Connect with us

Strategies

How to Get a Forex Trading Job

How to Get a Forex Trading Job

If you don’t have any relative experience and you have no connections to anyone in the industry, how can you set foot in your trading career?

The Path

So to get started, I firstly want to walk you through the different paths that you can take in your trading career. You have the hedge funds approach, the banks, and the proprietary trading firms.

The Path in FT

Hedge Funds

What they do is that they take an investor’s money and trade that money to earn a positive return. So for hedge funds, they can pretty much do anything and everything. They can go short, trade stocks bonds futures FX, whatever. They can pretty much do all of this because it’s a very loosely regulated industry.

So for hedge funds, their strategies, their methods could be things like investing based on fundamental analysis, identifying value stocks or maybe even identifying growth stocks. They can trade or invest based on macroeconomics or identifying where the economy is heading. And then making speculative bets on the economic direction, or they can use a systems trading or a line trend following to base their own trading decisions.

You can see that hedge funds have a multitude of different trading strategies and usually different hedge funds would have different methods that they focus on. For example, CTS commodity trading advisors usually focus on systems like trend following.

Hedge Funds

Hedge funs like fundamentals, they usually focus more value investing or maybe growth investing than their hedge funds. They don’t just trade or invest based on macroeconomics.

Many different types of hedge funds with a different approach that they can use, and the duration of their trades or investments it can range from minutes to days to weeks to months even. So the spectrum is really broad. It really depends on their trading method.

For example, investing markets are using fundamentals you would need months or even years for your ideas to payout. It really depends on the frequency that the hedge funds are operating on.

Banks

Banks are quite interesting because 20 years ago, they could take speculative bets like hedge funds to profit from a market direction. But for some time now there is something called the vocal rule and it actually prevents Bank from taking huge speculative bets. Because If the banks were to take bets and they get it wrong, it would make the bank vulnerable and the Bank would collapse. Banks don’t want this vulnerability where a rogue trader goes wall and a bank loses everything. So this is what the vocal rule tries to prevent.

So, mainly these days, what banks do is they provide liquidity in the markets. They don’t take on speculative bets, bat rather they provide liquidity in the market.

Banks in FTSo, what does it means to provide liquidity in the market? For example, a car company F which it’s based in the US wants to buy some tires from company T in India. But, in India the currencies are Rupee and in the US is USD. So, you need to go to a bank, intermediary to exchange USD for the Indian Rupee. And from there F can make a transaction with the tire company in India.

So, what a Bank does is that they are a liquidity provider in the markets. They help facilitate this currency transaction.

And the Bank earn from the spread difference between the bid and ask.
So, this is what we call a liquidity provider otherwise known as a market maker, they make the market.

Proprietary Trading Firms

So proprietary trading firm is a little bit different from hedge funds. They trade their own money, usually, they don’t take any investors money.

The money usually comes from the bosses of the firm. So, the boss of the firm is usually a trader himself and yes excess capital to no allocate, so he might allocate it to his traders to trade different strategies. So this way his own earnings it’s not just dependent on his own trading, it depends on the different traders he employed too.

Proprietary Trading Firms

So, props trading firm employs different strategies, like scalping, day trading, systems trading but generally they are more short-term oriented. They don’t hold positions for months or even years.

They are more on the shorter term frequency.

Why Is This Important?

I am sharing all of this with you because this is important when you want to get a career in trading. You have to know which is the right type of firm for you. Is it a hedge fund, is it a bank, or is it a prop firm?

Once you know which type of firm is relevant to you, the next step is to see if their strategies are similar to the way you trade.

Why is this important in FTBecause, for example, if the prop trading firm is solely trading system trading and you’re a discretionary trader wanting to apply for a role down there. It doesn’t make sense.

You must ask yourself these questions:
What is the right firm that meets my needs and that I meet their needs? And where is the demand for my skill set?

How to Find a Trading Job?

So, how do you find a trading job? So firstly, the easiest way is to go to the jobs portal, which advertises job openings. Go there and look for the jobs meeting your needs. You might have to go there every day, refreshing the page, but don’t give up, be persistent.

Second is Google, I am sure that if you are into trading, you would have some idea of the firms that exist in your country, maybe some hedge funds appropriating firms, etc. Now, you will need to Google their physical address, and if their trading philosophy is similar to yours – go down there and just hand them your resume. Your resume should express the passion that you have for trading and information that the type of your trading approach is very similar to what they are doing.

So, you want to meet the demand of the marketplace, you don’t want to offer something that is irrelevant.

How to Find a Trading JobAnd third is that you can use LinkedIn, which is a Profesional platform, and also a social media. Once you know the name of someone in the firm, you can find them on LinkedIn probably, and then you can send them a cold outreach message.

Also, when you get a job interview, it is good to bring some kind of proof of passion(results, records, journal..etc)because it will make you stand out from the rest. So, prepare yourself and show them your passion. And don’t worry, you don’t have to be profitable.

And of course, you don’t have to be afraid of them stealing your strategy, because chances are really big that the strategy is probably used by someone else out there if it really works. Or, maybe it doesn’t work at all.

But at least show them that you are genuine and you are willing to give and that will put you in a different league compared to the other interview participants.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Strategies

Forex Scams – How to Avoid Them

Forex trading

Scammers try to imitate the approach of legitimate investment firms and sales representatives. Thus, the fact that someone can contact you in a specific way – by phone, mail, email or even referral should not in themselves be seen as an indication that the investment is or is not shady. Many reputable companies use exactly the same methods to identify individuals who may be interested in their investment products and services in an effective and economical manner. Keeping in mind that “investigating before you invest” is good advice regardless of how to contact you, Forex Scams are here to help you in this regard… there are many ways that scammers use to scam but we will tell you how they do that, so you can be aware of 

Telephone boiler room telephones remains a favorite way for scammers and their sales squads to quickly communicate with large numbers of potential investors. Even if a scammer has to make 100 or 200 phone calls to find a mooch (one of the terms scammers use for their victims), they believe that the opportunity to save thousands of dollars from someone’s savings is still a good pay for the time and cost involved. 

Mail Some fraudulent investment deal sellers buy mailing lists in good faith – names and addresses of people who, for example, subscribe to a particular investment-related publication, who have responded to previous direct mail offers or who have other features scammers look for. In the hope of avoiding notification by postal authorities, mail order scammers cannot make a direct or immediate launch for their money. Rather, they often seek to entice you to write or phone for more information. Then comes a call from the seller or the person closing the deal. Some may call even if they did not reply to the email. 

The Rising Popularity of Binary Options in Nigeria

Forex Scams on The Internet 

Internet access has increased dramatically in recent years, and consumers have become more comfortable doing business. (Shopping, banking, or investing) online, but crooks are aware of the potential of cyberspace. The same scams that are conducted by mail or phone can be found on the internet and new technology creates new ways to commit crimes against consumers. 

Advertisement Advertisements in newspapers or magazines may offer profitable opportunities. (Or at least with implications) that are more interesting than general investments Once you have taken the victim, the scammers will try to “hang up”. Although investors know that the regulatory agencies regularly check advertisements in major publications, there are some who use famous publications. Said in the hope that it could be hit and run before the other detectives appeared. Advertisements in the narrowly spreading print media, they think regulators may be less likely to see. 

Referrals 

One of the oldest plans involves paying fast, big profits to initial investors. (Indeed, from their own investments or those of other people) knowing that they tend to recommend investments to their friends and these friends will tell their friends soon. Scammers do not want to find victims. New ones anymore They will meet him. 

The “Reputable” Business 

Some scammers go to the first floor. Take profit from scams. Previously, they rented a luxurious office, hired an interior decorator and professional receptionist, sounding and opening things that were similar. (But not the truth) of a reputable investment company, You may have to call to make an appointment and when you don’t have to wait. (Which is intended to make you more enthusiastic). The success of this type of scam depends on how long he can prevent his victims from knowing that they have been cheated. Investors are confident that their big profits will be reinvested to receive even greater profits. Such swindlers may join local civic groups, participate in charities, and generally play stable citizenship. There are some best forex brokers in the market, which forex scams will let you know about that, stay tuned with us to check it before investing your hard money into them. 

forex quotes

Techniques for Using Forex Trading Scammers 

Their techniques vary according to how they communicate. However, what they have in common is their ability to persuade. The skills that make them successful are the same skills that help salespeople succeed. But con artists have an advantage in their decisions: they don’t have to fulfill their promises. In the absence of this responsibility, they do not hesitate to make any promises that will persuade you to divide your money. Here are some techniques to figure out the forex scam in the market, please see below: 

Expectation of Large Profits 

The money flying through the air, the profits that con artists speak of, are big enough to make you interested and eager to invest. But not too big to make you believe it Or he might mention the profit numbers he thinks you will consider credible, and then in further temptations suggest that the actual profit is even greater. Of course, the latter numbers are something that he hopes you will focus on. In general, if an investment proposal sounds too good to be true, it is possible. 

Low risk Some people are clear that it suggests that there is no risk – investment is a sure-fire source. Clearly, the last thing a scam wants you to think of is the possibility of wasting money. (If you ask how you can be sure that your money is safe, you can trust that the answer is trustworthy. He also believes that you believe what you want to believe) to make him confident. Con artists may admit that there may be a risk – then reassure you that you will definitely get the least profit. Con men may become impatient or aggressive if they have questions about the risk – perhaps suggesting they have. Better things to do waste time with people who lack courage and farsightedness in making money! With this, he hopes that you will not bring this story back. 

Urgency 

There are generally interesting reasons why it’s necessary for you to invest now. It may be because the investment opportunity can be “offered only to a limited number of people” or because the delay in investment can mean missing a big profit (after all, when the information they have told you becomes generally known, the price will Higher, right? Urgent is important for con artists. He wants your money as quickly as possible, with the least effort on his part, and he doesn’t want you to have time to think about it, talk to someone who may suggest you to wonder or check out his or her proposal. With regulatory agencies. In addition, he may not plan to stay in the city for very long. 

Confidence 

The scam is confident in the money you make, so you are confident enough to release your savings. Their message is that they are doing your favorite things by offering investment opportunities. Con artists may intimidate (Happily or something else) to end the conversation by suggesting that if you don’t really care, there are many others that will When you protest that you are interested, he will keep your savings in his pocket. Even if you can’t see a man the way he speaks But most people are determined, clear, and determined people who will control the conversation. The more you talk, the less likely you are to ask questions.

Continue Reading

Strategies

Know all about PIPs in Forex Trading

A Lot Size Which Is Too Big or Too Small

What is a PIP?

PIP is one of the basic terminologies in forex trading. You can’t start your trading journey without knowing about pips.

In this guide, we are going to tell you what a PIP is in Forex and how they are calculated.

All about Pips

A pip or “percentage in point” is the smallest possible movement of the price of a currency pair. 

Suppose, the EUR/USD pair has changed from 1.2334 to 1.2335, this means that the pair’s quotes have changed by one pip. 

As a rule, in the forex market, the name “point” is more common, although point and pip have the same meaning. But on the stock market, these concepts are different; their pip is one cent, and a point is one dollar.

Usually, 1 forex pip is equal to 0.0001 parts of one unit of the base currency but since each currency has its own value, then the price of a pip is not a fixed value but a variable, depending on the chosen currency pair.

Suppose, if we take the same currency pair EUR/USD, then we will see that the first currency in this pair is the Euro. This means that the Euro is the base currency, which we buy for US Dollars so that 1 pip will be measured in dollars.

Currency quotes change by a certain number of points, therefore, the forex trader’s profit changes first in pips, and then it is converted into a monetary equivalent. 

Giving up in FT

What determines the cost of pip?

As you know, each currency pair has its own monetary value of pips. It depends on:

  • a currency pair that is being traded;
  • lot (volume) by which it is open;
  • the exchange rate that applies to the currency transaction.

How to calculate your profits using pips? 

Suppose you decide to make a purchase of one lot for a pair of EUR/USD. One lot (the standard unit of forex trading) is equal to 100,000 units of the base currency. In this case, the volume of your transaction will be 100,000 euros. 

Since the cost of a point = 0.0001 parts of the lot, then 1 pip will be equal to: “100 thousand euros multiplied by 0.0001”, that is, $10. If the currency quotation changes by 1 pip in the direction you traded, you will earn $10, if, by 100 pips, your profit will make $1,000. 

Tools for calculating pips

To avoid calculating the value of potential profit or loss in your mind (or on a piece of paper) every time you open a transaction, we recommend that newcomers use the pip calculator.

Almost every broker has a pip calculator now. So, it shouldn’t be a problem. 

The concept of pipsing

The concept of “pipsing” in Forex Trading is a trading strategy that enables a market participant to make a profit on short positions, usually from 1 to 5 points. 

Many professionals use pipsing several times daily, which makes it possible to get good profits with the least risk.

Conclusion

It is very important to gather information on basic Forex trading terms like “pips”, because a small change in pips can make you win or lose. You must need to educate yourself with all the basics of Forex Trading before you start your Trading. A regular Forex trader needs to spend at least 1 hour daily to read all the technical aspects of Forex Trading, and to practically apply them in the real trading step by step. The more good knowledge you have, the more cautiously you can trade. We wish you best of luck in your Trading!


Sources and references of the Content: Some of the facts and hints have been taken from Wikipedia Percentage in point and FXCC’s article What is a Pip in Forex

Continue Reading

Strategies

2 Trading Strategies for Trading with Support and Resistance

2 Trading Strategies for Trading with Support and Resistance

There are two strategies for trading with support and resistance, first of all, wait for confirmation or secondly, we can second guess the level is going to work.

1.Waiting for Confirmation

As you can see in the picture, let’s say we’re waiting for confirmation.

Wait for confirmation

We’ve got a chart here. The market’s been falling. Maybe we think the market’s going to turn around and the level we’re watching is old low down marked on the picture. So if we’re looking for confirmation, it’s not enough that the market just heads back to that level. We want to see, again, support coming into a place where we have a market that’s sliding.

Maybe, we wait for it.  If we’re looking at candlesticks and this doesn’t really matter whether we’re looking at a daily chart, an hourly chart, 10-minute chart. We wait for at least one period where the market turns around. So maybe we have a positive candlestick.
We have a sign of buying come in. That’s our first bit of confirmation. And of course, the reverse applies if we’re selling into resistance. We’re looking for a day when the market does at least go down.

This is the price of gold example. We’re looking at a daily chart. So every day, every candle represents a day’s worth of trading. From September 2017, we saw the price of gold in recovery. We did see sell-offs, but the market turned around and moved higher.

Wait for confirmation2

So as you can see in the picture. This is up to the 25th of October. And we might think the same thing is happening again. We’ve had a run-up. We’ve had a sell-off. The markets bounced back. We’re coming back to the old support. What’s going to happen?

We might want to be a buyer, but we’re going to wait for confirmation. So we can see the support is at 1260. So what we’re waiting for is at the very least one day where the market goes up. We want to see it turn around if it goes sailing through the support. There’s no trade confirmation waiting for is one positive day.

So we have our day where the market has pushed lower. But as you can see o the picture, it’s turned around on the day and it’s closed pretty much near the highs of the day. So for some people, that will be enough to confirm this point is valid. So it would be a buyer around about what, 12.73, 12.74, obvious place the stop-loss down below 12.60. And we’re in the trade.

Wait for confirmation3

As you can see in the picture, there is our turnaround. It took a week of sitting on that support. But so far, at least, the market has moved about 13 dollars higher. So that is a good example of waiting to come on confirmation ahead of previous support would have set us up with a good trade.

Wait for confirmation4

Now we’re looking at a very different time frame. We’re looking now a confirmation of a sale near resistance. As you can see on the picture, we’re looking at dollar-yen. It’s a 10-minute candlestick. Every candle represents 10 minutes worth of trading. This is the early hours of the 7th of November. The market rallies up from 113.70 rallies up 60, 70 points up to 1144.33. We see the market drop out of the trend line.

Wait for confirmation5

This has made us think if this is an opportunity to sell if we go back to hair and fail? Is this our opportunity to sell short? But again, we are looking for confirmations and maybe we want to see at least one 10 minute candlestick where the market runs out of steam. If it blasts through the level, there’s no short.

Wait for confirmation6 The resistance level is if we walk forward 10 minutes, 9:20 in the morning, UK time, traded as high as 114.33. We’ve seen this candlestick here trade up to 114.29, so within four points of the high and it’s turned around.

Our trade here could be if we’re going to be a seller at 114.18, with a stop somewhere above, let’s say 114.14, 114.15, something like that. But we’re taking that as our confirmation of resistance. Short term resistance, It was only formed about seven hours earlier, but that’s our signal.

Over the course of the next nine hours as you can see on the picture, it does actually end up being the turning point. There was no way of knowing when we put the trade on that the market was going to drop about 50 points. But it was a low-risk logical place to go short because we had a definite reference point. If the trade doesn’t work out, we get out for a small and manageable loss.

Waiting for confirmation7

Arguably, that’s the more disciplined way of doing it. Wait for the market to confirm this is a valid level. But if we want to be more aggressive, we can anticipate that a level is going to hold. So again, let’s take a quick look at how it should work in the theoretical world.

2. Guess the Level Is Going to Work

When it comes to anticipating support or resistance holding. It’s a much more aggressive trade. We’re hoping that we get in it may be a better price or rather than waiting for the market to turn round. We’re buying or selling when the levels approach. So, for example, going back to this chart here, we just are a buyer as you can see on the picture with our stop loss below. So we are in effect, we’re second-guessing the market is going to turn around. But accepting that risk, of course, it could just sail straight through. So we’re giving up the extra confirmation, but we’re hoping to get in as near as possible to that big level.

guess the levels going to work1

Now, clearly, there are going to be more examples of anticipating because it’s going to work. I think a lot less off often than are looking for confirmation.

So here’s our more aggressive strategy. This is euro dollar 0 spread four-hour candlestick as you can see on the picture. Every candle represents four hours worth of trading. This is the middle of October. So the market Eurodollar is traded as high as 118.80 and is sold off pretty hard, sold off down to 117.30. So we’ve seen one hundred and fifty point decline. The market is bouncing back, but we think that that level is going to hold. We think that the old resistance It’s going to be a barrier.

guess the levels going to work2

The level is 118.80. Let’s say our stop-loss is 118.95. You can see during this four hour period, the market traded as high as  118.57-118.60. So we may decide to be a seller at one 118.40 where this market has traded, so we were waiting for it to just push a little bit higher than we’re going to sell because we’re gonna assume that all resistance is gonna hold. It is a more aggressive strategy because we’re second-guessing the resistance.

Let’s see what happened over the next four hours. As you can see in the picture, the market has pushed higher. Let’s say we got filled at 118.40 but is carried on higher still. So at the moment, the trade is underwater. We’re down 15, 20 points, but we’re still guessing that that old resistance is going to hold. It was a big level and we did see it tested on the way on the way down. But that’s what we’re assuming here.

guess the levels going to work3

We then go over the next four hours, fairly indecisive candle. If we were waiting for confirmation, this could well be the confirmation for some. But we’re taking a more aggressive stance here. We’re already in the trade.

Let’s see what happened next. As it turned out, the market did turn down. If we if we’d have waited for a more negative candle for confirmation, we wouldn’t have been getting in until the point that you can see on the picture. So anticipating it higher risk, but arguably gives us a better feel. But the risk is the market would have just gone sailing through that. old level.

guess the levels going to work4

Let’s look at another example. As you can see in the picture, now we’ve got a much more short-term example. It’s a 10-minute chart of the German 30. Like many stock markets, it has had a very strong year being dragged higher by U.S. stock markets. What we’re looking at here, each catalyst represents 10 minutes worth of trading is the 7th of November. We’ve seen the market hold at 13340, and you can see it has quite a few goes that are marked on the picture.

guess the levels going to work5

So we see the market pushing down. Again, our aggressive strategy will be to be a buyer. Now, assuming this level is going to hold. What happens next?

And the DAX, the German 30 index, just sailed through the level like a knife through butter. So if we had been waiting for a confirmation there, we’d never have done the trades. But we run the risk of the market turning around shortly. But this shows why it’s even more important if you’re taking an aggressive approach and anticipating levels hold that you have stop losses in place because here’s a clear example where the market didn’t care about previous support and went sailing through.

guess the levels going to work6

You can see one of the drawbacks there of trying to anticipate is that you end up just jumping out in something that is a runaway train. The upside is you’ll get better entries. The downside is, as we saw with that DAX example, bang, it just goes sailing through the level. I think it maybe if you’re new to trading and then maybe the logical the safer way to do it, first of all, is to wait for the confirmation. It builds up the discipline, it builds up the patience. And I think these are both incredibly important factors when it comes to trading.

Continue Reading
fx 300x250

Latest

Forex trading Forex trading
Strategies2 weeks ago

Forex Scams – How to Avoid Them

Scammers try to imitate the approach of legitimate investment firms and sales representatives. Thus, the fact that someone can contact...

A Lot Size Which Is Too Big or Too Small A Lot Size Which Is Too Big or Too Small
Strategies3 weeks ago

Know all about PIPs in Forex Trading

What is a PIP? PIP is one of the basic terminologies in forex trading. You can’t start your trading journey...

Forex Trading10 Forex Trading10
Lessons4 months ago

Can Trading Signals Really Help You?

Predicting how a forex pair is going to behave is sometimes quite a challenge. There are so many factors influencing...

forex business newspaper forex business newspaper
News6 months ago

Selecting the Best Forex Team for You

Finding the right forex trader for you can be a test of patience and frustration. The rapidly changing forex market...

The Rising Popularity of Binary Options in Nigeria The Rising Popularity of Binary Options in Nigeria
News7 months ago

The Rising Popularity of Binary Options in Nigeria

For years now Nigeria has been one of the most developed economies on the African continent. Its divisiveness can be...

How to Find a Trading Job How to Find a Trading Job
News8 months ago

Automated Forex Trading – How It Works

Automated Forex trading is proof that the future is here. About 75% of daily transactions in a foreign exchange market...

Focus on the risk Focus on the risk
Lessons9 months ago

No Deposit Bonus Forex – The Ultimate Guide

If you’re thinking of getting into Forex trading, then you’ve likely already heard of the concept of the Forex no deposit...

Trading too big Trading too big
News9 months ago

Choosing a Forex and CFD Broker

Playing the Forex or investing in CFDs requires the intermediation of a broker to take care of and execute your...

how to short bitcoin how to short bitcoin
Lessons9 months ago

How To Short Bitcoin Today

Buying into Bitcoin is a common occurrence in the market today. That is because it makes sense to invest in...

5 - Trader at the desk 5 - Trader at the desk
News10 months ago

Forex4live Forex Signals, The Best Forex Trading Signal Since 2011

I want to offer a system called “Forex Lines (FL)”. This forex system consists of 23 indicators that can predict...

Trending