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.

 

Who makes the most money on Forex?

The question of the amount of earnings is always the most interesting moment in any work, let alone Forex trading.

This field of activity is surrounded by legends about the simply enormous profits that traders receive.

At the same time, specific amounts are rarely mentioned; basically, traders’ earnings are estimated by what they have - expensive houses, yachts, cars.

In fact, there is a huge difference between the amount of income of even the most successful traders, and a trader who showed a monthly profit of 500% may earn less than one who traded with only 5% efficiency.

What is the secret of such unfairness?

The secret of success of professional traders

Every year, tens of thousands of people try their hand at stock trading, fortunately, it is now not at all difficult to do so.

But as practice shows, out of this huge number, only a few become real professionals.

Most of those who tried to make money on the Forex or stock market give up this activity after a few months, having lost a lot of money.

Only a tiny percentage make trading their full-time occupation and begin to make a stable profit.

What is the secret of real professionals?

Maybe in special character traits or knowledge of secret trading strategies ? One of the news agencies tried to get answers to these questions by conducting a survey among professional traders.

How dreams prevent you from making money on Forex

What reasons do traders give when they justify their failures in Forex trading?


This includes manipulation of quotes by brokers, inappropriate price behavior and failures in the operation of the trading terminal.

Yes, all this is present, but in fact, the main reason for the inability to earn money is completely different and it lies in the very approach to stock trading.

It's all about inflated expectations and dreams. It would seem that what is so bad is that a person dreams and has grandiose plans, but in fact, it is dreams that prevent work.

Based on what a person dreams of and what he has now, it is quite easy to create his personal portrait and assess his life prospects.

Looking for the Grail for Forex

In life, you often come across people who spend a huge amount of time searching for the secrets to a comfortable existence.

It seems to them that all successful people simply know what allows them to earn money easily and a lot, but nothing can be achieved with honest work.

Many such people come to Forex, and after several unsuccessful attempts they also begin to hunt for the secrets of making money.

On the stock exchange, these secrets are often called the Grail, that is, a thing the possession of which will allow you to make money without having the talent for stock trading and the necessary knowledge.

Moreover, this topic is more relevant here than anywhere else, and for good reason, truly successful stock trading is often based on some secret knowledge.

We trade sugar on the stock exchange without leaving home

Many beginners, having tried their hand at currency trading, are disappointed; it would seem that nothing is easier than guessing the exchange rate.

But in reality, the trend constantly changes its direction and it seems that the price is simply playing against you.

No matter how simple Forex trading may seem, it is one of the most complex segments of the financial markets; forecasting futures is much easier.

For example, take the same sugar that we add to coffee every day, it is also traded on the stock exchange and is present in the terminals of some brokers:

Alpari - https://alpari.com/ru/
Forex Club - www.fxclub.org  

Chargeback company scam

Intense activity of dubious organizations providing services in the online trading industry creates fertile ground for demand for services to return funds from unreliable brokers.

This is done by specialized law firms.

Unfortunately, up to 95% of these organizations are also engaged in deceiving traders.
 
Let’s find out how this happens and why it is extremely difficult to recover funds from fraudulent brokers using the MPS guarantees.

What is a chargeback and what do legal entities do?

Chardgeback is a guarantee from Visa and MasterCard to return money to the payer if the product or service is not of the required quality, or if the buyer does not receive what was promised by the seller.

Forex trading seven days a week. How is this possible?

Thanks to the high liquidity of cryptocurrency assets, round-the-clock trading in financial markets has become possible.

Today, some brokers provide traders with the opportunity to trade CFD contracts on cryptocurrencies.

Moreover, if trading with regular currency pairs is carried out 24/5, then cryptocurrencies can be bought and sold 24/7 or without breaks on weekends.

That is, traders have the opportunity to open transactions even on Saturday and Sunday, and this is great news for those who are busy during the week at another job.

Currently, the best conditions for making money on the pricing of these financial instruments are offered by RoboForex .

Quotes are two-digit, four-digit or five-digit, what are their differences?

We are used to seeing quotes in exchange offices with only two digits after the decimal point; it is believed that this is quite enough for bank clients.

To exchange a couple of thousand of one currency for another, an accuracy of a couple of decimal places is really enough; in fact, forex uses four-digit or even five-digit quotes.

That is, if at the exchanger’s stand you see that euros are being sold for dollars at a price of 1.15, then in the trader’s terminal it will already be 1.15328.

The meaning of the extended entry is clear if you make transactions worth hundreds of thousands, for example, for 100 thousand euros in the bank you will need to pay 115,000 dollars, and in Forex 115,328 dollars, a difference of 328 dollars.

And with larger amounts, this difference becomes even more noticeable.

Prohibited Forex Strategies

As in any business, Forex trading has its own rules, which are set by brokerage companies, allowing or prohibiting certain trading strategies.

It would seem that it makes no difference to the broker what method the client trades, because in any case, a commission is paid on each transaction.

But as it turns out, there is a difference and most brokers have restrictions on some trading options.

These restrictions are always specified in the client agreement, which you must read before you start making transactions.

Therefore, when choosing a broker, it would not be superfluous to check whether the Forex strategy you are going to use is prohibited.

The most common prohibited strategies

It has already become so that brokerage companies traditionally do not allow the following trading options:

Reasons for setting stop loss

Despite all the convictions, many of the newcomers to Forex stubbornly continue to ignore placing a stop loss order, not seeing any compelling reason to use it.

Those who assure that they will close the deal on their own in case of danger, others are confident in the correctly drawn up forecast and do not believe that the price will reverse.

In fact, setting a stop is necessary for several reasons that beginners do not always realize:

• Deposit protection - or a pre-planned amount of losses, the most obvious reason, allows you not to lose your deposit due to a rapid candle against the position.

• Hands-free – you get the opportunity to step away from the monitor and not constantly monitor your transaction, but only check the situation from time to time.

How we used to trade without leverage.

At the moment, it is simply not realistic to imagine trading on Forex or the stock exchange without using leverage.

After all, it expands earning opportunities tens and sometimes hundreds of times, allowing you to earn money even with limited capital.

But this was not always the case. Leverage, in our usual understanding, appeared only after it became possible to quickly control exchange rates.

Before this, traders used a cunning scheme with collateral to increase capital.

Allowing you to get much less money than now. What does the scheme of working with leverage look like at the moment?

The trader has a certain amount, which acts as collateral when receiving money from the broker.

How brokers protect their clients.

Trading in financial markets in itself is a rather difficult and dangerous activity, but in addition there is a possibility of losing money due to the bankruptcy of the broker.

Which have been happening with enviable regularity lately, one or another company disappears, leaving its traders without the money they earned.

It would seem that the situation cannot be corrected, but it can be prevented if you choose the most secure broker from the very beginning.

How do brokers take care of the safety of their clients' funds?

• Participation in compensation funds - that is, brokers enter into an agreement with similar companies and pay fees, at the same time, these companies guarantee a certain amount of payments in the event of bankruptcy of the broker.

Trading as a hobby or why traders lose

I am often asked what is the secret of my success, why 95% of traders lose money on the stock exchange, but I earn money consistently.

Unfortunately, the answer does not satisfy the majority of those asking, who expect to learn about some secret strategy or profitable robot.

The whole point is that you don’t need to expect much from the exchange and set the amount of earnings as the main goal.

My secret to success is that trading is a hobby for me.

That is, I have enough money to live on even without trading, I don’t want to earn more than everyone else, I’m just interested in making forecasts and seeing how well they come true.

The relevance of the “Buy and Hold” strategy

This is how the human brain and consciousness work, that it is much easier for any investor to buy assets than to make money on sales transactions.
Everything is very clear with the purchase, I bought shares, and after they rose in price, I sold them for a profit, and even received dividends.

Buying cheaper and selling higher is, so to speak, the natural desire of every speculator, and even if everyone around is buying, it seems that it is almost impossible to make losses in this strategy.

This strategy is applicable not only to the stock market, but also to the precious metals or real estate market.

People often think about how much they could earn by buying and then selling, rather than how much they would have lost after the price of a particular asset fell.

How do millionaires make money?

Almost all advertising calls for making money on the Forex market, promoting currency trading on the foreign exchange exchange as the most profitable type of trading.

At the same time, it remains a mystery why most financiers who made a fortune used other assets as objects of trade.

In practice, currency pairs turn out to be the most risky and poorly predictable instrument than other assets from the arsenal of the MetaTrader 4 trading platform.

Moreover, it is not entirely clear why currency pairs are advertised when in MetaTrader 4, in addition to them, you can find several dozen interesting assets.

But, in order not to be unfounded, let’s look at how millionaires and billionaires earn money.

Trader's jargon.

Apart from the official terms, any profession has its own jargon, and the profession of a trader is no exception.

Here, as in other areas of activity, there are a lot of words that denote specific concepts and help to more subtly characterize a situation or subject in non-literary language.

Knowing trader's lingo will help you better understand forum posts, financial news, and trading literature .

Well, it will be useful for those who plan to trade not only via the Internet, but in the future start working on a real exchange platform.

Let's move on to the jargons for stock trading:

Why women are more successful in trading.

In any profession, there are people who quickly reach the pinnacle of excellence and those who cannot achieve success for years.

Such a specific field of activity as trading is no exception; some of the newcomers have millions of dollars under management within a year, while others have only been losing money for decades.

But besides the fact that stock trading requires a certain character, you can also notice that the gender of the trader plays an important role.

As statistics show, about 70% of women who decide to make a career on the stock exchange achieve success, while at the same time, the results of men are several times more modest.

Why did such a situation arise, since men have logical thinking and are more delayed, while women are more emotional and more often act on intuition?

How realistic is it for a beginner to make money on Forex?

If you believe the advertising, then anyone can make money on Forex, just open and fund an account with one of the brokerage companies.

And then the broker will quickly and free teach you how to open transactions in the trading platform, and its managers will advise you on what you need to buy or sell to make a profit.

But if everything were so simple and easy, brokers’ websites would not be full of warnings: “Trading in foreign exchange markets using leverage is associated with high risks.”

At the same time, we all know the stories of such people as George Soros, Larry Williams, Warren Buffett and many other successful financiers. They were able to earn fabulous fortunes by playing on the stock exchange.

But before drawing conclusions, you should take a closer look at the biographies of these traders - http://time-forex.com/treyder . And find out how long it took them to achieve success.

How to make money on Alpari

Recently, more and more people are interested in making money on Forex; online trading has existed for about 20 years.
Moreover, during its existence, the popularity of Forex is only growing, and this suggests that it is really possible to make money, and accusations from the losers are just the dissatisfaction of unqualified traders.

One of the most common questions that we hear from beginners is - Who is the best person to start earning money with?

  1. What is the Alpari broker?
  2. Why Alpari?
  3. How to make money on Alpari.

The Alpari company has been known in the financial markets since 1998; in fact, it was one of the first to provide trading services for ordinary citizens.

Trend reversals depending on trading sessions.

Quite rarely, Forex traders associate a trading session with a trend reversal and the troubles that this event brings.

But in reality, the Forex market is no less tied to fundamental news than the stock market, and events that occur can have just as strong an impact on exchange rates as on stock prices.

Therefore, you can observe how an important event changes the rate for a particular currency pair, while tracking a clear relationship between currency pairs and the sessions at which the reversal occurs.

Most often, trend reversals occur in those sessions that coincide with the opening hours of banks and government agencies in the countries that issued the currency into circulation.

For example, changes in the dollar exchange rate more often occur in the American session, and the Japanese yen in the Asian trading session.

At the same time, it cannot be said that these currencies are not influenced by news at other times of the day, but during sessions that coincide with the working day in the USA and Japan, this influence will be stronger.

Myths about Forex and reality.

Forex is an over-the-counter interbank foreign exchange market, in which today, thanks to intensive technical progress, everyone can make money.

There is a myth that to get a stable profit on Forex you will need a specialized economic education.

This is partly true, but it is not at all necessary to obtain a university diploma.

All the necessary knowledge can be obtained online or through paid and sometimes free training at one of the brokerage companies.

You can also study on your own; at the moment, a lot of useful information is posted on specialized websites about Forex.

It is important to pay attention to:

On the Internet on specialized resources you can find many “profitable” strategies, the use of which supposedly guarantees a monthly profit of 100%.

The use of stock indices in Forex trading

Fundamental analytics of the foreign exchange market is effective for long-term and medium-term trading.

Such an analysis involves more than just a review of macroeconomic factors.

Because news reports do not always reflect reality. There are also more effective methods for predicting quotes of currency pairs, we are talking about stock indices.
 
Relationship between the currency and stock markets

Liquidity providers for Forex brokers are large investment companies or commercial banks.

The best exchanges for trading cryptocurrencies

The gold rush, which is remembered from textbooks and historical reports, has once again swept across the entire public, which strives to earn money and move forward on the wave of the trend.


However, if earlier people traveled to distant lands in search of precious gold, now everyone has started buying cryptocurrencies en masse, trying to make money on the huge ridge of growth in the rate of new money.

Just think, whether you are a housewife or an IT specialist, a trader or a businessman, as well as a hard worker, everyone has heard about the record growth of Bitcoin, Ether and other new money on all news channels.

Bloggers, media, information and educational sites are all, one way or another, discussing the new topic of cryptocurrencies, and the entire Internet segment is simply overflowing with advertising offers to invest in this or that project.

However, at the moment when a potential investor decides to invest in a new direction unfamiliar to him, the most important question arises, namely, how to take part in trading, where are the exchanges located and how to become their participants?

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.

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