Month: April 2016

3 Secrets of a Successful Forex Trader

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3 Secrets of a Successful Forex Trader

Written by Fred Scala


I’ve been involved in the FX market for over 30 years. Most of the time as trader and risk manager for large US based money center banks. In that time I’ve learned some very valuable tips on what the most important qualities are to be a successful trader. I would like to highlight the three most important traits you need in order to have a long life as a successful trader.


Know Yourself


One of the most important lessons I learned was to know who I was and what my trading style was.  It took me a while to figure that out. Was I a short term trader? Buying at 25 selling at 26, buying at 30 selling at 31… executing hundreds of trades per day each with a very small profit or loss? Or was I a medium term trader? Someone who would buy at 1.1400 and sell at 1.1600, sell 1.1500 and buy back at 1.1200… executing trades much less often but realizing much bigger gains and losses on each trade? Or was I a long term trader? Someone who would buy in January and sell in June? Some would say this is more of an investor rather than a trader but there are several big moves that occur over the course of time and people do position themselves for that.

A lot of retail traders don’t know who they are and what their style and tolerance should be. They may read an article about long term budget problems in the US and decide to sell the USD, that may be the right trade but their  risk tolerance may not be in line. You can’t read a macro article and leave a 30 pip stop loss or stop profit on the trade; if you do you may be right or wrong for all of the wrong reasons. A macro trade may require you to keep the position on for 6 months or more, which would not coincide with many traders loss tolerance.


Be Disciplined


I’m sure you’ve read this in every trading book you’ve ever picked up. My definition of discipline is to determine your exit strategy before you enter the trade. As soon as you put a position on you should also enter your stop loss and stop profit orders. If you do that you will not be tempted to second guess yourself. I’ve seen too many traders enter a position, watch it move in their favor to their profit objective but never close the trade. The undisciplined will say ‘this can go further; I don’t want to take my profit now’. Once the trade does reverse they will be reluctant to close the trade until it goes back to the highs, that’s when profits turn into losses. I’ve also seen trades move to the stop loss point and the trader will say ‘I’m going to give this another 20 pips before I close it’ then they say it again and again and again. The old saying on the trading desk was ‘your first loss is your best loss’. Yes, sometimes waiting is the prudent decision but if you’ve done your homework and determined an exit strategy for both profits and losses you will be much better off in the long run.


Don’t Get Too High, Don’t Get too Low


I’ve seen many traders over the years convince themselves that they were the best on good days and the worst on bad days. It’s not sustainable to live a trader’s life like that. You have to understand that there will be good days and there will be bad days. The best hitters in Major League Baseball fail 70% of the time. The idea is not to be right; the idea is to make money. The trap that many people fall into is that they increase trading size and risk tolerance when they are on a hot streak, which would be fine as long as they decrease their risk tolerance once that hot streak ends, most people don’t.

If you can follow these simple steps you can enjoy a long and profitable relationship with the markets. If you can’t your relationship will be short lived and you will miss a great opportunity.


Please contact me to discuss trading and starting your own FX Brokerage Business.


Fred Scala

Start Your Own Brokerage

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The foreign exchange (FX) market now generates an impressive $5 trillion a day, making it the largest market (by volume) in the world.  By combining our leading-edge technology and years of expertise in the FX industry, Tripeak can deliver the forex market directly to any entrepreneur interested in starting his or her own FX brokerage.  If you’re looking to become a Forex broker, our Start Your Own Brokerage (SYOB) package is available at a variety of price points and capabilities and includes everything you’ll need to take advantage of the opportunities available in the foreign exchange market.


Tripeak Start Your Own Brokerage package is an ideal solution for those who want to take advantage of the growing Forex market.


Typical Clients Include:


● Investors
● Professional Traders
● Introducing Brokers
● Employees of existing Forex brokerages
● Banks looking to start their own FX operations
● Entrepreneurs looking to untap potential of the world’s biggest financial market


Get Started with Our Leading-Edge Technology and End-to-End Expertise
We offer a standard as well as a completely customizable integrated solution that includes everything a brokerage needs: trading technology (MT4 with real-time back office, servers, support, consulting and configuration), liquidity, legal (incorporation and bank accounts), operational compliance, 24/6 support and real-time monitoring and training.

Think BIG start small…

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Think BIG start small…

Written by Marina Pinto

As a sales and relationship specialist for almost 10 years, one of the things I have come to admire from many of the prospects I speak with is their enthusiasm.  Enthusiasm, drive and passion are all characteristics that are not only needed to be successful in sales but also in any startup. While I respect this enthusiasm, I believe it is this same eagerness that leads to many unrealistic desires and expectations.


Before visions of sailing off on the yacht of your dreams and the many ways you will spend the revenue from starting your own forex broker begin to overcome you I implore you to take a few, or many, steps back and think about where you will be conducting your business.  Where you will register your company and the location of your clients are major points that many prospects overlook.  It is important to understand the legal requirements needed to not only start a forex broker but also in any jurisdiction you may be soliciting clients from.  As an online brokerage business, the jurisdiction that you choose to operate from is of the utmost importance.


While it is very attractive to start your business in a licensed jurisdiction such as the UK, New Zealand, Cyprus, Malta and Belize it may not be feasible in the first stages of your business plan.  Since I have brought up a business plan I should say that this is yet another overlooked aspect. Having a business plan is an essential part of starting any business as it will serve as your roadmap to success and help you make smart decisions.  So while you may have the best intentions in wanting to offer your clients a licensed outfit you have to consider all the additional costs and requirements such as initial registration cost, monthly service fees, minimum capital requirement deposits, annual licensing renewal fee and having a physical office on the ground with staffing.  It is right around here were most prospects are brought back down to Earth and suddenly a licensed broker may not be the best choice for a start up.


A start up by definition is a young company that is just beginning to develop therefore your strategy should be to find the most cost efficient ways to offer your service while earning a profit to grow your company.  Once prospects understand this they are more open to begin by registering their company offshore.  This will allow them to build their clientele and volume to a steady rate where moving into a regulated jurisdiction is a more attainable goal. This shouldn’t lead one to think that starting an offshore company is pennies but the requirements are much less than that of a licensed jurisdiction.


It is important to remember that there will be upfront costs that you will need to incur before you can begin to generate any profit.  These costs include the company formation and technology set up.  Tripeak has made it so that any prospect can come to us with a plan and we help execute it.  From company formation to branded trading platform and access to the market via a liquidity provider; Tripeak helps set it all up.  I always advise my clients to realistically analyze their financial situation and see if they can cover the costs of set up and the technology fees for the first few months while they get their business up and running and to a point where the trading volume can cover at minimum the monthly expenses.


Never one to leave any prospect discouraged, if starting your own forex broker is still your dream but just a bit out of the reach for you at the moment; there is still the option of becoming an introducing broker at no upfront or set up costs to you and this will still allow to build your book of business. At Tripeak we have a solution for every stage of your business and I look forward to help you see your vision come true.


If you would like to learn more about how to start your own Forex business please feel free to reach out to Marina Pinto at mpinto(at) for a FREE consultation!