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.
The evolution of trading
In today's rapidly evolving world, Forex trading is no exception.
Many no longer remember the days when trading was a privileged few, with transactions conducted in person or, at most, over the phone.
The advent of the internet ushered in a more liberalized process, making exchange trading accessible to anyone with a device capable of installing a trading platform and an internet connection.
So how did this evolution of trading occur?
It all began with the invention of a trading platform that allowed not only orders to open or close positions but also stop orders.
What will happen to the stock price in 2020?
Analyzing the events that have already occurred in 2020, one can't help but wonder if the adage about troubles in a leap year isn't so far-fetched.
The global economy hasn't experienced such a severe blow in quite some time, and major stock indices have fallen as never before under the pressure of the pandemic.
Against this backdrop, most investors are wondering what to expect from the stock market in 2020—is everything really that bad?
To properly assess the situation, it's important to pay attention to how the crisis has affected each market segment.
After that, we should await the publication of financial results for the first half of the year; profit or loss reports will signal the beginning of new trends.
Why do we need social trading?
Not all newcomers to forex trading have a wealth of knowledge in economics and finance, nor do they possess an analytical mind.
Therefore, a trader's career often begins with losses, and sometimes even the loss of existing capital, which discourages optimism and the desire to continue trading.
However, it is possible to make money on the exchange even without special talent or in-depth knowledge of specialized disciplines. Social trading was invented for this purpose.
Despite the complex name, it is simply a way to copy the trades of successful traders by adjusting key parameters. It is
precisely the regulation of copying that allows this process to be elevated to a higher level, making it safer and more sophisticated.
How to become a partner with the reliable broker NPBFX? Step-by-step instructions
If you've ever wondered how to build your own online business with the support of a successful financial company, the NPBFX affiliate program is for you.
To successfully launch a partnership and start earning money, you don't even need to have expert knowledge of the Forex market or be a cryptocurrency or stock guru.
You don't need to invest your own money – the affiliate program works without any initial capital.
Why can you trust NPBFX? NPBFX has been providing financial market services since 1996 – until 2016, it operated on behalf of Nefteprombank.
NPBFX operates exclusively on a brokerage model, meaning that client transactions are always transferred to the interbank market, and conflicts of interest are completely eliminated.
The deceptive ease of online trading
Since the advent of online trading, millions of people have decided to give it a try.
At first glance, nothing seems simpler than online trading; you can start trading on any exchange in just a few minutes.
However, this is only the case. Most newbies who start trading online quickly lose their deposits and then bombard their brokers with lawsuits.
Risk Disclosure "
on any website about stock trading In reality, online trading is subject to the same rules as trading on a real exchange.
High market volatility and trading features
Various crises and stock market crashes are a time when some lose and others make fortunes.
The main distinguishing feature of any crisis is high market volatility, with prices sometimes plummeting, sometimes soaring.
Volatility itself characterizes the price volatility of a particular market asset, showing how much the price has changed over a given period.
Determining how quickly the price is moving is quite simple by looking at the chart of a currency pair or other asset.
You can read more about this term here - http://time-forex.com/terminy/volatilnost-foreks
A Simple Strategy for Making Money on the Shanghai Index
Anyone familiar with stock trading knows that during market crashes and various crises, you can not only lose money but also make a good profit.
Many outstanding traders made their fortunes during stock market crashes, as this is when they can buy assets at the most attractive prices.
Bad news crashes markets, and stocks and other securities plummet, hitting rock bottom.
But this situation typically doesn't last long; bears (those betting on the rise) begin actively buying up cheap assets, thereby increasing demand.
Due to increased demand, prices begin to rise again, and those who bought securities at rock bottom prices begin to profit.
Effectiveness of the news strategy as applied to futures
The use of fundamental analysis in stock trading has many supporters who prefer it to technical market research.
However, the impact of news on asset prices is quite ambiguous; often, after a news release, the price remains stagnant or moves in an unexpected direction.
This is especially common in forex trading, but what about futures?
The futures market operates under its own laws, and fundamental analysis is often more effective than technical analysis.
This is true because futures prices often directly correlate with news, and news taken into account in currency trading generally impacts the economy of the issuing country, not the currency itself.
The easiest way to assess this impact is through specific examples.
How risky is your trading strategy?
The dismal statistics of Forex trading are familiar to almost every novice trader.
According to available data, no more than 3-5 percent of all those who try their hand at stock trading become successful investors.
Moreover, many are familiar with this statistic firsthand; almost every newbie has lost their deposit as a result of unsuccessful trades.
There are many reasons why this happens, but the primary one is the riskiness of the strategy used.
It is the incorrectness of the chosen strategy, and sometimes its improper application in real trading, that leads to irreparable losses.
Who made a lot of money on Forex?
Most brokers offering trading services currently promote forex trading.
A huge number of different robots and scripts have been created specifically for forex trading, and new strategies and tactics are constantly being developed.
This situation is somewhat confusing, as most foreign traders prefer to trade the stock market or work with futures.
Currency trading is more exotic than practical, but even here, there are record-breakers who have managed to make huge profits through currency speculation.
Convenient button in MT5
Every year, trading software becomes more user-friendly, with developers adding new features and modifying functionality.
Almost every trader is familiar with the "Symbols" tab, which allows you to add new assets to the Market Watch panel.
It also provides reference information on any available asset and some statistics.
Until recently, this tab could be accessed in two ways: the first was via the "View" menu item in the top menu.
The second option was to right-click on "Market Watch" and select the appropriate option from the list that appears.
How to become a billionaire: real ways to get rich
Most people dream of making big money and wonder what they need to do to achieve it, what paths to take.
Despite this, information about who made their fortune and how is publicly available, making it easy to learn how to become a billionaire.
A resource like Wikipedia provides information about people with a net worth exceeding $1 billion— the World's Billionaires List .
After that, it's not difficult to find more detailed stories about these individuals online.
If you analyze the data, you'll discover that the list of the richest includes people who made their money in such fields as commodity trading (oil, gas, coal, and wheat), owners of large companies, as well as financiers and investors.
Useful quotes from traders and financiers
Quotes from financial gurus help us better understand their perspective on trading and the process of making money.
Often, these quotes perfectly characterize the worldview of people who have succeeded in making a career in finance.
This, in turn, helps anyone who wants to achieve something similar and find the right path to their goal.
The selection below is, in a sense, a collection of recommendations that will be useful to almost everyone.
The most striking quotes:
• When people say they want to become a millionaire, what they really mean is they want to spend a million. - Jesse Livermore
Emigration for a trader
Nowadays, a trader's work isn't tied to their place of residence, as the internet makes it possible to trade anywhere in the world.
All you need to open trades is a laptop or phone with a trading platform installed and an internet connection.
So, if you're not tied to your home country and want to find a more comfortable place to live, all doors are open.
At least, that's how it seems at first glance, but when you start putting your plans into practice, it turns out things aren't so simple.
And finding a country for a better life isn't just about having money; you need to have a lot of it or meet a number of conditions.
Forex trading on Mondays
Stock trading is influenced by many factors, one of which is the dependence of trend behavior on the day of the week.
Therefore, when analyzing trend movements, it's important to keep this factor in mind; the day of the week factor has its greatest impact on Monday.
It's not for nothing that Monday is often called the "difficult day of the week," and this applies to stock trading as well.
The difficulty of trading on this day of the week lies not only in the need to return to work after the weekend, but also in several other aspects.
Peculiarities of trading on Mondays
The start of the trading week is notoriously treacherous. Many traders, after two days off, begin opening trades, only to be met with the following surprises:
Who makes the most money on Forex?
The question of earnings is always the most intriguing aspect of any job, let alone Forex trading.
This field is surrounded by legends about the enormous profits traders earn.
However, specific figures are rarely mentioned; traders' earnings are generally assessed based on their possessions—expensive houses, yachts, cars.
In reality, there's a huge disparity in income even among the most successful traders. A trader who posted a 500% monthly profit may earn less than one who traded with only 5% efficiency.
What's the secret behind this unfairness?
The Secret to Success of Professional Traders
Every year, tens of thousands of people try their hand at stock trading, fortunately, it's now incredibly easy.
But experience shows that only a few of this vast number become true professionals.
Most who try to make money on Forex or the stock market give up after just a few months, having lost considerable money.
Only a tiny percentage make trading a full-time occupation and begin to earn a stable profit.
What's the secret of true professionals?
Perhaps it's a special personality trait or a knowledge of secret trading strategies ? One news agency attempted to answer these questions by conducting a survey of professional traders.
How dreams prevent you from making money on Forex
Traders give all sorts of reasons when justifying their failures in Forex trading.
This includes broker manipulation of quotes, inappropriate price behavior, and malfunctions in the trading terminal.
Yes, all of this is present, but in reality, the main reason for the inability to make money is entirely different, and it lies in the very approach to trading.
It's all about inflated expectations and dreams. It might seem like there's nothing wrong with dreaming and setting grandiose plans, but in reality, it's precisely these dreams that prevent you from working.
Based on a person's dreams and current situation, it's quite easy to create a personality profile and assess their life prospects.
Searching for the Holy Grail for Forex
In life, you often encounter people who spend countless hours searching for the secrets to a comfortable existence.
They believe that all successful people simply know what allows them to earn a lot of money easily, and that honest work alone can't achieve anything.
Many such people also turn to Forex, where, after several unsuccessful attempts, they also begin hunting for secrets to making money.
In the exchange, these secrets are often called the Holy Grail—that is, the thing that, if possessed, will allow you to earn money without possessing a talent for trading or the necessary knowledge.
Moreover, this topic is more relevant here than anywhere else, and for good reason: truly successful trading is often based on some secret knowledge.
Trade sugar on the exchange without leaving home
Many beginners, having tried their hand at currency trading, become disillusioned. It seems as if nothing is easier than guessing the exchange rate.
But in reality, the trend constantly changes direction, and it seems as if the price is simply working against you.
As simple as Forex trading may seem, it's one of the most complex segments of the financial markets; forecasting futures is much easier.
For example, take the sugar we add to our coffee every day; it's also traded on the exchange and is available in the terminals of some brokers:
Alpari - https://alpari.com/ru/
Forex Club - www.fxclub.org
Chargeback company scams
The intense activity of dubious organizations providing services in the online trading industry creates fertile ground for demand for refund services from untrustworthy brokers.
This is handled by specialized law firms.
Unfortunately, up to 95% of these organizations also defraud traders.
Let's explore how this happens and why it's so difficult to recover funds from fraudulent brokers using the international payment system's guarantees.
What is a chargeback, and what do legal companies do?
Chargeback is a guarantee from Visa and MasterCard international payment systems that refunds money to the payer if a product or service is of poor quality, or if the buyer does not receive what the seller promised.
Forex trading 24/7. How is this possible?
Thanks to the high liquidity of cryptocurrency assets, 24/7 trading in financial markets has become possible.
Today, some brokers offer traders the opportunity to trade CFDs on cryptocurrencies.
While regular currency pairs are available 24/5, cryptocurrencies can be bought and sold 24/7, even without weekend breaks.
This means traders can now open trades even on Saturdays and Sundays, which is great news for those who are busy with other jobs during the week.
Currently, RoboForex .
What are the differences between two-digit, four-digit, or five-digit quotes?
We're accustomed to seeing exchange rates with only two decimal places; this is considered sufficient for bank clients. While
a couple of decimal places is indeed sufficient for exchanging a couple of thousand of one currency for another, in reality, four- or even five-digit rates are used in Forex.
So, if you see euros selling for 1.15 per dollar at the exchange booth, in the trader's terminal it will be 1.15328.
The significance of this extended notation becomes clear when you're making transactions worth hundreds of thousands. For example, 100,000 euros at a bank would cost $115,000, while on Forex it would cost $115,328—a difference of $328.
And for larger amounts, this difference becomes even more noticeable.
Prohibited Forex Strategies
As with any business, forex trading has its own rules, established by brokerage companies, allowing or prohibiting certain trading strategies.
It might seem like a broker wouldn't care which method a client uses, since a commission is paid on every trade.
But as it turns out, there are differences, and most brokers have restrictions on certain trading methods.
These restrictions are always spelled out in the client agreement, which you must read before trading.
Therefore, when choosing a broker, it's a good idea to check whether the forex strategy you plan to use is prohibited.
The most common prohibited strategies
It has become a tradition that brokerage companies do not traditionally allow such trading options:
Reasons for setting stop loss
Despite all the beliefs, many Forex newbies stubbornly continue to ignore setting a stop-loss order, seeing no compelling reason to use it.
Some insist they'll close the trade themselves if danger strikes, while others are confident in their forecast and don't believe the price will reverse.
In reality, setting a stop loss is necessary for several reasons that newbies don't always realize:
• Deposit protection – or a pre-planned loss amount, the most obvious reason, allows you to avoid losing your deposit due to a rapid candlestick movement against your position.
• Hands-free – you get the opportunity to step away from the monitor and not constantly monitor your trade, but only check the situation from time to time.
How trading used to be done without leverage.
Nowadays, it's simply impossible to imagine trading Forex or stocks without leverage.
It expands your earning potential by tens, sometimes hundreds, of times, allowing you to make money even with limited capital.
But this wasn't always the case; leverage, as we know it, only emerged after it became possible to quickly monitor exchange rates.
Before this, traders relied on a clever collateral scheme to increase their capital, allowing them to receive much less than they can now.
Here's how leverage works today:
A trader has a certain amount of money, which acts as collateral when receiving funds from a broker.
How brokers ensure the protection of their clients.
Trading in financial markets is a complex and dangerous endeavor in itself, but there's also the risk of losing money due to broker bankruptcy.
These have been happening with increasing regularity lately, with one company or another disappearing, leaving their traders without their hard-earned money.
It might seem impossible to remedy the situation, but it can be prevented by choosing the most secure broker from the start.
How do brokers ensure the safety of their clients' funds?
• Participation in compensation funds – brokers enter into agreements with such companies and pay contributions, while these companies guarantee a certain amount of payout in the event of the broker's bankruptcy.
Trading as a Hobby or Why Traders Lose
I'm often asked the secret to my success, why 95% of traders lose money on the exchange, while I consistently make money.
Unfortunately, the answer doesn't satisfy most people who ask, who are hoping to learn about some secret strategy or profitable robot.
The point is, you shouldn't expect much from the exchange and make profitability your primary goal.
My secret to success is that trading is a hobby for me.
I have enough money to live on without trading. I don't want to outearn anyone else; I simply enjoy making predictions and seeing how well they pan out.
The Relevance of the Buy and Hold Strategy
The human brain and consciousness are so structured that it's much easier for any investor to buy assets than to profit from short trades.
Buying is straightforward: buy shares, then sell them at a profit after they rise in price, even receiving dividends.
Buying low and selling high is, so to speak, the natural desire of every speculator, especially when everyone else is buying, making it seem virtually impossible to incur losses with this strategy.
This strategy is applicable not only to the stock market, but also to the precious metals and real estate markets.
People often think about how much they could have made by buying and then selling, rather than how much they would have lost if the price of a particular asset had fallen.
What do millionaires make money on?.
Almost all advertising promotes making money on the Forex market, promoting currency trading as the most profitable form of trading.
At the same time, it remains a mystery why most financiers who made their fortunes traded other assets.
In practice, currency pairs prove to be the riskiest and least predictable instrument compared to other assets available on the MetaTrader 4 trading platform.
It's even more unclear why currency pairs are specifically advertised when MetaTrader 4 offers dozens of other interesting assets.
But to be sure, let's look at how millionaires and billionaires make their money.
Trader's jargon.
Every profession has its own jargon, in addition to official terms, and trader is no exception.
Just like in other fields, there are numerous words denoting specific concepts and helping to more subtly describe a situation or subject in non-literary language.
Knowing trader jargon will help you better understand forum posts, financial news, and specialized trading literature .
It will also be useful for those planning to trade not only online but also eventually work on a real exchange.
Let's move on to the jargon used in exchange trading:
