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.
Stocks or currencies, the choice is based on the nature of the trader.
Having decided to make a career as a trader, most beginners are faced with choosing a stock or currency, stock exchange or forex market.
It would seem that there is no particular difference in which instrument to trade in the metatrader terminal, all the same orders, the same indicators, and often the same brokers.
But if you analyze both types of trading, you can find a lot of differences that affect the choice of one or another asset.
1. Leverage – as a rule, when trading currencies, it is several times greater, and sometimes hundreds of times. That is, profitability and risks in Forex are also proportional to leverage. If when trading stocks, rarely anyone trades with a leverage of more than 1:5, then currencies are bought at 1:100.
Exchange trading without risk. Compensation for losses on binary options
Speculative trading always involves risks, be it trading in the foreign exchange market or binary options.
Naturally, everyone who comes to these markets is fully aware that in addition to the desired earnings, the trader can be overtaken by continuous losses.
However, during the learning process, beginners in most cases hone their skills on demo accounts, without risking a penny from their pocket.
As a result, a trader can demonstrate high profitability on demo accounts, acquire a profitable strategy, but as soon as he switches to a real account, the same unexpected loss of deposit will occur.
There are several ways to minimize the risks of an increasing number of traders when trading binary options, namely, forget about turbo options and give preference to longer-term transactions, or use various promotions.
Demo trading options
Any trader undergoes training, tests acquired skills, developments and strategies. It is for this purpose that brokers have introduced demo accounts, on which you can gain all the necessary skills without risk.
There have never been any problems with demo accounts in the Forex market, because no matter what terminal you downloaded, right up to the official website of the developer, opening a demo account took literally one minute.
Unfortunately, with binary options in relation to demo accounts, everything is completely different. Firstly, many specialized binary options brokers provide a fictitious demo, where no matter where the trader opens a deal, there will always be a profit.
Secondly, brokers require full registration and authorization, and some unique companies require not only a real account, but also a certain amount on deposit.
Trading against the market.
Most recommendations advise trading with the trend; trend strategies are considered less risky and more profitable.
But there is also a category of traders who prefer to trade contrary to the existing trend, and such trading in most cases turns out to be more profitable than classic trading.
The reason for this situation is that when opening a trade following a trend, you very rarely enter the market at the best price. In most cases, you are already too late and in the middle of the trend.
By opening a trade against the trend, the investor expects a quick reversal, and if his expectations are met, the order is opened in a better place.
The cyclicality of the Forex market and the pattern of fluctuations.
Most traders think that they can make money on Forex only using technical and fundamental analysis, but as practice shows, they can do without these research methods.
It is quite difficult to find a currency that has moved in only one direction during its existence; most world currencies rise or fall in price with a certain cyclicality.
Typically, the price movement of a currency pair occurs in a certain price channel, which determines the minimums and maximums of the price.
The boundaries of the price channel are determined by the state’s monetary policy and the influence of economic factors. But, for a trader, it is important not to study the factors themselves, but to determine the existing boundaries.
Redrawing indicators and how to select an indicator without redrawing
When trading on the stock exchange using technical analysis, and especially indicator strategies, every trader has at least once encountered such a phenomenon as redrawing of indicators.
This phenomenon, or to be more precise, a technical feature, has caused damage to more than one thousand traders, since having believed in the strategy algorithm and opened a deal based on a signal, at some point the signal immediately disappears, as if it never existed.
At the same time, if the trend continued and the signal worked, such a disappearance is not observed on the chart.
The most interesting thing is that it is these instruments that instill great faith in the trader that he has finally found the Grail, since such indicators look simply flawless in history.
However, the use of such algorithms can lead to the loss of a deposit, and their main disadvantage is the inability to conduct a more detailed analysis of trading, since the received negative signals are not stored in history.
Cryptocurrency correlation. Determination method
Cryptocurrencies are represented by a huge number of digital currencies, which have both similarities and are radically different from each other.
However, the huge excitement caused by the daily introduction of new electronic money into all areas of the economy, and especially the banking sector, led to huge demand, and as a consequence to incredible rates of exchange rate growth.
Now, not only far-sighted investors are actively investing in this area, but also ordinary citizens who can see every day that Bitcoin has reached another high and has risen in price again.
However, investing is a rather complex science, so it is very important to structure your portfolio in such a way that in case of sudden market changes you do not lose everything you have accumulated through backbreaking work.
Brokers who are no longer with us
Stability in global financial markets, as well as macroeconomic stability in most post-Soviet countries, creates a huge impetus for business development.
Every month more and more new companies enter the brokerage financial services market, and leading brokers are constantly improving their trading conditions.
However, a quiet and calm environment in the field of brokerage services only reduces the vigilance of traders, and as a result, newcomers carry their deposits with the company without doubting their solvency.
In this article, we wanted to remind you of the largest broker bankruptcies that happened just a few years ago, which will allow you not to step on the same rake as happened to thousands of traders just recently.
Options for cheating on Forex
It is worth noting that the deception technology itself is in a prominent place and right in front of the trader’s nose, however, behind the clever terminology, many people cannot figure out what scheme the broker uses and exactly how he can make money for you.
In the same article you will learn classic work schemes forex brokers, as well as methods of deceiving traders in the Forex market.
Schemes of work of black brokers
Scheme "Kitchen"The most common scheme for deceiving most dealing centers, which is called “Kitchen” among traders, is that all transactions that traders make are not put into the market at all and are nothing more than virtual transactions within the company.
The Unchangeable Rules of Trading from Jesse Livermore.
For those traders who are accustomed to trading using various scripts, it is simply unthinkable to imagine that they can do without them.
Moreover, it should be noted that in the history of trading there are many examples when huge profits were obtained not only without technical analysis indicators, but also without using the trader’s terminal.
An example would be the legendary trader Jesse Livermore, who traded on the stock exchange at the beginning of the twentieth century.
Moreover, he traded quite successfully; his best results were earnings of $3 million per day.
Like many successful people, Jesse Livermore willingly shared his secrets with others, some of them were given in the book “The Life and Death of the Greatest Stock Speculator.” http://time-forex.com/knigi/gizn-biga-spekulant
Trading: why it is important to control your actions, not your emotions.
Success in the Forex market does not depend solely on the system or strategy you use; it mainly depends on your mindset and reaction to market changes.
There are currently many market analyzes and hundreds of opinions available on the Internet. There are hundreds of sites that will tell you how the market will behave next, and they will convince you that their trading strategy is the most winning one.
Being knowledgeable does not mean being a successful trader. Yes, the information obtained will be essential for market analysis and decision-making, but much more is required to achieve success.
Having studied and absorbed all the relevant information, the trader seeks to apply it in practice. As a rule, mastering something new is accompanied by a mixed feeling of interest and fear. In the best case scenario, the trader makes several successful trades and gains greater confidence.
This result will encourage you to place more trades and perhaps provide the basis for more aggressive trading tactics... However, you will quickly understand why over 90% of traders fail.
What is futures expiration?
The creation of futures contracts made a huge revolution in the stock market. Initially, the purpose of their creation was to provide a completely new financial relationship between the seller and the buyer.
Thanks to a futures contract, entrepreneurs could agree on future deliveries of products at a pre-fixed price by a certain date.
Such an innovation on the commodity exchange made it possible to make relations between the parties transparent, and the exchange at the same time acted as a guarantor of the execution of the contract.
Naturally, with the passage of time and the active development of the exchange, in parallel with deliverable futures (which are still present on the commodity exchange), so-called settlement futures appeared.
The main purpose of which is speculative trading, as well as hedging risks on the underlying asset. However, the only thing that these two different types of contracts still have in common is the expiration of futures.
How to choose an options broker
Choosing a broker is the very first important step a trader takes on the path to his future success.
Today, the segment providing brokerage services in the field of options trading is represented by dozens of different companies, which have both their advantages and disadvantages.
Just like in any business segment, there are fraudulent companies in this market that, under the guise of providing access to the market, actually deceive traders and use all possible manipulations to achieve the loss of a deposit, or even refuse to withdraw earned funds.
That is why, in order not to fall into the clutches of scammers and also to make your trading as comfortable as possible, we suggest considering the most important criteria that you should pay attention to when choosing an options broker.
1. Company certification. Availability of certificates from the main largest regulators
Playing forex or making money on the exchange rate
More than five years have passed since I first started playing forex, at that time making money on the exchange rate was still exotic for most Internet
users, and it was quite difficult to get the necessary information.
But over time, the necessary knowledge accumulated, and practical work experience appeared.
Now I can confidently say that I know what the Forex game is and whether it is possible to really make money with a small initial capital.
Since the beginning of trading, the amount of my deposit has increased from 100 to 10,000 dollars, although the growth did not always occur only due to profit.
There were times when I simply deposited free money into the account. Now I manage to consistently earn from 2000 to 2500 dollars a month, not as much as I wanted, but stable
Playing Forex involves making a profit by buying and selling currencies; the difference between the price of a currency pair is precisely what brings that profit.
Making money on the exchange rate is currently the most profitable and less risky trading option compared to similar investment methods.
Confrontation between brokers and traders.
It is no secret that in the Forex market, 95 percent of novice traders, as a rule, lose their deposit.
Many will probably be surprised to learn about these statistics, because on every website you can find advertising that every person can become financially independent.
However, the reality is that 95 percent of losers are fed by the five percent who earn a lot of money.
By the way, 95 percent is not such a terrible statistic, because even when starting their own business, only five percent of entrepreneurs become successful.
Naturally, dealing centers and brokers also know about such statistics and begin to abuse their knowledge.
Rebate spread return services and is it worth using them?
A rebate is a return of part of the broker’s commission to the trader for each transaction; it is a kind of cashback of the money paid for opening an exchange transaction.
A spread rebate allows the trader to receive a portion of this commission back after the trade is completed.
This may be a fixed or interest income depending on the volume and frequency of trading operations.
This technique is one of the tools for attracting clients and can help reduce trading costs, increasing the trader’s overall profit.
The active development of Forex brokers and their affiliate programs has led to a completely new phenomenon, namely the emergence of the so-called “Rebate services”.
What is more profitable: Forex or the stock market?
You have decided to become a trader, but you are faced with the question of what and where is more profitable to trade, because you want to use your initial capital with maximum benefit.
In addition, an important factor is the complexity of the work itself and the risk of losing your money. At this time, two main options are available to the average trader - trading on Forex or the stock exchange.
Pros and cons of Forex trading.
Like any type of activity, Forex trading has its pros and cons; the most complete understanding of
them can only be obtained based on your own experience.
For those who do not have one, I will try to share my impressions, as a trader who has been familiar with the currency exchange for more than 5 years. First of all, we should distinguish between those traders for whom Forex trading is only a hobby and those who live from trading; I belong to the latter category.
The profit received is my main source of income, therefore my formed opinion is based precisely on that fact.
The relationship between price and volume in stock trading. Equivolume graph
Many traders, when conducting their analysis on the stock exchange, use only one indicator - volume. The fact is that market volume is the engine of the market, the face of the market and characterizes many processes occurring on the chart.
It is the volume that reflects the liquidity of the instrument, shows the possibility of buying or selling at a favorable price, and is also a magnet that attracts many players.
Each of you who has at least once observed the movement of shares and volume could repeatedly see a picture when a mass of players entered, creating a large volume of positions, simply upsetting the price and taking it far beyond the established range.
This situation is extremely often observed at a time when a key mass of players is trying to break through a certain psychological price level. It is the appearance of a large volume that can serve as a signal for the end of a trend and a market reversal .
Market volume is a kind of fuel that makes quotes move. The ability to correctly read market volume allows you to promptly recognize the fading of a trend, confirm the strength of a market breakout, or determine whether it is false.
Women traders.
It just so happens that in the financial world the first places in the rankings are occupied by men; everyone knows
the names of Soros, Trump, Cohen and other major financial tycoons.
The question arises: Do women traders exist or is it only men who can trade and achieve success on the stock exchange?
Why is it so rare to see the names of female traders in the press? Are there any successful examples where a woman was able to make a fortune on Forex?
Russian Forex.
Like most other things, Forex trading in Russia has its own characteristics that should be taken into account when opening an account
with a Russian brokerage company.
Russian Forex is not quite the usual trading of currencies and other assets, which is organized by domestic dealing centers.
You should be especially careful not to get into trouble with this type of activity; no one will think about your safety for you.
Now about the very features of Russian Forex.
Turtle stock trading success.
The question "What should a professional trader be like?"
Iterates every forex newbie. Some people think that you need to have a special education, others argue that only millionaires engage in trading.
The Turtles trading system, or rather its history, completely refute the prevailing prejudices; its author, Richard Denis (a famous financier), thanks to non-standard solutions, was able to introduce a new approach to exchange trading.
It all started with the fact that he placed recruitment advertisements in several stock exchange publications, and there were no special requirements for candidates regarding education and work experience.
There were more than three thousand people interested, from which all 14 candidates were selected, most of whom had absolutely no idea about trading on the stock exchange. Among those selected were two poker players, a security guard, a computer graphics designer and a little-known actor.
Russian Stock Exchange
Many traders who have been burned at least once on the Forex currency exchange are forever disappointed in the opportunity to earn money and abandon this type of activity.
Also, most beginners who first became acquainted with the world of the stock exchange through the currency exchange, for some reason, do not perceive the stock exchange, arguing that its financial instruments are quite complex and difficult to predict.
However, in fact, the stock exchange appeared much earlier than the foreign exchange market, and instruments that seem complex at first glance have an order of magnitude higher value and are much easier to predict than the ultra-liquid foreign exchange market.
Have you ever thought about becoming a shareholder in Gazprom or Lukoil, or maybe you are interested in other oil producing companies or the banking sector?
Accelerating your deposit with options
Every novice trader, as a rule, gets into the world of binary options because of a very beautiful advertisement about very fast money in a fairly short time.
Agree, if you are reading this article, you are probably tired of your boss and want to quickly earn a good amount of money.
Having delved into the study of a bunch of different literature, and by the way, few people get to this point and are simply disappointed by losing money, you understand that no matter how tempting and beautiful the advertising is.
But on average, a professional trader is simply happy when he sees an increase in his balance by 5-10 percent per month, and such a trader simply has no end to investors.
Choosing a Forex broker for beginners and professional traders
This is the very first question that any trader faces; in my time I made a lot of mistakes that
I would like to warn newcomers to Forex from.
Choosing a Forex broker is a primary and rather difficult task, so you should approach the process with maximum responsibility, it is better to spend an hour more time, but then not have problems with withdrawing funds and blocking your personal account.
To make your choice easier, at the end of the article I will give an example of several brokerage companies where trading usually does not cause problems.
Rating of Forex strategies
Having taken the first steps on the path to becoming a successful trader, every beginner is faced with the need to apply certain trading rules and systematic actions in their trading.
Yes, exactly systemic ones, so the first thing that comes to mind is creating your own unique trading strategy. But is it that easy to do? Believe me, no matter how much you try to create something unique and inimitable at the beginning of your journey, it has long been created and tested by someone.
You will ask why?
Leaders in oil production
Many traders bypass CFDs or oil futures because they are deeply convinced that this instrument is quite
difficult to predict, and if you delve into different brands and types, then it’s just a dark forest.
In fact, there is nothing complicated in oil trading, and the forecast itself is practically no different from analyzing fundamental statistics for countries, as happens when trading currency pairs.
For forecasting and successful trading using oil, a very important factor is timely tracking of information on reducing or increasing the volume of oil production in the main exporting countries.
Actually, in order to understand which countries to work with, you need to know the leaders in oil production, who dictate the market price.
Working on Forex for a beginner, options and real earnings
The specialty of a trader has recently attracted more and more people, working on Forex brings a lot of income, the fact is that by becoming a trader you have the opportunity to earn not just a lot, but a lot.
One of the clear examples is the record of Larry Williams, who managed to increase his deposit from $10,000 to 1,140,000 in a year. Even if
you don’t have such a large amount to start trading, even 11,000 from $100 in a year is not bad.
At the same time, we should not forget that you can work on Forex not only as a trader; in practice, there are many other, no less profitable opportunities.
Moreover, some of these options are less risky compared to regular trading, and can bring no less money.
Working in Forex is not only profitable, but also prestigious; it’s not for nothing that traders are called white-collar workers, and the exchanges themselves are located in the most respectable areas of large cities.
Trend indicators
A trend is one of the most important market conditions, thanks to which traders make money.
Indeed, a trend is always characterized by a purposeful movement either up or down, so if it is identified in a timely manner and a position is opened in its direction, profit will not be long in coming.
It would seem that there is nothing easier than seeing the direction of the market and trading in its direction. However, in practice, everything is much more complicated, since you will never get a clear direction of the market, and if its outline has become very clear, then, as a rule, this movement is coming to an end.
Even Dow many years ago said that when a trend becomes very obvious, and all players begin to move in its direction by inertia, a turning point occurs, because a smarter player with capital, and this includes banks, already understands in advance that the asset overrated and start working against the crowd.
The difference between oscillators and indicators
In the first stages of learning to trade, few people pay attention to the characteristics and subtleties of various
indicators.
In most cases, over a long period of time, almost every beginner looks at indicators as some kind of lines that, when crossed, give a signal to buy or sell.
By the way, more experienced traders are also guilty of such short-sightedness. As a rule, such a view leads to only one outcome, and it is fatal for your account.
This is due to the fact that you make your trades on the basis of not reasoned facts, but only because the line crossed something or went somehow differently than usual. For you these are lines and drawings, nothing more.
Earn money on Forex without investments, without risking your own money
Those who think that making money on Forex without investments are just a fiction or a publicity stunt are completely mistaken.
In fact, there are several ways to make money in stock trading without having your own money, and it should be noted that this is a very real opportunity and quite good money.
The main thing that you will need to do is learn trading; this process is not easy and takes some time.
After studying, you choose which path you will take; this could be receiving no-deposit bonuses or participating in special competitions on demo accounts.
Each option has its positive and negative sides, and we will talk about them in more detail.
Earning money on Forex without investments gives you a chance to improve your financial situation without risking anything and at the same time get a trader's specialty, and the knowledge gained during training will be useful to you for working in any financial field.