered to be one of the highest-risk markets, yet still, sees over $5 trillion traded daily. To make a trade, you have to go from an intermediary forex broker to execute the trade. Even if the trade makes money, or loses money, the broker still profits on commissions and fees. Understanding in what areas forex brokers can make money may help you find the best broker for your needs.

 

The Role

 

A forex broker receives orders to buy or sell currencies and then executes such orders in real time. Typically operating on the OTC (over the counter) market. This market does not have the same regulations placed upon it as other financial exchanges, and the broker may not be bound by the rules regarding other securities transactions. With no centralised clearing mechanism, the risk is placed upon you if your counterparty defaults. Remember to investigate and conduct your due diligence on the counterparty before you enter into any agreements.

 

The Fees

 

In return for executing orders, a forex broker will want to be paid a commission for each trade or spread. This is where they make their money. A spread is a difference between the asking price and the bid price of a trade. The bid price is what amount you receive for selling a currency, whereas the asking price is the amount you pay for a currency. This difference between the two is referred to as the spread. A broker could choose to charge a commission on the order as well as a spread on a trade. If you see a broker offering a commission free trade, they will probably have a large spread to make up the difference.

 

The Spread

 

The spread itself can be fixed or variable. If it’s variable, the amount will vary depending on the market, for example, a change in interest rates affecting the major market could have a knock-on effect on the spread. In some cases, it may be advantageous to you and to others unfavourable. If the market becomes volatile, it may result in a much higher price than you expect. Be careful and pay close attention to a forex prices, as they can charge a different spread for buying and selling the same currency. Overall though, a well-capitalised broker who works with a number of large traders generally has competitive prices. What this means is that for traders it pays to shop around in order to get the best rates.

 

The Risks

 

It is possible to make margin trades through depositing a small amount. However, this introduces a lot of risks. In 2015, the Swiss National Bank no longer supported the euro, resulting in the Swiss franc appreciating significantly. Traders who did not foresee this event were not able to meet margin requires and lost a lot of money and a few even went bankrupt.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

how to spot a forex trader

How To Spot A Forex Trader

When it comes to Forex traders you will find that they come in all different shapes and sizes. Across the diverse nature of our world, we have both men and women, from small to tall, all from a range of different cultures and traditions. You could be trading from the sandy white beaches in Thailand in your swimming trunks, or from a shoebox apartment in the heart of Paris. Wherever it may be, we believe there are several signs those giveaways whether someone is a trader, no matter if they are trying to keep it a secret.

 

We pondered on this thought for a bit, and considered what traders in their own countries share in common? It can be hard to determine, however, we thought it would be a bit of fun to make some spirited observations about what may define you as a trader. The following is a tongue-in-cheek look at the types of Forex traders you are likely to find around the globe.

 

The New York Trader

 

  • Upon their bookshelf is a copy of “Wall Street”; every trader will ask themselves at least once within their lifetime “What would Gordon Gekko do?”
  • After trading all night at the computer with unusual currencies, the tired baggy eyes are a giveaway.
  • Plenty of screens with plenty of trading screens. Everybody knows the more you have the more successful you are.
  • A bitten into stress ball, as sometimes you get a little too stressed for only a squeeze

 

The Tokyo Trader

 

  • “Candlesticks”, after analysing so much information those pupils have formed into candlesticks.
  • In the corner an old school Nintendo, covered in the dust of course because what trader has that free time to relax?
  • The embodied twitch in your fingers after countless painful trades.
  • Your table has marks from your fingertips tapping from frustration, waiting for the right market move.
  • The organisation being key, your calculator, strategy and trading history are all perfectly placed.

 

The London Trader

 

  • The constant pacing shows the worn carpet.
  • With so much stress about the loss of pips, a cardio defibrillator is upon the wall.
  • Your forehead is wrinkled with plenty of stress lines.
  • Various browser tabs open with a variety of media platforms, Twitter, Facebook, and forums are all present.
  • A nice strong cup of tea, of course, the drink the nation was built on.

 

The Sydney Trader

 

  • Suffering from the trader’s wrist, from all the clicking of course.
  • A forever overflowing swear jar.
  • The Carry Trading book on the desk, instructing you on about the balance of trading and having a life.
  • An emergency stash of beer, just in case the time is right.
  • An office outside, to trade and take in the sun simultaneously.

 

As you can see Forex traders come in a variety of different forms, so the big question is, what type of trader are you?

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

 

a guide to trading USD EUR

A Guide To Trading USD/EUR

While most world currencies can be traded in one form or another, one of the most common currency pairs to trade is undoubtedly the USD/EUR combo. It shouldn’t be so surprising as to why this is – these currencies collectively represent nearly half of the global economy, with over £20 trillion of economic output between the two. Furthermore, this pair has a tight spread and a wealth of data and information available on how to properly trade it, making it an attractive option for new traders. This article will give you a few key pointers that should help you trade this common, but poorly understood, currency pairing.

 

Key movement triggers

 

One of the most fundamental aspects of currency trading is known as movement triggers. These refer to any events that directly result in the movement of the currency’s value in either direction. Brexit is a particularly extreme example of a movement trigger. These are the reason for why the interest rates between the USD and the EUR vary. The actions of the United States Federal Reserve on the USD are one of the biggest driving factors on the value of the currency – the FED weakening the dollar can lower the gap between the two, while economic strength in the US will have the opposite effect.

 

Notable economic news

 

Of course, the state of the EU and US economies will also have a substantial impact on the performance of the USD/EUR. For example, in 2008 during the banking crisis the USD’s value plummeted, and the result was that for a brief time the EUR was worth about 1.60 USDs, a gap that has since narrowed substantially. For the EUR, the performance of its largest economies (France, Italy, Spain and Germany) will have a considerable impact on the performance of the currency as a whole. Always keep yourself notified of what’s happening in both of these economies, and in the case of the EU remember that even small member countries can have a large impact on the overall value of the EUR.

 

Stock market impact

 

As most will already know, the stock market is completely independent of the forex market, but that doesn’t mean that it doesn’t have an influence on currency values. Generally, rising stock prices correlate to healthy economic growth, which in turn strengthen the currency. The reverse is true as well. In addition, a poorly performing stock market can incentivise people to invest in something other than shares, including currencies – this can also affect the spread of the USD/EUR currency pair. While the stock market doesn’t influence currency values, the same factors that drive stock prices also influence currency values to some degree.

 

 

Cross-continent currency pairing

 

The USD/EUR currency pairing is perhaps the most underrated in the world – a little surprise considering how large the economies that use these currencies are. But as popular as they are, that doesn’t mean that you are guaranteed any form of success. Always do your research before committing money to any kind of trade – if you keep an eye on all of the economic and political changes going on in the United States and the European Union then you will be well positioned to turn a profit.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

 

forex trading signal

What Is Forex Trading Signal?

If you are becoming intrigued by the subject of Forex trading then you will naturally be trying to learn as much as you can about the subject, and in the course of doing this, you might well have come across references to something described as a Forex trading signal. If you have not yet gone into the subject in depth yourself (and you should certainly do so before you commence making use of this tool, or indeed before you start forex trading in general) then here are a few pointers that begin to answer the question posed in the title of this article. The first point to note is that a Forex Trading Signal is simply a suggestion to enter trading on a specific pair of currencies at a specific time and also at a specific price. These useful signals will arrive in a manner of ways, all immediate and electronic. Your signal might be tweeted, e-mailed, posted on a website or arrive via SMS or RMS. With that simple statement we have given the bare bones answer to our question but of course, there are other matters to consider.

One is the source of origin of the forex trading signal that you have received. It might have been created by a person, who will be a forex analyst, or it might have been generated artificially by a forex computer programme that exists as part of a forex trading signal service.  Some of the signals that you can receive are free, while others will definitely have to be paid for and will come to you as part of a service which supplies the Forex trading signal. This signal might be from a single provider, or be from a service that generates the information from multiple systems.

If, as part of your exploration of the subject you decide to pay for a forex trading signal service, then you might be wondering exactly what you will get. This is a matter which the service provider will outline and to which you should pay attention. Will the forex trading signal give exact or approximate figures for the time of your entrance, your exit and also specify when the stop loss arrangement comes into effect? It is important you know this. Also, pay close attention to the other services provided and learn how to appreciate the analysis and trading history behind the signal. Also be prepared to make use of such services as coaching, the provision of educative matter on the subject, comments and account management and definitely be on the look-out for offers of trial periods.

It will also behove you to look into the systems which are used to generate the forex trading signal that is presented to you. Learn to differentiate between a forex trading signal that is generated by technical analysis (this is the majority in practice, and allows your provider to supply a wider range of trading options) and those generated by fundamental analysis or price action.

Spread betting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

Forex trading guide for GBP/KWD

Forex Trading Guide For GBP/KWD

Pretty much everybody knows about currency pairs like the USD/GBP – these are the popular Forex trades that nearly every currency trader dabbles in. But just because it’s popular doesn’t mean that it’s the best, and some of the more underrated currency pairs can actually provide quite a bit of bang for your buck. The GBP/KWD currency pair is a fantastic example.

 

Trading this currency pair makes complete sense – after all, the two economies are closely linked together, with a substantial portion of trade flowing between the two countries. This particular trade is known for its stability and predictability, which enables traders to generate consistent returns on what is an often-underrated pair. That said, understanding the fundamentals of this currency pair is an important part of being able to take advantage of what it has to offer, and this guide aims to inform you of all the most important points you need to know when trading the GBP/KWD.

 

As simple as this concept seems, it’s often misunderstood by many newer traders. All currency pairs have a seasonal element to their performance – this is largely tied to the nature of the economies that these currencies depend upon. While you can’t be an expert on every economy, you can look up several decades of historical data relating to these currencies, which will give you a sense of what the long-term trends look like for pairs such as the GBP/KWD.

 

In many cases, GBP/KWD price dips in March and May are not uncommon, while for the pair to peak in the fall is also, once again, not uncommon. This doesn’t always exactly hold, but it is largely true for most currency pairs, GBP/KWD included. All forex trades have historical charts that you can access; giving you exact rates of change that will help you predict the general trend of a currency in the near-term. These aren’t just for veteran traders – anybody can access them entirely for free. All currency pairs have their own unique seasonal trends, so never fail to do your research before you commit to making a trade

 

You might have heard some people refer to forex scalping as a form of cheating. It isn’t – but what it happens to be is a very effective way to reduce your overall losses while maximising your overall gains if used correctly. Watching the small price movements of the GBP/KWD throughout the course of a day will position you to make the greatest profit. If you want to take advantage of this, keep three Exponential Moving Average charts near you – this will allow you to fully view every possible forex trade that you can make as well as view relevant technical information for each potential trade. Many of the most profitable traders utilise this technique, and you should too.

 

Don’t hesitate to take advantage of the GBP/KWD currency pair. Its relative anonymity will soon disappear as more traders become aware of how lucrative it can be, and knowing how to trade it effectively can net you some serious profits over the long term. This guide will provide you with all of the most important facts and tips, but ultimately you are responsible for arming yourself with the knowledge that you need to succeed when trading GBP/KWD.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

tale of trading the GBP/NZD

Telling A Tale Of Trading The GBP/NZD

Many currency pairings involving the GBP are quite popular with traders around the world, but some combinations are less popular than others. In spite of its stability and spread the GBP/NZD currency pair remains relatively undiscovered when compared to others like the GBP/USD and the GBP/EUR. I decided to take a look at the rhythm of this currency over a period of several weeks, and I have come to the conclusion that this pair represents one of the best possible opportunities to earn great returns. I’ll outline some of the bigger points that I think are relevant to those looking to trade the GBP/NZD.

Like most currency traders, much of my portfolio was concentrated on the GBP/USD and the GBP/EUR currency pair. While these are relatively steady pairs, they’re very commonly traded and there is little new ground to tread here. Most of my positions on these pairs yielded middling returns at best, but after refining my approach I managed to obtain positive returns nine straight months in a row, with my total monthly earnings exceeding £1,000 from a much smaller initial fund.

While this seems rather hard to believe for a lot of traders, this wasn’t quite as hard as some people made it seem, especially since people regard less-traded currency pairs as being too much of a risk. Keeping my trades firmly rooted in the facts, coming out ahead didn’t prove to be too difficult a task. And with my initial success came a determination and drive to do better.

My streak with the GBP/NZD occurred between October and November 2015, which is one of the better times to trade currencies. It’s understandable to be sceptical of my claim, but if you stick to your guns and play your hand smart, you can make it happen again and again. Don’t expect it to be a regular thing, but it will never happen if you don’t try.

I don’t want to give the impression that this is was an easy profit to obtain – I had an earlier losing streak that lasted for several days in a row and cost me several hundred pounds. In spite of my feelings of dejection I pressed on, and after re-assessing my strategy I managed to turn around my losses, even managing a £400 gain in 24 hours. That gain came off of just a £75 initial investment, so it was quite a tidy return. It’s easy to want to give up when things get rough, but even the best traders have rough patches. After that turbulent period, the GBP/NZD is now one of my most consistently positive investments.

That’s my own story surrounding the GBP/NZD currency pair – hopefully, it gives you some insight as to what goes on in a trader’s mind when they commit to something new. Betting on a less well-known currency pair can be a scary thing, but with time and practice, you can make it a very profitable venture. Just make sure you’ve got the funds and the patience to make it work!

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.