Plus500 Review

Plus500 is a UK-based on line trading company founded in 2008.The company is registered and located in the UK with offices in Israel and Australia .They are also authorised and regulated by the British Financial Conduct Authority (FCA)and the Application-specific integrated circuit (ASIC) in Australia. .The Financial Conduct Authority  (FCA) registration number for the firm is ID #509909. Plus500 offers two types of accounts a demo account which  is unlimited by time and absolutely free of charge and live account which is with minimum deposit 100 EUR. Plus500 also offers welcome bonus of 25 EUR  to all new customers who download Plus500 trading platform . The welcome bonus of 25 EUR is no deposit bonus ( which mean no deposit request ) but they also offer deposit bonus up to 7.000 EUR ( bonuses are for limited time ) . Plus500 have easy to use platform which  is available for all device (computers,mobiles and tablets ) . 
Plus500 is a CFD service with over 2.000 instruments ( Forex, commodities, Shares,...etc )With over 30 different language the company is serving to their customers worldwide .Deposit and Withdraw is really easy . Account can be funded by credit/'debit card, money brokers, wire transfer and Paypal. The withdraw request ID ( photo) which can be sent by email or upload from the trading platform .Withdraws usually takes 2-3 days .

With zero commissions , high leverage and friendly customer  support (with email )  Plus500 is probably the best choice .

Please note Plus500 is a CFD service . Your capital is at risk . NO scalping accept . Does not accept U.S clients .   

official Website  http://www.plus500.com/

Margin

Margin - Banks and/ or online trading providers need collateral to ensure that investor can pay in the event of loss. The margin is also know as minimum security in Forex market.
Margin enables private investors to trade in markets that have high minimum units of trading, by allowing traders to hold a much larger position that their account value.  Margin also enhances the rate of profit / loss beyond that taken without leveraging .
Maintenance margin (M.margin) The main reason for (M.margin) is to ensure the necessary amount is available in the events of a "sleep-page" or "gap"  in rates, M.margins are also used to cover administrative costs.
Margin Call- A request from a broker or dealer for additional funds or other collateral to guarantee
performance on a position that has moved against the customer.

How to choose the right Forex broker

1-The first question you have to ask yourself is: is the broker I want to use Regulated ? There
must be no doubt about this first point. All regulated brokers must submit financial reports to
regulatory authorities, and when they fail to do it,authorities have the right to fine them or
terminate their membership.
2-This point refers to the features of the trading platform and the trading conditions with the
chosen broker. Among st the most important factors are:
Spread - Obviously the smaller the spread on currency pairs the better the conditions are for
investors and traders.
Platform execution - Trading execution refers to how fast and consistent are the execution of
trades. Some brokers guarantee fast and  transparent executions during normal market
conditions.
3-Fractional trading - Some brokers allow investors and traders to trade on a fractional basis,
instead of trading full lots "100,000 units" or "300,000 units", they allow you to trade "173,345
units" or "335,911 units". This is very helpful for trades risking certain percentage of their
balance on each trade.
4-Safety of funds.

Currencies

In the Forex market currencies are always priced in pairs and all trades result in the simultaneous buying of one currency and selling another. The objective of currency trading is to buy the currency that increases in value relative to the one you sold.  

Currencies are quoted in pair.The first listed currency is know as the base currency and the second is called the counter or Quote currency .

Currencies are quoted using five significant numbers with the last placeholder called a pip .

The strategy

Your risk per a trade should never exceed 3% per trade. It's better to adjust your risk to 1% or 2%
the lower the better. If you are confident in your trading system then you can lever your risk up to
a maximum of 3%
1% risk of a 100,000 account = 1,000
You should adjust your stop loss so that you never lose more than 1,000$ per a single trade.
If you are a short term trader and you place your stop loss 50 pips below/above your entry point .
50 pips = 1,000$ If you have mini account then may place 10 pips stop loss.
1 pips = 20$
The size of your trade should be adjusted so that you risk 20$/pip. With 20:1 leverage, your trade
size will be 200,000$
If the trade is stopped, you will lose 1,000$ which is 1% of your balance.
This is just an example. Your equity and leverage provided by your broker may differ from this
formula. The most important is to stick to the % risk rule. Never risk too much in one trade. It's a
fatal mistake when a trader lose 2 or 3 trades in a row, then he may be overconfident that his next
trade will be a winning one and he may add more money to this trade. This is how you can blow
out your account in a short time! A disciplined trader will never let his emotions and greed control
his decisions..

Minimize your risk

You must believe that anything can happen in the market.
Don’t have any pre-conceived ideas about what is going to happen next.
Some advice as to setting up a trading regime:
1-Be absolutely disciplined in every aspect of your trading.
2-Never re-enter a botched trade. When it’s over it really is over!
3-Never hesitate to enter a trade when you have a signal. Do not wait for a low price .
4-Never get out of a winning trade too soon. This often is what you want to do after you have taken a
loss on a previous trade!
5- Make your own rules.
6- Don’t break your rules.

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This does not work in Forex market

1-Following a Forex Robot with Simulated Gains- You can apparently achieve success
without any effort as promised by these. You are asked to accept their track records
simulated going backwards. Your equity will get destroyed by trying them.
2- Day trading and Scalping -Due to the random short term volatility, simply DOESN'T WORK.
Like the robots, even people selling these always have simulated track records.
3-If you try and use the fundamental rule of the share market – “buy low, sell high” – in Forex
trading, you’ll actually lose money. To understand you need to know how the system of support
and resistance works.The reason why this traditional wisdom is counterproductive in Forex trading is that if you actually
wait for prices to fall, you’re going to end up missing some of the best opportunities for making
money. Consider: when a currency starts to pick up, what are the chances of its pulling back?

Orders in Forex market

There are many kinds of orders which traders can place to transact in the Forex market, for
making profit out of it.
1-Market Order
The market order is the most simple and common kind or order. Here, the trader buys
and sells the currency at the rate prevailing in the market at the time of placing the order.
Due to the huge size of the market and the high volatility, trends can reverse any instant,
so people prefer placing orders at the market price to guard themselves against any
adverse trend.
2-Limit order
In this case, the trader specifies a price at which he may wish to buy or sell the currency.
Suppose a trader has bought EUR against the USD at 1.9810, then he can place a sell
order at 1.9825, when the exchange will execute the order and he will profit from it. The
order will get cancelled if the target price is not achieved during the day.
3-Stop loss order
Due to the volatility, stop losses are essential. They determine the maximum loss a trader
is willing to suffer. Suppose in the above instance, the risk-taking ability of the trader is
low, then he may place a stop loss at 1.9805, at which level the exchange will book
losses for him, and he won’t be affected by any fall below 1.9805.
4-Entry order
Such an order is filled only when certain conditions are met in the market, which the order
specifies. The entry order can be a limit entry order or stop entry order.
- Limit entry order
As an example, let’s assume that the current market price for EUR/USD is 1.9805-10.
This implies that the trader can transact at these levels. Here, a trader can put a limit
entry order to sell his holdings at a price more than the market price, say, 1.9815. His
order would be executed only if that price is attained. In the similar manner, he can place
an order for buying at a level of, say 1.9800, and his ‘buy’ order would remain pending till
the price falls to that level.
- Stop entry order
Such an order is generally used when the trader has sufficient grounds to believe that the
currency is trading in a fixed range and believes that it is on the verge of a breakout from that range.

Less Is Definitely More

The best times to day trade are usually the first two hours after the open. Some traders also like to trade
the last half-hour before the close.
Momentum is great stat these times,with real buying and selling pressure creating the best trends.
Many real-time traders also follow the"3 strikes and you're out"rule.
By limiting your trading to only three trades a day- MAX - you reduce your stress level enormously.
You'll be sharper and less likely to make mistakes.
You also insure yourself against a "suicide day",when you take serial losses, each time trying to
recover from the previous loss...
Reading this away from the market,you might feel you would never fall into that trap.
However, it's surprising how many traders have come unstuck in a real-time avalanche as the losses
begin to snowball.
The motto?
Tomorrow's another day.
Take it easy. Don't trade a 40-hour week. Accumulate your profits over time.
And you'll make more by doing less.
The fact is, trading has to be about one thing.
Making a profit.
If you do it for any other reason, you are probably doomed to failure,because you'll operate from
emotion instead of the cold, mechanical thinking that's the hallmark of a good trader.

Don't think about money

Whether we like it or not, money is highly prized in our society.It's important.And we attacha lotof
feeling to it.
How then will you feel when you see hundreds of dollars (perhaps thousands, depending on your
account size)go up in smoke in front of you?
The problem is, "expenses" are part of the game.You have to lose some to win some more. There  is
no holy grail.
If you can't change your relationship with money,then just don't think about it. Focus instead on
numbers.
Think"percentage of trading account".Think "average risk-to-reward ratio".Think "potential profit
points versus maximum points risked".
Concentrate on getting the numbers right and the money will take care of itself.
You're the one in charge of your trading.You alone are responsible for your success or failure as a
trader.
Not the market...not the trading system...not the government or the Federal Reserve.
You.
That's quite a responsibility. You handle it by being kind to yourself.
Become your own mentor.Watch how you're behaving during the trading session.Be especially
careful to notice your feelings.
Focusing on your feelings gives you useful feedback about your performance.Remember that having a
"winning day"or a "losing day"is not the issue here. All that's important is how you're performing in
the job.
Are you being professional, remaining emotionally detached?
Or are you starting to get irritable at the market...the market makers...the unfairness of life...?
Negative emotions are early-warning signals that you need to cool down and relax.Get back into your
state.
Observe the tension in your body and release it.Just let it go. Perform the visualization exercise again.
Remind yourself that it's all percentages.This is just another trade,just another day.
If you make a mistake during your trading- and who doesn't- don't beat yourself over the head with it.
Learn from it.Make a mental note to build on it. Thank the market for the training lesson ;-) and move
on.
Be nice to yourself !It's very important that you avoid spiraling down in to an emotional cycle where you end up doing some serious damage to your account and to your own ego.

Calculating profit or loss

A pip is the smallest increment a price moves and will determine the profit or loss of the trade.
A pip is most currencies is 0.0001 or 01% but depends on currency pair.
If currency moves from 2.0700 to 2.0710 it has moved with 10 pips.
When you have an open position each upward or downward pip movement in the market price can be either a profit or loss.
the value of pip is determined by the pair or currencies being traded and the rate at which the currency pair is trading.
For example if the dollar is not the base currency (EUR/USD) each pip has a fixed value of $10 so if you are trading EUR/USD and the market moves 5 pips in your favor then your profit would be $50.

Market movements

Most of people are confused when to enter the market .
Big market movements: Should i enter the market when it has “big market
movement” period.? The market has already changed; this
moment was missed. It is rather difficult to succeed in making great profits on this movement, when other traders
have already started doing the same. The best way out of this situation is NOT to enter the market
at the moments of big markets movements. Mostly they do
not last long, and soon you will be able to open the position
after the new signal of the trading system.
Small market movement:
The situation when the difference between the moving
averages is small can happen on the market very often.
Usually it takes place after a big market movement has
already finished and the market goes into the correction stage.
 In both cases most of the traders are waiting until the
situation on the market becomes more clear .

Easy system

1- What is pips ? Pips mean price interest points .
2- if you don’t have at least $2,000 to open a regular Forex
trading account, or can’t afford potential 10 pip losses, then you
may want to consider a “mini” account.
3-Trading a mini account means that 1 pip
equals roughly $1.
4- never risking more than 2% of your margin account on any
single trade, however if you have a small mini account you may
bend this rule to 5%. if you have $300 in your
account, 2% is $6, equal to 6 pips loss.
5-never trade without stop loss.
6- only risk 5 or 10 pips
7- do not try to get rich fast set your high stop line with 10 pips in time if going fine you may change it to 20 or more .
8-At this point you wait for your profits to be in
excess of 20 pips and you immediately change your stop order to
secure a 10 pip profit which counters the 10 pip loss.  If anything
bad should happen at this point you would exit the trade with a
zero win/loss, which is better than walking away with a 20 pip loss.
9- If your Forex broker is giving you a 5 pip spread, if for the
currency pair you have a greater-than 5 pip spread then you
should not add/subtract 10 pips but rather use 15 pips or more.This is because you could get triggered into the trade too soon. .
10 -As soon as your trade
has been activated and moves up at least 10 pips then
immediately replace your stop to be at your entry price.

Forex trading

Forex , is an abbreviation for Foreign Exchange.  It is away of trading exchange
rates between two different currencies. Basically ,you buy one currency and sell the other
for the purpose of investment speculation. The goal is to make a profit when the value or
exchange rates of the currencies traded move in your favor.
Forex has more daily volume than any other market in the world. Taking place in the
major financial institutions across the globe, the Forex market is open 24 hours a day.
 Forex trading often allows borrowing leverage up to 100 times your account value.
Remember that while leverage can help build profits quickly,it can also produce large,
catastrophic losses. Placing a trade in the Forex market is simple.The mechanics of a trade are virtually
identical to those found in the markets you are trading now.
A Forex trade is a trade in which one currency is valued against another.
An open position is one that is live and ongoing. As long as the position is open, its value
will fluctuate in accordance with the exchange rate in the market. Any profits and losses
will exist on paper only and will be reflected in your margin account. To close out your position,you conduct an equal and opposite trade in the same currency paid.  

What is forex

Introduction.
The Forex market has quickly become the world's largest financial market, with an estimate daily turnover of $5.3 trillion. It is a market that has great appeal to a financial trader because of its volume which guarantees liquidity.High liquidity means that a trader can trade whatever currencies he feels like at all times, since there will always be someone to buy and sell any currency  he wants.Another outstanding feature of the Forex market is that it is active 24 hours a day and is closed only on the weekends. This means that unlike the stock market for example traders in the Forex market don't need to wait for a bell to ring, but can make trading decisions around the clock.
Now the Forex market is literally at your fingertips. Most brokers offer online trading facilities which enable you to trade simply by clicking a button.




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