Training
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Money management is one of the cornerstones of trading on , and without following its rules, profitable trading is simply not possible. Whatever your trading strategy, your profits will depend on how you manage your trades and limit your risks. There are dozens of money management models, but the approaches to trade support can be roughly divided into two major groups: limiting losses and loss waiting tactics. Everything is clear with the limiting loss tactics: when opening a deal a stop-loss order is placed which closes it with a fixed loss if the price moves in the opposite direction to the one predicted. Overshooting losses is...
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Elliott Wave Theory is a very interesting tool for market analysis. Often in various forecasts and analytical reviews there are the concepts of impulse and correction waves. But is the wave analysis of the market really so accurate and able to predict the further behavior of prices? I have a pessimistic answer to this question. Difficulties of wave analysis Firstly, the Elliott Wave Theory is quite difficult to study. Sometimes it is very difficult to determine the start of the first impulse wave, and for some pairs it is almost impossible. Secondly, it is impossible to use the wave theory in its pure form. It is accompanied by Fibonacci levels. But even that is not enough. Technical analysis closely cooperates with the wave theory: channels, technical patterns and...
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Sooner or later every trader faces the question: is it worth it? The question is about the comparability of spent time and efforts to the received material benefits. Undoubtedly, this question is more likely to arise for a beginner. You have to be stubborn enough to continue trading despite of successive financial losses and disappointments. The process of becoming a trader passes through several stages: The initial stage when a beginner is trying to grasp the immensity. This stage is characterized by a big number of lost real and demo deposits. The growth stage, when the trader begins to plan his trading, simplifies and refines his trading strategy. The stage of professional maturity. At this stage, the trader is characterized by patience in achieving his goal...
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There are a lot of tips for trading in the foreign exchange market, but they are all general in nature, so beginners break them. But you have to know the measure in everything. Over a year of trading, I have formed some opinions about trading, and I want to share my small experience with some tips for beginners. Everybody advises to try out a trading strategy and to start trading on a demo account. In my opinion, you have to learn how to press buttons on a demo account, all the rest you have to learn on a real account. Of course, it should be cent accounts. Yes, trading requires an investment. But let it be 10-20 dollars which will not bring you considerable financial inconvenience in case of loss. Again.
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We continue to discuss 9 tips for the trader to trade without emotion. We discussed the first 3 tips in the previous article. 4. Be patient Not every day is a trading day. Know how to wait for the most accurate moment to enter the market, which will best fit your trading system and strategy. Keep in mind that over-trading leads to fatigue, decreased concentration, and, consequently, to losses. You can be overexcited by the desire to succeed immediately, and frequent trading will make you feel involved in the process, belonging to the market, but it will negate all of your long-term plans. Even if occasional trades are profitable, they won't...
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The Internet, at least its Russian-speaking segment, is full of ads about easy and quick earnings at the currency market. Absolutely any person can find all types of educational programs, starting from free video lessons and literature and finishing with trader courses in the offices of dealing centers. Ok, the beginning trader has received all necessary knowledge, fundamental analysis does not look so scary anymore, a practiced eye defines trends, the rules of money management are assimilated correctly, and the trader's diary is looking forward to the first entry. How much profit can a trader make? Count the profit in percentages There is a very good anecdote about how to make a humanitarian happy with the news about salary reduction - to tell him that his salary has increased 0,9...
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After learning how to draw trend lines and open trades, after delving into the maze of fundamental analysis and technical trend reversal patterns, every trader thinks about what kind of trading system to choose for themselves. I know from my own experience that most beginning traders are just hungry for action. They do not want to earn, they want to trade. Having closed one deal they urgently open another. That is why many traders have the opinion that intraday trading is the most profitable. Which of the trading systems is the most profitable - that's what we're going to find out today. "I came for the money..." When a trader approaches the choice of his trading system, he digs through a lot of information -...
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Trading is first and foremost a business. But if in any other business emotional decisions are simply harmful, in trading they can lead to disaster. If you take a closer look at the people who have achieved considerable success in this business, you will notice some common mental traits that unite all of them. A trader needs to develop certain personal qualities and thinking styles which will allow him or her to remain calm and confident in his or her actions while trading. It is these personal qualities that we call the "psychology of a successful trader". The biggest obstacle on your way to success in your chosen business is not the market or the broker, but you yourself....
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What is currency intervention? Intervention (lat. interventio - intervention) is a term in economic theory used to define the intervention of the Central Bank or other organizations that manage the financial system of the country in the position of the national currency in the world market. In other words, currency intervention - is the operation of the central bank of issue, which are to buy or sell their country's currency to maintain its rate. Also, this concept includes targeted operations associated with the purchase and sale of foreign currency, the purpose of which is to limit the dynamics of the currency rate to certain limits of its depreciation or appreciation. The purpose of intervention is to regulate the exchange rate to a specific level. What is the essence of intervention in the foreign exchange market?
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Passive income is income that does not depend on daily activities. There is probably not a person who would not like to periodically receive some kind of interest on deposits, rent payments or dividends. Today we will touch on the topic of passive income, but will not offer the 10 most common ways to earn passive income. What will we talk about then? Intrigued? Haven't got your money bags ready yet? Then we're coming to you! Phone call. An unfamiliar number. A nice woman's voice. - Hello, there. Are you interested in passive income? And then, in the same pleasant voice the girl makes me a tempting offer - an opportunity to get a passive income of 30% per month. А...
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Almost all traders have heard of position locking. However, the number of those who have a clear idea about this technique is many times less. And there is nothing surprising, because the locking is such an ambiguous technique that even experienced traders have very different opinions about it. This article will not contain any ready-made rules on how to place and open locks. We will summarize the three most commonly held opinions on the locks and leave it to our readers to draw their conclusions. Opinion one. Locking is a psychological method, which can help to avoid losses Locks are used for opening positions without stop-losses. Instead of fixing the loss, the trader opens...
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[info_block align="right"]The CBT technique focuses on the present and what exactly you are able to change right now, in the present moment, instead of worrying about the past or future.[/info_block] In the previous article about cognitive behavioral therapy and its application to trading, it was said that by considering and assessing one's strengths and weaknesses, a trader with cognitive behavioral therapy (CBT) can shift the focus to positive attitudes instead of negative ones. Specifically, specific examples were discussed where, instead of having destructive thoughts about their trading, a person could develop a new, much more productive behavioral model and put it into practice, thus changing their behavior and, as a consequence,...
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Despite the seeming abundance of trading terminals, the MetaTrader 4 platform is still the most popular. According to statistics, it is preferred by more than 90% traders on . Is MT4 the best solution for trading on the market or there is something else behind its popularity? So, today we are going to analyze MetaTrader 4 terminal and its possible alternatives. Disadvantages and weak points of MetaTrader 4 Actually, despite such popularity, the quality characteristics of the MT4 terminal are not always fully satisfied the user. Only optimists can call the settings of the terminal flexible. Candlesticks have a fixed length, time intervals (timeframes) are standard - to create a non-standard timeframe requires a lot of work. And so on. Separately worth.
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What is divergence on the currency pair? Divergence (from lat. divergere - to detect a divergence) is one of the key indicators in the technical analysis of stock trends, which shows a discrepancy between the price chart direction and the selected technical indicator readings. As a rule, the divergence is most noticeable on indicators-oscillators - RSI, Stochastic, MACD, CCI, etc. What does the divergence on the chart mean? The presence of divergence on the chart indicates a possible price reversal. The divergence is often called bullish or bearish, depending on the direction the price moves in. A bullish divergence reflects a rising trend, a bearish one - a falling trend. There are several types of divergence in stock trading: Divergence of class "A"...
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Trading lot (exchange lot, exchange lot, transaction volume) - a standard unit for measuring a contract in the market, which has a fixed size. In Forex, the size of the trading lot is used to assess the volume of the currency, which is traded on this contract. In the foreign exchange market it is the volume of a transaction to buy or sell. When entering into a Forex transaction, a trader chooses a position size multiple of a standard trading lot, thereby determining how much currency is involved in the turnover. Depending on the selected lot the risks and the amount of potential profit change. Standard lot equals 100,000 units of currency. Knowing this, it is possible to calculate the profit of one pip. An exchange lot is a unit of trades,...
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Trend - in the sphere of financial markets it is a direction of price movement of the chosen instrument: growth or decline in the price of an asset. Types of Trends Trend Phases Trend Strength Drawing a Trend Line Rule of Numbers Difficulties of Trading by Trend Line Traded correctly Classic Strategy Method of Determining Trend by Peaks and Declines by Dow Theory Trend Indicators Trend Indicators Advantages and Disadvantages of a Trend Strategy There are three main types of trends: an uptrend (bullish trend, up-trend), which shows price growth in a certain period of time. On the chart it looks like a series of price lows, each higher than the previous one. a downtrend (bear trend, down-trend), which tells...
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[info_block align="right"] continues to operate on weekends as well - currency exchange transactions initiated by market makers continue to take place at the interbank level.[/info_block] Every trading week the currency pair quotes in our terminal "freeze" on Friday at 23:59:59 and start moving again on Monday at 00:00:01. Trading is not held on Saturday and Sunday because of the lack of prices, so many traders think that the currency market does not work on weekends. You will be surprised, but they are wrong. Let's talk about why we need to know about the quotes on weekends. What happens to quotes on weekends?
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The dangerous Martingale money management method came to the world famous "Foreign Exchange" with the light hand of gamblers. Some traders, especially beginners, perceive the method as a trading strategy and consider martingale as the only way to achieve 100% profit. Experienced professionals treat the tactics of card dealers with caution because it is not only profit that awaits the trader at the end of the journey, but also a very likely loss of the deposit. What is Martingale? What is the essence of the Martingale system? How is Martingale applied at ? Advantages and disadvantages of the Martingale principle at How do Martingale trading strategies work? What does a trader need to know when using the martingale strategy? Is there a safe Martingale? What is needed for safe Martingale? Preparing for...
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What is volatility? Volatility is the instability of market conditions, demand, prices, which often occurs due to lack of liquidity, i.e. the inability of assets to sell quickly at a price close to the market price. Volatility is considered the most important financial indicator, as it allows to calculate financial risks (the probability of risk when using any financial instrument during a certain period of time). The annual average volatility is most often used for this purpose. What does volatility on the currency market mean? On the currency market, volatility means the maximum and minimum price change within a certain period of time. The greater the distance between the maximum and minimum of the price in the allocated interval of time, the greater the volatility. The less this distance, the weaker the volatility....
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Who are the stock bulls? An exchange bull is a participant of exchange and over-the-counter markets (investor, trader) who pursues an "upside" strategy for currencies, stocks, derivatives and other instruments. In other words, a bull on the exchange is a market participant who opens a long position expecting further growth in the price of an asset. Strong activity of bulls leads to overpricing, which is why the market with rising prices is called "bull market". The opposite of "bull" is the concept of "bear". Why are buyers called stock bulls? The terms stock bulls and bears first appeared on the stock exchanges of London in the 18th century. According to the most common version, the buyers are called by analogy with bulls, which raise their prey on the horns. Tho.
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