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.
Exchange trading from a legal entity: pros and cons
Not all traders know that trading on the stock exchange can be done either by an individual or a legal entity, firm or company.
That is, you carry out all operations on the stock exchange not on your own behalf, but on behalf of the company for which your personal account will be registered.
If everything is clear about trading from an individual, then when using a company account, a lot of questions arise, the main one of which is what is this for and do I need it?
Therefore, before starting the registration process, you should understand the main advantages and disadvantages of speculative trading of exchange assets through a legal entity.
VIP status in stock trading, benefits and conditions for obtaining
When you have money, you begin to understand that its value lies not only in the fact that money can be used to purchase goods and services, but also in the status itself.
Possession of a certain capital allows you to receive better service and other pleasant VIP privileges.
If we talk about brokerage services for clients with VIP status, they usually receive better trading conditions, extended customer support and a lot of other useful bonuses.
Moreover, quite often you can get a privileged status simply by replenishing a trader’s account with a certain amount.
The most secure way to trade cryptocurrencies in the current situation
The bankruptcy of the FTX exchange was unpleasant news for many investors involved in exchange trading.
As a result, everyone who held funds on this site lost their money and it is not known whether they will be able to return at least some of it.
This is not the first bankruptcy of such organizations, and it is likely that soon we may again hear unpleasant news about another collapse of the cryptocurrency exchange.
After all, most crypto exchanges are uncontrolled organizations and use investor money at their own discretion.
In this situation, many exchange players are wondering what method to use to conclude speculative transactions on cryptocurrency pairs?
Best Alternatives to Crypto Currency Exchanges
One of the most popular options for trading cryptocurrencies is cryptocurrency exchanges.
But for a number of reasons, this option is not suitable for everyone; some do not want to advertise their identity and citizenship, while for others the tools offered are not enough.
Today, there are two alternative options for trading cryptocurrencies, each of which has its own advantages and disadvantages and can be used depending on the objectives.
The first is ordinary crypto-currency wallets, which many gradually began to forget about after they acquired an account on the exchange.
TRON cryptocurrency, possible prospects
Against the backdrop of events in Ukraine, the popularity of cryptocurrencies as an investment asset has noticeably dropped, while at the same time the share of electronic money in financial transactions has increased significantly.
Stablecoins are especially popular because their exchange rate is stable, which allows you to avoid losses when the exchange rate declines.
Stablecoins are not inherently separate cryptocurrencies, but are based on the blockchains of Bitcoin, Ethereum, Tron and some other cryptocurrencies.
At the same time, stablecoins using the protocol from Ethereum and Tron are in the lead; every day the turnover in Tether, USD Coin, Binance USD is only growing, which means that the demand for cryptocurrencies that support transactions is also growing.
The best account type for professional stock trading
The longer you spend trading, the more surprised you become at how many important nuances there are in this matter.
Most beginners, when starting to trade, first of all pay attention to choosing a broker, without particularly thinking about what account they will be trading on.
But this question is just as important, since the number of account options available to choose from is expanding every day, and a correctly made decision can affect the amount of profit received.
Depending on your tasks, you can open the following types of real accounts with a broker - cent, standard, ECN, VIP or PRO, PAMM and Segregated.
The optimal amount of leverage for stock trading on different assets and timeframes
The amount of leverage often plays a decisive role in stock trading and is one of the most important aspects of trading.
An incorrectly chosen ratio of transaction volume to deposit will lead not only to an increase in profit, but also to an increase in risk.
Recently, brokers have begun to compete with each other by providing the maximum amount of leverage; now you can open an account even with a leverage of 1:3000.
At the same time, the motives of brokers are quite clear - the greater the volume of transactions transmitted by the brokerage company to the exchange, the more spread and commission remains with the intermediary.
Leverage 1:1000, features of use and brokers providing it
Exchange trading on Forex has become popular primarily because of the ability to use broker leverage.
It was leverage that made trading more accessible and reduced collateral requirements when opening transactions, thereby allowing even small investors to enter the market.
Every year the amount of leverage provided is only growing, and if previously it was difficult to find a broker with a leverage of more than 1:100, now quite a few brokers provide leverage of 1:1000 or more.
In stock trading, the size of 1:1000 is used for pipsing on M1, but in addition to the strategy itself, there are many other features.
Features of stock trading during a crisis
The most useful character trait of any trader is flexibility or the ability to change trading strategy in time.
Markets are constantly changing and therefore failure can be caused by persistent adherence to the usual trading strategy.
By mid-2022, the economic crisis had reached its apogee and many traders had a question: how to trade in this situation?
If at the beginning of the falling markets everything was simple, open sell trades and hold positions until the bottom is reached, now the situation is quite ambiguous.
How not to lose 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 shares.
Moreover, the most interesting thing is that depending on which asset the trader has chosen, you can determine what type of investor he is.
As a rule, players trading Forex prefer aggressive trading with high risk and high profitability, while those who invest money in stocks are less risky and want to earn a little, but steadily.
People who buy shares of companies count on a stable income from receiving dividends and that the investment made will not require attention.
Disadvantages of trading using pending orders
Pending orders today are a fairly popular tool among most traders; they save time and allow you to open trades without being behind the screen of a trading platform.
You almost always hear about the advantages that pending orders have, but no one mentions their disadvantages.
Despite the ease of use, pending orders also have some disadvantages that affect the efficiency of trading.
There are not many of them, but they still exist, so it is advisable to take into account these features of trading using pending orders when planning new transactions.
Support of open positions in exchange trading
At first glance, it seems that trading on the stock exchange is not at all difficult; it could be simpler - buy cheaper, sell more expensive.
But in fact, when trading on exchanges, it is necessary not only to open and close a position, but also to maintain it.
Why do you need to accompany an open order if it is possible to set stop orders that will work under the given parameters?
You need to maintain a position in order to improve the financial result of an existing transaction, make a decision to close it early, or increase the likely profit by moving the take profit.
What does trading with 1:3000 leverage look like in practice?
Recently, the maximum leverage provided by stock brokers has increased tens, or even hundreds of times.
Just 10-15 years ago you had to try hard to find a broker that allows you to use a leverage of more than 1:100, but now most companies provide leverage of 1:1000, 1:2000 or even 1:3000.
Looking at these sizes, it may seem that you no longer need your own money to trade Forex; it is enough to have 10 dollars and a leverage of 1:3000 and you can open transactions with a volume of 30,000 dollars or 0.3 lots.
But what would trading with such a gigantic leverage actually look like and how realistic is it to make any money with such a debt-to-equity ratio?
Tilt in trading, what threatens such a condition and how to get out of 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 gross mistakes that lead to losses or even loss of deposits.
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.
The lack of calm and concentration in trading is often called tilt trading, and it is believed that professional investors should avoid such conditions.
Exchange trading in Russia taking into account new realities, sanctions and restrictions
Every day more and more sanctions are introduced on the Russian Federation and its citizens, and the government of the country itself also introduces restrictions on the foreign exchange market.
At the moment, there are difficulties with using bank cards, when transferring funds, purchasing foreign currency (cryptocurrency) and carrying out stock exchange transactions.
Many traders are not entirely clear how much the existing changes will affect investment activities and what can be done in the current situation.
We will try to analyze all the introduced changes and assess their real impact on stock trading in an international brokerage company.
CFD contracts for difference and their differences from other options for exchange transactions
Exchange trading using CFD contracts is gradually replacing other transaction options.
Every day more and more brokerage companies are starting to offer their clients this particular transaction option.
CFD contracts for difference, at their core, are an exclusively speculative option for transactions on the foreign exchange, stock or commodity markets.
That is, when opening a buy (sell) order, even close, there is no question of the actual delivery of this product, and the trader is not a market participant.
Is there a correlation between Bitcoin and gold, how realistic is it to make money on this relationship?
Trading using correlation, due to its simplicity, has long become a favorite strategy of many traders.
After all, there is nothing easier than choosing assets with a stable correlation, determining whether this relationship is direct or inverse, and then only catching the moments when the price of one of the pairs begins to change sharply.
Currently, the most interesting asset for such a strategy is Bitcoin, since, unlike classic exchange assets, it can also 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 as follows.
Panic in stock trading and real life
Exchange rates have never been stable, but the most dramatic changes occur when panic begins on the stock exchange.
First, an event appears 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 goes down.
News reports publishing information about a sharp drop in one or another asset do not add optimism.
Professional burnout among traders and how to deal with it
The concept of professional burnout is familiar to almost any person who has been involved in routine work for a long time.
Even at the beginning, an interesting activity gradually begins to get boring if you do it every day for several years.
At the same time, trading is no exception; it would seem that trading on the stock exchange can get boring, but you can only think so if you don’t do it every day.
After all, at its core, modern trading can also be attributed to routine work; every day you have to repeat the same actions, analyze charts, read news, and place orders.
What should a beginner choose for trading Forex, currencies or cryptocurrency?
Very often, the result of the business you start depends on the right choice, so when starting Forex trading, you should first decide what assets you will work with.
The broker's trading platform currently includes many different assets, with only currencies and cryptocurrencies traded on Forex.
Many novice traders are interested in what is best for a beginner in order to understand the essence of trading in the foreign exchange market and learn how to make money.
In order to make the right decision, you need to compare the advantages and disadvantages of trading currencies and their digital analogues.
What to expect on 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 petroleum products, others talk about a new crisis that will lead to a fall in energy prices.
Opinions are quite contradictory and it is quite difficult for investors focused on long-term transactions to make their choice.
Therefore, at the moment it is best to switch to short-term speculation, but if such trading is not for you, we will try to understand the current situation.
Voice trading or Forex trading via phone in voice mode
We have all become accustomed to the fact that trading on Forex or the stock exchange is carried out via the Internet using a trading platform.
But 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, it is not only inconvenient, but many modern strategies are simply not applicable in telephone mode.
But many brokers provide a “Telephone Password” when opening an account. Why is it needed and in what situations is the use of telephone communication useful?
Closing a position in MetaTrader without the knowledge of the trader
Over ten years of working through the MetaTrader trading platform, I have more than once encountered a situation in which previously open orders were closed without my knowledge.
Yes, you probably also have such cases when you leave a trade overnight, and in the morning you discover that the order was forcibly closed.
It turns out that there are quite a few scenarios in which your position in MetaTrader will be closed without your participation.
Moreover, forced closure does not always imply a negative financial result; situations really vary.
And so, why can your position in the trading platform close on its own:
No risk, no profit, basic rule of investment
Almost everyone knows that there is a clear relationship between risk and the amount of profit received.
The riskier the transaction or the higher the leverage, the greater the profit you can expect upon completion.
The best example of this is the negative bank deposit rate in Swiss banks, where you pay money for the fact that your savings will remain safe with the maximum guarantee.
At the same time, trading forex with high leverage allows you to earn tens of thousands of interest per year, but has a huge level of risk.
It's time to buy cryptocurrency in order to make good money in the future
Most new 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 transactions.
At the moment, the most promising market is the cryptocurrency market; the fall in prices for digital currencies has already stopped and it can be assumed that growth will begin in the near future.
At the same time, the most promising alcoins 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 quite strongly influenced by the opinion of the majority, that is, crowd pressure.
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 they began to add cryptocurrency pairs 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.
Guarantees of earnings on Forex - myth or reality?
Forex is the largest and most famous market where transactions related to the purchase and sale of currencies take place.
The colossal sums that are in circulation on this market, as well as its wide recognition even among people far from financial transactions, attract many new players to Forex.
Often inexperienced and without a strategy, perceiving it more as a kind of casino or lottery, and not as a professional field.
Most of these “accidental” traders quickly lose their investments, after which they begin to trumpet at every corner that Forex is, if not one huge scam, from which it is simply impossible to make money.
Tricky moments when 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 financial market access services provided by brokerage companies is no exception.
And then, in the course of work, you have to deal with rather unpleasant moments that create difficulties and sometimes even directly affect the financial results of transactions.
Therefore, it will always be a good idea to find out in advance about all the nuances and clarify important points in the broker’s trading conditions.
Spending a couple of minutes of time now will avoid a lot of surprises during work later and will save 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 Forex and the stock market is a 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 his own brokerage company.
At first glance, it seems that providing brokerage services is an easy and profitable business that allows you to receive a commission from each client transaction.
At the same time, you do not need to have a large number of employees, rent retail space, set up production, and, unlike banks, there is no minimum amount of equity capital.
Metatrader 5 for trading stocks and other securities
One of the stages of starting to trade securities is choosing a trading platform through which transactions are opened.
At the moment, there are professional trading platforms for trading on the stock market, but most of them are paid and it is not a fact that you will like working in the purchased program.
Therefore, many traders choose metatrader. Namely, on its fifth version, since it is intended for trading securities.
This choice is also good because if you have already traded in this program before, then you will not need to learn its functionality again.
Glued futures as the simplest futures trading option
Futures trading is undeservedly ignored by many traders, the reason for this was the active advertising of currency trading on Forex.
At the same time, working with futures contracts is more stable and predictable; it was this type of exchange assets that allowed Tudor Jones to earn his fortune.
Most beginners are put off by the complexity of trading with this tool, but every year stock trading becomes easier.
Positive changes did not pass over the futures trading technique; to simplify the process, “Glued Futures” appeared.
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