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.
NEW! High accuracy scalping indicators
Scalping or pipsing is used by a huge number of traders around the world in their trading. They are driven, first of all, by the desire to earn money quickly and a lot.
Some traders succeed in this, and over time they become professionals, while others lose several deposits and leave the market.
The thing is that scalping strategies are based on technical analysis, where indicators play a key role. It is the indicators that provide the trader with signals to enter/exit a trade transaction.
Of course, professional scalpers have their own sets of indicators, sometimes proprietary ones, or with certain parameters customized for themselves.
Forex trading time
Forex, also known as the foreign exchange market, is the largest and most liquid market in the world, with over $7 trillion worth of currencies exchanged daily.
Traders analyze economic indicators, political events and a number of other factors to make an informed decision about buying or selling a currency.
The basic principle of Forex trading is that if you expect the value of a currency to rise, you buy it, and if you expect the value of the currency to fall, you sell it.
When can you trade Forex?
One of the key aspects of successful Forex trading is understanding trading timing. Forex trading timing affects market volatility and liquidity.
How does inflation affect the price of shares in the stock market?
The recent rise in world prices has caused a significant increase in inflation rates around the world, how does this fact affect the stock market and is it worth buying shares now?
In most cases, the effect of inflation on the price of shares in the stock market is negative and leads to a fall in prices.
The main reasons for the unfavorable situation with high inflation are:
Decrease in purchasing power - investors begin to spend more money on current needs, as a result, the amount of available funds that could be used for investment decreases.
Stock broker recommended by Artificial Intelligence
More than 10 years have passed since analogues of modern Internet AI appeared, and every day the popularity of artificial intelligence is only growing throughout the world.
And this is not surprising, since the algorithms on which such developments operate are being improved. The range of tasks and the quality of their execution are expanding.
I myself also often use several options for artificial intelligence to search for information or carry out calculations.
And often I just like to chat with this program in order to determine how far the development of AI has progressed over time.
Lowest spreads in NPBFX: broker test drive
The size of the spread is one of the main factors by which millions of traders around the world select a broker for further trading.
This is due to the fact that most financial market participants use short-term trading strategies (scalping, pipsing).
For such strategies, the size of the spread plays a key role, because... the profit is sometimes only a few points. High spreads can simply “eat” it.
In practice, choosing a high-quality and reliable broker is not so easy. Often, the spread sizes indicated on the official websites of companies differ significantly from real trading ones.
The most popular blue chip companies and whether these securities are worth buying
Blue chips are shares of the largest, most stable and reliable companies. They are usually included in stock indexes such as the S&P 500 in the US, the DAX in Germany or the Nikkei 225 in Japan.
That is, if you want to determine whether the shares of the company you have chosen are blue chips, it is enough to check whether these securities are included in the main stock index of the country where the company is registered.
Blue chips are characterized by the following characteristics:
Large market capitalization . Blue chips have market capitalizations in the billions or even trillions of dollars.
High liquidity . Blue chip stocks are easy to buy and sell on the stock exchange at minimal cost.
Positive swap for gold and carry trade strategy in relation to gold
You probably already know that for transferring exchange positions to the next day, a corresponding commission called swap is charged.
Moreover, unlike other types of commissions, this indicator can be both negative and positive.
If we talk about currency pairs, the swap sign depends on the type of asset, the direction of the transaction and the interest rate of the bank issuing the currency.
When transacting with gold on the stock exchange, a swap is also charged, while everything is simpler here: for purchase transactions, a negative swap is sometimes charged, for sell transactions, a positive swap is sometimes charged.
Factors causing gold to become cheaper
The new record growth in the price of gold again attracted the attention of many investors and increased the popularity of this asset.
At its peak, the cost of one troy ounce exceeded 2,150 US dollars, which became its new maximum in the entire history of trading.
But the price increase did not last as long as investors wanted, and after reaching the peak, the price of the precious metal began to gradually decline.
And soon she surpassed the psychological mark of $2,000. At the moment, the price of gold is at $1,988 per troy ounce.
Pips on Forex without errors. How not to lose your deposit?
Piping has been one of the most popular strategies among traders with different levels of trading experience for several decades in a row.
They pip in Russia, pip in Europe, and pip in African countries. This mega-interest is due to only one reason.
This trading strategy (TS) allows you to realize the desire with which the majority of traders come to the market - to earn money quickly and a lot.
Indeed, pipsing within a week can bring profit amounting to several hundred, or even thousands of percent of the invested funds.
The main mistakes of Warren Buffett that cost him a lot of money
Warren Buffett is one of the most successful investors in the world. Over the course of his career, he has made billions of dollars investing in corporate stocks.
Brief biography of the investor - https://time-forex.com/treyder/uorren-baffet
However, even an experienced investor like Buffett made mistakes that cost him billions of dollars.
But this did not stop him from moving on and earning even more money; the mistakes he made brought invaluable experience, and did not become the basis for depression.
In this article, we'll look at some of Warren Buffett's major mistakes that caused him to lose his money and investors' money.
A look at stock trading from a professional trader
It is quite difficult to learn something on your own; it is much easier to use the experience of other people who have already achieved some success in their chosen business.
Despite the fact that I myself have been involved in stock trading for quite a long time, I cannot call myself a true professional.
Therefore, I will give several recommendations, even more thoughts, that I found in an interview with one of the American traders.
Evan Craig can truly be called a professional, since this man manages more than several tens of millions of dollars.
Features of stock trading using leverage
The main advantage of modern stock trading is the ability to use leverage.
Thanks to margin trading, you can increase the transaction volume by tens, hundreds and even thousands of times, while simultaneously increasing the amount of possible profit.
Today there are practically no traders left who refuse such an opportunity as leverage, but at the same time, not everyone takes into account the peculiarities of trading using this instrument.
It seems to beginners that if you open an account with a leverage of 1:1000, then you can trade using the unlimited features of margin trading .
The impact of fake news on stock prices
Fake news has become an integral part of the modern information space. They spread at tremendous speed and can have a serious impact on various areas of life, including the stock market.
Fake news is information that is published to mislead people or create an illusion about something that is not actually true.
They can be in the form of articles, videos, photos or social media posts. Fake news is often created using manipulative techniques and misinformation.
In this article, we will look at the significance of fake news in the modern stock market and its impact on investors and traders.
Dependence of the price of gold on the trading session on the stock exchange
This is not the first day that the price of gold has been moving in a price corridor, sometimes rising by several tens of dollars, then falling again.
It would seem that you can make money in the absence of a clearly defined trend, but for short-term trading there is nothing better than stable patterns and movement in the price corridor.
If the price repeats its movement day after day, then you can take this pattern when opening transactions and make good money on it.
At the same time, the main trend that can be noticed now is that futures are becoming more expensive or cheaper depending on the trading session.
Relationship between leverage size and stop loss level
Stop loss is an integral part of any transaction; setting this stop order allows you to protect your position from large losses.
When calculating the size of the stop loss, they usually focus on two parameters, the first of which is the allowable amount of losses from one transaction, and the second is the location of the stop order.
Most financiers recommend limiting losses from one transaction to 2-3%, with the exception of positions opened as part of high-risk strategies, such as pipsing.
The second indicator is the very place where the stop loss is set, usually these are likely price reversal points, for example, for buy transactions, these are the support line, after breaking through which the price will begin to fall or levels near which a reversal may occur.
Nikkei 225 stock index
We are already accustomed to the fact that most often the news talks about American stock indices, which reflect sentiment in the US stock market.
But it is logical that in other countries there are also tools like Dow Jones and NASDAQ 100 , which help assess the situation in certain sectors of the economy.
Today, the attention of many investors is focused on the Japanese economy, so many will be interested in what the Japanese analogue of Dow Jones is.
The Japanese stock index Nikkei 225 (Nikkei 25) is one of the most significant indicators of the Japanese economy and is widely known throughout the world.
Available indicators for trading gold from MetaTrader 4
Gold is one of the most popular instruments for exchange trading, and due to the fact that the asset is available in the MetaTrader trading platform, almost any strategy can be applied to it.
Most traders prefer, when trading gold, to use fundamental analysis based on factors influencing the price of gold
But the best results in trading can be achieved if you combine fundamental analysis with technical analysis, therefore, when trading precious metals, the use of indicators from the MT4 trading platform will be fully justified.
There are many different indicators in metatrader that can be used to trade gold, but we will focus on three that complement each other.
Investors increasingly want to use ChatGPT in their work; can AI replace the trader?
The advent of artificial intelligence has revolutionized many areas of human activity; programs like ChatGPT successfully write texts, draw pictures, translate texts, and analyze finances.
Because of this, many professionals doubted their future, fearing that their jobs would eventually be taken over by artificial intelligence.
Can the influence of AI spread to such an area of activity as biz trade? To study this issue, a survey of traders from one of the largest brokerage companies was conducted.
The study revealed that 40% of traders surveyed are already ready to use ChatGPT to make analytical forecasts or create trading strategies . And some investors are now using AI recommendations in their work.
Features of stock trading in summer that should be taken into account in a trader’s work
Exchange trading is a dynamic process that is influenced by various factors, including seasonal fluctuations.
Summer is a period when certain changes often occur in financial markets.
In this article we will look at the features of stock trading in the summer and what factors should be taken into account when making trading decisions.
Low market activity - one of the important aspects of exchange trading in the summer is a decrease in trading volume and liquidity.
Often the summer months are characterized by low market activity due to holidays and a decrease in trading volumes on the part of investors.
How to secure a pension for a trader
When you are 20 years old and full of energy, you have no desire to think about old age and retirement, but when you are already 60, it’s too late to think about what to live on if you haven’t earned enough for your old age.
Therefore, you should start ensuring a comfortable old age at a young age, especially if you are engaged in stock trading.
Unlike official employment, traders do not always use a scheme to legalize their income, which involves payments to a pension fund.
And even if you pay income tax to the state, this does not mean that you will receive payments when you retire.
Standard advisors in the metatrader trading platform
The metatrader trading platform is a multifunctional tool and one of its functions is automatic trading.
For this purpose, special scripts called advisors or experts are used; they independently analyze the market and open positions.
By default, the metatrader 4 trading platform contains several installed advisors that can be used in your trading completely free of charge.
Unfortunately, the number of these scripts is only decreasing every year, and now you will rarely find a broker whose trading platform has more than 2 advisors.
What is Bloomberg and how can it be useful for stock trading?
Almost everyone who is interested in finance or economics knows the website bloomberg.com; news and analytics are constantly published on this resource.
Moreover, the site invites its users to choose from which region of the world they want to receive information - Europe, America, Asia or Africa.
But not everyone knows that Bloomberg is not only an online resource, but also a manufacturer of software for stock trading.
the Bloomberg Terminal trading platform , the software is designed to organize professional trading with a payment of 24,000 US dollars per year:
Description of the Bloomberg trading platform and its main features
The most popular trading platform at the moment is Metatrader, but it is always interesting to explore alternative stock trading software options.
Bloomberg is an international trading platform that provides information on financial markets as well as companies and industrial sectors in general.
The platform allows you to receive real-time data, as well as conduct market analysis and make investment decisions.
The history of the Bloomberg trading platform involves a multi-step process, starting with the company's founding in 1981 by Michael Bloomberg.
Margin level in the trader’s trading platform, its optimal size
The margin level is an extremely important indicator that characterizes the level of risk for open transactions in the trader’s trading platform.
It is he who warns that a margin call or stop out may soon be triggered, protecting the broker’s funds and forcibly closing the position.
Also, the margin level can be a kind of guideline when opening new transactions; thanks to it, the trader gets an idea of whether there are enough funds to open a new transaction.
How is the margin level calculated in the metatrader trading platform
This indicator is calculated automatically in modern trading platforms. True, this happens only after the first order is opened.
What is the Kelly formula and how is it used in trading?
In any investment field, money management is always an integral part of the process of profitable investment.
There are quite a few experts who argue that a good trading system may not contain elements of money management.
But in practice, ignoring the rules of money management usually results in large losses or complete loss of the deposit.
Money management is most simply understood as constructing an effective plan that allocates the investor's available funds, taking into account risks and potential returns.
A state of fear of missing out
Almost everyone who has been trading on the stock exchange for quite some time is familiar with the situation when it seems that almost everyone is more successful, and you are just wasting time.
In fact, this happens to traders so often that this psychological state even got its name “Fear of Missing Out,” which translates as “Fear of missing out.”
FOMO is experienced by most new investors, a psychological state that occurs when traders think they are missing out on big opportunities or feel inferior to other investors.
The main reason for FOMO is high expectations, lack of a long-term action plan, overestimation of one's own strengths and unwillingness to wait.
Number of people trading Forex today
With the advent of the Internet and software for making transactions online, the Forex market has become accessible not only to banks and corporations, but also to ordinary users of the World Wide Web.
Today, anyone who has reached the age of 18 and has at their disposal a sufficient amount of money to open a transaction can trade on the foreign exchange market.
The popularity of exchange trading was also added by the emergence of such an asset as cryptocurrencies, some of which are also traded on Forex.
Therefore, many people have a logical question: how many traders are currently trading on the Forex currency market?
Top 5 world financiers
In any field there are the most successful, the best, and of course stock trading is no exception.
The most successful traders have earned huge fortunes amounting to billions of dollars.
Most of the people who have achieved success in trading began to engage in stock trading literally from scratch and managed to achieve success only thanks to their work.
Therefore, their experience is a valuable lesson and example for traders who also want to become one of the world's top financiers.
The character of the trader and the peculiarities of trading on the stock exchange associated with him
Lately, we very often come across articles in which the authors tell what a real trader should be like.
According to most people, a real trader is a reasonable person who knows how to analyze, wait and make informed decisions.
But as life shows, it is practically impossible to change a person’s character; it is much easier to find a type of activity that takes into account individual character traits.
This approach can also be applied to stock trading, since today there are simply a huge number of trading options.
Broker server time, what does it matter?
Very often, when opening an order in the metatrader trading platform, you notice that the time the trade was opened does not coincide with what is on your watch.
Many people immediately have suspicions about the integrity of their broker and the reality of the quotes provided.
In fact, the reason for the discrepancy does not lie in the evil intentions of the DC, it’s just that your local time does not match the time on the metatrader server.
Today, the time in the metatrader 4 and 5 platforms of most popular brokers coincides with Eastern European time, which corresponds to GMT+2 in winter or GMT+3 in summer.
An exception may be if you trade through a dealing center that uses its own terminal to open transactions, then you will have to check the time with consultants or determine it empirically by opening an order on a demo account.
How much can you earn on a positive swap, Carry trade strategy
When trading on Forex, there is such a thing as a swap; brokers charge a fee for transferring open positions on the exchange to the next day.
This commission is quite specific, its essence lies in the difference in discount rates between currencies in a currency pair, for this reason the swap value can be either positive or negative.
This aspect was described in more detail on our website in an article located at - https://time-forex.com/praktika/svop-fx
If there is a positive option for a swap, it means that there are people who want to make money on it; at one time, an entire strategy called Carry trade was even developed.