Forex trading can be exciting as well as educational. It offers traders many opportunities to earn good profits. However, many traders still fail to survive, or “make it big” in this market. In fact, a large percentage of Forex traders regularly lose money. Learning to trade successfully, especially Forex trading, can prove to be very difficult at times.
This article aims to highlight a few practices that can aid you in becoming an elite trader.
Setting up practical goals
The first thing in elite Forex trading is to be realistic and be clear about what you desire to achieve. Your starting goals should be attainable. Moreover, the goals should be quantifiable i.e. they should be measurable in numbers.
For example, you can set up a goal to achieve 20% annual returns over your investments, or earn a profit of 5000 USD by the year end.
The goals should also be sustainable so you can pursue them over long periods of time.
Some traders starting with Forex trading set up unrealistic goals and fail to achieve them on a consistent basis. They tend to lose hope as they start losing money in the trading process and give up.
It’s important to know like any other business, Forex trading has its ups and downs. You could be earning a good profit one day, and suffer a loss on another.
Soto become an elite trader set up achievable goals and pursue them over time.
Possess rock solid ‘basics’
Forex trading can be difficult for beginners entering the Forex market. Even professional traders tend to make wrong decisions at times and suffer loses.
The Forex market can be complex to understand. However, if you’ve conversant with the market dynamics and know how they influence the trading process, you can greatly reduce your risks.
The first step in becoming an elite trader is to get your basics right.
There’re two ways you can master the trading process:
- Pick up Forex knowledge in bits and pieces and try experimenting with different strategies and methods until you get it right.
- Get a knowledgeable and reliable mentor or start with an elite FX trading course before starting full-fledged with Forex trading.
Understanding Forex basics is a “must.” An elite trader course can go a long way in helping you understand the basics and availing important insights into the Forex process before you start with actual trading.
Respond immediately to opportunities
Forex trading is about responding to trading opportunities in time. One of the vital steps in becoming an elite trader is to be an opportunist and seize lucrative trading chances as and when they come.
Successful trader don’t put off work. They prefer completing a task today rather than postponing it for the next day.
While trading in Forex, this attitude towards work can often spell the difference between a handsome profit and a missed opportunity.
Balance or mitigate risks properly
The Forex market is dynamic and highly volatile. Trading can be risky if you invest in the wrong currencies at the wrong time.
One of the key factors in doing successful elite Forex trading is to understand and identify risks, and try to mitigate them in time before they start affecting your profit margins.
Rather than investing huge amounts upfront in the market, it’s better to start with small amounts and increase your trading activities over time. That way you can identify trading opportunities that’re risky and avoid them.
Learning from past mistakes
To err is human. People make mistakes. However, in Forex trading a single mistake can cost you dearly.
While it may be impossible to be “perfect” at all times and not make mistakes at all, it’s certainly possible to device an effective error correction “mechanism” to avoid repeating them in the future.
A good way to do this is to record both your success as well as your failures and study them from time to time. Try retrospecting what you could’ve done differently to avoid making those mistakes. And conversely, how you can improve more upon what things work for you.
Take away from this article
Elite forex trading can be difficult if you’re new to the Forex market or lack proper experience to be successful. A few pointers can help you to bea more successful elite trader.
Choosing a good elite trader course can help you save time and significantly reduce your trading risks. It’s a great way to get started with Forex trading or improve upon your existing Forex trading skills and become an elite Forex trader.
Nisha Patel:- Traders love to talk about trading, but it is important to define your trading talk. Successful Forex and crypto traders that fail in trading are because they look at the markets in a different way.
Barclays announces new trade finance platform for corporate clients
Barclays Corporate Banking has today announced that it is working with CGI to implement the CGI Trade360 platform. This new platform will provide an industry leading end-to-end global trade finance solution for Barclays clients in the UK and around the world.
With the CGI Trade360 platform, Barclays will provide clients with greater connectivity and visibility into their supply chains, allowing them to optimise working capital efficiency, funding and risk mitigation. By utilising cloud based functionality for corporate banking clients, Barclays will also be able to offer a leading client user experience through easy access and real-time integration to essential information, combined with the latest trade solutions as the industry-wide shift to digitisation continues to accelerate.
This move underpins Barclays commitment to supporting the trade and working capital needs of their clients and reinforces a commitment to innovation that has been central to the bank for more than 300 years.
James Binns, Global Head of Trade & Working Capital at Barclays, said: “We are delighted to announce our move to the CGI Trade360 platform and to have started the implementation process. We have a longstanding partnership with CGI, and the CGI Trade360 platform will mean we can continue delivering the best possible trade solutions and service to our clients for many years to come.”
Neil Sadler, Senior Vice President, UK Financial Services, at CGI, said: “Having worked closely with Barclays for the last 30 years, we knew we were in an excellent position to enhance their systems. Not only do we have a history with them and understand how they work, but part of the CGI Trade360 solution includes a proof of concept phase, which is essentially seven weeks of meetings and workshops with employees across the globe to guarantee the product’s efficiency and answer all queries. We’re delighted that Barclays chose to continue working with us and look forward to supporting them over the coming years.”
What’s the current deal with commodities trading?
By Sylvain Thieullent, CEO of Horizon Software
The London Metal Exchange (LME) trading ring has been the noisy home of metals traders buying and selling for over a hundred years. It’s the world’s oldest and largest metals market and is home to the last open outcry trading floor. Recently however, the age-old trading ring, though has been closed during the pandemic and, just a few weeks ago, the LME announced that it will remain so for another six months and that it is taking steps to improve its electronic trading. This news fits in with a growing narrative in commodities about a shift to electronic trading that has been bubbling away under the surface.
Something certainly is stirring in commodities. The crisis has affected different raw materials differently: a weakening dollar and rising inflation risks bode well for some commodities with precious metals being very attractive, as seen by gold reaching all-time highs. Oil on the other hand has had a tough year and experienced record lows from the Saudi-Russia pricing war. It has been a turbulent year, and now prices look set to soar. While a recent analyst report from Goldman Sachs predicts a bullish market in commodities for the year ahead, with the firm forecasting that it’s commodities index will surge 28%, led by energy (43%) and precious metals (18%).
Increasingly, therefore, it seems that 2020 is turning out to be a watershed moment for commodities, and it’s likely that the years ahead will bring about significant transformation. And whilst this evolution might have been forced in part by coronavirus, these changes have been building up for some time. Commodities are one of the last assets to embrace electronic trading; FX was the first to take the plunge in the 90s, and since then equities and bonds have integrated technology into their infrastructure, which has steadily become more advanced.
The slow uptake in commodities can be explained by several truths: the volumes are smaller and there is less liquidity, and the instruments are generally less exotic, essentially meaning it has not been essential for them to develop such technology – at least not until now. This means that, for the most part, the technology in commodities trading is a bit outdated. But that is changing. Commodities trading is on the cusp of taking steps towards the levels of sophistication in trading as we see in other asset classes, with automated and algo trading becoming ever prominent.
Yet, as commodities trading institutions are upgrading their systems, they will be beginning to discover the extent of the job at hand. It’s no easy task to upgrade how an entire trading community operates so there’s lots to be done across these massive organisations. It requires a massive technology overhaul, and exchanges and trading firms alike must be cautious in the way they proceed, carefully establishing a holistic, step-by-step implementation strategy, preferably with an agile, V-model approach.
The workflow needs to be upgraded at every stage to ensure a smooth end-to-end trading experience. So, in replacement of the infamous ring, these players will be looking to transform key elements of their trading infrastructure, including re-engineering of matching engines and improving communications with clearing houses.
However, these changes extend beyond technology. For commodities players to make a success of the transformation in their community, exchanges need to have highly skilled technology and change the very culture of trading. All of which is currently being done against a backdrop of lockdown, which makes things much more difficult and can slow down implementation.
What is clear is that coronavirus has definitely acted as a catalyst for a reformation in commodities. It is a foreshadowing of what lies ahead for commodities trading infrastructure because, a few years down the line, commodities trading could well be very different to how it is now, and the trading ring consigned to history.
Afreximbank’s African Commodity Index declines moderately in Q3-2020
African Export-Import Bank (Afreximbank) has released the Afreximbank African Commodity Index (AACI) for Q3-2020. The AACI is a trade-weighted index designed to track the price performance of 13 different commodities of interest to Africa and the Bank on a quarterly basis. In its Q3-2020 reading, the composite index fell marginally by 1% quarter-on-quarter (q/q), mainly on account of a pull-back in the energy sub-index. In comparison, the agricultural commodities sub-index rose to become the top performer in the quarter, outstripping gains in base and precious metals.
The recurrence of adverse commodity terms of trade shocks has been the bane of African economies, and in tracking the movements in commodity prices the AACI highlights areas requiring pre-emptive measures by the Bank, its key stakeholders and policymakers in its member countries, as well as global institutions interested in the African market, to effectively mitigate risks associated with commodity price volatility.
An overview of the AACI for Q3-2020 indicates that on a quarterly basis
- The energy sub-index fell by 8% due largely to a sharp drop in oil prices as Chinese demand waned and Saudi Arabia cut its pricing;
- The agricultural commodities sub-index rose 13% due in part to suboptimal weather conditions in major producing countries. But within that index
- Sugar prices gained on expectations of firm import demand from China and fears that Thailand’s crop could shrink in 2021 following a drought;
- Cocoa futures enjoyed a pre-election premium in Ghana and Côte d’Ivoire, despite the looming risk of bumper harvests in the 2020/21 season and the decline in the price of cocoa butter;
- Cotton rose to its highest level since February 2020 due to the threat of storm Sally on the US cotton harvest, coupled with poor field conditions in the US;
- Coffee rose 10% as La Nina weather conditions in Vietnam, the world’s largest producer of Robusta coffee, raised the possibility of a shortage in exports.
- Base metals sub-index rose 9% due to several factors including ongoing supply concerns for copper in Chile and Peru and strong demand in China, especially as the State Grid boosted spending to improve the power network;
- Precious metals sub-index, the best performer year-to-date, rose 7% in the quarter as the demand for haven bullion continued in the face of persistent economic challenges triggered by COVID-19 and heightening geopolitical tensions. In addition, Gold enjoyed record inflows into gold-backed exchange traded funds (ETFs) which offset major weaknesses in jewellery demand.
Regarding the outlook for commodity prices, the AACI highlights the generally conservative market sentiment with consensus forecasts predicting prices to stay within a tight range in the near term with the exception of Crude oil, Coffee, Crude Palm Oil, Cobalt and Sugar.
Dr Hippolyte Fofack, Chief Economist at Afreximbank, said:
“Commodity prices in Q3-2020 have largely been impacted by COVID-19. The pandemic has exposed global demand shifts that have seen the oil industry incur backlogs and agricultural commodity prices dwindle in the first half of the year. The outlook for 2021 is positive however conservative the markets still are. We hope to see an increase in global demand within Q1 and Q2 – 2021 buoyed by the relaxation of most COVID-19 disruptions and restrictions.’’
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