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.
Leverage 1:1000, features of use and brokers providing it
Forex trading has become popular primarily due to the ability to use broker leverage.
Leverage has made trading more accessible and reduced collateral requirements for opening trades, thereby allowing even small investors to enter the market.
Every year, the amount of leverage provided only increases, and while previously it was difficult to find a broker with a leverage of more than 1:100, now quite a few brokers offer leverage of 1:1000 or more.
In stock trading, the 1:1000 size is used for scalping on M1, but in addition to the strategy itself, there are many other features.
Peculiarities of stock trading during a crisis
The most useful character trait of any trader is flexibility, or the ability to change a trading strategy in time.
Markets are constantly changing, and therefore, stubbornly following a familiar trading strategy can be the cause of failure.
By mid-2022, the economic crisis had reached its peak, and many traders were wondering how to trade in this situation
If at the beginning of the market decline everything was simple – open sell trades and hold positions until the bottom is reached – now the situation is rather ambiguous.
How to avoid losing all your money after investing in company shares
The list of assets available for trading on the exchange contains thousands of different instruments, but most traders specialize in currencies or company stocks.
The most interesting thing is that depending on which asset a trader chooses, one can determine what type of investor he belongs to.
Typically, Forex traders prefer aggressive trading with high risk and high returns, while stock investors are less risky and want to earn a small but stable income.
People who buy company shares expect a stable income from dividends and that the investment will not require any attention.
Disadvantages of trading using pending orders
Pending orders are a popular tool among most traders today; they save time and allow you to open trades without having to sit in front of your trading platform.
We almost always hear about the advantages of pending orders, but no one mentions their disadvantages.
Despite their ease of use, pending orders also have some disadvantages that affect trading efficiency.
There aren't many of them, but they do exist, so it's a good idea to consider these specifics of trading with pending orders when planning new trades.
Maintaining open positions in exchange trading
At first glance, it seems that trading on the stock exchange is not at all difficult, what could be simpler - buy cheaper, sell more.
But in reality, when trading on the stock exchange, it is necessary not only to open and close a position, but also to manage it.
Why is it necessary to maintain an open order if it is possible to set stop orders that will trigger under specified parameters?
You need to manage a position to improve the financial result of an existing transaction, make a decision on its early closure, or increase the potential profit by moving the take profit.
What does trading with 1:3000 leverage look like in practice?
In recent years, the maximum leverage offered by stock brokers has increased by tens, if not hundreds, of times.
Just 10-15 years ago, you had to try hard to find a broker that allowed you to use leverage greater than 1:100, but now most companies provide leverage of 1:1000, 1:2000, or even 1:3000.
Looking at these figures, it might seem that you don't need your own money to trade Forex anymore. All you need is $10 and 1:3000 leverage to open trades worth $30,000 or 0.3 lots.
But what does trading with such enormous leverage actually look like, and how realistic is it to make any money with such a ratio of equity to borrowed funds?
Tilt in trading: what are the dangers of this condition and how to overcome it
Emotions have a much greater impact on trading success than it might seem at first glance.
Their influence is simply enormous; it is under emotional influence that traders make grave mistakes that lead to losses or even the loss of their deposit.
It is generally accepted that the most successful traders are those who can manage their emotions, do not panic, and do not make rash trades in a state of euphoria.
Lack of calm and focus in trading is often referred to as tilt trading, and it is believed that professional investors are best advised to avoid such states.
Exchange trading in Russia, taking into account new realities, sanctions, and restrictions
Every day, new sanctions are imposed on the Russian Federation and its citizens, and the country's government is also introducing restrictions on the foreign exchange market.
Currently, there are difficulties with using bank cards, transferring funds, purchasing foreign currency (cryptocurrency), and conducting exchange transactions.
Many traders are unclear about the extent to which current changes will affect investment activities and what can be done in the current situation.
We will attempt to analyze all the changes introduced and assess their real impact on exchange trading at an international brokerage company.
CFDs (contracts for difference) and how they differ from other types of exchange trading
Exchange trading using CFD contracts is gradually replacing other trading options.
Every day, more and more brokerage companies are starting to offer their clients this type of transaction.
CFDs (contracts for difference) are, at their core, a purely speculative option for trading on the foreign exchange, stock, or commodity markets.
That is, when opening a buy (sell) order, there is no talk of actual delivery of the given product, and the trader is not a market participant.
Is there a correlation between Bitcoin and gold, and how realistic is it to make money from this relationship?
Trading using correlation, due to its simplicity, has long been a favorite strategy of many traders.
There's nothing easier than selecting assets with a stable correlation, determining whether that relationship is direct or inverse, and then catching the moments when the price of one of the pairs begins to change sharply.
Currently, the most interesting asset for this strategy is Bitcoin, since, unlike traditional exchange-traded assets, it can be traded on weekends.
That is, if there is a correlation between it and, for example, gold, then in practice this property can be applied in the following way.
Panic in stock trading and real life
Stock prices have never been known to be stable, but the most dramatic changes occur when panic sets in on the stock market.
First, an event occurs that triggers a downward trend, reducing the number of buyers and increasing the number of sellers.
Most traders begin to enter into sell transactions, getting rid of unpromising assets, and the price rapidly declines.
News reports about a sharp decline in one asset or another do not add to optimism.
Burnout in Traders and How to Cope with It
The concept of professional burnout is familiar to almost anyone who has been doing routine work for a long time.
Even if the activity is interesting at first, it gradually becomes boring if you do it every day for several years.
Trading is no exception, and it would seem that trading on the stock exchange can get boring, but this is only true if you don't do it every day.
After all, modern trading, at its core, can also be considered routine work. Every day you have to repeat the same actions: analyze charts, read the news, place orders.
What should a beginner choose for trading Forex, currencies, or cryptocurrency?
Very often, the outcome of a project depends on the right choice, so when starting Forex trading, you should first decide which assets you will work with.
The broker's trading platform currently offers a wide range of assets, although only currencies and cryptocurrencies are traded on Forex.
Many beginning traders are interested in what is best for a beginner to understand the essence of trading on the forex market and learn how to make money.
To make the right decision, you need to compare the advantages and disadvantages of trading currencies and their digital counterparts.
What to expect on the stock exchanges in autumn 2021
At the moment, there is a rather ambiguous situation in the stock, financial and commodity markets.
Some experts advise investing in oil products, while others speak of a new crisis that will lead to a drop in energy prices.
Opinions are quite contradictory and it is quite difficult for investors aiming for long-term deals to make their choice.
Therefore, at the moment, it is best to switch to short-term speculation, but if this type of trading is not for you, let's try to understand the current situation.
Voice trading or Forex trading via phone in voice mode
We've all long been accustomed to the idea that trading on Forex or the stock exchange is conducted online using a trading platform.
But just a couple of decades ago, everything happened over the phone – orders were opened and closed, stops were set.
And it would seem that now there is no point in using a telephone connection for trading; not only is it inconvenient, but many modern strategies are simply not applicable over the phone.
But many brokers provide a "Phone Password" when opening an account. What is it for and in what situations is it useful to use a telephone connection?
Closing a position in MetaTrader without the trader's knowledge
Over the ten years I've been working with the MetaTrader trading platform, I've encountered situations more than once where previously open orders were closed without my knowledge.
You've probably had situations where you leave a trade open overnight, only to discover in the morning that the order has been forcibly closed.
It turns out that there are quite a few scenarios that could result in your MetaTrader position being closed without your intervention.
Moreover, forced closure does not always imply a negative financial result; situations do vary.
So, why might your position in the trading platform close on its own?
No risk, no profit, the basic rule of investing
Almost everyone knows that there is a clear relationship between risk and the amount of profit received.
The riskier the trade or the higher the leverage, the greater the profit you can expect at its completion.
The best example of this is the negative bank interest rate on deposits in Swiss banks, where you pay money to ensure that your savings remain safe with the highest possible guarantee.
At the same time, Forex trading with high leverage allows you to earn tens of thousands of percent per year, but carries a huge level of risk.
Now is the time to buy cryptocurrency to make good money in the future
Most novice traders are used to following the crowd, they buy when the price has already risen quite high and sell when it is too late.
But on the stock exchange, the winner is the one who first notices a new trend and opens promising deals.
Currently, the most promising market is the cryptocurrency market; the decline in digital currency prices has already stopped, and it can be assumed that growth will begin in the near future.
The most promising altcoins are those that have lost the most in price, which means that after the start of the trend, they will grow the most.
What to choose – currencies or cryptocurrencies? Time to take stock
Stock trading is heavily influenced by the opinion of the majority, that is, the pressure of the crowd.
Moreover, this statement concerns not only the choice of the direction of transactions, but also the choice of the asset for which these transactions will be opened.
Therefore, as soon as cryptocurrency pairs began to be added to the assets available for trading, many traders began to use them in their work.
And this is not surprising, because trading cryptocurrency is fashionable; every day we hear stories about how someone made fabulous money on Bitcoin.
Forex earnings guarantees – myth or reality?
Forex is the largest and most well-known market where transactions related to the buying and selling of currencies take place.
The colossal sums of money circulating in this market, as well as its widespread recognition even among those unfamiliar with financial transactions, attract many new players to Forex.
Often inexperienced and lacking strategy, they perceive it more as a kind of casino or lottery, rather than as a professional field.
Most of these "random" traders quickly lose their investments, after which they begin to trumpet from every corner that Forex is practically one huge scam, where it is simply impossible to make money.
The pitfalls of working with stock brokers
Very often we make purchases under the influence of advertising, without really delving into the details, paying attention only to the advantages that are offered to us.
The acquisition of services for access to financial markets provided by brokerage companies is no exception.
And then, during the course of work, you have to deal with rather unpleasant moments that create difficulties and sometimes directly affect the financial results of transactions.
Therefore, it's always a good idea to learn about all the nuances in advance and clarify important points in the broker's trading conditions.
Spending a few minutes now will help you avoid a ton of surprises later on and will save you time and money in the future.
How profitable is it to be a broker and is it worth opening your own brokerage company?
The main intermediary between the forex and stock markets is the brokerage company, which receives profit in the form of a commission or spread.
Sooner or later, almost every trader comes up with the idea of creating their own brokerage company.
At first glance, providing brokerage services seems like an easy and profitable business, allowing you to earn a commission on every client transaction.
There is no need to have a large number of employees, rent retail space, or set up production; also, unlike banks, there is no minimum amount of equity capital.
Metatrader 5 for trading stocks and other securities
One of the steps in starting securities trading is choosing a trading platform through which to open trades.
There are currently professional trading platforms for stock market trading, but most of them are paid, and it's not a given that you'll enjoy working with the program you purchase.
That's why many traders choose MetaTrader, specifically its fifth version, as it's designed for trading securities.
This choice is also good because if you have already traded in this program, you will not need to re-learn its functionality.
Glued futures as the simplest option for futures trading
Futures trading is unfairly ignored by many traders, due to the active promotion of forex currency trading.
At the same time, working with futures contracts is more stable and predictable; it was this type of exchange-traded asset that allowed Tudor Jones to make his fortune.
Most beginners are intimidated by the complexity of trading this instrument, but stock trading is becoming easier every year.
Positive changes were also made to futures trading techniques, with the introduction of “Glued Futures” to simplify the process.
The Best Stock Investments of 2021, According to Warren Buffett and His Team
Based on the nature of their acceptance of disruptions, most people can be divided into two categories: inventors and followers.
The former try to invent something new on their own, while the latter don’t reinvent the wheel, but simply follow the leaders.
It's clear that inventing on your own is much more fun, but it's also much more difficult to achieve success, so if you want a guaranteed result, use proven options.
Oddly enough, this method also works with investments. To choose the best stock investments in 2021, you just need to know what leading investors are betting on.
Free stock market trading signals with trade direction indication
In pursuit of new clients, brokers are constantly improving their services, adding new features and making them free.
Trading signals are always particularly popular among novice traders, and there are now many different options for this service.
For example, you can use a dedicated trading platform for copying trades or subscribe to signals in a version of MetaTrader.
There are currently numerous free and rather expensive options for this service, although many of them have their drawbacks.
Firstly, trading signals for the stock market are rare; they mostly send messages about the direction of a trade in the forex market.
How trading is changing in light of modern technologies and conditions
In today's world, everything is changing rapidly. Technological advances have touched many areas of activity, including trading.
For this reason, many stock trading strategies simply stop working, and technical analysis indicators are losing their effectiveness.
While the fundamental market laws still apply, and increasing volumes confirm a trend, there are also fundamental differences between how the market functioned previously and how it operates now.
This is especially true for stock exchange and forex trading, where the changes are most noticeable.
, how can you overcome this situation when proven trading strategies begin to yield losses?
The most expensive Forex trading advisor
Automated trading on the stock exchange has been incredibly popular for years, not only among novice traders but also among professionals.
Many hedge funds use expert advisors in their operations, trusting robots to manage multi-million dollar sums.
This popularity has led to the emergence of thousands of similar scripts, which can be confusing for beginner traders looking to get into algorithmic trading.
Beginners typically start with free advisors, but after several losses , they wonder if it's the price.
I also became curious about the most expensive robots available on the Market and whether their prices are justified.
Forex as a business option or income with minimal risk
We all come to Forex with the goal of earning as much as possible, but few people strive to make a profit solely through traditional methods.
After all, there are now plenty of other options on the exchange, including earning money with robots.
The only problem with using such scripts is the requirement for a decent amount of money in the account.
For an advisor to generate significant profits, a large sum of money is required; the deposit size and the amount of money earned are proportional.
However, attracting an investor is not at all difficult these days; the main thing is that the trading account statistics look as attractive as possible.
Which cryptocurrency is best to trade on the exchange?
One of the most popular strategies among traders is day trading . No one likes to wait long for trade results.
By the end of the day, or even sooner, you already know the final result of an open order. However, to make a significant profit, you need to trade a fairly substantial volume.
Alternatively, you can choose an asset with good dynamics, which is what cryptocurrency pairs are currently doing. However, the question immediately arises:
which cryptocurrency should you trade? After all, a trader's terminal now offers quite a variety of pairs.
The choice is actually much simpler than it might seem at first glance; just weigh the pros and cons.
Stock market patterns
Despite what various analytical agencies and university professors say, all stock market trading is based on patterns.
Yes, you can make short-term or long-term forecasts based on macroeconomic data and take market trends into account, but one scandal can reverse a trend and invalidate any forecast.
Therefore, many traders don't engage in analytics in the traditional sense of the term, but rather look for stock market patterns.
And once they find them, they try to use them to forecast future trends and plan upcoming trades.
Therefore, it's much easier for a beginner to build a strategy based on patterns than to learn how to analyze the market or pay an analytical agency for a forecast.
