However, navigating the world of options trading can be a daunting task for those who are new to it. Thankfully, many great blogs and newsletters can help beginners learn the ins and outs of options trading. 

In this article, we will be discussing the top ten blogs and newsletters for beginner options traders in 2023. You can also explore the straddle options strategy to enhance your grasp of options trading. This knowledge will provide a strong base for your journey into the realm of options trading.

The Options Industry Council (OIC) 

OIC is a nonprofit organization that informs prospective buyers and sellers about the advantages and dangers of trading equity options.

Their website offers a wide range of learning resources, such as webinars, podcasts, and even courses designed just for beginner options traders. The OIC website is a great starting point for people who are new to trading options.

Options Trading IQ

Options Trading IQ is a blog that provides options traders with a variety of educational tools. Gavin McMaster, a licensed options trader with more than ten years of expertise, is the blog's editor.

Options strategies, risk management, and market analysis are just a few of the many topics covered by the site. The blog is a fantastic resource for new options traders because of its straightforward and succinct writing.

SoFi Learn 

SoFi is a financial service company that provides a wide range of financial goods and services, including options trading via SoFi. SoFi Learn is one of their instructional resources for new options traders. It offers a wealth of different educational materials, including articles, webinars, and courses.

Its focus on education and dedication make it a great pick for beginner options traders who are eager to learn and expand their portfolios. Also, the user-friendly trading platform makes trading options more practical and simple for new traders.

Investopedia 

Popular financial website Investopedia offers a wealth of knowledge on a range of economic subjects, including options trading.

The options trading portion of the website provides a vast array of educational materials, such as articles, tutorials, and quizzes. Users can practice trading options on the website's simulator without risking any real money.

If you want to study the fundamentals of options trading, Investopedia is an excellent resource for you.

Steady Options 

A blog called Steady Options is devoted to supplying information and resources for options traders. Kim Klaiman, who started the site, is a seasoned options trader with over two decades of expertise.

The blog discusses various subjects, such as risk management, market analysis, and options trading tactics. Additionally, the website features a discussion area where traders can exchange ideas and post queries.

It's a great tool for novice options traders who want to get a thorough education in the industry.

Options Trading Club 

A site called Options Trading Club offers informational tools for traders. The blog discusses various subjects, such as options trading tactics, market analysis, and risk control.

Additionally, the website features a discussion area where traders can exchange ideas and post queries. Beginner options traders who want to learn from a group of like-minded traders might check out Options Trading Club as a great resource.

Schaeffer's Research 

Schaeffer's Research is a financial research company that offers traders a variety of educational tools. The company's website showcases a wide range of materials for options trading, including articles, webinars, and different courses.

It also has a discussion area where traders can exchange ideas and post inquiries. For new options traders who want to learn from a reliable source, Schaeffer's Research is a great resource.

Option Alpha 

A thorough education in options trading is offered by the website Option Alpha. The website provides many educational tools, such as articles, classes, and a discussion board.

Kirk Du Plessis is a seasoned options trader with more than a decade of expertise and also the creator of Option Alpha. The website is a fantastic resource for novice traders because of its more straightforward language.

Options Playbook 

The Options Playbook is a resource created by the options trading brokerage firm TradeKing (now Ally Invest). They provide an overview of options trading that includes detailed explanations of different options strategies along with real-world examples. 

The Options Playbook is a great resource for beginner options traders who are looking to build a solid foundation in options trading, as it covers a wide range of topics, from basic options concepts to advanced trading strategies. 

The Options Insider 

The Options Insider is a well-known internet site for options traders, with a wealth of instructional tools and market information. A glossary of trading terms, options calculators, and a detailed options trading course are just a few of the site's many instructional offerings.

As a result, the website is a terrific resource for new options traders eager to learn and expand their portfolios.

Therefore, everyone who wants to open a new brokerage organisation is concerned about the question: where would it be better to register a company and get a forex broker license?

Choosing an FX broker

Choosing such a partner for trading on stock exchanges should begin with collecting information about prosperous transactions and openness in working with clients. A good quality brokerage element has its own portfolio of transactions and a large number of customer reviews. The easiest way is to check the published lists of traders, which are constantly changing and updating. The trader with the most reviews will offer one of the safest working conditions. We also recommend that you pay attention to how the process of registering and depositing and withdrawing money from a particular firm is going.

Veracious FX provider

If a broker has a licence, it allows you to judge its conscientiousness and the degree of seriousness in its approach to trading. A licensed broker is more likely to settle all trades and make them profitable not only for himself/herself, but for the client. Nevertheless, in order to obtain a licence from well-known world communities or government agencies, a broker needs to seriously try to earn a certain reputation. If you see that the broker’s licence is issued by an unknown office located on a distant island, this is not the broker you should deal with.

Forex broker rating

On the Internet, you can find several independent ratings of popular brokers. Traders are sorted here by the number and quality of reviews, working hours and other important parameters. Here it is recommended to pay attention to the number of closed deals, the regularity of payments to clients, and not to the trading leverage or promised interest. In general, the first steps in cooperation with brokers are taken with caution, through small amounts. Hence the preference in favour of trading elements with expertise and safe conditions.

The most cost-effective jurisdictions with a high level of prestige

• USA

So, in order to work on the forex markets in the United States, a company needs to obtain a licence called Retail Foreign Exchange Dealer (RFED), the issuance of which is accompanied by a rigorous check of the company’s sources of capital, personal information of its owners, passing exams by key employees, and other procedures. Although the minimum net worth is USD 20 million, it is desirable that the broker can maintain a capitalisation level of at least USD 30 million. If this threshold is lowered, it will be necessary to notify the NFA each time. At the same time, all company reporting must be transparent, that is, the broker must make almost all data publicly available, including account information, etc.

This level of control allows the American regulator to immediately respond to any violations of customer rights. Even the smallest infractions can be subject to heavy fines.

• Switzerland

In fact, Swiss brokers with a Forex licence have the status of a bank and, as a result, they are subject to the same strict controls as banking institutions, which makes them reliable agents in the eyes of clients from all over the world.

• Great Britain

Despite lesser demands, the FCA UK financial BK licence is  the most reputable in the world. In order to get it, you need to register a company in the UK. For this, such an organisational and legal form as a joint-stock company with limited liability (LTD) is best suited.

The FCA treats the Forex market as a bookmaker, which means quite serious requirements for companies wishing to obtain a licence here. For example, there are high requirements for the company’s personnel, in particular, for the director, who must prove to the regulator his/her understanding of this segment of the financial sphere, as well as confirm his/her occupational qualifications and expertise in this area.

The Pullback Strategy

The pullback strategy is one of the most powerful yet popular trading strategies out there. As you can see in the name, the trading strategy is based on price pullbacks.

Price pullbacks are a common thing during trending markets when the price breaks below or above the resistance or support level, reverses and gets back to the broken level.

Talking about resistant levels, it is a price point at which the market fails to break above. On the other hand, support levels are price points where the market is having difficulties breaking below.

During a market uptrend, the price breaks above an established resistance level and reverses and retests the resistance level. Once the retest is completed, you can enter the market by taking a long position in the direction of the underlying uptrend.

On the other hand, during an uptrend, the price breaks below an established support level. Then it reverses and returns to the support level again. This creates a pullback, and you can enter the market with a short position in the direction of the downtrend.

In the market, pullbacks are a common thing, and it appears when traders start taking profit which pushes the price of crypto futures in the opposite direction of the original breakout. So the traders who missed the initial price point can wait for the price to come down to the resistance level so they can enter the market. And this pushes the price of the crypto futures to go up again.

Going Long Or Short

Going long or short are two of the best crypto futures trading strategies. By going long, you hope that the crypto futures price will go up over a certain period of time. And when it reaches a favourable price point, you simply sell your holdings and book a profit.

As a trader, your job is to predict the direction and timing of the crypto futures market. To do this, you need to learn about technical analysis, which is a study of historical market data and patterns. Plus, use different indicators to figure out the next move of the market.

Also, apart from going long, you can short sell crypto futures. This means that if you believe that the price of crypto futures will fall, then you have to sell your assets first, and once the price of the crypto futures goes down, you simply buy your assets back. Plus, thanks to leveraged trading, you can enjoy maximised profits if trades go in your favour. But if it does not go as per your predictions, there will be huge losses too.

Breakout Trading

Breakout trading is another popular trading method that is used mainly in day trading. But it can also be used for trading crypto futures. A breakout occurs when an underlying asset’s price moves out of an established trading range.

Breakout trading purposes of catching the market volatility when the price is breaking out of support and resistance levels, trendlines, and other technical levels.

Breakouts often happen in the market, and you can easily spot them by using different indicators and trendlines. And it gets accompanied by an increase in the volume of buys or sales in the market.

Also, after a breakout happens, the market experiences great volatility. This happens due to executions of numerous pending orders.

You can take advantage of this volatility by taking a long or short position. You need to take a short position when the price breaks below support. Or go into a long position when the markets break the resistance levels.

Spread Trading

You can next try out spread trading. In this trading strategy, you are required to purchase 1 crypto futures contract and sell another futures contract at a different time. The main goal of this strategy is for you to profit from an unanticipated change in the relationship between the buying price of 1 contract and the selling price of another crypto futures contract.

Spread trading lowers your risk in trading. Also, each spread is a hedge, and trading differences between 2 crypto futures contracts result in lower risks to a trader. Plus, spread trading is also not affected by market volatility.

Trading The Range

Trading the ranger stands for a trading bounce off important support and resistance levels in a chart. In this case, when the market faces difficulties breaking above a certain level, the market participants will refer to that level as the resistant level.

And when the price reaches the same level again, there will be some traders who will start taking profits, and others will open short positions in the market. This will increase selling pressure on the crypto futures price, and the price of it will fall down.

Similarly, when the price fails to break below a certain level and reaches the same price level again, traders who have short sales will start taking profits. Also, some traders will start buying at a lower price. This will create buying pressure in the market which will drive the price up.

When trading in the range, the first thing you need to care about is whether the market is actually trading in a range or sideways. If there is an absence of higher highs or lower lows in the price, then the current market environment would be a ranging market typically.

Additionally, you can use trend-following technical indicators like the ADX indicator. An ADX value below 25 indicates that the market is not in a trend. So you can place your stop loss at important resistance levels if you are shorting the market or below an important support level in case of taking a long position.

Buyer And Seller Interest

As a trader, you can also use the data of buyer and seller interest to decide whether to buy or sell a futures contract. Buyer and sellers' interest is determined by the Depth of the Market or DOM window, which shows the number of open buys and sells orders for a crypto futures contract at a number of price levels. 

Also, DOM shows the liquidity for the underlying futures contracts. If there is a higher number of market orders at each price, then it refers to higher liquidity and vice versa.

Some brokers refer to the depth of the market as the order book, which is a common thing found across all the exchanges.

The order book gets updated in real-time, and it reflects the current trading activity in the market. Also, you should know that large trading orders will not affect the price of highly liquid security.

But if the depth of the market and liquidity is low, even small trading orders can have a significant impact on the price.

Counter-Trend Trading

Finally, there is counter-trend trading. In this trading strategy, you can take positions in the opposite of the underlying trend. For instance, a counter-trend trader would look for sell opportunities during uptrends and buy opportunities during downtrends.

In counter-trend trading, your job is to take advantage of the price common that succeeds each impulse move and place your profit targets at around 50% of the impulse move or at an important Fibonacci level. However, you should know that counter trend trading is extremely risky compared to other crypto futures trading strategies. And you should only follow this strategy once you have gained enough experience in crypto futures trading.

Final Words

So those were some of the best crypto futures trading strategies. As a trader, you must try out different strategies, learn technical analysis and follow proper money management. Once you have gained enough experience, you should only then risk higher funds when trading. 

Recent reports show that the notional value of forex trading is more than 6.6 trillion dollars per day. Most of the trading that is transacted is in the major currency pairs. Company treasurers can use forex trading to hedge profits and liabilities in other countries while tourists use it to change currencies. 

There are several ways to trade the forex markets, and before you begin to risk capital, you should determine the most suitable process for you. You also want to understand the different trading strategies often used to generate revenue when trading the forex markets. Once you have a good understanding of a strategy and find a process that is easy to employ, you can begin to practice trading and eventually risk your capital in the forex markets.

How Do You Start Trading Forex?

The first step is to determine the most efficient way for you to transact currency transactions. There are several ways for you to accomplish your goal. The most common ways to trade currencies are through contracts for differences (CFD) brokers, a forex broker or bank, a futures contract, or an exchange-traded fund. 

Each of these products provides an investor with a different asset to trade. CFDs are the most flexible but are not legal in the United States. A contract for differences allows an investor to purchase an asset that tracks the movements of a forex currency pair. An investor is only responsible for the change in the exchange rate. CFDs are an efficient way to engage in forex trading. CFDs also provide investors with leverage. Leverage allows you to enhance your gains by increasing the size of the position you take. You will need a margin account to trade forex with leverage. When you sign up with a CFD broker, they will ask some personal background questions to determine how much leverage to offer you in your margin account. Note that while leverage can increase your potential gains, it can also increase your losses to ensure you have a firm understanding of the risks involved. 

You can also set up an account with a forex broker, a stockbroker, or a bank with multiple account types. A forex account will give you access to the forex market via an over-the-counter transaction. You will be exchanging one currency for another digitally and will be asked to move money when the transaction reaches maturity. For example, if you trade a spot over-the-counter currency transaction, you are obligated to exchange currency two business days after the trade is transacted. Most of the time, you will likely extend your trade through the forward market, and your broker will handle the movements of your currency. 

You might also consider opening a futures account. Futures trading allows you to transact on a regulated futures exchange. However, the number of currency pairs might be limited. Futures trading also provides clients with leverage via a margin account. 

Lastly, you might consider purchasing or selling an ETF that tracks the movements of a currency pair. For example, the FXY ETF tracks the movements of the USD/JPY. The holdings are usually Japanese yen futures contracts, which allows the ETF to track the movements of the underlying asset.

Once you have decided which type of asset you might want to trade, the next step is to find a reliable broker to facilitate your transactions. During the due diligence process, you should look up your potential broker and read any reviews that might influence your thought process. You also want to evaluate the site and trading platform to see if they are easy to use. Many sites or downloadable apps are very sophisticated and complicated to get started. If you are a novice trader, look for something simple to understand and easy to navigate. If you find it too difficult, you could get lost before understanding the ins and outs of forex trading.

How Do You Create A Trading Strategy?

Before you risk your capital on forex trading, you should spend some time evaluating different types of trading strategies. You need to decide if you want to trade over short periods, like day trading, or more extended periods, where you hold your positions for weeks or even months. 

There are fundamental trading strategies in which you look at the interest rate differentials or macro backdrop to determine the future direction of a currency pair. Investors interested in understanding the long-term trend in the currency markets need to have some background news related to macroeconomics. For example, a stronger-than-expected inflation report in the United States is likely to buoy U.S. yields and help benefit the upward trend in the U.S. dollar.

Another type of trading strategy is through technical analysis. Technical analysis studies past price movements and includes patterns, momentum, trend following, and mean reversion. You might want to learn about support and resistance levels and the different studies that help determine if a trend is accelerating or decelerating. 

Test Using A Demonstration Account

Before you start trading your capital, you should test your strategy and your ability to navigate your broker’s website and trading platform using a demonstration account. Demo accounts use fake demo money that is not real, allowing you to see if your strategies can be effective. Many brokers have live demo accounts that allow you to trade in real-time using demonstration money.

The Bottom Line

The upshot is that there is a process involved in starting to trade Forex. First, you need to determine the type of instrument you want to trade. Next, you should evaluate different trading strategies. You then need to perform due diligence on your broker. Lastly, you should use a demo account to see if your strategy is viable before you begin to risk real capital. 

To help you on your journey, here are several tips that all successful traders follow religiously.

They Have A Plan

The first and most important thing that all successful traders have is a plan. This plan includes their investment goals, risk tolerance, and entry and exit strategies. Without a plan, it is very easy to get lost in the sea of information out there and make impulsive decisions that can lead to large losses.

To come up with a plan, you need to first determine your investment goals. Are you looking to make a quick profit or are you more interested in long-term gains? Once you know your goals, you can start thinking about how much risk you are willing to take. Higher risks usually mean higher potential rewards but they also come with a greater chance of losses.

After you have determined your goals and risk tolerance, it is time to develop your entry and exit strategies. These will be the rules that you follow when buying and selling assets. For example, you may decide to only buy stocks that are trading below their intrinsic value or you may sell an asset as soon as it reaches your desired profit level.

They Use Automation

Many successful traders use some form of automation in their trading. This could be something as simple as using a trading bot to execute their trades or it could be a more complex system that includes algorithmic trading. Using RoboForex, you can easily automate your forex trading strategies. For instance, using the MetaTrader platforms allows you to set up expert advisors that will automatically follow your trading rules.

Additionally, using automation can help you to take emotion out of the equation and make more logical unbiased decisions. It can also help you to execute trades faster which can be crucial in the fast-paced world of trading.

They Keep A Trading Journal

Another important habit of successful traders is that they keep a trading journal. In this journal, they track their trade setup, entry and exit points, and profit or loss. This helps them to stay disciplined and accountable for their trades. It also allows them to go back and review their previous trades to see what worked and what didn’t.

This has shown to be an extremely useful exercise for many traders as it allows them to improve their performance over time. If you don’t already keep a trading journal, it is highly recommended that you start doing so.

They Have A Risk Management Strategy

Risk management is one of the most important aspects of trading. Without proper risk management, it is very easy to lose all of your capital. That’s why successful traders always have a risk management strategy in place before they even enter a trade. This strategy includes things like setting stop losses and taking profits at predetermined levels.

By having a risk management strategy, you will be able to limit your losses and protect your capital. This will allow you to stay in the game even when things are going against you.

No matter how good of a trader you are, there will always be times when things don’t go your way.

That’s why it is important to prepare for the worst. This includes having enough capital to cover your losses and being able to emotionally handle losing streaks. Many traders blow up their accounts because they are not prepared for a losing streak. By having the proper mindset and capital in place, you will be able to weather any storm.

They Stay Up-To-Date

The world of trading is constantly changing. New products are being introduced, regulations are being implemented, and economic conditions are always fluctuating. That’s why traders need to stay up-to-date on all the latest news and developments.

This can be done by reading financial news articles, following thought leaders on social media, and attending industry events. There are also many great resources like Traders Laboratory where you can find useful information and connect with other traders. By staying up-to-date, you will be able to make better-informed trading decisions and you will also be able to adapt to changes in the market quickly which can give you a competitive edge.

Conclusion

Successful trading investors tend to follow similar patterns and guidelines to be successful. Some of these include automation, maintaining a trading journal, implementing a risk management strategy, and staying up-to-date with the latest news and developments. By following these tips, you will be on your way to a more successful trading career.

This does not mean that we should abolish money, it just means learning from our mistakes. It means not following tradition for tradition’s sake, but seeking solutions for newer generations. This is a topic for another time, right now we should talk about the present, trading platforms. The current developments in this field are integral and there are so many trading platforms out there.

What is your specialisation?

Trading in something that you are not familiar with usually results in losses. This is why it is essential to know your trading specialisation. When it comes to selecting a trading platform, you should always do your research. First, this means uncovering where your trading expertise lies. Second, it means exploring different platforms that specialise in your selected stocks. For example, if you trade tech stocks you do not want a platform that sells wheat stocks.

There are many trading platforms out there with many different features. These platforms usually offer insights into the news that can affect on stock prices. You always want a platform that can predict the price of the stock you are familiar with. Depending on the stock, you can also find tools that can help no matter if you are a beginner or a pro. AI is especially helpful and advanced platforms will usually offer such help.

Doing what you like

Specialisation is not only important for efficiency but also for love for the job. This does not mean that you need to be crazy fond of the stock, but you should enjoy doing it. It should make complete sense when you see a price dip or go high. When you see that stock it should not invoke a feeling of dread. It should not invoke a feeling of despising your job and make you wonder why you are doing all of this.

Trading can be fun if you do it the right way. It is important to find this way because first, you will benefit monetarily from this. Second, your job will be less stressful because you will not hate it. Of course, it will be stressful at times, but you can reduce the stress to minimal levels when you like doing it. Again, this should not be confused with the toxic trend of hustle culture, never do that. It is just a simple need to moderately like what you are doing for money.

Do not fall for scams

When you find a platform, first you need to make sure that it is not a scam. When you see something on the internet that is too good to be true, it really is too good. Always be varied and use your brain when you look at the benefits of a certain platform. If you do not do that, you can lose not only money but also a lot of your personal information. A lot of it is at stake when you mindlessly look for a trading platform with dollar bills only in your sight.

You should look at trading platforms that existed for a lot of time, the experienced ones. The platform should be clear about the information that it provides, no snake oil selling. Sign-up fees or any other fees should always be clearly stated and upfront. The platform should be used by a host of people that you can contact and get more information. Do not be afraid to ask people around in order to gain more information.

Types of scams

A typical scam will start by luring you with very high returns with only a small investment. Not only will the returns be high, but they will also provide you with the money ASAP. They will tell you that a famous person already made that much money and show you some fake images and quotes. The worst part is, that the website will look completely legit, it will not look like a scam. Only through thorough investigation and asking questions can you uncover a trading scam.

Clear interface

A good trading platform will have a clear and user-friendly interface. You can not trade efficiently if every option is not intuitive and easy to understand. You will just lose money if you use a platform that is not made with the purpose of a person using it. A lazy interface is also a great way to see if the platform cares about its users.

Support

A good trading platform will offer exceptional customer support. When something goes wrong, and it does happen, you want to solve the problem hastily. This is why it is important to have 24/7 customer support that can solve a problem right away. If the customer support does not provide you with clear information, you can mark that as suspicious. You do not want to spend hours deciphering instructions from customer support because of their incompetence. 

These core concepts should serve as a sort of Occam’s razor when choosing your trading platform. If a platform can not suffice these basic needs, you should definitely avoid it. Just think about it, would you move into a luxury house if the walls are made to last only a few months? Would you hop in a car that has a 25% chance of blowing up when you turn the engine on?

If something can not fulfil the barest minimum, you should not look for higher values in it. It is all about covering the basics first and then moving on to the higher concepts. You can not learn how to do a backflip if you can not perform some squats. Once you see a weak point, that should not make you feel discouraged. It is just about avoiding mistakes and moving forward, and that applies to trading platforms.

Fast Funds With Forex?

Anyone who was alive through the nineties will remember the era of “get rich quick” schemes. One after the next, they poured in over the radio, through email chains, and especially infomercials. The yuppie generation was in, and they wanted to make a lot of money really fast, and they were willing to take a lot of risks to do it! Remembering this era is why we don't like to think of trading as a get-rich-quick scheme or a sure-fire monthly income. That said, trading can undoubtedly bring in extra money at a very low risk since you don't need a large amount of capital to start. You can check out how brokers like Oanda function at forex trading, or you can go it alone and learn on the fly yourself. Let's take a look at how one makes some extra money with forex trading.

Starting Out

An important thing to remember is that in forex trading, as with most endeavours, you’ll need a solid grounding in the fundamentals of how everything works before you can expect to start making any money at all. A great way to find out what you’re getting into is to watch some online tutorials or even take a course in the basics. Another thing to do from the outset is to remain realistic and manage your expectations of the process; nothing comes without some hard work and understanding of the processes within the industry. The difference between a trader who does well and a trader who fails spectacularly is pretty much the same as what separates successes and failures in any field. The ones who make it and make a little money in the process are the ones who try every strategy that they know of to achieve success.

Another good idea to get you firmly set up at the beginning of your forays into trading is to open a demo account instead of jumping into things too quickly with a real one. This account allows you to operate in “real world” situations without actually risking anything. It will enable you to practice how you’ll react when the stress comes rolling in, and you have to make quick decisions. This is the time to make your mistakes and learn from them! With literally nothing to lose, all a demo account can do is make you a better trader. You’ll be able to watch how the market moves, learn all the jargon that previously sounded like Greek to you, test out any theories you’ve developed, practice trading different currency pairs and try out other platforms.

So, How Do You Make Money?

As you’ve gathered by now, asking questions like “when will I make money” or “how much money will I make” are not a productive way to start out in trading. It is possible to make daily income trading forex, but you need to follow all the initial startup steps and take great care in how you execute trades. All the examples you see of traders who have done well in forex trading have put in years of hard work and made wise decisions about how they spend and invest their money. What it comes down to is your mindset! A good mindset and positive attitude will keep you trying and working hard. If you persevere and put in the effort, you will find a formula that works well for you.

Another component of being a successful trader is deciding what you want to achieve. You can't get anywhere unless you have realistic goals! Let’s look at an example:

You could aim for a 10% annual return on your investment, aim for 4000 pounds profit per month or go for 100 pips every month. Whatever your goal, you should make it something achievable and easy to measure. Once you have your goal in mind, you should set about finding out how you’re best able to achieve it. See what resources you have available, how much time you have to spend trading etc. This might seem like a lot, so here are a few tips to be sure that you make your way through the process and get on the road to success:

1. Develop a strategy. Whether you want to be a long-term investor or a forex scalper, know what you’re going to do and stick to it.
2. Don’t demo for too long. The training wheels have to come off eventually! Don't be afraid to move from a demo account to a real one when you're ready.
3. Set stop losses for every trade you make.
4. Keep your emotions in check. Don’t trade when you’re overly angry or stressed, rather than trading and making a mess.
5. Don’t be afraid of a loss. Everyone loses sometimes; it’s part of the game.

Wrap Up

There are many elements to success and making money trading forex. Hopefully, the information we’ve shared brings everything into sharper focus for you.

But there’s no need to panic. Forex options might be complicated, but they also come with potential. This article will explore forex options, how they can be used, and contextualise them in the broader framework of being cautious while trading. 

What is a forex option?

A foreign exchange option is a way of securing the right to purchase a foreign exchange pair at a particular time and at a certain price. Rather than actually settling the transaction at the outset and moving the value across, the forex options system is instead a contract: it’s a way of securing yourself the possibility, or option, to purchase at a later date if you so wish. 

How can they be used?

Often, forex options are used to manage risk. Say you want to purchase the US dollar/British pound currency pair, and you’re assuming that the US dollar will go up. You could go ahead and do that but also purchase the option to essentially have the reverse if the market goes in the pound’s favour. This will cost you more, but you’re, in essence, taking the risk that your profit from the initial dollar pound transaction will be enough to recoup your initial investment and cover the cost you paid for the option.

There’s some key terminology associated with this approach. One term is “strike price”: this refers to the agreed price that will kick in if the option is taken, such as the sale price or the buy price. And another is “expiration”: this refers to the point at which you have to decide whether or not to use your option. While it may seem desirable to have your option open indefinitely, this isn’t an available choice in the forex world.

Another way that forex options can be used is for pure speculation. This is where the option itself is the trader’s focus, rather than an actual transaction for which the option is playing a risk management role. Usually, people do this because the cost of buying an option is cheaper than the cost of buying the actual foreign exchange currency pair. This way, they can have more of their capital involved in the transaction and also make the most of what is known as “leverage”, which is essentially borrowing money from the broker to expand the size of the capital put down. 

A note of caution

Before plunging into forex options trading, it’s vital that you do your research and find out some more about the risks involved. This is where sites such as Forex Traders, where you can learn to trade forex and get top information, really come into their own. 

It’s a complex part of the trading industry, and the risks involved in being a beginner who gets overly involved in forex options trading without full knowledge of what could go wrong are high. They could certainly lead to your capital being lost. So, while you may think you know it all from reading one or two articles, it’s best to instead treat those articles as stepping stones to more information about just what forex options can offer. Information, as is widely known, is the key to ensuring that you are empowered to make the best decisions – so it is worth spending time making sure you only use good sources. 

Overall, it’s definitely worth exploring the prospect of forex options if you’re a newbie in the foreign exchange trading world. These financial instruments can provide you with all sorts of plus points: they can allow you to hedge when it comes to your other forex positions, for example, or they can be used for speculation in their own right with the prospect of making money.

It’s certainly worth remembering that they are complex and potentially volatile instruments that may cause you to lose money. But if you do your research and ensure you’re clued up on how they work, you’ll be able to go into the transactions with some confidence. 

While demo trading is advisable for beginners to get familiar with the market ecosystem, some argue it could instil overconfidence in a new trader. Live trading conditions are quite different from demo conditions and we will discuss why. 

Who uses demo accounts and who are they meant for?

Demo accounts are used by both new and old traders. Karan of Safe Forex Brokers UK explains, “Demo trading accounts are meant for traders to test out strategies and learn without risking their money. It is used in all financial markets like Stocks, Forex, Derivatives etc. Day Traders often use demo trading to test their strategies and to see how each scenario would play/work in a real situation before putting in any money.”

Demo trading accounts are designed so that new traders can have a canvas to practice and perfect their strategies before going in with real money. They apply all the theories they have learnt and see the outcome whether profit or loss without worrying about losing their real money.

After a new trader reads about trading and gets familiar with all the jargon such as Spread, Pips, short and long positions, stop-loss orders, etc. They still have to put all that theoretical knowledge to the test. 

Demo accounts make new traders conversant with the trading software interface and reduce the nervousness that usually accompanies live trading. New traders know where each button is located, can place orders, and get a general feel of the market. For example, in theory, we know stop-loss orders can be set above or below the price of an asset but demo accounts allow you to practically set the stop-loss and gives clarity to the new trader. Old and experienced traders can also use demo trading to test new trading methods and strategies before they apply them in live trading. 

How does a demo account work? How can you use demo trading?

To open a demo account, you simply choose a regulated broker and download their trading app from the online app store or use the web version of the app if you like. The demo account is an integral part of the real trading app so you don’t have to download a separate app for the demo account. After downloading, you fill out all the documentation and open your account. Most brokers do not charge any fee for demo accounts. Your login details are normally sent to your email, and after that, you can activate your account and access it for simulation. 

A new trader is assigned virtual trading money and can access the various markets like currency pairs, stock, indices, precious metals etc. provided by the broker. He can also have access to derivative products such as CFDs while demo trading. The environment is simulated to mimic a live trading session and the new trader can place buy or sell orders, set stop-loss orders, etc.

When you log in, you will see live trading and demo trading buttons. If you select demo trading it takes you to the simulated environment and you notice your account has cash in it. That cash is not real and is meant for the simulation. The cash decreases as you open trading positions or record losses and increases when you record profits. If you lose all your virtual cash, you can reset the simulation and start over again. 

Why should you use a demo account? How is it beneficial to traders?

Demo trading has several advantages such as:

• Freedom to make mistakes: As a new trader, you can satisfy your curiosity and try out all different scenarios in your imagination without the repercussions of losing real money. While practising, you can update your trading journal and learn from your mistakes.
• Zero risk: Demo trading is completely risk-free so you can try out big transactions running into thousands of dollars without being afraid. 
• Building confidence: When you trade and record profits it makes you feel good about yourself and builds confidence when going into live trading
• Practice how to apply risk management tools such as stop orders.  
• Test your trading strategies

The conditions are different when you go live

By the time you are through with demo trading and you go live some realities become evident. Some conditions change such as:

Execution speed

When you open a trading position, you need to perform an opposite trade with a counterparty to close your position. In demo trading, a ready counterparty is always available so you execute your buy or sell order speedily at the intended price. 

However, in live trading, you might have to queue and wait for a ready counterparty and by the time you find one, the price of the asset may have changed or slipped away from the initial price. This is called slippage and it can interfere with your trading plan and increase your losses or reduce your profits. There is no counterparty risk in demo trading but there is in live trading.

Stop-loss orders could also gap past the stop price in real life forcing you to close your position and execute your market order at another price. In demo trading the conditions are ideal and this may not happen so it will come to you as a shock in live trading and may cause you to record some losses. General platform execution speed could also be slower with longer loading times and this is something new traders will be surprised to find out in live trading.

Fees and commissions

Some demo accounts may not include all the fees and commissions applicable when you are trading live. When you suddenly see certain fees charged during live trading it can throw you off balance and affect your plans. 

Trading capital

Demo accounts allow you access to huge capital and when you trade with so much capital you become careless and small losses don’t mean anything to you. However, when you go live, small losses suddenly mean so much since your capital is small and you may be using leveraged funds. 

Emotions

Emotions change while trading live. While demo trading, there’s neither a feeling of fear, greed, nor pain. But all these emotions come alive during live trading. Your emotions awaken from sleeping to actively work against you on the trading floor. 

The pain of drawing down and watching your hard-earned money keep reducing and eventually disappear can be difficult to bear. The fact that you find out you are not as good as you thought you were can be embarrassing and, unlike in demo trading, you can’t just reset your system and start again. Things you took for granted in demo trading suddenly begin to matter in live trading and your emotions can cause you to overtrade, revenge trade and sometimes cause you to panic and make a wrong decision.Overconfidence is another emotion to watch out for because making profits in demo trading doesn’t necessarily mean you will replicate the same feat in live trading. 

Stress

Swing traders who hold positions for several days sometimes have to monitor their open positions and this can be stressful. Day traders also encounter a lot of stress because they have to be monitoring the market constantly. However, in demo trading, you can open positions and go to sleep and come back whenever you like since you know that real money is not at stake. The stress levels in live trading are extremely high. 

Does demo trading improve trading skills?

Demo trading gives you a general idea of how to navigate your way and use the trading software but you improve your investing skills through day-to-day live trading and interaction with other traders.

In demo trading, the conditions are designed to be ideal and free from manipulation, re-quoting, counterparty risk, stop- loss hunting etc. But this is not exactly the case in the real world.

The ultimate aim of a demo account is to encourage you to transition to live trading as soon as possible and this is part of the reason it is offered for free. Some rogue brokers may target new traders who are fresh from demo trading school and trade against them knowing they are still overconfident. The conflict of interest between a market maker, broker, and trader means brokers benefit more from a trader’s loss than from a trader’s gain. When picking a broker, take your time and also focus on low fees rather than low spread. 

Should you trade live if you are successful in demo trading?

Probably not! Karan from Safe Forex Brokers advises that, “it is not guaranteed that you will get the same results in live markets, as emotions come into play when real money is invested. Also, trading conditions might differ in live, depending on the data feed and platform provider.”

“One must practice for at least six months and start with small capital that they can afford to lose once trading live for the first time to test out any strategy.”

Moreover, day trading can be risky in live markets and requires time tested strategies and years of experience. It is better to invest for the long term rather than do day trading if you are a new investor. 

Beginners must also avoid markets and instruments like derivatives, CFDs, Commodities and forex as these are more volatile in nature and require years of experience to learn and perfect trading strategies and style.

Even if you've never looked into crypto investment yet, this might be the best time to do so. Crypto can now be utilised in such activities, and it is already happening in some regions of the globe. In exchange for services rendered, more businesses are taking cryptocurrencies as fees. You could also use a cryptocurrency trading platform to help you manage your transaction if you are a newbie. Based on this article, Bitcoin Prime is suited for beginners, created by professionals at a trusted crypto outlet and enables rapid signup. Now let’s look at some of the most beneficial crypto tactics and scenarios for holding, which you may follow to boost your venture.

Set A Target Selling Value

You may set a target selling value. Therefore, you can figure it out, and it's time to sell. To achieve this goal, all you have to do is wait for the rates to stabilise. Whichever the situation could be, one must be conscious that you'll be attempting to obtain the maximum possible market value. You may accomplish this by looking at the price graph of your coin. You may utilise the highest sales price on record as a factor for calculating your objective price after you have located it. After you have traded your cryptos at your desired sale value, you might anticipate prices to fall drastically, requiring you to reinvest your funds. You might just have to wait a long time to acquire your crypto assets for another wave of cryptocurrency trading. So it is best to hold multiple cryptos if you can. You might still draw on your previous knowledge to estimate how low the purchase value could be. You might plan for a time when the sales price is the same as it was before you bought your coins.  Examining certain market projections can also help you guess what will happen afterwards. You can also read some credible price prediction articles online.

Wait For The Ideal Opportunity

Whenever it applies to cryptocurrency trading, timing is everything. You must understand when it is preferable to keep or trade your investments. This will essentially define if you generate income or continue to lose money. Investors that wish to improve their prospects may have to wait a while. This is entirely dependent on the value of your coin. It's also a beneficial factor if you acquire a coin that is significantly volatile. You might, at the very minimum, capitalise from the fluctuation without having to wait a very long time. Despite cryptos being often regarded as great investments, you cannot predict whenever the price would be ideal. Remember that cryptocurrency investing is a highly volatile environment, and no one can foretell whether you could profit or end up losing your capital. It's vital to keep a strong financial condition to get through all the waiting time. That means you won't have to withdraw your cryptocurrencies. It is a good idea to have separate funds for the financial crisis rather than withdrawing all your assets prematurely.

Hold Until The Price Is At An All-Time High

You may be bewildered at this point if you want to sell your cryptocurrencies. With some, it involves selling something for more revenue than you spent for the assets. You will have to keep a record as to how much you have spent on your crypto accounts. The amount would be used to determine if you're not able to deal. One should be aware of the pricing, and they'll be the primary consideration in your investment decision.

Closing Thoughts

Follow the option that best suits you. This will only work if it is compatible with your temperament. For beginner investors, holding is reasonable and easy.  At the end of the day, the decision is up to you. You can hold your cryptos for as much as you choose and trade them whenever the value goes up while building your crypto portfolio along the line. Whenever it relates to cryptocurrency assets, it is indeed essential to come up with strategies. As a crypto investor, you should be attentive to any threats which you can manage as long as it keeps control over the situation.

The Main Financial Benefits Of Forex Trading

1. Trade From Any Location

Typically, all online trading can be conducted from any location and time if the trader has a reliable internet connection. It allows you to pick the place and time of your preference. Moreover, most exchange platforms have tools to help traders' initiate and execute actions automatically through their accounts. For example, you can customise your account to buy or sell currencies when they hit some value, thus making an easy profit.

2. The Potential For Big Profits

The possibility of making colossal trading profits is the primary reason many people opt to trade. You’ll need to diligently learn the skills and know what type of trade is more beneficial. For example, forex trading is the leading global financial market, which isn’t closely regulated compared to other digital channels such as commodities and bonds. The currency market is ever open, subjecting the rates to fluctuation, depending on the market dynamics. You’ll need to understand all the concepts if you want to win.

This requires you to carefully pick the Exchange Traded Fund (EFT) you purchase and the time to acquire it. You should scrutinise the Contract for Differences (CFDs) on the platforms. The CFD limits will help you decide on the positions (short or long) when buying and selling.

3. Minimal Capital Investment

You don’t have to spend a fortune to start online trading. Since the online trading market isn’t supervised institutionally, there is no consistency in trading rules, timeframe, or fees. Forex traders, for example, do not need cash reserves since they can open and close trades with significantly lower amounts, unlike other investors.

4. You Can Benefit From Uncertainties (Economic And Political)

Trading allows you to take advantage of the uncertainties in the economy and politics. One of the critical ingredients of success in digital trading is forecasting. While this skill can be hard to grasp, you can master it with dedication and effort. It lets you know what could happen and how the event may affect the market. 

Some uncertainty levels are challenging but not impossible to predict. However, such uncertainties can present traders with exceptional skills in predicting golden opportunities to make a good fortune.

5. Trade Whenever You Are Ready

You can temporarily stop trading if you’re cash-strapped or have a tight schedule that can not allow you to trade effectively. Online trading does not require the traders to avail themselves at a specific time or for a particular duration—stop and start whenever convenient for you. 

This flexibility also gives you the luxury of not buying or selling assets when you feel that you could make more if you wait. Besides, the trading markets are always open, meaning they are continually operating and have fluctuating rates depending on the dynamics. 

How Can I Start Trading? 

Do you have a credit card and have been planning on joining any trading programs but aren't sure if it's good for you? You only need to understand a few things to get started.

First, you must realise that this is a high-risk enterprise with the potential for highly significant returns. As a result, it is critical to select a skilled and reputable broker or a trusted app.

After you've created a solid working connection with your broker, they will assist you in establishing a demo trading account to help you get acquainted with the procedure. Fortunately,  you will not pay any amount while using the demo account. 

What If I Have No Capital To Start Trading?

Trading is, in many aspects, the ideal business. However, you must have some capital to begin. You may have the needed trading skills, but the gains you produce will never be good enough if you don't have a substantial quantity of trading capital. Fortunately, there are incredible platforms like Viva Payday Loans, which can offer you start-up capital for your trading. It offers payday loans online same day ranging from $100 to $5000, with repayment terms ranging from 2 to 24 months and interest rates ranging from 5.99 to 35.99%.

You Can Start Online Trading Today

Online trading is an ideal business that doesn’t need workers, supervisors, offices to rent, or products to sell. As an individual trader, your start-up and operating expenditures are minimal; you only need a computer, a workspace, and affordable trading software. With just a few requirements, the profit margins are significant when trading is performed wisely and efficiently. Furthermore, online trading comes with many benefits, such as the ability to trade from anywhere and at any time, the potential to quickly earn lots of cash, small capital, among other advantages. 

Rather than risk becoming confused, it is worth considering each of these terms one at a time. As a new trader, it pays to look into industry advice such as a professional Trade Nation Broker Review, and to arm yourself with all the terminology you can. Let’s break down some of the most common terms you will come across when reading up on trading:

Day Trading

This one should be nice and simple — it refers to trading during the day! However, what you may not know is that it also refers to completing transactions on the same day too. This is often a lucrative way of making money on your portfolio.

Initial Public Offering (IPO)

When a brand or business sets up an IPO, this means that they ‘go public’ with shares in their company. This is when everyday traders are able to buy small portions of these companies that they may be able to sell on at a profit. For the company, it is a quick and easy way to raise funds for ongoing development.

Averaging Down

When the average price of a stock goes down, some investors and traders may choose to buy it up. This is largely in the belief that the stock price will spike again in the future. It’s banking on the reputation of the stock reversing. Averaging down means you take advantage of a dip.

Leverage

Leverage can be complex, but many traders and investors swear by it. Leverage allows you to actively borrow from a broker. It’s much like borrowing and then paying back the loan when you make a profit. However, the risk is that there is never any guarantee of success.

Rally

Rallies, on the other hand, are generally always good to see. A rally is a spike or a sudden upturn in the value of a stock. For example, any rapid uptick of 15% could be considered a type of rally. Many traders ride these rallies for as long as they can.

Spread

Spreads can also be complex. The spread is, by and large, the difference between the sale price and the bid price for a specific stock. For example, if you put stock up for sale at £40, and your buyer offers £37, that’s a £3 spread.

Trading is fast becoming a common source of passive income for everyday people. You no longer have to be an FTSE guru to take full advantage. However, when the complexities of cryptocurrency trading loom into view, it can be easy to start feeling overwhelmed. Take your time and be sure to do your homework — trading success is certainly a marathon, not a sprint.