Training
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How often do you get out of your comfort zone? In articles about the psychology of trading it is often said that you need to train your mind to the process of trading if you want to be successful. This means that it is necessary to develop appropriate qualities of character, such as: discipline, honesty with yourself and the market, keeping a diary/journal, making a trading plan, risk management. This means the need to think carefully about trading decisions, based on objective and up-to-date information. However, there is one aspect that is often overlooked, despite the fact that it is now extremely popular all over the world - the need to step out of your own comfort zone. Your comfort zone is...
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What is an option? Option (lat. optio - choice, desire, discretion) is a standardized contract related to the so-called derivatives or derivative financial instruments, under which the seller gives the buyer the right, but not the obligation, to buy a specified asset within a certain time at a specified price. The writer of the option is then required to make a reciprocal opposite transaction in the asset in accordance with the terms of the sold option. What kind of options are there? There are three types of options: call option - an option which gives the right to buy the asset at a fixed price; put option - an option which gives the right to sell the asset at a fixed price; double option. Depending on the underlying asset and...
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The use of a grid of orders in trading on the foreign exchange market is popular. Many trading strategies and robots are based on this principle and are also called grid traders from the English word "grid", which is translated as "grid". In this article we will consider the general concepts of grid trading. What types of grid of orders are there? There are two types of a grid of orders in trading: static grid of orders with a fixed step; dynamic grid of orders. Why do we need a grid of orders at all? A grid of orders is a twofold way to trap prices: In this case a net of orders is laid out at a certain distance from the current price. Such grid is called static with a fixed ...
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What is the cross rate of currencies on the ? Cross rate is the ratio of the rates of two currencies, which is determined on the basis of their rate to the third. Since all currencies are quoted against the U.S. dollar, the third currency is the U.S. dollar. At the currency market the term cross rate characterizes currency pairs without the participation of the U.S. dollar. What are the cross rates at ? Currency cross rates can be divided into the following groups cross rates with Euro; cross rates with Yen cross rates with Pound Sterling; commodity cross rates (with Australian, New Zealand and Canadian dollars). Cross rates between the main hard currencies on the interbank Forex currency market have the largest trading volumes: EUR/JPY, EUR/CHF,...
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What is a time frame? A time frame is an interval of time for grouping price quotations of any instrument to create a minimum element of a price chart. Minimal elements, most often bars, are used to display price movement. What timeframes are available in MetaTrader 4? Standard timeframes for the MetaTrader 4 terminal include: 1 minute - M1 5 minutes - M5 15 minutes - M15 30 minutes - M30 1 hour - H1 4 hours - H4 1 day - D1 or Daily 1 week - W1 or Weekly 1 month - MN or Monthly In other terminals you may find timeframes in a different breakdown: M10, M20, H2,...
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When you make the final decision to make trading your main profession, you may encounter some difficulties on this fascinating path that you knew nothing about before. And today I would like to talk about such an unpleasant thing as "emotional burnout". There is a difference between stress and burnout, but both deviations are very dangerous. Burnout is a condition in which you completely lose interest in trading due to the accumulation of constant emotional, mental and physical exhaustion. In this case, it is very easy to fall into a vicious circle. While in this state, you make ill-considered decisions which lead to poor trading results, which, in turn, cause even more...
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Traders all over the world are struggling with the task of creating an indicator that most accurately describes the current market situation, such a trading grail. There have been many attempts, but one problem remains unsolved to this day - it is the lag of signals. The indicator lag usually means the situation when after receiving the entry signal we notice that it is more profitable to open an order earlier at a more attractive price... What affects the indicator lag? There is no perfect indicator. There are market insiders who receive signals with the minimal possible lag. Ordinary traders analyze the actual price stream, so there is some lag in any case. One of the main factors influencing the indicator lag...
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This year I visited ShowFx World in Kiev and I would like to tell you about the speech of Tom Hugard, one of the most successful traders in a very large hedge fund. I should point out right away that in this article I'm going to quote his words as I understood them for myself. I've realized once again that success in trading is determined by psychology, not by strategy. It's nice to hear another confirmation of my opinion from the lips of a professional of such a level. *The slides used in this article are taken from the author's presentation. Principles of 2% successful traders The first, most important principle that guides successful traders, is to buy the strong and discount the weak. What is this...
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What is a futures? Futures (futures contracts) is a derivative security (derivative) which is an agreement to set conditions for buying or selling a standard quantity of a certain asset at a certain time in the future, at a price set at the time of the transaction. There is a rule that there should be at least two working days between setting the terms of the transaction and its execution, otherwise the transaction is considered to be immediate. Why are futures contracts needed? Futures have three general purposes: the most important purpose of futures in general is to determine the price of an instrument. The applied meaning for market players can be one of two (or a combination): insurance against financial risks, i.e., hedging...
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What is a sideways trend (neutral) is also called a "flat" trend. A sideways trend reflects a stage in the development of the value of securities and other assets when price fluctuations are very small over a fairly long period of time. Most often, it occurs due to uncertainty in general world trends. A sideways trend is opposed to an uptrend or a downtrend. In technical analysis, a neutral trend is identified by a sideways channel. How to recognize and identify a neutral trend? The signs of a neutral trend or a flat on the price chart are price highs and lows, which are located approximately at the same level. A neutral trend on the price chart of a currency pair, as well as other types of trends,...
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What is a shelter currency? A sanctuary currency is a slang exchange term that defines a currency as a means of hedging or temporarily preserving assets during crises or increased volatility in the markets. Which currencies qualify as safe haven currencies? A safe haven currency is the currency of the country with the most stable economy and often a low interest rate. Historically this role has been played by the Swiss franc and Japanese yen as well as gold as the most liquid instrument in the market. Other articles on Forex Currency Types: Refuge and Commodity Currencies Forex Fundamental Analysis: Forex Features Worth Watching Hedging: Effective Insurance Against Trading Risks Interest Rates: Risk-free Returns
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Hotkeys are present in almost all modern computer programs, allowing the user to greatly accelerate their work. The MetaTrader 4 trading terminal is no exception and it has more built-in hotkeys than you can imagine. Hot keys moving through the price chart Let's start with the most common keys - "Up", "Down", "Right", "Left". They can be used to easily move on a price chart: "Up" or "Left" keys move the chart to the left; "Down" or "Right" keys move the chart to the right. Using these keys will replace the usual scrolling of the mouse wheel that most traders use to move on the chart. For faster movement you can use...
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What is equity? Equity is one of the trading account indicators representing the amount of free funds on the trader's deposit, i.e. the funds that can be used for trading. Calculation of equity is carried out according to the following formula: Equity = balance + floating profit - floating loss. Positions opened by the client at the moment of calculation of equity are taken into account. For example, the trader has a deposit of $1,000, on which there are 2 open transactions. On one transaction the current loss is $50, on the second transaction the current profit is $75. Equity will be equal to $1000 +75 - 50 = $1,025. Note that equity is...
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In the world of financial markets, the modern trader is increasingly using trading robots, entrusting money management to a cold-blooded program. However, many traders note that the results of EA trading in the real market differ significantly from the results of testing on historical data, and in a negative way. Often, due to the above-mentioned reason, the traders blame the broker for a special "faking" of the market situation in order to lose the deposit in real conditions. In order to dot all the "I "s and cross all the "t "s, let us analyze why the results of testing and trading by Expert Advisors are not always identical and see how to configure the test trading robot in such a way as to reduce the difference in the results. №1. Taking into Consideration Slippage and Spread Extension In the Strategy Tester completely...
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PTMC trading platform - for all markets As we know, in the market of trading platforms there are a huge number of different solutions that can perfectly fit only one market: Forex, stock market, derivatives market (futures and options). Simultaneous provision of trading access to all markets is a difficult task for companies and sometimes even expensive for a trader. Those solutions that do provide access to different markets are also not without drawbacks, which can manifest not only in the significant consumption of PC system resources, but also in the elementary lack of flexible settings of the interface for different tasks and requirements of the trader. The PTMC trading terminal is not only advantageously different...
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As a coach I cooperate with a small financial company, a professional participant of the securities market, which, among other things, provides trust management of clients' money. We have one trader, let's call him Mikhail, who for quite a long time showed very good, and most importantly stable results on a mini-account (about 3000 $). He was able to consistently bring his account up to about 5 000$ for a few months, and then withdrew 2 000 $ and started over again, repeating his success over and over again. In the end, we all agreed that Michael has abilities and skills of a trader. After examining his statement, we saw a certain stability: a good equity curve,...
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A temporary trend reversal (correction, pullback) is a temporary reversal of an established trading trend during the so-called moments of overbought and oversold market, when traders and investors decide to fix already profitable positions, since the activity of the initial movement has greatly decreased. Usually such a temporary reversal or correctional movement accounts for half or a third of the main movement. After that, the main trend movement regains its strength, recovers the pullback and strengthens, allowing the trader who caught the movement to make a significant profit. How to trade on a trend reversal and correction? Trading on a temporary trend reversal can be associated with large losses. It is not for nothing that the market says "The trend is a friend". Correction movement can...
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What is monetary policy? Monetary policy (MP) is also known as the monetary policy of the state and is a set of measures that are taken by the Central Bank of the country by influencing the state of credit and money circulation. These measures are a way to regulate business activity, create favorable economic conditions for citizens' living and doing business, strengthen the national currency rate, and maintain stability in the country and sustainability of the balance of payments. What are the objectives of monetary policy? The objectives of the state's monetary policy are: Regulating inflation Achieving full employment Regulating the growth rate of the economy Timely response to cyclical fluctuations in the economy Ensuring stability and regulating the balance of payments What are the instruments of monetary policy? The main instruments of monetary policy are...
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Almost every dealing center and broker has a group in the list of instruments, which is called CFD. With CFD on commodities and goods, everything is less clear, but CFD on stocks are less popular. This article is written in order to make this type of trading instruments more understandable for ordinary traders. It will be mostly written in a dictionary format with accessible explanations for traders with different level of training. Also, I will try to indicate the original English terms in brackets, because they are more universal and you will often come across them when working with CFD stocks. I will not make long introductions, we will go straight to the subject. CFD is absolutely...
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What is a trading plan, why do I need one and how do I make one? A trader's trading plan can be as simple or as complex as you want. Of course, a plan that is too simple is not informative enough to successfully implement key rules and/or strategies during each trading session. Conversely, if the plan is too complicated, it will be difficult for you to stick to it, and you may eventually give up using it altogether. Therefore, you need to think through the best option so that it is not time-consuming, while being detailed enough for self-analysis. The main task of a trading plan is to keep you calm and relaxed during...
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