The 3 Best Resources for Forex Trading

Forex trading is a huge market with many resources, both free and paid, made available to the Forex traders. With so many resources to choose from, what is the best resources that other Forex traders are using?

There are many resources like forums, charting software, books and financial calendar blooming up online, each trying to outshine one another to attract more users to use their resource. While some of these resources are not useful, there are a handful of these resources that are well-liked by many traders.

The following resources are what I am using in my Forex trading and I think they are worth recommending.

BabyPips.com

BabyPips.com logoBabyPips.com is a wonderful place for Forex trading beginners. It has become the premium destination for learning how to trade the Forex market. Offering daily articles on trading news, strategies and market analysis on important Forex topics and events.

As the foundation of the website, the School of Pipsology offers the first and most comprehensive collection of lessons, starting with the basics like Forex brokers, fundamental and technical analysis, and many more.

I had personally learnt about forex trading through BabyPips.com and the lessons learnt are all important. Other important features of BabyPips.com is the helpful community within its forum and the blog section where the authors who are seasoned Forex traders will share their views on the market.

Forex Factory

Forex Factory logo | Investor MonkeyDesigned as a website to provide traders, beginners to professionals, with detailed and high-quality information in their pursue to profiting from the Forex market. Forex Factory has got various features that can help the traders of all experience to make a well-informed decision on which currency pairs and direction to trade.

Forex Factory is the most-viewed Forex-related website and the Forex Factory calendar literally changed the way that financial calendars are made. Prior to the launch of Forex Factory’s calendar in September 2005, financial calendars do not have impact rating, adjustable time zones and many other features.

One of the two important features that I personally liked about their calendar is the impact rating. Not all events or news have the same impact on the individual currency. Having an impact rating allows us, as traders, to have a feel on how much price movement can be expected from the event or news. The higher the impact of the event or news, the expected price movement can be higher.

The other important feature of the calendar is the adjustable time zones. The Forex market is a 24 hours market. Events or news occurs at different times of the day and depending on individual websites, the time of the event or news may be reported using a different time zone. Although converting the reported time zone to the reader’s time zone is easy, without the adjustable time zones in Forex Factory, the time may be converted wrongly especially when there is daylight savings or worse still, we do not know the time zone that the author is referring to.

Doing Stock Investing the Right Way

Stock investing is actually simple task but yet many individuals are still losing their hard-earned money to the market. These individuals lose their money mainly because they are investing in stocks the wrong way. Doing stock investing the right way and you will benefit from the profits of investing. Do you know what is the right way?

When it comes to stock investing, many people will be freaked out with all the stories of individuals losing all their investment amount. These individuals may not be investing stocks correctly and thus resulted in losing their hard-earned money.

Doing stock investing the right way is an almost guaranteed success as stock investing is actually very simple and easy.

But what is the right way?

Start Early

As always mentioned, investing is a long-journey. The longer you hold on to your investments, the better returns they can give you.

In one of my earlier posts, I had done a simple calculation for dividend investing and showed how an annual investment of $6,000 is able to generate a passive income of $37,496.87 in dividends in 20 years.

20 years is not a short period. For a person who is in his mid-thirties, by the time the 20 years period is up, he will be in his mid-fifties. Just in time for his retirement.

If you start your investments early, you will likely be able to retire comfortably earlier.

Read more: Start Early

Do Your Homework

Stock investing is not about following the tips from stock-advisers. These people are mostly analysts who analyse the market and give their take on how they perceive the stock price will react with the market situation. They may not even be investing in the stock market themselves.

Stock investing is also not about following what the gurus are buying. The portfolios of investing gurus, like Warren Buffett, can be found online. They have good track records on their investment and it seems very tempting to just copy what they invest. However, unless you are able to read the minds of these gurus, you may never know why they picked these stocks in the first place which might be the very reasons why they will exit their positions.

Doing your own research on the companies you are about to invest in is a very important step for a stock investor. When I was deciding on whether to invest in Coke or Pepsi shares, I did my own homework and chose Pepsi eventually, even though the guru of investment, Warren Buffett, owns Coke shares.

Read more: Dividend Investment: Coke vs Pepsi

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Discipline in Investing

Investing is a “game” that requires a lot of discipline. As investors, we will have to be very disciplined in order not to freak ourselves out whenever the market is adjusting downwards. To be able to succeed in investment, one will have to be very disciplined so as not to close the positions when the market is being volatile.

How many of you investors, like me, out there are being freaked out when the market drops and prices of the stocks in your investing portfolio all suddenly turns red?

Especially with the market being very volatile recently due to the rumours of the Fed increasing the interest rates, prices of stocks starts to whipsaw. The volatile market also starts to worry many investors and they start to exit their positions, cutting losses or taking profits prematurely, only to realise the price goes back to where it started a few days later.

One trick that I am using to manage volatile markets during the times when the market takes the heat boils down to one word, discipline.

Discipline in Investing

Investing is a “game” that requires a lot of discipline. As investors, we will have to be very disciplined in order not to freak ourselves out whenever the market is adjusting downwards.

How can one be discipline in investing then?

Many investors choose not to watch their portfolio every day. Though it may seem a good way not to freak oneself out when the market goes the wrong way, it is actually a very dangerous way to do.

When you are not updating yourself in what is happening to the company that you are investing in, you may not realise what had happened a few days later and the price of the stock may have drop drastically.

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