The Ultimate Guide To Forex Trading

Beginners often have predetermined common expectations from forex trading, which makes it difficult for them to start. There are certain terms that one needs to know before working with forex trading bots, and we have written this blog to help beginners understand the basics of forex trading so they can also earn better returns.

What Is Forex Trading?

Forex trading is an exchange of foreign currencies with one another. It is a process of speculating on currency prices to gain profit. In this trading, the traders speculate the rise and fall of one currency against the other by exchanging them with each other. Forex trading seems like a hard mountain to climb, but forex trading bots have made it quite possible for beginners to make a profit these days. Forex robot trading makes automated trade possible for traders. This system is designed to make trading easier and more accurate for everyone. They are run by programmers with a set of regulations. Best forex trading is done with the help of historical data, as the bots are able to make smarter choices than humans.

Is It Safe To Rely On Forex Trading Bots?

Forex trading bots are created to make trading convenient for traders, and relying on this system is totally safe. The chances of error are much lower in using a robot for trading forex. The decisions made by a forex trading robot are based on logic and strong reasoning. They are able to analyze the situations and grab opportunities in a few seconds, whereas human trading can take a much longer time. These trading bots are also highly protected, as it is one of the biggest concerns for traders while using technology. Professional programmers design these bots with high-level protection, which makes them a safe option for new traders.

How Is It Better Than Human Trading?

Both human and forex robot trading has their pros and cons, and there are reasons to consider forex robot trading better than human trading. One of the biggest issues with human trading is that it can get influenced by emotions. Humans are capable of feeling things, and they often make impulsive decisions that might not bring any profit. Computers are unable to do that. They only make rational and logical decisions as they are incapable of feeling. If one wants to ensure that no trading decision is made on impulse, forex trading bots are the right choice for them as they are more accurate and emotion-free than human trading.

16 Terms Commonly Used In Forex Trading

As we said, before someone starts their journey with forex trading, there are some terms that beginners need to know to understand the program in its entirety. Following are the basic terms that you will often come across in forex trading.

1. CFDs

CFD stands for Contract For Difference, and it is a contract to represent the movement in prices for financial instruments. In forex trading, this term implies that instead of buying and selling the currency, the traders can take advantage of the price movement without owning assets. CFDs are not only available in forex trading but can also be found in stocks, cryptocurrencies, commodities, etc. All these programs allow users to trade in the price movements of financial instruments without buying them.

2. Spot Forex

This term is used for the buying and selling of real currencies. For instance, you can purchase a certain amount of dollars and exchange it for euros. Once the price of dollars increases, you can again exchange the euro with it and get more money than you originally spent on the purchase.

3. Spread

Spread is the term used for the difference between the purchase price and the selling price of a currency. The spread price of popular currencies is often very low, while the spread price for less popular currencies is comparatively higher. Forex trading can only be profitable when the value of currency exceeds its spread.

4. Pip

This term is the base unit in the price of the currency in non-JPY currency pairs, so when the bid price of a currency pair goes up it represents the difference of 1 pip.

5. Bear Market

Bear market is a term used to describe the stock market when it is moving in a downward trend. In simple words, we can say that when the prices of stocks fall, it is called a bear market. If the price falls deep and fast, it is considered bearish in forex trading.

6. Bull Market

Bull market is the opposite of the bear market. When the stock market is going through a period of rising stock prices, it is called the bull market. When the prices go up fast it is considered bullish and individual stocks can also be considered bullish or bearish.

7. Leverage

This term is a must-know for beginners in forex trading. Leverage is the capital offered by the broker to ensure that the volume of trades is increased for the customers. Leverage must be handled with caution whether you are a beginner or an expert trader. If your account balance falls to zero, you can request a negative balance policy from your broker. This protection ensures that your balance does not fall below zero, so you can avoid being indebted to the broker.

8. Beta

Beta is a metric that indicates the relationship between the price of the stock and the whole market’s movement. For example, if a stock is measuring beta 1.5, it means that when the market moves 1 point, the stock price will move 1.5 points. It also goes the other way around.

9. Blue Chip Stocks

Leading firms generally use these stocks. Many traders are motivated to buy these stocks because of their good reputation. Blue chip stocks are known for paying stable dividend payments. It is also believed that the term blue chip is derived from the blue chips used in casinos as they bring the highest denomination of chips.

10. Broker

A broker can be a person or a company. Their job is to facilitate your buying and selling of an instrument using their platform. It can be online or physical as well. All the brokers generally work on commission.

11. Exchange

An exchange is a place where trades are made. It is the most commonly used term, and the name is self-explanatory.

12. Dividend

It is a proportion of a company that is paid to its shareholders (the people that own its stocks.) Not all companies pay dividends to their shareholders. For example, the companies that offer penny stocks are unlikely to pay. Dividends are usually paid quarterly or annually; it depends on the company when they want to offer.

13. Close

This is the term used for the time when the exchange closes. No trades can be made after the close. The trading hours are different for each platform. Some might close it early, while some might continue it for a few more hours.

14. Margin

Margin is the term used for money that is retained in the trading accounts while opening trade. Many forex traders lack the money to open their trading accounts, which is why brokers offer them leverage to start trading.

15. Day Trading

Day trading, as the name suggests, is trading that is done in the daytime. Many traders only trade during the day, and they are likely to make long-term investments while doing so.

16. Bid

This is the term used for the price the trader is willing to pay per share. It is set after knowing the asking price. Sellers can first set a price on their shares as per their wish; then, the buyers offer their bid. The difference between the ask price and the bid is called spread.

Forex Trading Tips For Beginners

Forex trading can be a difficult thing to get a grip on for beginners. While forex trading bots are making the process easier for beginners, it is still essential to know some tips that can help you stay in the game for the long run. Following are some tried and tested tips by 0 Percent that can surely help you make a profit with forex robot trading.

Know The Market

It is impossible to rule a market without knowing it inside out. You need to do proper research about the forex market to really know when is the right time for trading and how you can make a profit. Take the time to study currency pairs and what works best with which currency. Educating yourself can never go in vain, and it will eventually bring more benefits to you.

Make A Plan

A detailed plan can help you make more effective trading choices. Creating a trading plan is the first and most crucial plan for forex trading. You cannot go long without a proper plan that includes profit goals, risk tolerance, methodology, evaluation process, and everything that is important in forex trading. Make sure you cover all the essentials that can help you stay rational. Remember that it is very easy to get impulsive before the trade, and your plan can help you stay calm and rational during the process.

Practice And Forecast

Forex trading allows you to practice your skills without putting money on the line. You can make a demo account with different platforms and practice your trading skills with real-time market prices. It helps you sharpen your knowledge and instincts so you can avoid loss when you actually trade real currency. You should also use forecasting tools to predict the changes in prices. By doing this, you can prepare for potential opportunities that might come your way in the future.


0 Percent provides you with a robot for trading forex. Our products are designed to help you have stable passive income and financial freedom. Our forex trading bots can make automated trading decisions that will bring more fortune to your account.

Know Your Limits

Going all out is not always a good choice. You need to be careful with your limits when it comes to investment and trading. It is simple yet very critical for your future. You should be able to make a good profit, not lose all your money. Knowing your limit means that you should determine how much you are willing to risk. You might end up losing all your money, so you should not be risking something that you cannot afford to lose. Limit your spending and stick to it to avoid bigger problems.

Keep Your Emotions In Check

Humans have emotions. It is completely normal to get overwhelmed with things, but you should be able to control your emotions while trading. One of the biggest reasons why forex robot trading is better than human trading is because it doesn’t have emotions. In some cases, emotions can be your biggest enemy in this field. You might make impulsive decisions if you are not able to control your emotions, and this can bring great loss to your account. Keeping your emotions in control must be your strategy no matter what you are feeling, be calm and rational while making trading decisions.

 

Another thing that we have seen traders doing is “revenge trading.” This happens when the market is not going their way, and they try to make trades that are not in their original plan. You might think that a few trades cannot do much, but revenge trading can also cause loss. You need to keep your emotions in control no matter how much you want to go against your plan and make irrational choices.


To avoid making any impulsive choices, it is best to choose forex robot trading at 0 Percent. Our advanced forex trading bots are designed to make efficient trading choices on your behalf. You can avail the biggest opportunities with their help without any emotional baggage.

Keep It Slow

We all have heard that slow and steady wins the race; it is not so different with forex trading as well. Every trader has lost money, and there’s no certain way to only make a profit. You need to be consistent and have a positive edge, and as you make progress, you will surely make a profit as well.

Know Where To Stop

You cannot sit in the market all day. The prices keep changing with every passing minute. You should set a limit for yourself and get out of the market once you reach that limit. Getting greedy can cause you loss, and it can also tire you out, so make sure you know where to stop. Set a realistic limit; it will also help you manage the risk.

Explore

You should make changes in your plan along the way. It is good to be consistent, but if something in your plan is not working in your favor as well as you thought it would, it is best to turn things around. Make the necessary changes and keep exploring new things. You might be missing out on a good strategy just because you’re not exploring and sticking to your primary plan.

Take Expert Advice

Many forex traders can give you advice based on their experiences. While it is suggested not to listen to every single piece of advice you receive, it is also important to follow the experts. You can get great insight and valuable knowledge with their guidance, and you might also be able to make a good profit. However, taking advice does not mean that you should also listen to people online. There are many influencers that give forex trading advice on their social media. You should avoid following people you don’t know. Otherwise, you might find yourself caught up in a scam.

Final Thought

Forex trading is an excellent way if one wishes to earn good passive income with trading and investment. Many people are becoming a part of this program as it keeps getting more popular. The best forex trading happens when you understand the basics of this program. We have tried to help you understand the factors that might help you make a profit in your forex trading journey. 

As a beginner, it might be best to have a robot for trading forex, as you might not be as experienced and well-versed with everything. Educating yourself can sure take you very far, but it takes time to know everything. Forex trading bots can bring your profit in a much shorter period of time. You simply need to visit 0 Percent, and our team will help you get the best bot for forex trading. We aim to help our clients receive profits, and our forex robot trading makes it possible. We can help you make accurate decisions, so you don’t end up losing your valuable money.

Contact us now, and we will ensure that you understand all the basics of forex trading so you can make better trading choices yourself.

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