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Forex Retail Traders – Your Strengths And Weakneses
By Harold Hsu

Successful trading requires you to understand your strengths and weaknesses as a retail trader, so you can best exploit your strengths and avoid the weaknesses.

Weaknesses
The weaknesses of retail traders are:


Time – Compared to (full-time) institutional traders, you’ll have less time to analyze and track market price movements without sacrificing a large part of your social and/or work life.

Capital – Most retail traders don’t have sufficient capital to affect market prices when trading, and are thus price takers.

Knowledge – Retail traders generally have limited access to the latest economic news and happenings around the world. By the time retail traders receive news reports, the institutional traders would have already heard about it, and would have already placed their trades before the retail traders can act.

Cost – Transaction (i.e. trading) fees are the highest for retail traders.

Strengths
The strengths of a retail trader are:

Risk – Unlike the institutional traders, retail traders are not pressured meet profit targets set by upper management. This gives retail traders the luxury of cherry-picking the best trade setups with the lowest risk-to-reward ratio.

Time – Similar to the previous point, retail traders can take their time to identify the best trades. There is no pressure to make profitable trades every single day.

Slippage – A retail trader’s



trades are generally not large enough to affect market prices, and so there will be little slippage when placing trades.

Summary

Generally, retail traders are at more of a disadvantage than institutional traders. However, if you plan your trading strategy according to your strengths and weaknesses as a retail trader, you chances of being consistently profitable will be much higher. This is because it’s harder for the institutional traders to work around their weaknesses – their bosses are constantly breathing down their necks!

As a retail trader, you don’t have to answer to anyone but yourself. All you need is to plan your trading strategy according to these strengths and weaknesses, and you’ll be able to limit the effect of these weaknesses.

By: Harold Hsu

Article Directory: http://www.articledashboard.com

Harold Hsu is the owner of www.ForexSystemProfits.com where he provides premium trading information and resources.

Harold is currently giving away a free 26-page report on how to trade profitably in the market, and you can get it now atwww.ForexSystemProfits.com.




automated forex trading system articles:
Gone are the days when stock market was limited to the rich who paid brokers to manage their portfolios. Thanks to online investing, now there is a multitude of business savvy middle class individuals who indulge in the trading game. Web sites like Forex offer opportunities to nearly anyone to start investing in the stock market and earn money as a stock or currency trader.

It is important to note that Forex is a Web site that is used by investors who are self directed. It is not for the weak of stomach, and all investors need to be comfortable with some amount of risk. And, unlike other trading sites that trade in stocks, Forex is mainly a currency trader. Access to the foreign exchange market is given through an account, and you can invest in one form of currency or another, hoping to make money off of the way currency values fluctuate.

While the main point of Forex is to allow access to the foreign currency market and allow you to make trades, the Web site does provide many tools to help you make better-informed decisions. That said, it is important to realize that trading Web sites will not take responsibility for losses, and most of them charge commission or charge a flat rate for each transaction.

Forex has a learning center for users. It provides exhaustive information about the foreign currency market. It is particularly useful for people who are not familiar with the currency trade. It helps them by explaining how the market works and how to read the market.

Another more advanced tool is the Forex trading section. This builds on the knowledge gained from the learning center and helps you learn specifically how to use Forex. In addition, Forex offers tools such as tutorials on how to read the quote board, how to understand bid and ask, and the method to figure out the high and low. The training is comprehensive enough to help you watch and understand the market trends and decide what to do.

The free practice account offered on the Forex Web site is one of the most helpful features. It opens up a mock account stocked with practice money to help investors get started without much apprehension. As you read the charts and quotes, and buy and sell you get an idea of how much money you have made or lost. It is like a warming up exercise before you actually get going in the currency market.

The Forex website makes available all the charts and investing tools to the investor along with comprehensive real-time charting and research to get on with the investment process. The training tools at the Forex help you better understand and use the charts and the research. You can set up an account with Forex with amount as little as $250 in your account and once you become member of the website you get access to more advanced charts and tools to foray in the market.

If you are looking to learn how to trade better and earn money for a vacation, or even for retirement, you can do so with the help of Forex and its direct access to the currency exchange.

Article Source: http://www.ArticleJoe.com

About the author: Jimmy Jooves writes exclusively for Forex Fun, there's a wealth of knowledge on the website, plus their free newsletter is well worth signing up for too. If you want to read more Forex articles go to: www.forexfun.com/articles
Click here for other unique forex articles.


By Gone are the days when stock market was limited to the rich who paid brokers to manage their portfolios. Thanks to online investing, now there is a multitude of business savvy middle class individuals who indulge in the trading game. Web sites like Forex offer opportunities to nearly anyone to start investing in the stock market and earn money as a stock or currency trader.

It is important to note that Forex is a Web site that is used by investors who are self directed. It is not for the weak of stomach, and all investors need to be comfortable with some amount of risk. And, unlike other trading sites that trade in stocks, Forex is mainly a currency trader. Access to the foreign exchange market is given through an account, and you can invest in one form of currency or another, hoping to make money off of the way currency values fluctuate.

While the main point of Forex is to allow access to the foreign currency market and allow you to make trades, the Web site does provide many tools to help you make better-informed decisions. That said, it is important to realize that trading Web sites will not take responsibility for losses, and most of them charge commission or charge a flat rate for each transaction.

Forex has a learning center for users. It provides exhaustive information about the foreign currency market. It is particularly useful for people who are not familiar with the currency trade. It helps them by explaining how the market works and how to read the market.

Another more advanced tool is the Forex trading section. This builds on the knowledge gained from the learning center and helps you learn specifically how to use Forex. In addition, Forex offers tools such as tutorials on how to read the quote board, how to understand bid and ask, and the method to figure out the high and low. The training is comprehensive enough to help you watch and understand the market trends and decide what to do.

The free practice account offered on the Forex Web site is one of the most helpful features. It opens up a mock account stocked with practice money to help investors get started without much apprehension. As you read the charts and quotes, and buy and sell you get an idea of how much money you have made or lost. It is like a warming up exercise before you actually get going in the currency market.

The Forex website makes available all the charts and investing tools to the investor along with comprehensive real-time charting and research to get on with the investment process. The training tools at the Forex help you better understand and use the charts and the research. You can set up an account with Forex with amount as little as $250 in your account and once you become member of the website you get access to more advanced charts and tools to foray in the market.

If you are looking to learn how to trade better and earn money for a vacation, or even for retirement, you can do so with the help of Forex and its direct access to the currency exchange.

Article Source: http://www.ArticleJoe.com

About the author: Jimmy Jooves writes exclusively for Forex Fun, there's a wealth of knowledge on the website, plus their free newsletter is well worth signing up for too. If you want to read more Forex articles go to: www.forexfun.com/articles
Click here for other unique forex articles.


Gone are the days when stock market was limited to the rich who paid brokers to manage their portfolios. Thanks to online investing, now there is a multitude of business savvy middle class Read more...