Erica Villalon on the Methods of Forex Trading

There are a number of methods one can use to get started in the Forex trade. In most instances, they use leveraging by using capital that is borrowed to make money - which comes with pros and cons. Through leveraging one can make money and yet invest so little. The most common FX trading methods always come with pros and cons according to Erica Villalon.

The first one is obviously the day trading method. It involves trading according to the indicators that are technical. In addition, you can make your judgments on the basis of breaking news. This method requires you to get skills that only comes about through experience. It is proper for you to start a demo account so as to develop the necessary knowledge as you practice. If you find out your technique is making money in the demo account, you can now begin with an actual account.

The second method is Scalping. It depends on small gains that result from large trades. It is closely related to day trading but covers a long period of time. Therefore, you will find traders storing arithmetics in the computers instead of manually doing it. Automation makes it possible for scalping to happen.

Other methods for FX trading include big picture trading and automated Forex trading. In the big picture option, you are focusing on long-term trading. There are still subdivisions within this method. As the name suggests, the automated alternative uses signals that come from industry experts. Through these recommendations, one can make decisions and gain or lose. Experienced traders like Erica also advice their mentees to help them make the right choices.

By the end of the day you, the trader, decides which method suits your strategy. Be sure to put your emotions under control and be careful with the preeminent risk.

Thank You For Watching