What kinds of opportunities and possibilities does it provide that other jobs simply don’t?
That’s the focus in this article, and below we discuss some of the advantages and opportunities that come with Forex trading that can enhance the life of anyone who trades Forex for a living.
Support and resistance are the foundation for nearly every technical trading strategy. Anyone who has experience in trading Forex or any other market has heard about support and resistance levels.
Support and resistance levels rarely work as precise points on the chart where the market reverses or not. Many new traders may overlook this important fact about support and resistance levels. The levels are not an exact science that can tell you where the market will reverse exactly. Rather, it’s more about probabilities and possible scenarios.
Most of the price fluctuations in the Forex market are just noise, that is, price movements which are not part of the general trend but rather price movements which are likely to turn out false and be reversed.
With direct hedging, the trader would place a second trade that takes the opposite position to the initial trade. For example, your initial trade may be to go long GBP/USD. To hedge against this, you may decide to go short on the same pair. This is known as a “perfect hedge”. Despite the fact that your net profit is likely to be zero in such circumstances, it allows the trader to be able to make more money without increasing the risk, if he can time the market correctly. Some may argue that it is better to close out the initial trade and to open a new position that seems more lucrative. While that may be true, it is really up to the trader to decide which tactic would work better for him/her.
Well, you may be surprised to see your strategies not working and your results lacking when you come back to trading after the time off. While breaks are always a great thing and everyone should take regular breaks, taking time completely off trading for a month or more will probably get you out of the flow state you were in when you were profitable. Then, when you try to return without preparing first you will most probably be confused as to why you are not trading like you used to a few months ago.
Frequently asked questions of traders are: "What kind of indicators should we use in trading?" Or often traders ask "without which indicators you can not trade?".
Of course, there is no unambiguous answer to these questions. Different indicators monitor and evaluate various factors and market trends.
There is, however, one that provides us with information about support / resistance, and trends at the same time. This indicator with the whole name is called Ichimoku Kinko Hyo, also known in short form as Ichimoku.
Well, you probably have seen this. It’s habitual for most people.
It is known as the confirmation bias in psychology.
Basically, it describes how humans make decisions that have nothing to do with rationality or objective confirmation of one’s view. On the contrary, the confirmation bias is a tendency for humans to seek confirmation of their views where there is very little of it or none.
Whether you are using the platform provided by your forex broker or are using a 3rd party platform such as MetaTrader4 or MetaTrader5, there are certain features which you need to look out for when making your selection. Here are a few features you need to bear in mind:
If you’re a newbie in the world of Forex trading and you’re looking for information on how to get started, know that you’ll most likely encounter a lot of false and inaccurate information.
Patience is regarded as one of the greatest human virtues in almost all religions and spiritual traditions. Patience, whether virtue or not, is definitely a very beneficial and profitable characteristic when it comes to trading the Forex market.
These bonuses are usually small, and the average bonus range is from as low as $5 to as high as $100.
With a no deposit bonus, a new forex trader or investor is not required to make a deposit in order to trade through the platform. The proceeds may be used to start trading on the platform and basically allows the trader or investor to try out the broker’s platform for free. That’s a great incentive! Also, the no deposit bonus allows a trader or investor to gain some trading experience while having the opportunity to test the broker that they signed up with. This presents an opportunity for the trader or investor to actually make profits using the broker’s own funds.
When using automated trading, various trading strategies and systems are translated into a program code. Programs using this code are called automated trading systems or expert advisors (EA).
Anyone who is interested in Forex trading or investing is probably already getting bombarded with a huge number of ads and promotions on a daily basis, promising huge returns over a short period of time.
Forex swing trading is a medium-term trading style that aims to profit from trends or larger price swings in the market, hence the name “Swing Trading”.
The risk/reward ratio in trading is the relationship between the size of your stop loss to the size of your profit target. So, for example, if your stop loss is 50 pips away from the entry price and your profit target is 100 pips away from the entry then your risk to reward ratio is 1:2.
The risk/reward ratio is no doubt, a very important aspect that should always be considered before taking any trade as an integral part of a good risk management strategy. This may seem like a no-brainer, but it’s amazing how easy it is to forget about it once you spot a good looking chart pattern or a nice trading signal.
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