Last update 2020.10.19
You might be intimidated by the idea of trading in the Forex market, but you don’t need to be. Whether you are a beginner or a professional trader, here we will give essential tips to improve your trading performance in the forex. 📈
What you will learn ahead🎓
- Why you should consider forex trading
- Understanding the forex market
- How to trade forex efficiently
- What are the best forex trading tools
- What is best: AI trading or forex signals?
- How to use AI to trade forex and reach for extra money
- What are the best forex brokers to trade?
🎯 Regardless of your experience level in trading, our mission is to help you invest efficiently in forex and improve your results. Get extra valuable forex trading ideas from leading finance experts on the trading Academy and our free forex Telegram channel.
💹 When trading forex, we suggest you consider long term results.
Why you should consider forex trading
An important point to resolve when planning to become a trader is to decide where to invest. There are several financial instruments to consider, such as Stocks, Forex, Bonds, Treasury bills, Savings account, real state, and so on.
Forex is the short way of saying “Foreign Exchange“. This means the global market for trading international currencies, also known as the FX market through a forex broker. These are the key features of forex:
- Forex sessions are 24/5 from Sunday at 5:00 pm Eastern (ET) through Friday 5:00 pm.
- With an average daily volume of $6 trillion, forex is the largest and most liquid financial market in the world.
- Due to the large volume, forex offers great opportunities to invest.
- Due to a wide variety of existing Forex brokers, Forex has become increasingly affordable.
- You can start trading forex from just $1 or with a risk-free practice account with a lot of forex brokers.
- It’s possible to invest automatically in forex with AI trading.
- Portfolio diversification. Forex is used as a hedging instrument by large hedge funds. This means that you can also consider forex trading as a protection for your investment portfolio.
So, are you thinking about investing? Think of forex as part of your capital allocation. With Wiseinvest’s AI trading, you can invest automatically in forex from just $1.
What is forex trading about? 🧐
In fact, though you probably didn’t think of it this way, you’ve may have traded currencies when you traveled outside of your home country, so you’ve already participated in the forex market!
Establishing a brokerage account and trading forex on purpose has become extremely simple nowadays.
Using Wiseinvest AI to trade automatically is the most efficient way to perform forex trading. It is a hands-free and safe investment solution that will save you the time of making forex market analysis. Check out how it works:
With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account every time that our AI system identifies a new worthy trading opportunity. You can monitor the AI trading performance in real-time directly on our dashboard.
Automated AI trading benefits ✅
- Setup in 3 minutes.
- Totally hands-off, from anywhere.
- Invest from just $1.
- APY of 40% over the past 13 years*.
- Lightning-fast execution & no slippage.
- No commissions, no management fees.
- Portfolio with 40 different automatic strategies.
- No MT4/MT5 or other platforms required.
- Test with a risk-free practice account.
- Trading results directly on our dashboard.
You can also trade manually with AI forex signals that generate effective trading strategies is also very simple-it’s virtually a copy and paste into your forex brokerage account.
You can trade forex with our free forex signals clicking here, or with our Premium subscription that provides you unlimited AI signals and automated AI trading in partner brokers. Whether you are a beginner or a professional forex trader, our AI trading system can help you save time and improve your trading performance. Get started with free AI.
When investing through Wiseinvest automated AI trading or AI forex signals, you do not need to calculate pips or change the leverage in your forex broker account. Learn more about leverage in forex trading clicking here.
The historical results speak for themselves, and based on those, the expected return for the coming year is over 39% (2020 to 2021).
Trading in the Forex market is known by different names such as currency trading, FX trading, or foreign exchange. It’s the largest and most heavily traded market in the world. It trades 24 hours a day, 5 days a week.
Currencies are always traded as pairs because the basis of the market is trading one currency for another. So a traded pair or forex symbol, say the U.S. Dollar and the Euro is an exchange of one for the other at a given exchange rate.
In this case, the forex symbol or currency pair by which the rate can be quoted is EUR/USD 💶 💵. Buying this symbol means you expect the Euro to become more valuable than the Dollar and selling this symbol means you expect the reverse.
What are the most traded forex pairs?
4 major currency pairs make up 80% of the total global FX trading volume. These 4 pairs trade 7 different currencies and their symbols are:
- EUR/USD 🇪🇺🇺🇸
- USD/JPY 🇺🇸🇯🇵
- GBP/USD 🇬🇧🇺🇸
- USD/CHF 🇺🇸🇨🇭
Each of these pairs represents major world economies such as Europe (EUR), the U.S. (USD), Japan (JPY), England (GBP), and Switzerland (CHF). There are other minor pairs, exotic pairs, and regional pairs but your focus initially should just be on the 4 major currency pairs.
So, if you buy the GBP/USD, you buy GBP (base currency) and sell USD (quote currency) simultaneously. So if the chart for GBP/USD moves up, you know that the pound (base currency) has increased in value against the dollar (quote currency).
This happens if the expectation is more bullish for England compared to the U.S. If you think the dollar will increase in value, then you need to sell or short the GBP/USD instead.
Forex trading allows for a significant trading margin through the use of leverage. Some forex brokers allow for margins of 100:1. This means $1000 will trade like it is $100,000! The language used by your broker for this leverage is how big of a deposit is required to open a position.
So if your broker tells you a 1% deposit is required, you could open a US $10,000 position for just US $100. When you use such leverage, you take the risk that you can lose more than you deposit if you aren’t careful. The advantage of leverage is that it helps even smaller accounts grow very quickly.
Standard price quotes in FX trading are in a unit called, “Pip,” and they refer to one-hundredth of a percent. An easy way to think of it is to count the movement seen in the fourth decimal place if a currency quote.
The word PIP is an acronym for “price interest point” according to the forex broker FXCM, or “percentage in point”. In both cases, the word pip (also written in lower case, as pip) designates the smallest price movement made by any exchange rate between two currencies.
Another way to think of one pip is 1/100 of 1% which is 1/10,000th of currencies quoted to four decimal places (such as the US dollar, where the smallest denomination is one penny).
There are exceptions to this for currency pairs which are quoted in Yen (those that have JPY as the quote currency). For these quotes, a pip is the second number from the decimal.
In such quotes, you might see a number such as 106.54 where a change from four to five in the last digit would represent the movement of a single pip.
If fully leveraged at 100:1, a single pip represents a $10 move. A 10 pips move, therefore, represents $100. What makes Forex trading so exciting is that the market can move 20-30 pips in literally minutes.
Some of the main levers moving currency pair pricing have to do with economic measures taken by the respective countries.
Elements that affect one currency’s price relative to its pair include quantitative easing, adjusting of base interest rates, and any reports that forecast an economy’s outlook such as inflation, retail sales, employment, GDP, or production reports.
Wiseinvest considers all such reports when generating recommended setups for forex trading. If you want to trade forex and improve your performance, we also recommend this reading. We are confident that AI is the most efficient way to reach for better outcomes in forex, regardless of the experience level as a trader.
Learning Finance Is Critical to succeed in forex trading
Having financial skills can bring success in your professional and personal life. We always recommend learning more about finance and trading. This is why we founded the free Trading Academy. It is also important to keep up to date on the most important economic news from reliable sources of financial information. Our automated AI trading system is able to analyze economic news from Bloomberg, Forbes, and the New York Times in real-time, in order to evaluate the impact of forex trading.
What is the AI performance in forex trading?
The Win Rate of our AI varies according to the period and can reach up to 95%. The performance is based on the efficient frontier measurement metric, which means that our model is profitable whenever the Win Rate is greater than 60%. All strategies of our AI trading system seek stable returns and sufficient results to achieve an average return of 40% per year (APY), without the use of high leverages.
We understand that what matters in forex trading is the final result. Thus, the investor needs to consider that Win Rate is not always the best metric to measure performance in forex, as other signal providers disclose. For instance, out of 100 trades, only 1 trade may be enough loss to make the 99 trades not profitable. In this case, the Win Rate would be 99%, but the final result would be unfeasible (negative).
We focus on the return of 40% of APY and not just on Win Rate.
It is essential to observe that forex brokers may charge spreads, commissions, and overnight fees in your trading account, and these factors can affect the AI performance. You can check our forex trading track record to understand more about AI trading performance clicking here.
How much do I need to trade forex with AI?
You can start in forex trading with free AI signals or AI trading account and deposit just $1 in the broker. It is also possible to test using a risk-free practice account with our AI trading system. However, in order to do efficient risk management in real accounts, we suggest you start from at least $100. Notice that some forex brokers require different initial deposits to trade forex.
What is the trading strategy of our AI?
Our AI strategy is the combination of different AI trading systems, with more than 100 features, that define 40 different strategies which simultaneously consider: Quotes of the 28 forex pairs, Supports & Resistances in different time frames, Trends and Counter-trends, Cross-indicators, Index of each pair, Economic Calendar, Investors Sentiment.
Our AI analyzes those fundamental, technical, and sentiment factors that affect forex trading, and all criteria are evaluated in real-time using different weights. After completing the analysis, the choice of the signal emission strategy is made considering the increased likelihood of short-term profit and the amount available for investment.
Using technical analysis, our algorithm considers not only the patterns of various trends, including support and resistance levels and cross-indicators, but our AI is also able to create its own real-time index for each currency pair, that is used to identify what is the best direction and target.
In relation to fundamental analysis in forex, the AI makes a correlation within the economic calendar to find news data that can affect specific currency pairs.
Takeways for forex traders 🎓
- With an average daily volume of $6 trillion, forex is the largest financial market in the world and offers great opportunities to invest.
- Forex sessions are 24/5 from Sunday at 5:00 pm Eastern (ET) through Friday 5:00 pm. It means more opportunities to trade.
- Due to a wide variety of existing Forex brokers, starting to trade Forex has become increasingly affordable.
- Wiseinvest provides the best AI trading solutions for forex. You can trade automated from just $1 through partner brokers with AI trading or manually with AI forex signals in the forex broker of your choice.
- You can get started with free AI forex signals and use a risk-free practice account.
- Whether you are a beginner of a professional, AI trading can help you reach for extra money in forex.
Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.
The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. FXCM warns that 74.74% of retail forex traders lose money trading CFDs.
The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.