Technical Analysis for Beginners Made Easy
To find the direction of transactions in the foreign exchange or stock market, two types of analysis are used - technical and fundamental.
And if at first glance trading based on news seems as simple as possible, difficulties always arise with the use of technical analysis.
But the reason for these difficulties is that a novice trader immediately faces the most complex methods of technical analysis.
Which require lengthy study, and in practice are not always effective.
Technical analysis for novice traders involves the use of simple techniques with which you can quickly assess the current state of the market.
How many currency pairs to use when trading Forex
The main objects of Forex trading are currency and crypto currency pairs; at the moment, up to 50 such assets are available in the trader’s terminal.
Therefore, the trader experiences difficulties in choosing a currency pair, but even after making a choice, he asks the question - How many currency pairs should he use in his trading?
Some advise focusing on only one pair, others even recommend paying more attention to the situation on the market, and not to the object of trade.
We will try to find a middle ground in this matter and, thanks to this, achieve work efficiency.
To begin with, it should be clarified that we are not talking about the number of simultaneously open transactions on different assets, but whether it is worth focusing on one currency or making several assets work at once.
Can you trust a robo-advisor in Forex?
Trading robots are no longer news to anyone. They appeared in trading a long time ago, and during their existence they acquired a double reputation.
On the one hand, experts note an increase in demand for robot assistants.
Thus, according to experts, the size of investments that will be managed by special programs in the coming years will increase more than 10 times, and will reach $8.3 trillion.
At the same time, distrust of robot advisors is growing, and for good reason.
There are already precedents when, due to the fault of programs, companies suffered multimillion-dollar losses; failures in their work even caused trading stops on stock exchanges.
So, let's figure out how such automatic systems work and whether they can be trusted.
Is it possible to hack a trader's account?
Exchange trading is full of dangers, but in addition to the risk of unfavorable changes in exchange rates, other troubles may await the trader.
One of which is hacking an account and stealing money stored on deposit by transferring it to someone else’s account or payment system wallet.
Such troubles, although they do not happen often, do happen and it is better to try to avoid them, especially since they are quite easy to do.
It is enough to follow a few important Internet safety rules, which we will discuss below.
The main options for hacking accounts:
• Stealing passwords from your personal account is one of the easiest ways to gain access to your account, and if it does not provide additional protection.
Popular Forex strategies
There are two types of novice traders: the first, having entered the stock exchange, tries to find or create an exclusive and extremely profitable earnings strategy, the second is simply the most popular.
Moreover, the second category is on a more correct path; why reinvent the wheel if it has already been invented a long time ago.
It is much easier to trade like the majority, earn stable profits and not waste time looking for tricky solutions.
And in most cases, this approach turns out to be correct; the main thing is to strictly follow the basic rules for applying a particular strategy.
What strategies are the most popular in Forex at the moment?
As one would expect, the greatest demand is for trading options that are easy to implement and bring greater profits.
What is the difference between locking and hedging?
Most novice traders mistakenly believe that locking and hedging open positions are no different.
In fact, these techniques have an identical purpose - risk diversification, but the methods for achieving the task are fundamentally different.
What is hedging and how to use it?
Hedging involves opening two or more trading positions on assets with a zero correlation coefficient, that is, the pricing of these financial instruments does not depend on each other.
To understand the principle and feasibility of using hedging in practice, several examples should be considered:
1. The simplest and most well-known strategy for trading stock assets is “ Buy and Hold ”.
Is it possible to trade Forex without drawdowns and losses?
Anyone who has been trading on the Forex currency exchange for more than a few months knows that the main troubles for a trader are caused by drawdowns and withdrawals of the deposit .
It is drawdowns that spoil the mood, and complete loss of the deposit that forces you to start all over again.
Moreover, many simply cannot imagine their trading without these two events, not even imagining how easy it is to start trading without major losses.
Which not only cause depression, but also become the main reason for making new mistakes.
In fact, if you put aside force majeure circumstances, reducing losses to a minimum is quite simple, the main thing is to follow simple rules and moderate your appetites a little.
When to switch from demo account to real account
The career of most Forex traders begins the same way; almost everyone is confident in their competence and immediately starts from a real account.
But after the first deposit is lost, the beginner becomes more careful and moves on to trading on demo accounts .
So several months of trial and error pass and finally, successful transactions begin to appear, every day there are more and more of them, the deposit gradually increases.
Successful trading on a demo makes you want to quickly switch to a real account, because virtual earnings could turn into real profits.
In fact, the amount of profit for a month or other reporting period does not fully characterize your skills as a trader and is not always a guarantee against repeating mistakes.
When will Forex be banned?
The tightening of requirements for the provision of Forex trading services over the past few years has led many to uneasy thoughts.
This is not the first year that Russian traders have been wondering when Forex will be banned and in what form this will happen.
How will this affect this service sector and will it be possible to circumvent this ban using technological progress?
While the government's actions do not inspire optimism, decrees designed to protect gullible citizens are increasingly restricting the activities of brokers.
So, the future of trading in Russia:
How to add a new asset to the trader's terminal.
The trader terminal allows you to trade not only currencies, but also many other assets - oil, gas, cryptocurrencies , gold, copper, enterprise shares and indices.
But sometimes traders, trying to add chart windows for the selected asset, simply do not find it in the “Symbols” window, although the broker has information on the website that they can trade this asset.
Why does the broker's specification indicate a currency pair or index, but it is not present in the terminal?
In fact, everything is not entirely true, it’s just that by default only the most popular assets are added to “Symbols” and often you won’t find cryptocurrencies or some indices there.
Methods for taking profits in Forex
Many traders sin on entry points, because they are confident that their profitability directly depends on entering the market. However, in practice, often the inability to correctly record profits leads to a decrease in the balance.
The fact is that most traders, even if they do not admit it, have an inferiority complex in terms of taking profits.
Unfortunately, this complex appears almost at the very first stages of a trader’s development, so even pros may not suspect the reason for their losses.
Each of you who is actively trading has more than once noticed a situation where a multi-day profitable position along a trend becomes negative in one second after the publication of some news and causes damage to your balance.
If you are affected by this situation for the first time, you are a lucky person, but when a trader, to put it mildly, is repeatedly taken out of a profitable position by the footsteps, fear and fear of losing profits appears.
Should I choose bonus or leverage?
Currently, it is difficult to find a broker that does not offer a bonus when replenishing an account; the range of offers is quite wide
and ranges from 10 to 100 percent.
That is, according to the terms of the promotion, if you top up your account with $500, you will receive up to another $500 as a gift. Are bonuses so important and necessary when replenishing an account , why are they better than regular leverage and is it worth contacting them?
First of all, let’s try to figure out what gives you a bonus in Forex trading.
1. Less risk?
Analysis is not to blame
In recent years, Forex trading has become much simpler from the technical side, but this has not made making money on the foreign exchange market simpler.
Most traders, having received theoretical knowledge and started trading, are disappointed with the financial result, which is very different from what was expected.
Almost every beginner cannot come to terms with the fact that the number of unsuccessful trades is less than the number of profitable ones.
And the fact that the deposit is melting before our eyes also becomes an unpleasant surprise. This is where accusations against analysis come into force, some blame the imperfections of technical analysis for their mistakes, others talk about the uselessness of fundamental analysis.
The trader finds himself in a psychological dead end, experiences depression, it seems to him that everyone here is making money except him and the stock exchange is not his occupation.
How to become a Forex broker.
Many traders who understand how difficult it is to trade on the stock exchange come up with the idea of becoming a broker, because unlike trading,
the risk is minimal and the earnings are more stable.
How much do such companies earn? You can calculate the approximate profit using a simple example - a client opens only 20 transactions per month, each with a volume of 1 lot, the spread is 1 point per lot or 10 dollars.
It is not difficult to calculate that the profit for the month is $200. It’s easy to imagine how much 100 clients will bring. Moreover, regardless of the financial result of transactions, the main thing is that the trader opens transactions more often and in as large a volume as possible, hence the leverage of 1:1000 or even 1:2000.
Why Forex strategies don't work.
It would seem that trading on Forex is as simple as possible - you studied the work in the trader’s trading terminal, chose the appropriate
strategy and just open trades, and the profit itself will flow into your account.
But while knowledge of a trader’s terminal is usually easy, a lot of questions arise when using strategies, most of them simply refuse to bring profit, although the trader thoroughly follows all the recommendations given.
Why don't Forex strategies work anymore?
Let's try to figure out a similar question below. 1. Trading tool - most strategies are written for a specific currency pair, but not all traders pay attention to this.
Forex pros and cons.
The prospects for quick and easy money attract people of any age; one of these categories includes
trading on the Forex currency market.
What lies behind the apparent simplicity of trading and how realistic is the earnings in this field of activity?
First of all, a beginner is concerned with the question: Is Forex not another pyramid scheme for pumping money out of the population and how realistic is it for a novice trader to make money there? 1. Forex is not a pyramid - firstly, it should be noted that the exchange itself has existed for about 50 years, trading on it is carried out not only by domestic dealing centers , but also by large banks in countries such as Switzerland, Germany, Austria, etc. The only difference is the requirements for the client’s initial deposit; if in our Dealing Centers you can start trading with literally a couple of dollars, then European banks prefer large clients with deposits of 10,000 dollars or more.
The effectiveness of the strategy tester.
Having purchased or downloaded an advisor for automatic trading for free, you immediately want to check its performance and find out whether the robot can really bring profit without the participation of a trader.
Testing on a real account is quite risky, so it is recommended to use a strategy tester for these purposes.
You can launch it in the trader’s terminal by simply clicking the “View” button in the top menu - Strategy Tester.
Specialty trader.
After the release of several American films telling about the work of a trader, the number of people wishing to master
this profession has increased significantly.
True, not everyone knows that there are several options for this profession. The majority of people are attracted by high earnings; a trader is one of the few professions where you can earn money without having initial capital.
The most valuable skill is considered to be trading on the stock exchange. How to become a trader - there are several answers to this question; which option is right for you will depend on your age, financial situation and individual qualities, as well as the goals that you set for yourself.
What does profitable trading depend on?
Many beginners wonder why, despite all their efforts, they cannot succeed in stock trading.
What does profitable trading depend on, why does someone make millions on the stock exchange, and someone loses it there, what basic conditions must be met to make a profit?
Let's move on to an overview of the reasons that are the basis for profitable trading on the Forex exchange:
When does a trader start making money?
Most people are accustomed to the fact that income comes immediately, for example, worked for a month - received a salary, sold goods - received
money, that is, the interval between the start of work and the financial result should not exceed a month.
If you decide to become a trader, you will have to change your attitude towards work and earnings. A newbie on the stock exchange can only earn money by accident, his earnings are more like winning the lottery, yes it happens, but very rarely.
When will a novice trader start making money?
What to do if a flat comes to the market?
Many traders wonder whether it is possible to trade during a flat, or whether it is better to postpone trading until it is over.
There are quite a few answers to this question, so each trader will be able to choose the most correct solution for himself.
And so, a flat is practically the absence of vertical price movement; for a long time the rate remains almost unchanged; how can you make money at such moments?
Forex trading using bonuses.
Competition among Forex dealing centers is growing every day; the fierce struggle for clients is forcing companies to come up with
more and more new marketing tactics and carry out various promotions.
One of these PR moves is the provision of bonuses when replenishing an account; in some DCs the percentage of incentives reaches 70%, which cannot but raise questions and doubts.
But in order to check the validity of providing large bonuses, you should first find out how much brokerage companies earn on Forex .
Why such big bonuses?
Ruble account on Forex.
Many traders, after starting Forex trading, have a question: in which currency is it better to open an account?
Most brokers usually offer three options to choose from - dollars, euros or rubles; you can only choose the right one on an individual basis.
Depending on how you fund your account and which instruments you use in trading.
Otherwise, you will face additional costs when exchanging currency or simply inconvenience in trading, and that is why it is so important to choose the correct account currency for yourself. And internal exchange on the broker’s website always occurs at a rather unfavorable rate.
Forex trading addiction.
Some traders are wondering - if Forex is a game, is there an addiction and craving for stock trading?
Fear of addiction is sometimes the basis for refusing to try to make money on the stock exchange, because the resulting addiction can cause a significant hole in the budget.
To find out the answer to this question, you must first compare what motivates a trader and a casino player, how similar these two activities are, and also study the facts and statistics on stock trading.
Loan to work on Forex?
Most beginners believe that to make money on Forex you need a lot of money, and the more, the better.
Surprisingly, they are absolutely right on this issue.
The main reason for the high risk of trading on the stock exchange is leverage, which is used to increase transaction volumes.
This approach significantly weakens the position, making it unstable to the slightest exchange rate fluctuations. That is, the greater the trader’s net worth, the less leverage he can use, the lower the risk of losing everything as a result of one unsuccessful transaction.
Types of spreads on Forex.
Currently, most brokers offer their clients several spread options, depending on the account type they choose.
Which option is more profitable and suitable for a particular strategy?
The choice is not so great, usually cent accounts offer a fixed spread, standard and ECN accounts offer a floating spread, sometimes there is simply a commission on the lot or trading volume.
Fixed spread - there seemed to be nothing better than a fixed spread, you always trade with one commission and there is no need to constantly monitor changes in the spread.
Is it possible to lose the broker's money on Forex?
A feature of Forex trading is the use of borrowed money, the so-called leverage
.
Which allows you to increase the available funds tens, and if necessary, hundreds of times. The loan is provided by a broker who organizes the dealing process, simply by transmitting your orders to buy or sell to the foreign exchange market.
Is it possible to lose the broker's money on Forex? And after this, won’t you have to pay for the loan with your hard-earned money?
The best free VPS for Forex, stable work of advisors
VPS – virtual, dedicated server.
In fact, you have at your disposal a part of a remote computer that works around the clock and is connected to the Internet. You can install any programs on this computer, including the trader’s terminal, and the server is managed via remote access.
So why does a trader need a VPS server for Forex, and why this one, because there are more attractive options.
First of all, a VPS for Forex allows you to keep your trader terminal always on and provides access to managing transactions anywhere and at any time.
That is, you can trade at work or even in an Internet cafe without installing your trading platform on someone else’s computer.
You can get a virtual server completely free of charge, at the bottom of the article I will tell you how to do this
Forex without investment.
Many beginners are primarily interested in the question – Is Forex possible without investments?
That is, is there an opportunity to make money on the foreign exchange market without having decent capital?
Forex without investments is possible - if you do not consider your time and efforts spent on learning the basics of trading as a contribution.
There are many options for how you can get quite a significant profit without investing large sums, each of them requires certain skills or just luck.
Is it difficult to trade Forex.
For many Internet users, financial exchanges are a collection of incomprehensible terms
that will take more than one year to understand.
It is for this reason that there is an opinion that trading Forex is quite difficult and is usually done by people who graduated from Harvard or Princeton. But if you remember the famous story of the turtles, when one of the famous financial magnates made traders out of people with a specialty completely different from stock trading.
These people were a security guard, a school graduate, a clerk, a card player, a designer and an accountant. This fact confirms the saying that anyone can become a trader.
Common misconceptions about forex trading.
There are a lot of misconceptions on the Internet about what the Forex exchange is and how
to trade on it.
Sometimes it is these misconceptions that become the reason for refusing to trade, and sometimes, on the contrary, the reason for the loss of equity capital.
Therefore, it is so important to realize which of the common judgments is true, and which are simply speculations of ordinary people and bankrupt traders.
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