Fearless Forex Trading with Telegram.Forex
Forex trading gained its importance 500 years ago, as estimated. It is exchanging one currency for the value of another, intending to gain a profit. Becoming a fearless forex trader is not difficult to achieve; he who takes risks is fearless.
For a trader to trade currency profitably, they have to understand the risks involved in forex trading; while understanding those risks, the trader should be capable enough to minimize them, as trading is a game of managing risks.
A forex leaderboard is a key for profitable trade for traders; it holds the success and loss rates of trading done by other traders over a period and understanding the leaderboard can be of great use to a dealer.
Read through the article to find out how a fearless forex trader can avoid the risk factors.
Risk Factors In Forex Trading
Risks involved in trading currency can be greatly reduced, as these are the same factors responsible for making profits in trading. If you use the right tools and manage them accordingly, you can take over the forex market.
Most important, the forex market is highly unpredictable. The value of assets can change in minutes or seconds. The buyer can face a loss if the currency value they need to sell drops against the US dollar. In this case, the buyer has to wait until the currency has regained its value. Vice versa, if the currency rate gains value, it will hold a tremendous amount of profit for the seller.
Leverage is the money a fearless trader borrows from their broker to buy a currency. With more capital investment, traders can buy a larger share of currencies. However, if the rate fluctuates in the trader’s favor, it will magnify the losses for the trader.
• Interest Rate
Interest rate plays a huge role in the forex market. If the Central bank of a particular country decides to decrease the interest rate on its currency, the currency’s value will decrease. This will cause a loss for the trader who has the currency in hand.
Interest rate is the biggest risk associated with forex trading as any drastic change in interest rate, whether an increase or decrease, will have a direct impact on the currency. An increase will mean the currency will gain value. On the other hand, a decrease in the interest rate will mean the currency will devalue.
• Low Liquidity
Low liquidity means a decrease in assets which usually occur during financial crisis or holidays. When low liquidity is hit, the operational cost is increased, which causes the payout to decrease. A fearless trader should keep information on events that may cause low liquidity. This is so that they can manage the risk of receiving a low payout from their trade. The most liquid currency pair in 2022 is USD/EUR, which takes up 28% of the forex transactions in the market.
How Can A Fearless Forex Trader Manage Risks?
A Fearless forex trader can manage risks by limiting the amount of money at stake. The trader should borrow the least possible leverage even if their broker is offering more. This will help in limiting the amount lost if the tables turn. Moreover, another way to reduce the risk of unpredictability, change in the interest rate, and low liquidity is by using the right tools like a leaderboard. A leaderboard provides statistics on profits and losses. It does this by guiding the trader in choosing the right time to buy and sell a currency pair.
What Is The Purpose Of The Forex Leaderboard?
A leaderboard works as a statistics provider of profit and loss fluctuation in the forex market. The software ranks the best trades made by the traders in a period for other traders to extract currency values and the total profit gained out of them.
Most leaderboards do not show the ranking through trader ranking. Instead, they rank according to the profit and loss percentages of numerous monitored telegram channels and their signals, just like how Telegram.Forex has designed its leaderboard.
Telegram.Forex has designed its leaderboard according to the most profitable telegram channels to the lowest. Telegram channel which has the highest and most frequently made profits in the time period ranks number 1 on the leaderboard. Telegram channels also include currency pairs that were traded together, the number of trades, lots, losses, and prices.
How Can A Leaderboard Help Traders Generate Greater Payout?
Following a leaderboard can lead a fearless forex trader to land great profits. A fearless forex trader believes in taking risks! They do not follow the old, predictable trading pairs; they explore the forex market intending to gain larger profits.
Leaderboards help traders evaluate currencies and their ranking in the market, which gives an idea to a fearless trader about the potential the currencies withhold. The traders can evaluate currency pairs, explore their strengths, weaknesses, returns over a time period, and the direction where it’s going, that is, profitability or loss.
The USD is one of the most dependable currencies. In 2019, 90% of the forex transactions were made in USD, which makes it one of the strongest currencies to trade in. It’s an example of how you can evaluate a currency’s potential with the help of a leaderboard.
A trick that traders frequently use with leaderboards is the ‘reversal tactic’. The tactic is based on the concept that the top currency pair can be knocked out, so the trader chooses to put all in for the bottom pairs. This is playing a safe strategy for a fearless forex trader.
Once the trader has figured out trends in the leaderboard, they can choose the currency pair which they believe might be the most profitable one. Using the reversal tactic can play a major role in helping the trader decide where to invest for a greater payout.
Telegram.Forex offers 500+ telegram channels and has the best leaderboard deals available, which can guide a trader to land a successful trading opportunity. The ranking by Telegram.Forex leaderboard is according to the profit and loss statistics. It also considers history, records, and costs of the currency pairs. It saves time for the trader, giving them easy access to the strongest signal providers and data.