When a company goes public, it will offer a certain number of shares at a set price. The price is determined by the investment bankers who work with the company on the IPO. Once the IPO is priced, the shares will be listed on an exchange and can be traded by investors.

There are three upcoming IPOs in Hong Kong that forex traders should watch. They are all set to list within the next few months and could offer exciting opportunities for those looking to trade the markets.

Leapmotor

The first IPO is that of the Sequoia Capital China-backed Leapmotor. The company is set to list on the Hong Kong Stock Exchange later on in the year for $1 billion US, according to Bloomberg.

Leapmotor is a Hangzhou-based Electric Vehicle firm, which is also backed by the government. It has received over 70,000 pre-orders and delivered over 44,000 vehicles so far, as of November 2021, and it is looking to gear up for a strong IPO.

Little Red Book

Another IPO to watch is that of Xiaohongshu, or Little Red Book, a social eCommerce app known as China’s answer to Instagram. The company is not set to list on the stock exchange on any specified date, but it has certainly seen great growth in the past year.

Little Red Book is based in Shanghai, but it is backed by investors such as Singapore state investor Temasek Holdings, Tencent, and Genesis Capital. The company has been valued at $20 billion US as of November 2021.

Little Red Book has a strong market position in mainland China, and Bloomberg reported in early 2022 that the company was considering shifting its IPO from the US to Hong Kong, with the aim of raising at least $550 million US.

Little Red Book’s listing on the Hong Kong Stock Exchange will be a significant event for the city’s IPO market if it happens. The company’s share price will be expected to be volatile in the weeks leading up to its listing date as investors speculate on its prospects.

Beijing Fourth Paradigm Technology

The third IPO to watch out for is that of Beijing Fourth Paradigm Technology, a Beijing-based artificial intelligence (AI) unicorn who is peers with AI companySenseTime. SenseTime listed on the Hong Kong Stock Exchange (HKEX) in December 2021, and it has been widely speculated that Beijing Fourth Paradigm Technology will follow in its footsteps.

This company has an impressive array of investors backing its development, including, but not limited to, Sequoia Capital, Sinovation Ventures, Lenovo Capital, and Primavera Capital Group. As a result, investors have high hopes for its IPO.

Beijing Fourth Paradigm Technology is expected to raise around $600 million US if it goes public and begins to offer shares to the wider market. Last year, the company reported a 105% year-on-year growth in revenue, ending 2021 with 942 million yuan. If speculation is to be believed, it would make this AI company one of the most promising upcoming IPOs in Hong Kong, as its growth potential is looking positive.

Final word

The three IPOs mentioned are all speculated to list either by year’s end or a little further down the road. They offer exciting opportunities for those looking to trade the markets with a good growth potential and seemingly stable outlooks. Currently, all of these companies have strong market positions. However, due to the volatile nature of the markets, investors should always exercise caution when investing in an IPO and use a reputable and experienced online broker.

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In this process, they can achieve the most efficiency for gaining profit margins. Contrarily, they can also reduce the loss potential of their trading process. Every rookie trader should think like this to improve the quality. If someone is worried about his efficiency, he will prosper in this profession. Otherwise, he will not last long in Forex.

This article dedicates to those rookie traders who confuse themselves in currency trading. There are a few valuable topics mentioned in the following positions of this article. If you want to improve your ideology for currency trading, read the whole discussion carefully. Then develop your mentality and the strategies for managing investment and the market analysis. Thus, you can find valuable position sizes which provide the best profit potentials.

Can you establish money management?

Before any preparation for the trading process, a trader should focus on money management. It is crucial for securing the trading money. Additionally, the volatility of Forex markets is too high. As a result, the traders cannot but lose money from their accounts. In that case, an individual can only reduce the loss potential of the purchases. The risk management process does exactly that with a safe investment policy. A trader gets to regulate the size of the lots and leverage for reducing the risk exposure. Eventually, it affects the loss potential. As a new trader, you might not have enough knowledge on risk management policy but you do have the options to learn new things from Saxo. Visit their website and read their free resources to enhance your skills.

With a safe investment policy, a trader also thinks wisely about other procedures. If someone is calm with the investment, he will feel no distraction in position sizing. As a result, a trader is not disturbed while administering market analysis. Therefore, the trader uses the techniques and strategies efficiently. Conclusively, it results in the most profitable trading career.

How to maintain consistency?

Along with a safe investment policy, a trader needs the most efficient performance. And for that, an individual should embrace consistency. At the beginning of a career, consistent performance does not seem legitimate to a rookie. However, traders realize the necessity of it when they lose money frequently. So, everyone should prepare their mindset for a consistent trading performance before experiencing losses. If someone is aware of the system, he will prepare practical money management for the investment. Then he will also take crucial education for efficient market analysis. Ultimately, it will benefit the traders in the most efficient way.

However, a rookie cannot focus on efficiency or consistency if his mindset relates to profit-making. That is why the idea of winning cannot remain in the trading mind. Instead of profits, a trader should focus on arranging pips from the markets. Then, consistent performance will be possible for a trader.

Is it possible to position size for profits?

It is not impossible to position size in Forex trading. Every individual can do that with a simple strategy. However, every trader should embrace the idea of safe investment in the trades. If someone is aware of the market volatility, he will accept the safe investment. Then he will predetermine the risk exposure and profit target for position sizing. Eventually, he will focus on market analysis for finding the most crucial positions for entering and exiting. When a purchase has plans like that, every individual has a better edge over the profit potential of the trades. A trader can also implement stop-loss and take-profit for securing the position sizes. In that case, no market condition affects the purchase. Ultimately, a trader receives a significant profit potential. In case of a faulty price movement, the stop-loss also secures the risk exposure.

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In this article, we will illustrate those perils and fortunately, the readers will understand how to avoid such scams. Most of the time traders do not realize they are making mistakes. Without guidance, it is difficult to discover your mistakes.

Not learning thoroughly

This is the first trap of little knowledge. Imagine a trader who wants to learn how to make money. He is bound to go for the shortcuts unless the disadvantages are explained. If he is not aware, he will choose a scalping or day trading method. These two techniques require the least amount of time and yield the most profit. However, the likelihood of failing is enormous. It takes years of experience and skills to predict the patterns. When the individual is going for scaling up, he might make few bucks if luck is in his favor. Even if he does not, he will want to recoup the fund and this is how this cycle starts. 

An investor will open more orders to gain profit but the majority will turn into losses. He will then crank up the volume and suffer even more losses as a result. This is like an endless cycle until the balance runs out. If he knew enough about the market, he would not have done this. Always learn something from the core to fathom the concept. The superficial concept cannot save from disaster. Be practical and only focus on one approach and master completely. To maintain consistency in strategy, the use of diversified techniques might create a dilemma. So, use a simple strategy and open CFD account with the end broker so that you can learn things in detail.

Trying to replicate past favorable trade

This is a classic example of a train wreck. At first, the person thinks of his past order and looks on the chart to find identical patterns. Even if the movement is not present, he might visualize because of his burning desire. This is even riskier because investors watch what is not even on the chart. As soon as they find a reliable signal, they will put all their money at risk and pray for a similar outcome. They have forgotten that the prior volatility ended a long time ago. The circumstances were different, the data was not the same and the industry was not going through the same phases as it is today. 

Rookie traders believe firmly and stay on their decisions and watch their balance crumbles before their eyes. Every volatility is unique and so should be the strategy. Devote sufficient time to developing a new method to address the profitable patterns. If you find it hard, you can stick to the demo trading account as long as you need. But never trade with real money unless you are 100% confident in your performance. 

Copying methods

Most beginners make this error. They believe it would take a long period to master the detail and look for an easy solution. They come across those on free websites left by a bunch of novices. What is not taken into account is these are a mostly raw formula. Any method should be polished and implemented several times to make it worthy of being used in a live trade. Until that happens, placing an order is throwing a like stone in the dark, you won’t know where it lands.

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Use a Demo Account First

Practice and master your CFD trading skills on a demo account before venturing into live trading. Many brokers will provide you with a demo account that you can use for free. Traders can use a demo account to determine whether or not CFD trading is what they want to do. Click here to get a demo account.

Research

Understand CFD trading basics and your specific investment before you can venture into live CFD trading. For example, traders should know the difference between a market order and a limit. Avoid trading with forex CFDs before you understand the difference between a GBP/USD and a USD/GBP quote. Remember, you cannot be an expert in all markets or asset classes. Choose a few specializations and stick to them. 

Focus on Preserving Capital

CFD trading strategies should focus on preserving capital because each dollar counts. This way, traders can avoid risks and minimize losses. If you are just beginning, focus on testing and learning different strategies using a demo account. As you gain more experience you can try more aggressive CFD trading strategies. 

Pick the Right Leverage

Leverage can help you seize major achievements from the small price changes of the underlying asset. However, if the market fluctuates in the opposite direction the losses will be higher. As a result, traders should exercise caution when picking their leverage. If you are a novice trader, having a conservative risk profile would be ideal. What this means is you will pick ratios like 100:1 or 50:1.

A conservative profile comes in handy especially for shares and indices that higher volatility and lesser liquidity compared to the forex market. While you can utilize leverage, where possible try to balance leverage to a position that conforms to a risk tolerance profile. 

Use the Proper Trade Position

Some brokers will not allow you to lower the leverage. If this is the case then you can cut down your trade position instead. Always be on the lookout for your dominant risk level. For example, you may want to maintain a $500 Apple stock position but your broker’s default leverage is 5 and cannot go lower past 1. In such a case you can consider lowering your CFD trade position. As a result, your leveraged position will be $500 = 5*$200.

Consider Asset Correlations

CFDs can come in handy to hedge out risk exposure. For that, however, traders should consider asset correlation (the standard of how two assets flow against each other or together.) Many traders trade two separate Contracts for Difference in one industry (a short and long one). Some traders may opt for two markets that display a negative correlation such as crude oil and US Dollar.

Pair trading help traders leverage on the difference between the two underlying securities. Based on the market trend you may want to select a strong and weak asset. You may consider a short position for the stronger asset and a long position for the weaker one. Often, the general market direction has no impact on the overall results. What matters is the difference between the price of the two assets.  

Always have a Trading Strategy

Ensure you configure a strategy for every trade before opening it. For example, you should understand where to close in both the worst and best-case scenarios. Consider potential scenarios of the expected performance of your investment. What happens should there be a 5% increase in the underlying price? What if it reduces by between 5% and 50%? A robust trading strategy helps you remain focused.  

Bottom Line

You are not guaranteed of success as a CFD trader in MENA Region. However, these tips will help you learn and master your trading skills with time. 

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The more the merrier is not true in Forex

It is generally believed that people with huge investment has less chance to get diluted through losses if occurs any. If the account balance goes under a certain limit, the account is remotely taken down by the broker. This gives us the boost to trust this misleading concept and invest heavily in this deadly sector. Contrary to popular belief, the fund is risked when the amount reaches a substantial figure. Currency trading is a risky business and there is no assurance that depositors can have their money back. The announcements can be found in every page described related to investment by brokers. For the sake of saving funds, we strongly suggest over-fill the account with capital. If necessary, open a demo account and see where it goes.

Using low-risk exposure

You should learn to trade the market with low-risk exposure so that you can make a big profit. Taking too much time to learn the details of the trading industry is more like making a big mistake. If you want to push yourself, use a professional demo account and learn to trade with managed risk. Look at this site to learn more about the capital management system and professional trading environment. Once you start following this rule, you can easily change your life by trading with managed risk.

Create backdoors in every plan

This is quite useful when it comes to improvised actions. The experts never expect things will turn out as per their desire. The sector is bound to baffle even the professionals and this is when the backdoor strategies come into help. Think of a situation where 200 dollars has been compromised due to faith in the existing trend. Soon, there is a surge in the price and losses start rising. Even with unceasing efforts, it is terrifyingly arduous to cope with the impacts. The solution to this deadly outcome is one simple backdoor scheme that will execute the order as soon as it hits the set level of loss. Besides, no person can be staring at the chart forever. Try to work smartly and divide the work into sections to reduce the workload. Always have a contingency plan in Forex when real money is at stake.

Have a tighter risk to reward ratio

Keep working on the risks to reward ratio until it becomes amazing. It may take years but do not stop working as this is the only formula that can meticulously confine the losses. Start trading with a broad scheme and slowly make it smaller. This is the best method that has been statically proven by experts to compensate for failures, so that you can breakeven. Having said this, do not be impractical and set a delusional quantity. Think sensibly of the impact and consider the size of investment before making decisions. A person with 100 dollars cannot copy the risks or technique of a person who has 10,000 dollars.

Bring changes one by one

This is the most important part of fine-tuning the deposit. Do not completely ditch a plan to adopt a new technique. Experiment with portion by portion and if the subsequent results are not satisfactorily productive, think of replacing the existing one with a new formula.

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In fact, you can easily make a profit even with a small trading account by using a high leverage trading account. Most people want to become a fulltime trader without even knowing the details of this market. They trade the market with emotions and gut feelings and blow up the trading account in a very short period of time. Instead of trying to become a fulltime trader, it’s better to consider trading as your part-time profession for the first few years. Let’s learn the proper way to become a successful part time trader.

Trade with the money that you can afford to lose

Trading is all about managing your risk factors. You can’t make any real progress unless you learn the details to trade the market. Try to create a simple trading strategy by using the demo account. Once you feel comfortable with your demo trading performance, switch to the real trading account. But make sure you trade with the money that you can afford to lose. If you trade the market with the last of your saving the chances are very high that you will end up losing a huge sum of money. As a full time you need to understand the fact, the outcome of any trade is completely random. You need to prepare yourself to lose some trades on a regular basis or else you will blow up the trading account within a very short period of time.

Trade with the high-end broker

If consider trading CFDs as your part-time profession, make sure you chose a broker like Saxo to ensure a premium trading environment. Never trade the market with the low-end broker since you will not be able to do the perfect market analysis. Most importantly, you need to trade the market with a robust trading platform like SaxoTraderGo where you can easily do the advance market analysis. Never think you can do the proper market analysis in the low-end broker. Most of the time the low-end trading platforms freeze in the event of high impact news. So, the chances are very high that you will lose a decent amount of money due to technical problems.

Set realistic goals

Making consistent profit in the retail trading industry is very easy. But you must set realistic goals. The new traders often try to make 100% profit from their trading account within a short period of time. But such an aggressive approach always results in heavy losses. You have to create a conservative trading strategy and trade the market with real goals. Being a part-time trader, you should never expect decent income from your trading profession for the first six months. Try to learn the proper way to protect your trading capital in the long run. Forget about short term gains and try to create a simple strategy which will help you to make a consistent profit.

Control your emotions

Being a part-time trader, you can’t afford to overtrade the market. Overtrading is one of the key reasons why people are losing money in the Forex market. You need to focus on the high-quality trade setups and execute the trade with decent logic. Never think you can change your life without knowing the proper market analysis. Once you learn the three forms of market analysis, trade the market with proper logic. Never execute any trade with aggression as it will always result in heavy losses. Try to minimize the risk exposure in every possible way to become a better trader. Keep learning new things about this market.

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Don’t lose self-confidence

The first impact on a trader from losing would be hit on self-awareness. A trader will most likely lose confidence over himself or herself. Because fear of losing more money dominates over the trading strategies. As a result, traders fail to find a good position at the right moment and they execute trades poorly. And your returns will be bad too because of that. Losses are mainly affecting the trust in yourself. This problem can be only minimized by being self-aware about the trading performance. You have to teach yourself, with good trading edge almost every trades can be made properly. Your incomes can be a good one too. If you think the edge you have created over time is not good enough, modify it according to the needs of the market.

Embracing managed loss

Accepting the managed loss is very hard in retail trading industry. Many Aussie Forex traders have blown their account due to their aggressive approach. Majority of the rookie traders start taking excessive risk in trading CFDs to recover their loss. On the contrary, the profitable trader always considers the loss as a part of this profession. They simply take a small break and wait for the next potential trade setup. You must develop the unique skill of accepting the managed loss to save your investment.

Look for defects in trading system

When you will be building confidence in your working process, the start of a trading process will have no problem. You can at least go for a trade. But, the losses cannot stay long in your career. Because it won’t bring any good to your account. So, the strategies have to be changed with time. All the traders experience this phenomenon where they have to improve their trading quality while continuing to perform in their markets. Those who chose demo trading to get good in this business can improve their career in a different way and it is good for a trader. As the demo trading business has no real money, there remains no issue with dealing with it. Your concentration can be fully focus on the performance. So, traders can improve their edge from there. The start of their career does not feel too painful, as it was if you did not practice with a demo trading account.

Make changes to your plans

So, it is clear you have to improve your strategies for proper trading. For example, you can use the Fibonacci chart and timeframe for learning about the possible future trend in the market. Thus, stop-loss can be set in the trades you are about to execute or have executed. This improvement also requires analysis and change of plan. According to your analogy about your trading strategies, the plans should be modified. Trading approaches should be changed, the money management plans should be changed. You should change the trading method too. So, bare this mind and focus on your improvements all the time.

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Emotions in trading

Emotions are often considered to be the most dangerous enemy of the full-time trader. The retail traders often trade with a big lot size to recover their losses, but things don’t work like this. You need to embrace the losing trades to become successful at trading. If you don’t learn the perfect art to embrace your losing trades, you are nothing but a gambler. In fact, many traders are making a decent amount of money with a 50% win rate. They simply follow perfect risk management in every single trade and they know patience is the key to success in the Forex market. Becoming a professional trader in the online trading industry is not so easy. You need to work smart, not necessarily hard. Most importantly, you will have to train your mind so that you can easily embrace the losing trades in the retail trading community. If you can do this, you will see yourself as a successful trader within a very short period of time.

Overconfidence

Overconfidence is enough to ruin your trading career. Many novice traders say that they know all the details about the trading industry. But when it comes to real life trading, they simply lose a big amount of money. It doesn’t take much time to lose their trading capital. Confidence is necessary but overconfidence is extremely dangerous. The moment you get too confident is the moment you stop learning new things. You need to understand the fact that every single second the market is changing, and without adapting to the dynamic changes in the market it’s almost impossible to maintain consistency. It’s imperative to recognize that no one knows everything, and consciously making an effort to objectively assess currency rates forecast online or on news and market analyses can serve as a safeguard against succumbing to overconfidence. This approach not only helps maintain humility but also nurtures a continuous learning mindset, which is critical for navigating the unpredictable nature of financial markets.

Don’t become a trade addiction

Trading is just like addiction. If you don’t maintain a routine, it won’t take much time to get addicted to this industry. Make sure that you take some breaks from this profession on a regular interval. What’s the point of making tons of money if you don’t live your life the full? As a full-time trader you need to maintain the balance in your life or else you are not going to make a consistent profit.

Lack of trading knowledge

Knowledge is the key ingredient to becoming a profitable trader in the online trading community. You need to learn Forex trading from expert traders since they will be able to give you the proper guideline. However, you can also master the art of trading by reading books and articles. But in that case, you will have to work really hard. Making money consistently in the Forex trading profession is very challenging. You can’t expect to get rich overnight based on the currency trading profession. Just like any other business you have to grow slowly but steadily. Most importantly you will have to keep yourself updated with the latest market news or else it will be impossible for you to lead a life based on this profession. If need be, you can consider learning forex trading tricks from professionals at trading funding firms who can help you master your skills. These funding companies can also evaluate your trading history and provide you with a certain amount of funds (find evaluated forex funding here, if interested) to continue trading in a risk-free manner as the firm would be liable for any loss on your trades. As a result, you can keep learning new insights about the trading domain without worrying about losing money. Learning has no end when it comes to currency trading. So get prepared to start learning new things in the financial market.

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Forex Trading: Is a Market Crash Imminent? 

One of the rumours which has been spreading amongst some circles is that the markets in set for a major crash during the latter half of 2017. While much of this arises from speculation, it is still a fact that the levels of the VIX are the lowest that they have been since 1993. The reason that this observation is important arises from the fact that some believe such a lack of momentum could represent the proverbial calm before the storm. Should Forex traders believe this perspective, they may be wise to curtail their open-market trading until more clarity is found (most likely in September).

A Falling Dollar: How to Cope 

There has been a fair amount of news touting the economic policies put in place by Donald Trump since he became president. Indeed, major indices such as the Dow Jones and the S&P 500 seem to reflect this sentiment. However, there may be more than meets the eye in terms of the medium-term value of the dollar. Disappointing economic and consumer data released in May confirms that the domestic economy is still rather weak. This may also signal that the average citizen is not entirely confident of Trump’s ability to lead. Be sure to check out some of the latest Forex news on CMC Markets.

One school of thought believes that these symptoms could indicate a declining dollar towards the final quarter of 2017. Should this occur, Forex traders should be ready to diversify their holdings into other currencies such as the euro, the pound or even the Australian dollar. It is still a fact that a great deal of downward momentum will need to be witnessed in order to confirm this trend.

The Criticality of Online News 

We live in a world dominated by the exchange of information at the speed of light. If poor economic data is released from Asia, it will impact the western markets within minutes. This is why it is so very important for Forex traders to keep abreast of the latest news stories as they take place. As opposed to resorting to generic sources such as Reuters or BBC, it is much better to choose financially oriented portals including CMC Markets. These websites are solely concerned with providing the latest fiscal data to their clients. Thus, investors will be able to make the most appropriate decisions and “strike while the iron is hot”.

The Inverse Relationship with Gold 

It is a well-known fact that gold is a dollar-backed asset. Therefore, the value of this yellow metal will rise when the price of the dollar falls. We have seen this very same trend during recent months. Some believe that gold may indeed break through the important resistance level of $1,800 dollars. Should it find support at this new foundation, it is not inconceivable that prices could reach $2,000 dollars by the end of the fiscal year. However, this is also assuming that the value of the dollar continues to weaken and that the bulls make a run towards gold. Should this be the case, Forex investors should be looking to capitalise upon any short-term currency fluctuations. It may also be prudent to scale back dollar-based assets for the time being.

The fact that 2017 has been associated with so much volatility makes it difficult to know exactly where we may be headed. However, these are all educated observations that have at least some backing by financial analysts. The most pivotal suggestion to remember is that keeping abreast of the latest news will provide clarity and insight when they are required.

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Profit making in volatile market

The first rule of trading in a volatile market is to know the why volatility has happened in the market. These volatilities can be results of major political or economic decision which has a very large effect. For example, during the period of Brexit, there was major unrest in the economic and financial world. All of the Europe and England was dividing into two parts. The decision that England has made to get out from the European Union has not only affected the European countries and the England, but of all the financial and investments markets. The price of Euro came down to the lowest in less than 24 hours. All of the major companies and corporations were facing difficulties in how to convert their currencies to the currency of different countries. It was the time that the economic world was going through unrest and volatility was very high. If you know why volatility happens, you can be safe in trading in the volatile market.

There are a lot of traders who are very experienced in CFD trading and they are trading the volatile market where most traders do not think of entering. They knew from their experience that if they can make a right entry in Forex industry, the changing price level is going to benefit them by giving them profits. You need to be experienced to trade the volatile market as there are risks of losing your investment. Volatility is essential to make a decent profit. If there is no market movement than it will be nearly impossible for you to earn a decent amount of money.

Volatility is inevitable in Forex

You cannot keep yourself a stranger from the market volatility for long. Sooner or later you will have to trade in the volatile market. Do not step back and make the minimum amount of trades in the volatile market. When you have the idea of trading in volatile Forex market, you can make lots of money. But if you think that you will only trade the less volatile market then you are making a big mistake. No one knows exactly when the market will become volatile. But if you are well aware of the high impact news schedule than you can size your position to a certain extent to save your hard earned money. But regardless of the market condition always make sure to trade with proper risk management to save your trading capital.

Summary: Volatility is a blessing for the professional trader. The expert in the financial industry waits patiently for the market to become volatile. They now in order to catch the big moves, they must trade in a volatile market condition. But if you are new to this market than learn the art of trading in demo account since it will save a huge amount of money.

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