Strategies For Success: Forex Trading And Mining In Coventry’s Financial Landscape

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Strategies For Success: Forex Trading And Mining In Coventry’s Financial Landscape – Trading online instead of real money is a great way to try out different styles. Photo: Silas Stein/photo alliance/Getty Images

Forex trading has grown in popularity over the years because of the potential for leveraged trading and profits from moves in currency pairs.

Strategies For Success: Forex Trading And Mining In Coventry’s Financial Landscape

Strategies For Success: Forex Trading And Mining In Coventry's Financial Landscape

The most popular currency pairs are euro/US dollar (EUR/USD), British pound/US dollar (GBP/USD), US dollar/yen (USD/JPY), Canadian dollar/US dollar (CAD /USD) and Switzerland. franc/US dollar (CHF/USD).

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A disclaimer is in order at this point: forex trading is risky, especially when volatility is added to the mix. Although there is a possibility of making large profits, there is also a large possibility of making losses.

Shaun Murison, senior analyst at IG Markets South Africa, advises newcomers to spend time educating themselves on the dynamics that drive the forex market, and then put their trading strategies to the test on a demo account, trading online instead of real money. It is only when one is satisfied with the trading strategy that real money is at stake.

“There are different trading strategies that can be used, but more important than this is risk management. When you enter a trade, you should focus on your entries and your exit points, managing your risk through tools such as stop loss, while evaluating the perceived risk in relation to and your payout (take profit level). If you follow the trend, your profit level should be at least twice your stop-loss distance. In other words, you expect to make at least twice as much profit as you are willing to lose on the trade. If you grow the market, you can widen your stop loss compared to your take profit, but then you will need to have a higher percentage of winning trades,” says Murison.

Heading in trading is the act of opening and then closing positions very quickly, in the hope of profiting from small price movements. These traders are called ‘scalpers’ and will often trade multiple times a day – the theory being that small price movements are easier to find than large ones.

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Because scalpers are looking for a lot of small profits, they will look for currency pairs like EUR/USD where the costs (or spreads) of trading are low.

IG Markets offers trading in several currency pairs through a type of derivative known as contracts for difference (CFD).

CFDs allow you to profit from price movements in an underlying asset or currency pair without owning the asset.

Strategies For Success: Forex Trading And Mining In Coventry's Financial Landscape

To trade commodities like EUR/USD, your cost can be as low as 0.6 pips or 60 US cents (using IG). A pip is the minimum increment by which a forex pair can change price. For example, consider EUR/USD at 1.0169 on IG Markets. If the price moves to 1.0170, that will represent one price increase, equal to a profit of $1 per contract size.

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One tanning technique favored by many tanners is known as ‘spreading’. Basically this means entering a trade at a low price and exiting as soon as the position turns profitable.

Traders using this system will often trade news around high-impact news events and look to short the momentum caused by these news events. Key economic events include decisions and guidance on interest rates, GDP, inflation and employment data. The IG economic calendar provides traders with a timeline of this news as well as what is expected from the news.

The general rule of thumb is: if the news is better than expected, this is positive for the underlying currency. The base currency is the first named currency in the pair. For example, the USD will be the base currency in the USD/ZAR (rand) pair.

Markets are often said to follow Newton’s laws of motion. In other words, the market will continue to go in every direction until it is taken over by an outside force.

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The mode of monetary policy and rates, controlled by the central bank, tends to be the main force that creates the situation or direction in the financial markets. For example, the US Federal Reserve’s interest rate policy has been more aggressive in raising rates than that of the European Central Bank (ECB). This is reflected in the weakening of the euro against the USD.

Technical traders can see this trend reflected on the chart, as EUR/USD has fallen further during this period.

Trend followers are aware of the general direction of the market and look for opportunities to join the trend and exit it until it shows signs of a reversal. A change in direction will occur when the underlying stimulus, usually in the form of central bank activity, changes.

Strategies For Success: Forex Trading And Mining In Coventry's Financial Landscape

“It’s easier to trade in progress than to try and predict when markets will turn,” says Murison.

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“Trends tend to last longer than most traders expect, so following a trend is a valid trading strategy, as there is more money to be made than short-term countertrends.”

Technical indicators that can help traders determine the direction of a currency pair include moving averages, MACD, ADX, and Parabolic SAR to name a few (available on the IG platform).

Volatility in the forex market can also affect your mood, and this is the most important factor in determining success or failure in the forex market, says Murison.

“Emotions such as fear, greed, temptation, doubt, and anxiety can influence you to trade or hide your decision. Either way, if your emotions get in the way of making decisions, it can hurt your business results. Therefore, you must have a trading strategy and risk management in place. When you enter a trade, you immediately set a stop loss to get you out of a losing trade before it gets worse. This is one way to help traders control their emotions.”

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IG Markets South Africa was established in 2010 and is regulated by the Financial Conduct Authority (in South Africa) as an over-the-counter and licensed financial services provider (FSP No 41393). It has an office in Sandton to serve its thousands of South African clients. Its board and senior management in South Africa include many South Africans making it a truly South African operation. As one of the largest employers in the online brokerage sector, it is proud to play a major role in South Africa’s growing financial services industry.

IG Markets is part of the LSE-listed IG Group, which has a market value of £3.4 billion (R71.4 billion). It has more than 330,000 active customers around the world.

Ciaran Ryan is a freelance writer based in Johannesburg with a background in finance and mining, who previously ran a gold mining operation in Ghana. He currently writes for several SA and overseas magazines on mining to investment issues.

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Brought to you by Peregrine Capital Government officials and criminal gangs cooperate in hijacked buildings – Mashaba 4 September 2023 We want to clarify that International does not have an official Line account at this time. We have not confirmed any official presence on the Line messaging platform. Therefore, any accounts claiming to represent International on the Internet are not authorized and should be considered fake. CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money quickly because of leverage. Please make sure you understand how this product works and whether you can afford the risk of losing money. CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money quickly because of leverage. Please make sure you understand how this product works and whether you can afford the risk of losing money.

Discover more about trading the volatile – and risky – cryptocurrency markets. Learn how to take a position with CFDs, and then see an example of trading crypto on ether.

Start a business today. Call +44 (20) 7633 5430, or email sales.en@ to talk about opening a business account. We are here 24/5.

Strategies For Success: Forex Trading And Mining In Coventry's Financial Landscape

Cryptocurrency trading is the buying and selling of cryptocurrencies on an exchange. With us, you can trade cryptos by speculating on their price movements through CFDs (contracts for difference).

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CFDs are certified derivatives – meaning you can trade cryptocurrency exchanges without taking ownership of any of the underlying currencies. When trading derivatives, you can

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