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.
Options trading - another scam or a chance to make money?
Recently, options trading has become increasingly popular as an alternative to forex trading.
The main advantages of this method of earning are cited as the ease of executing trades, the lack of need for market analysis, and the elimination of psychological pressure on the trader.
Furthermore, most options brokers claim that this method of making a profit is more profitable than standard trading using leverage.
Let's begin with the latter point.
Probability theory in Forex.
Almost everyone is familiar with the concept of "Probability Theory," but when first introduced to Forex, the question immediately
arises: why doesn't this theory work?
Given that a trader has only two trade directions to choose from, their ratio should be 1:1, meaning they should generate a profit 50% of the time and a loss the other 50%.
However, the situation is far from favorable; quite the contrary: novice traders lose their deposits almost instantly, with the ratio of losing trades to winning ones typically hovering between 7:3 and 8:2.
Probability theory doesn't work in Forex for several reasons:
Minimums and maximums are practical points.
These indicators are among the most important when trading on Forex; they can be used to draw conclusions about the current trend.
Lows and highs serve as the basis for opening or closing existing positions and enable the construction of price channels.
Forex trading is divided into time frames (time intervals), so lows and highs have their own individual values for each time frame.
For example, the EURUSD currency pair's minimum price for the week was 1.3500, and if we evaluate today's low, its value is 1.3700. In other words, each time frame has its own minimum and maximum, with the higher time frame being more significant.
The main secrets of Forex.
Trading on any financial exchange is quite complex, and on Forex even more so, so in
the latter case, there are many important features, knowledge of which can help avoid many problems.
Forex secrets are essentially the key to break-even trading on the currency market. Unfortunately, they're not the Holy Grail that will always guarantee a profit. However, if you're already familiar with trading, you know that at the initial stage, it's important not only to make a profit but also to simply preserve your capital.
Therefore, these secrets include not only trading recommendations but also capital management advice.
Practical Forex tips.
When you decide to trade on the forex market, you'll find a ton of advice on how to organize the process, but
it's usually disconnected from real trading or reprinted from recommendations by foreign traders.
Therefore, I'd like to help beginners gain truly useful tips on real forex trading that will help them avoid a ton of trouble.
Forex trading is a rather specific activity, so it's important to consider all aspects of the process—trading organization, risk management, and other aspects.
Forex trading options.
Everyone who enters the forex market sets their own goals and objectives, but not all traders
have the same capabilities and abilities.
Therefore, it's advisable to immediately determine your preferred forex trading method and realistically assess your abilities to ensure your attempt at trading doesn't turn into another disappointment.
There are several trading methods—or rather, methods, not strategies—many more, but they all fall into one category or another.
Simple scalping on Forex.
The scalping strategy is familiar to any trader working in the Forex market. This trading method allows you to maximize your deposit and achieve significant profits even without sufficient funds. Like any other trading strategy, scalping, also known as pipsing, has a number of advantages and disadvantages.
Therefore, before using this trading method, you should first evaluate whether it's suitable for you and weigh the risk level against the expected profit.
As experience shows, simple scalping on Forex is nothing more than a myth for beginners; successful trading requires considering many important aspects.
Forex market patterns
The main patterns of Forex include stereotypes of exchange rate behavior in similar situations, observing which one can determine the direction of a transaction in advance.
This approach makes it possible to significantly increase profits from transactions.
Forex patterns are frequently repeating events that cause the same reaction in the exchange rate and, when detected, allow one to predict the future trend movement.
This aspect can be discovered independently; it's enough to simply conduct a detailed analysis of trend fluctuations over the course of a week or month. Any price change always has its cause, and sometimes the situation repeats itself with enviable consistency.
By carefully studying the history of the market, one can identify a number of patterns based on such factors as trading sessions, minimum and maximum points, price channels, the occurrence of gaps, and correlations between currency pairs and certain commodity groups.
Catch your chance on the stock exchange.
As is well known, most bankruptcies occur during periods of severe economic and financial
turmoil. People lose their money or currency due to sharp exchange rate movements.
But there's another category of traders who profit during such shocks. They deliberately wait for bad news to make a fortune.
After all, it's during times of panic that the most stable trends form, usually downward. This allows for huge profits in just a few hours of trading.
How to achieve your goal.
If you've learned about the Forex market, consider yourself extremely lucky. Now all you have to
do is set the right goal and do everything you can to achieve it.
Most people's dreams revolve around financial well-being, and Forex can be a means to achieving financial independence.
One of my favorite sayings is, "A dream becomes a goal when action is taken to achieve it."
This rule isn't just empty rhetoric; it works perfectly. I've set goals and achieved them many times in my life. The key is to accurately assess your strengths and capabilities and then create a clear action plan.
Where to invest money online.
The most profitable investment right now is online investing, with returns
far exceeding those of offline alternatives.
There are numerous ways to invest online, each with its own profitability rates and time requirements.
Therefore, making a final choice is only possible after reviewing the available options.
Forex and lack of time.
Many investors avoid forex trading, assuming that opening trades takes
a long time and that maintaining a trade requires a constant presence on the trading platform. In reality, there are many other ways to make a profit.
Everything depends on the trading method you choose and the strategy you employ. There are also always alternatives for investors, which we'll discuss below.
Trading strategy.
Many forex strategies involve opening one or two trades per day or even per week, and there's no need to monitor them; the entire process can be accomplished using pending orders and stop orders.
Advantages and Disadvantages of Forex Trading
There's a lot of debate these days about whether or not trading on the Forex market is worth it. Opponents of trading claim it's completely impossible to win, while supporters boast of their enormous profits.
Understanding how things work in practice is only possible after assessing the main advantages and disadvantages of Forex.
It's important to understand that any assessment here is relative, as it requires an individual approach that takes into account the personal qualities of a particular trader.
After all, in a similar situation, who wins and who, on the contrary, suffers losses; all exchange trading is built on this principle.
However, it is possible to identify a number of key criteria by which to evaluate the advantages and disadvantages of forex trading and the existing risks and disadvantages of this profession.
The Forex Crowd and Is It Worth Following?.
In any financial market, there's such a thing as a crowd, but it's not always a good idea
to succumb to its influence and blindly follow it.
Following the crowd most often leads to losses or missed profits, so it's important to carefully study the current situation before making a decision.
Forex is a virtual exchange, so when making trades, traders aren't present on the real trading platform, but psychological pressure still remains. Its impact can be understood through a specific example.
Casino or forex.
Forex traders are generally gamblers, somewhat
similar in nature to casino players. But what are the similarities and differences between these two sources of income?
At first glance, it seems much easier to play at a casino, especially roulette and slot machines. However, there are many games that require not only knowledge of complex rules but also sophisticated strategies.
It's the latter that often becomes a stable source of income; one of my friends has been able to pay for his apartment in Moscow for several years thanks to his poker winnings. The most interesting thing is that he hasn't achieved similar success in forex trading.
Correct entry into Forex.
Trading is a rather complex system consisting of numerous components. To
trade successfully, it's not enough to understand technical analysis and be able to read currency pair charts; you also need to correctly determine the best time to enter the Forex market.
This concept is equally important regardless of the strategy you use; all follow the same rules.
Entry into Forex should be carried out taking into account the following factors: the dynamics of the trend movement, the nearest price level, fundamental news, and changes in the speed of price movement.
Practical trend analysis.
There are numerous different methods for analyzing the current
Forex market situation, each with its own advantages and disadvantages.
Some are ineffective, while others are highly complex, so it's crucial to use the optimal analysis method that will yield the best results, even for novice traders.
Practical trend analysis is nothing more than creating an optimal market research framework that considers only the most important factors influencing trend movement.
Illusory hopes.
Observing someone else's career from the outside, it often seems easy to achieve success—just a few moves, and within
six months, the money simply won't fit.
But this is the judgment of those who have never achieved anything through their own efforts; typically, achieving success requires a great deal of effort, time, and sometimes even money.
This is especially true for stock trading, a field that often evokes elusive hopes.
Profit and loss ratio in forex trading.
One of the basic rules of forex trading is calculating your desired profit and
maximum acceptable loss in advance.
Beginner traders often neglect this issue, resulting in either under-profits or excessive losses, both of which have an equally negative impact on the financial outcome of trading.
To improve trading efficiency, it's necessary to focus on both increasing profits and minimizing losses. Some beginners aren't even aware of how closely these two concepts are intertwined in forex trading.
Investors or speculators.
A novice trader is often shocked to learn how trading on the Forex or stock markets works. The revelation
is that all transactions are conducted not with real money or assets, but with virtual capital.
Why are some traders proudly called investors, while others are dismissively called speculators, even though they trade on the same platform?
What are the differences between an investor and a speculator on an electronic exchange, and how can this affect financial results?
Flat Forex – as a moment of guaranteed profit.
Most traders, out of habit, consider the opportunity to profit from exchange rate movements
only when there's a clear trend, completely disregarding the long-term outlook.
This is a mistake not only among beginners but also among many experienced traders. This reluctance to consider the long-term outlook can sometimes deprive us of guaranteed profits, and it's precisely the flat market in Forex that offers this opportunity.
The reason lies in certain psychological factors, but we'll discuss them further, rather than those. We'll focus on how to profit when the price has virtually stopped moving.
Interesting facts about the famous Mr. Soros.
Surely, there's not a single trader who hasn't heard of the famous Mr.
Soros's success, but it's worth learning more about it. As is well known, Mr. Soros was able to earn approximately two billion US dollars precisely on the complete collapse of the British currency.
His trading strategy was quite simple: Soros took out a short-term loan in pounds and opened a trade to buy the German mark. After the pound fell, all trades were closed, and the exchange rate difference ended up in the trader's pocket.
According to one theory, Soros took advantage of the information that the upcoming news would not confirm the prediction of a German interest rate cut. Another theory is that he accelerated the decline by dumping 5 billion British pounds onto the market.
Intuition and Forex Trading.
Despite the complexity of the entire Forex trading system, a strategy based on intuition is still valid.
Any novice trader considers it the simplest and most preferable trading option.
It might seem difficult: look at the currency pair chart, the rate is rising and doesn't seem likely to fall, so open a buy trade. However, such experiments often fail.
Let's explore whether intuition and Forex are compatible and whether it's possible to build your own trading strategy based on this approach.
First, we should analyze the reasons for failure when using an intuitive approach to opening trades.
Benefits of day trading.
Most traders who come to Forex prefer intraday trading, as this type of trading allows for
large profits in a short period of time. Furthermore, there are a number of additional advantages that make intraday trading more attractive to any trader.
The main ones include the ability to scalp and grow your deposit , the absence of additional commissions, greater predictability of trends, and complete control over your trades.
Let's take a closer look at the advantages of intraday trading.
Traders' diseases and how to combat them.
Most people who want to become a trader associate this job solely as a source of good income, but few
consider the health risks associated with trading.
It would seem that sitting at a computer for hours clicking a mouse is harmful—I already spend just as much time on social media—but unfortunately, there are numerous health risks associated with becoming a trader.
Therefore, it's important to be prepared for them and take all possible preventative measures to reduce their likelihood.
Let's start with the most common:
Bull Market and Bear Market: How to Make the Best Choice
In Forex trading, the main deciding factor in choosing the direction of a trade is the direction of the trend. 
A characteristic of forex trading is that it's difficult to identify an existing trend; the influence of bulls and bears isn't as pronounced as on the stock market.
However, by using both fundamental and technical analysis to study the situation, it's possible to identify the prevailing sentiment.
Sometimes newcomers to the exchange ask, "When is it better to trade an uptrend or a downtrend?" It's best to start trading by opening a buy trade.
This means when an upward trend is observed and the exchange rate of the currency pair predominantly increases.
Forex trading in Russia.
Lately, you can find Forex trading ads on almost every website.
Offers to open an account come in a variety of forms, from outright promises to increase your money hundreds of times over to more subtle advertisements for dealing centers and their trading conditions.
Forex trading in Russia is not exactly straightforward, starting with the fact that this activity is not properly regulated in the country. Most brokerage firms operate under gambling licenses.
The government turns a blind eye to these practices, as almost all brokers are registered in offshore zones, making them virtually impossible to track down.
Forex trend forecasting.
The entire process of trading on the Forex currency market is divided into two main components: market analysis and forecasting the future trend.
These two stages are the foundation for successful trades, so they cannot be considered separately, as without analysis, it is impossible to make an accurate forecast, and without forecasting, it is impossible to open a successful trade.
Forex trend forecasting is classified depending on the trading timeframe and the planned duration of the trade.
Capital allocation.
This article will be of interest to traders with large sums of money,
exceeding several thousand dollars. Spreading smaller amounts of capital makes little sense.
The primary tool of any forex trader is their deposit, or the amount of funds in their brokerage account. It is capital that enables profit, and the larger it is, the more attractive the future prospects.
However, it is important not only to plan for profit but also to try to protect yourself as much as possible from emerging risks. One of the most well-known methods of risk hedging is capital distribution in forex trading.
A trader's working day.
When starting their careers, most newbies think their work will be limited to
clicking a few buttons and counting their profits. Unfortunately, it's not that simple, and a trader's day isn't limited to just the time spent opening trades.
Trading on Forex or similar exchanges shouldn't be confused with gambling; those who think that way usually lose their deposits within a few hours. Successful trading requires not only the trading process itself, but also constant improvement of your knowledge.
A trader's workday consists of such components as: analyzing the market situation and recent events, analyzing statistics on completed transactions, creating and testing new strategies or scripts, and making forecasts.
Trader career.
Just a few years ago, becoming a trader wasn't an option for everyone; the job required specialized education and was only available at large international brokerage firms and hedge funds. But in recent years, the situation has changed dramatically, and a career in trading is now much easier; all that's required is desire and perseverance.
A trader's career can take several paths. The first, and most straightforward, involves investing with your own capital. The second is working for a dealing center or investment company.
This article will discuss what you need to do to become a trader and the challenges you'll face.
