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Useful Forex articles about trading

In this section you will find more than a hundred Forex articles devoted to trading on the Forex currency exchange, as well as trading on other financial markets. The given articles about Forex will be useful both to a novice trader and to a person already familiar with this type of activity.

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; black gold continues to rapidly rise in price, thereby causing panic and movement in the financial markets.

Many people wonder if there is a relationship between the US dollar exchange rate and the price of oil?

Yes, there is, in most cases, a close relationship can be found between these two trading instruments, because the United States is one of the largest oil producers, so changes in oil prices cannot but affect the national currency of the United States.

It would seem that a decrease in oil prices should entail a decrease in the dollar exchange rate, but everything is just the opposite.

Participation in Forex tournaments.

To advertise brokerage companies and stimulate traders' desire to trade, most brokers hold regular tournaments on demo or real accounts.

What does participating in such competitions give a trader and is there any point in wasting time on tournaments at all, or is it better to trade quietly?

improving your own strategies. Firstly, you should answer the question - “What are the benefits of participating in Forex tournaments?”

Forex trading for beginner traders

In order to make money on the Forex currency market, it is not always necessary to study the entire theory of trading; in practice, it is quite enough to simply develop your own strategy and follow it throughout the entire time.

You don't have to make a fancy plan; sometimes simple solutions work just fine.

The first steps are the most difficult in any business, this statement also applies to Forex trading, so for a novice trader it is important to know a number of things that will help not only save your deposit in the first month of work, but also earn money.

Forex trading for beginners should be carried out with minimal risk, even if at first you will not earn a lot, but you will not lose all your available funds,

Therefore, you should slightly change your approach to trading, setting the goal of the first months not to earn big money, but to learn to feel the market and manage transactions.

Forex with a deposit from 100 to 1000 dollars.

Almost 99% of newcomers to Forex have no more than $1,000 at their disposal, and some even less.

Therefore, most people are interested in the question: what are the features of trading with such a deposit, how much can you earn and is it worth trading with such amounts?

We are all accustomed to the fact that it is mainly millionaires, or at least their representatives, who trade on exchanges, but a distinctive feature of Forex trading is the use of leverage, with its help you can significantly expand your capabilities.

So let's start small.

100 dollars in Forex is more suitable for a test of strength, rather than for full-fledged trading, but if you apply the right strategy, you can use even this amount quite effectively.

Stages of Forex transactions.

Forex trading can be divided into several stages - opening a transaction, maintaining it and completing the transaction.

Most traders pay attention only to the first and last stages, entrusting the maintenance of positions to stop orders.

Usually this scheme works, but still, additional attention to existing deals won’t hurt either. In order to understand the essence of each stage, you should clearly understand what tasks each action poses to the trader.

A profitable investment.

Once you have available funds, the question immediately arises - How to find the most profitable investment of money? As 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 the most accessible; not everyone can understand the complex realities of the stock market or save enough money to buy real estate.

Therefore, in this article we will talk about investing small amounts of 100 or more US dollars.

The best example is always your own, so it is your own experience that will form the basis of this article.

Order execution speed and some other important points.

When working on a virtual exchange, there are a lot of nuances that some traders do not pay attention to, while others, on the contrary, overemphasize them.

An incorrect approach leads to the fact that a trader chooses the wrong broker or pays more, losing probable profits.

Additional trading conditions include such indicators as the speed of order execution, their activation and the minimum size of stop orders.

The speed of order execution usually ranges from 0.5 to 5 seconds; this indicator is especially important when using scalping, since a delay in execution of even a couple of seconds leads to the loss of several points of profit. And when scalping, every point earned is important.

Options trading - another scam or an opportunity to make money?

Recently, you can increasingly see advertisements for options trading as an alternative to making money on Forex.

The main advantages of this type of earnings are the simplicity of transactions, the absence of the need to conduct market analysis, and the elimination of the factor of psychological pressure on the trader.

In addition, most options brokers assure that this option for making profits is more profitable than standard trading using leverage.

Let's start analyzing the issue from the last moment.

Probability theory in Forex.

Almost every person is familiar with the concept of “Probability Theory”, but when you first get acquainted with Forex, the question immediately arises - why does this theory not work?

After all, based on the fact that the trader has only two options for the direction of the transaction, their ratio should be 1:1, that is, in 50% they should bring profit, and in the remaining 50% losses.

But the situation is far from being in favor of profit; rather, on the contrary, novice traders almost instantly lose their deposits, and the ratio of unprofitable trades to profitable ones usually fluctuates 7:3 - 8:2.

The theory of probability in Forex does not work for several reasons:

Minimums and maximums are practical points.

These indicators are one of the most important when trading on Forex; it is by them that you can navigate when drawing conclusions about the existing trend.

Minimums and maximums serve as the basis for opening or closing existing positions and make it possible to construct price channels.

When trading Forex, there is a certain division into time frames (time periods), so the minimums and maximums have their own individual values for each time period.

For example, the minimum price for the EURUSD currency pair during the week was 1.3500, and if we evaluate today’s minimum, its value is 1.3700. That is, each time period has its own minimum and maximum, with the higher time frame being more important.

Basic Forex secrets.

Trading on any of the financial exchanges is quite difficult, and even more so on Forex, so in the latter case there are a lot of important features, knowledge of which allows you to avoid a lot of troubles.

Forex secrets are actually the key to break-even trading in the foreign exchange market, unfortunately this is not the Grail with which you can always make a profit, but if you are already familiar with trading, then you know that at the initial stage it is important not only to make a profit, but also to simply preservation of existing capital.

Therefore, the list of such secrets includes not only trading recommendations, but also money management tips.

Practical Forex advice.

If you decide to trade on the foreign exchange market, you will find a lot of different tips on organizing this process, but as a rule, all of them are divorced from real trading or are reprints of recommendations from foreign traders.

Therefore, I would like to help beginners get really useful tips on real Forex trading that will help them avoid a lot of trouble.

Forex trading is a rather specific activity, so all aspects of the issue should be taken into account - the organization of trading itself, risk insurance and some other points.

Forex trading options.

Everyone who comes to the Forex exchange sets their own goals and objectives, but not all traders have equal opportunities and abilities.

Therefore, it is advisable to immediately decide on your option for trading on Forex, and you need to realistically assess your abilities so that your attempt at stock trading does not turn into another disappointment.

There are several options for trading, namely options, not strategies; there are many more of them, but they all belong to one group or another.

Simple scalping on Forex.

The scalping strategy is known to any trader working in the Forex market; it is this method of trading that allows you to make the most of your deposit and make a tangible profit, even without a sufficient amount of funds. Like any other trading strategy, scalping, or pipsing as it is also called, has a number of advantages and disadvantages.

Therefore, before you start using this trading option, you should first assess whether it is suitable for you and weigh the level of risk and the size of the planned profit.
As practice shows, simple scalping on Forex is nothing more than a myth for beginners; for successful trading you need to take into account many important aspects.

Forex market patterns

The main patterns of Forex include stereotypes of exchange rate behavior in similar situations, by observing which you can determine in advance the direction of the transaction.

This approach makes it possible to significantly increase profits from transactions.

Forex patterns are frequently repeated events that cause the same reaction in the exchange rate and, when detected, make it possible to predict the further movement of the trend.

This aspect can be discovered independently; to do this, it is enough to simply conduct a detailed analysis of trend jumps over the course of a week or a month; any price change always has its own reason and sometimes the situation repeats itself with enviable consistency.

A careful study of market history can reveal a number of patterns based on such points as trading sessions, minimum and maximum points, price channels, the occurrence of gaps, taking into account the correlation between currency pairs and certain commodity groups.

Catch your chance on the stock exchange.

As you know, most bankruptcies occur during times of severe economic and financial turmoil.

People lose their money or currency due to sharp movements in the exchange rate. But there is another category of traders who make money during such shocks.

They specifically wait for bad news in order to make a fortune from it. After all, it is during panic that the most stable trend is formed, usually downward. This allows you to make huge profits in just a few hours of trading.

How to achieve your goal.

If you have learned about the Forex currency exchange, consider yourself very lucky; now all that remains is to correctly set a goal for yourself and try to do everything to achieve it.

The dreams of most people are tied to financial well-being, and Forex can become a means to achieve financial independence.

One of my favorite sayings is, “A dream becomes a goal when action is taken to achieve it.”

Moreover, this rule is not just words, it works perfectly, in my life I have more than once had to set goals and then achieve them. The main thing is to correctly calculate your strengths and capabilities, and then draw up a clear plan of action.

Where to invest money online.

The most profitable investment at the moment are online investments; the profit received as a result of them is much higher than alternative options in real life.

There are many ways where you can invest money online, each of them has its own profitability indicators and time requirements.

Therefore, you can make the final choice only after getting acquainted with the existing offers.

Forex and lack of time.

Many investors refuse to trade Forex, assuming that it takes a lot of time to open transactions, and the trader must constantly be at the trading terminal while maintaining the transaction; in reality, there are many other options for making a profit.

It all depends on which trading option you choose and what work tactics you will use; there is also always some alternative for an investor, which we will discuss below.

Trading strategy.

There are a lot of Forex strategies that involve opening one or two transactions a day or even a week, and it is not at all necessary to control them; the whole process can be carried out using pending orders and stop orders.

Advantages and Disadvantages of Forex Trading

Now there is a lot of debate about whether or not it is worth trading on the Forex exchange; opponents of trading claim that it is absolutely impossible to win, while supporters, on the contrary, boast of huge profits.

It is possible to understand how things work in practice only by assessing the main advantages and disadvantages of Forex.

It should be understood that any assessment here is relative, since everywhere it is necessary to apply an individual approach, taking into account the personal qualities of a particular trader.

Indeed, in a similar situation, someone wins, and someone, on the contrary, suffers losses; all exchange trading is built on this principle.

But it is still possible to identify a number of main criteria by which the advantages and disadvantages of Forex trading and the existing risks and disadvantages of this profession are assessed.

The Forex crowd and is it worth following it?

In any financial market there is such a thing as a crowd, but you should not always succumb to its influence and blindly follow it.

It is following the crowd that most often leads to losses or loss of profit, so you should first carefully study the current situation and only then make a decision.

Forex is a virtual exchange, so when making transactions, the trader is not present on the real trading floor, but psychological pressure still remains. Its influence can be understood through a concrete example.

Casino or Forex.

Forex traders are mostly gambling people, somewhat similar in character to casino players, but what are the similarities and what are the differences between these two sources of profit?

At first glance, it seems that playing in a casino is much easier, this is especially true for roulette and slot machines, but there are a lot of games that require not only knowledge of complex rules, but also the use of complex strategies.

It is the latter option that most often becomes a stable source of income; one of my friends has been able to pay for an apartment in Moscow for several years now through poker winnings. The most interesting thing is that he failed to achieve similar success when trading forex.

Correct entry into Forex.

Trading is a rather complex system consisting of a large number of components. For successful trading, it is not enough to understand technical analysis and be able to read charts of currency pairs; you also need to correctly determine the time when it is better to enter Forex.

Moreover, this concept is equally important no matter what strategy you use, everything is subject to the same rules.

Entry to Forex should be carried out taking into account the following factors - the dynamics of trend movement, the nearest price level, fundamental news, changes in the speed of price movement.

Practical trend analysis.

There are a lot of different methods through which you can analyze the current situation on the Forex market; each method has its own advantages and disadvantages.

Some are ineffective, others are highly complex, which is why it is so important to use the optimal analysis option, which will give the best results even for a novice trader.

Practical trend analysis is nothing more than creating an optimal market study scheme in which only the most important factors influencing the movement of the trend will be considered.

Illusory hopes.

Observing the career of another from the outside, it very often seems that achieving success is easy, just a couple of moves and not even six months will pass before the money simply does not fit into your pockets.

But people who have never achieved anything with their own work can judge this way; usually, achieving success requires spending a lot of effort and time, and sometimes money.

Moreover, this also applies to stock trading; it is this area of activity that raises illusory hopes.

Profit and loss ratio when trading forex.

One of the basic rules of trading on the Forex exchange is the preliminary calculation of the desired profit and the maximum allowable loss.

Often, novice traders do not want to think about this issue; as a result, the decision made leads to a lack of profit or excessive losses, and both options have an equally negative impact on the financial result of trading.

In order to increase the efficiency of trading, you need to influence both increasing profits and reducing losses; some beginners do not even realize how closely these two concepts are related in Forex.

Investors or speculators.

A novice trader is often shocked to learn how trading is carried out on the Forex or stock market; the discovery is that all transactions take place not with real money or assets, but with virtual capital.

Why are some traders proudly called investors, while others are disparagingly called speculators, although trading is carried out on the same platform?

What are the differences between an investor and a speculator on an electronic exchange and how this can affect the financial result.

Flat Forex is like a moment of guaranteed earnings.

Most traders, out of habit, consider the opportunity to make money on the movement of exchange rates only in the presence of a pronounced trend, without thinking at all about the future.

Moreover, this is a mistake not only for beginners, but also for many experienced traders, not wanting to think about the future, sometimes deprives us of guaranteed profits, and it is the flat on Forex that provides this opportunity.

The reason lies in some psychological aspects, but further we will not talk about them, but about how to make money at a time when the price has practically stopped its movement.

Interesting facts about the famous Mr. Soros.

Surely, there is not a single trader who has not heard about the success of the famous Mr. Soros, but it is worth learning about this success in more detail.

As you know, it was Mr. Soros who was able to earn about two billion US dollars precisely from the complete collapse of the British currency. The trading strategy was quite simple: Soros took out a short-term loan in pounds and opened a deal to buy the German mark.

After the fall of the pound, all operations were closed back, and the exchange rate difference ended up in the trader’s pocket. According to one version, Soros played on the information that the upcoming news would not confirm the assumption of a reduction in the German discount rate. According to another, he spurred the fall by throwing 5 billion British pounds into the market.

Intuition and Forex trading.

The strategy of trading on intuition, despite the complexity of the entire Forex trading system, also takes place. In the opinion of any novice trader, this is the simplest and most preferable trading option.

It seemed that there was something complicated here, I looked at the chart of the currency pair, the rate is growing and does not seem to be going to fall, which means we open a buy deal.

But for some reason, in most cases such experiments end in failure. Let's try to figure out whether two concepts such as intuition and Forex are compatible and whether it is possible to build your trading strategy based on this approach.

First of all, you should analyze the reasons for failures with an intuitive approach to opening trades.

Benefits of intraday trading.

Most of the traders who come to Forex prefer intraday trading; it is this type of trading that allows you to earn big profits in a short time.

In addition, there are a number of additional advantages that make trading within one day more attractive for any trader. If we list the main ones, they are: the ability to trade with scalping and accelerate the deposit , the absence of additional commissions, greater predictability of the trend, full control over the transactions made.

Let's move on to a more detailed consideration of the benefits of intraday trading.

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