How Can Good VPS Hosting Help Boost the Performance of Forex Trading?
Foreign exchange trading can actually be quite lucrative and low-risk when done right, but in order to find that kind of reliability, you’ve got to cut out all unnecessary costs involved with such trades. The truth is, gains through forex are marginal. Essentially, you’re buying and selling currency.
Because of the way economies work, the value of currency will fluctuate in a way that’s different from actual value. So the value of American currency, and the value of the British Pound, are always at odds. Now the pound is down from where it’s been; it’s almost at the value of the dollar. Both are going to go up and down based in part on the economy.
So purchasing one or the other at the right time, and selling it at the right time, could well result in a level of profit. On average, gains from forex trading are going to be in the 1% range. So that’s $1 per $100. That’s not a lot! But if you’re trading $10k, then that’s $100. At $100k, you’re looking at $1k a month off the $100k, and that can compound.
If you can reliably manage $400k in a forex market, that’s $4k a month in profit. So as you can see, owing to marginal gains that are reliable with forex, it’s imperative to cut out all associated expenses and maximize expedience of trade.
What Is VPS?
A Virtual Private Server acts like digital rental space in a digital apartment building. The digital apartment building is the server, your “apartment” is the VPS space you reserve on that server. You’ll get your own IP, and you can access the internet through your VPS wherever you’ve got the ability to connect to the web.
Applying VPS to Forex
VPS options are very cost-effective, and they allow you to reliably trade around the clock in an instantaneous way. Automation that’s more reliable and cost-effective than on-site options can be used. Specific software exists for forex traders.
If you’re doing the same without a VPS solution, you’ve got to buy the server and run it. You’re looking at around $1k before you even get started trading. Unless you’re investing $100k or more a year, that’s your total profit just in the associated infrastructure for the trades before you even get started—at an expected 1% return rate.
What makes a lot more sense for many traders is using solutions like Windows VPS by AccuWeb. You’re able to get all the advantages of an on-site server solution at a fraction of the cost. Also, VPS options are maintained by companies serving multiple clients; so they’ve got to assure quality in terms of speed and that security is maintained.
You don’t pay for the hardware, associated electricity, or upgrades, and you don’t have to worry about security. Instantaneous trades can be made around the clock, and you’ve got access to your VPS solution from wherever you happen to be in the world.
Expanding ROI in Your Trading Strategies
The essence of trading in any market is returns. Return On Investment, or ROI, must always be higher than your investment; otherwise you’re not getting any returns. Ideally, you want to double your money every time you put it down on an investment. That may not always be possible; for many investors, being able to break a little more than even is how they operate.
That’s certainly the case with forex trading. Rarely will you ever see returns higher than 3% in forex. There are situations where countries abruptly implode for one reason or another, and those who are wise enough to capitalize on the issue can pull some maximal returns from the situation. Such instances are definitely the exception, and not what you should expect going in.
With forex, expect an average return of 1% in the event you manage the forex accounts you’re trading with properly. Accordingly, cutting expenses in the trades you make is fundamental to expanding your profit. VPS helps you do that. If you can throw $100k a month at trades with a 1% risk, you’ll be able to average gains between 1% and 3%.
Related : How to Become a Forex Broker
After losses, you can add $12k to your $100k every year through forex. Keep at it a couple years and you’ll see steady expansion. It will require pinching every penny and carefully managing your investments. VPS trading is what many swear by as regards forex for this reason.