Useful Forex articles about trading
In this section, you'll find over a hundred Forex articles dedicated to trading on the Forex currency exchange, as well as trading in other financial markets. These Forex articles will be useful for both beginner traders and those already familiar with this activity.
Choosing a Forex Broker for Beginners and Professional Traders
This is the very first question any trader faces. I've made quite a few mistakes in my time that
I'd like to warn Forex beginners about.
Choosing a Forex broker is a crucial and rather complex task, so it's important to approach the process with the utmost responsibility. It's better to spend an extra hour to avoid problems with withdrawals and account blocking.
To make your choice easier, at the end of the article I will give examples of several brokerage companies where trading is usually not a problem.
Forex strategy rating
After taking the first steps towards becoming a successful trader, every beginner faces the need to apply certain trading rules and systematic actions in their trading.
Yes, systematic ones, so the first thing that comes to mind is creating your own unique trading strategy. But is it really that easy? Believe me, no matter how hard you try to create something unique and inimitable at the beginning, it's already been created and tested by someone else.
You ask why?
Leaders in oil production
Many traders avoid CFDs or oil futures because they are deeply convinced that this instrument is quite
difficult to predict, and that delving into the various grades and types is simply a dark forest.
In reality, there is nothing complicated about oil trading, and the forecast itself is practically no different from analyzing fundamental statistics for countries, as is the case when trading currency pairs.
For forecasting and successful trading using oil, a very important factor is timely monitoring of information on the reduction or increase in the volume of black gold production in the main exporting countries.
In order to understand which countries to work with, it is necessary to know the leaders in oil production, which dictate the market price.
Forex trading for beginners: options and real earnings
The profession of trader has recently attracted more and more people interested in it. Working on Forex brings in a lot of income. The fact is that becoming a trader gives you the opportunity to earn not just a lot, but a lot.
One clear example is Larry Williams' record, who managed to increase his deposit from $10,000 to $1,140,000 in one year.
Even if you don't have that much to start trading with, even $11,000 from $100 in a year is still pretty good.
It's important to remember that working on Forex isn't just about being a trader; there are plenty of other, equally profitable opportunities.
Moreover, some of these options are less risky compared to regular trading, but can bring in just as much money.
Working on Forex is not only profitable, but also prestigious. It's not for nothing that traders are called white-collar workers, and the exchanges themselves are located in the most respectable areas of large cities.
Trend indicators
A trend is one of the most important market conditions, enabling traders to make money.
Indeed, a trend is always characterized by a purposeful movement, either upward or downward, so if you identify it early and open a position in its direction, profits will quickly follow.
It would seem that nothing could be simpler than seeing the market's direction and trading in its direction. However, in practice, things are much more complicated, as you'll never see a clear market direction, and if its outline becomes very clear, the movement usually ends.
Even Dow said many years ago that when a trend becomes very clear and all players begin to move in its direction by inertia, a turning point occurs, because smarter players with capital, including banks, already understand in advance that the asset is overvalued and begin to work against the crowd.
The difference between oscillators and indicators
In the early stages of learning to trade, few people pay attention to the characteristics and subtleties of various
indicators.
In most cases, over a long period of time, almost every beginner looks at indicators as some kind of lines that, when crossed, give a signal to buy or sell.
Incidentally, even more experienced traders are guilty of this short-sightedness. Typically, this view leads to only one outcome, and it's fatal for your account.
This is because you're making your trades based not on factual evidence, but simply because the line crossed something or moved in some unusual direction. For you, these are lines and patterns, nothing more.
Earn money on Forex without investing, without risking your own money
Those who think that earning money on Forex without investments is just a fiction or a marketing ploy are completely mistaken.
In fact, there are several ways to make money trading without having your own money, and it should be noted that this is a very real opportunity and quite good money.
The main thing that will be required of you is to learn trading, this process is quite difficult and takes some time.
After completing your studies, you choose your own path. This could include receiving no-deposit bonuses or participating in special contests on demo accounts.
Each option has its own positive and negative aspects, which we will discuss in more detail.
Earning money on Forex without investment gives you the chance to improve your financial situation without any risk and, at the same time, gain a trader's qualifications. The knowledge you gain during training will be useful for working in any financial sector.
A personal example of earning money on Forex
There's a myth circulating online that only banks and
large players with millions of dollars of capital make money in the Forex market.
Moreover, in this statement, ordinary traders are compared to small fish, which are capable of the most at avoiding danger in time, and in most cases are just food.
Such statements with a philosophical context can be seen on any Forex forum or website, where a losing trader seeks global justification, but cannot understand that the cause of his mistakes is himself.
Traders also constantly try to come up with complex algorithms, making their lives more difficult and not realizing that simple, well-written rules written by smart people in books still work today, because the market is made up of people, meaning it shares all the human qualities that have remained unchanged for centuries.
To debunk the myth that it's impossible to make money on the Forex market, I decided to share a personal example of how I made money on Forex. Of course, this article won't give you the full financial details, but with some example trades, you'll see that it's not only possible, but also not that difficult.
How to trade gold in MetaTrader 4
Get any first-grade student out of their desk and ask them to name at least one expensive
metal, and they'll immediately say gold. We've all thought about buying this precious metal at least once in our lives, and not necessarily in bullion form.
Every housewife knows that as long as she has at least one piece of gold jewelry, she can handle any emergency, because she can always find the money.
Thus, from childhood, we're inadvertently taught to invest in gold, because no matter how much humanity mines, its value always rises.
Until recently, investing in gold was extremely difficult. At the household level, everyone tried to buy expensive gold jewelry, and businesses, despite all the fees and expenses, tried to buy gold bullion from state banks.
Oil prices and exchange rates
Many analysts argue that there is no direct correlation between oil prices and exchange rates. They justify their
assertions by arguing that oil prices are driven solely by production volumes, without any other factors. This assumption has held for a long time, but the recent record lows in oil prices have revealed certain patterns that more experienced traders had long suspected.
We all understand that oil is a product without which the chemical industry cannot exist, therefore, any country in this world is directly dependent on the oil price.
Of course, different countries and their currencies interact differently, but a clear pattern is evident. For example, countries that don't possess black gold are highly dependent on exports, and an appreciation of the exchange rate will negatively impact the national budget, which is directly related to the national currency.
Overbought and Oversold in Trading - Indicator for Analysis
In many of the author's books, we are often told that the price that we can observe in the form of a graph is the result of the battle between the Bulls and the Bears.
Indeed, if you look at the market and put aside all the terminology, you understand that the price is formed by both demand, which comes from buyers, and supply, which comes from sellers.
Essentially, the result of such mutual cooperation, and perhaps often competition between both parties, leads to the formation of a schedule. Why competition, you ask?
It's very simple. Imagine a trader is an ordinary market trader. What do sellers try to do? Sell for as high a price as possible, while buyers try to buy for as low a price as possible.
What's stopping you from becoming a trader?.
Or why some people earn millions, while others only dream of them.
When you're 20, it seems like all roads are open, and there's nothing you can't achieve in life. At 30, your judgment is more pessimistic, your goals more down-to-earth. At 40, few people expect to make a career or dramatically change their lives for the better.
But it turns out you can achieve a lot at any age; the main thing is to know what's stopping you from achieving success, in our case, a career as a trader.
• Motivation—or rather, the lack of it, the presence of desires—always motivates goal setting. A person who doesn't want anything is unlikely to achieve anything, so make your wildest wishes, and they will definitely come true if you work towards them.
The best choice of binary options
Currently, the most technically simple way to make money on the exchange is binary options, but not
every beginner knows that there are several variants of this type of trading.
Each differs not only technically but also in the size of the reward and the terms of payment.
Let's consider options trading using the example of Alpari, a leader in the financial market. The broker offers its clients options such as high-low, touch, range, and spread.
Dynamics of oil prices 2014-2015.
For almost every trader who has been working on the stock exchange for years and tracking major
global instruments like gold, 2014 marked a turning point in their worldview. Oil is rightly called "black gold" around the world, with the belief that its reserves are likely to be depleted over time.
Almost every country in the world is, in one way or another, dependent on fluctuations in oil prices. No matter how you look at it, the entire industry is somehow tied to refined petroleum products, and therefore directly to oil itself.
Even the recent collapse of the ruble in Russia is linked to the fall in the price of black gold. So what is it that has caused this shift in traders' minds? Why are so many of us simply unable to accept such a precipitous decline in oil prices?
Classification of oil.
Oil is classified into several main groups, designed to standardize this energy resource for
exchange trading.
Classification is primarily influenced by the oil's composition, specifically the amount of various impurities, which determine the so-called grade.
The main grades of oil traded on exchanges are Brent, WTI, and Urals. These designations are deciphered as follows:
Brent is the most common grade of oil, sometimes referred to as the benchmark. It is the basis for pricing other grades of oil, by subtracting discounts or adding premiums to higher-quality grades.
Correlation of gold with oil and the dollar
For nearly a century, leading analysts have been tracking a clear correlation between the price of gold and the exchange rates of most global currencies and the prices of
certain assets, most notably oil.
This means that gold, a precious metal, can be
futures . The correlation is easily identified by simultaneously opening several charts of the assets needed for comparison, while observing the following parameters:
• Time frame – all charts should be the same, for example, one day or D1.
Binary options as a type of stock exchange trading.
When discussing stock trading, we can't ignore binary options trading, as this type of trading
has recently been rapidly gaining popularity among traders.
What exactly is this type of earnings, what are the principles behind profits, and what nuances should be considered when trading?
Binary options are a type of contract in which the amount of loss and profit is known in advance. For example, if the forecast is correct, you receive 90% of the contract amount, and if the trade is unsuccessful, you lose 95%.
Distinctive features of binary options include:
Is Volkswagen stock worth buying?
In recent years, Volkswagen shares have become something of a safe haven for investors. Consistent annual growth
and relatively healthy dividends, reaching $2.50 per share, made investing in this asset so attractive that few major funds could resist holding a certain amount of the stock in their portfolios.
The German automobile concern has firmly established itself in the international automobile market thanks to the quality of its products and the relatively reasonable prices for cars of this class, so that various Japanese and American brands did not provide much competition.
Unfortunately, this idyll for investors did not last very long, and the recent decline and devaluation of shares by 50 percent became simply shock therapy.
You're probably wondering why this happened. If you haven't been following my news feed, I suggest you refresh your memory.
Verum Option – the best way to make money online
Verum Option has introduced an innovative tool that
has confidently eclipsed FOREX investing in terms of profitability and reliability.
Every day, more and more people are trying to increase their money online, which, in turn, has given rise to hundreds of investment proposals.
Nevertheless, Verum Option's entry into the market marked a true revolution in online earning, offering clients the most innovative product of our time with a number of undeniable advantages: binary options trading.
First and foremost, Verum Option opened a fundamentally new level of reliability for internet users. Against the backdrop of risky FOREX investing, the Verum Option platform made it possible for the first time to earn money online, meaning with complete transparency.
Trading without a trend.
According to most professional traders and analysts, the Forex trend is flat 70% of the time
. This means the price moves almost horizontally without any noticeable changes.
Trading in such conditions seems almost impossible, but some traders are just waiting for this moment to start making money.
What are the advantages of this market situation?
• Price channel - most often, during a flat, an ideal price channel forms, perfect for scalping . You can earn no more than a few pips per trade, but with high leverage, these can be quite significant.
Practical Trading Secrets
The main secrets of Forex trading lie in reducing trading risks and using the most effective capital management methods.
Thanks to their use, the level of profit received significantly increases and the risk of completely losing the entire deposit amount is reduced.
Trading secrets are equally effective when trading on Forex and other financial markets, and can be roughly divided into two main groups.
The first one includes recommendations regarding capital management, and the second one contains advice on how to actually carry out trading.
After reading this article, you're unlikely to find the Holy Grail, but you're guaranteed to be able to reduce your current level of losing trades and increase the profitability of your successful positions.
Bonuses for replenishing your Forex account.
Currently, a real war has broken out among brokerage companies, with each vying to offer the best trading
conditions and unprecedented bonuses for deposits.
If you lack funds and decide to trade using bonuses, it's important not only to choose a broker with the best offer, but also to make sure it's truly reliable.
Therefore, it's not always worth falling for tempting offers from newly established companies, but it's never too late to take advantage of a bonus from a proven broker.
How much can you earn on Forex?
There are many legends online about huge profits on the forex market, and beginning traders are always interested in the question: how much can you earn on Forex?
The answer here depends on many factors, primarily the size of the initial capital plays a role, but if desired, a similar aspect can be considered taking into account relative values.
It's impossible to say exactly how much money can be made on the Forex market; earnings range from 5% to 1000% per month, depending on the trading strategy used.
Most professional traders trade safely, earning only 5% per month on their invested funds. At first glance, this doesn't seem like much, but if the deposit size is equal to $1 million, the profit no longer seems ridiculous.
The absolute record for profitability in a year belongs to Larry Williams, he increased his initial deposit from $10,000 to $1,400,000 or by 14,000%, that is, the amount of initial capital increased exactly 140 times in 12 months.
Forex records.
It's common knowledge that many foreign tycoons acquired their fortunes through trading, turning thousands of dollars into millions,
and then billions.
However, it should be noted that most of today's billionaires made their fortunes not so much through masterful trading as by attracting investors. Their trust funds rarely yield more than 20-30 percent per annum.
Forex records contain real-world trading examples using the most profitable trading strategies and tactics.
The dollar exchange rate and the price of oil, the relationship.
Recently, the price of oil has become the number one topic on all news channels, with the black gold continuing to soar,
causing panic and volatility in financial markets.
Many are wondering if there's a correlation between the US dollar and the price of oil.
Yes, there is. In most cases, a close correlation can be found between these two trading instruments. The US is one of the largest oil producers, so changes in oil prices inevitably affect the US dollar.
It would seem that a decline in oil prices should lead to a decline in the dollar, but the opposite is true.
Participation in Forex tournaments.
To promote brokerage companies and encourage traders to trade, most brokers hold regular tournaments on demo or
live accounts.
What benefits does participating in such competitions offer a trader, and is it worth wasting time on tournaments, or is it better to trade quietly and refine your own strategies?
First, it's important to answer the question: "What benefits does participating in Forex tournaments offer?"
Forex Trading for Beginners
Making money on the Forex market doesn't always require studying the entire theory of trading. In practice, simply developing your own strategy and following it consistently is sufficient.
You don't have to come up with a sophisticated plan; sometimes simple solutions work just fine.
The first steps are the hardest in any endeavor, and this statement also applies to Forex trading. Therefore, it's important for a beginning trader to know a number of things that will help them not only preserve their deposit in the first month of work, but also make money.
Forex trading for beginners should be done with minimal risk, even if you won't earn much at first, but you won't lose all your funds either
Therefore, you should slightly change your approach to trading, setting the goal for the first few months not to make big profits, but to learn to feel the market and manage trades.
Forex with a deposit from 100 to 1000 dollars.
Almost 99% of newcomers to Forex have no more than $1,000, and some even less.
Therefore, most are interested in the specifics of trading with such a deposit, how much can they earn, and whether trading with such sums is worth it.
We're all accustomed to the idea that exchanges are mostly traded by millionaires, or at least their representatives, but a distinctive feature of Forex trading is the use of leverage, which can significantly expand your opportunities.
So let's start small.
$100 in Forex is more suitable for testing your skills than for full-fledged trading, but with the right strategy, even that amount can be used quite effectively.
Stages of Forex trading.
Forex trading can be roughly divided into several stages: opening a trade, maintaining it, and closing
the transaction.
Most traders focus only on the first and last stages, relying on stop orders to maintain positions. This approach usually works, but paying extra attention to existing trades also doesn't hurt.
To understand the essence of each stage, it's important to clearly understand the objectives of each action.
A profitable investment.
Once you have some available funds, the question immediately arises: How do you find the most profitable investment? It turns out there are quite a few options, but the availability of some depends on the amount of capital invested and the complexity of the investment process.
A profitable investment should not only be profitable but also accessible. Not everyone can navigate the complexities of the stock market or save enough to buy real estate.
Therefore, this article will focus on investing small sums of $100 or more.
The best example is always your own, so this article will draw on my own experience.
Order execution speed and some other important points.
When trading on a virtual exchange, there are numerous nuances that some traders ignore, while others
overemphasize them.
An incorrect approach can lead to traders choosing the wrong broker or paying higher fees, losing potential profits.
Additional trading conditions include such factors as order execution speed, order triggers, and minimum stop order sizes.
Order execution speed typically ranges from 0.5 to 5 seconds. This metric is especially important when scalping, as even a delay of a few seconds can result in a loss of several points of profit. And when scalping, every point earned counts.
