1. What is the fixed fractional system?
Ralph Vince was the creator and designer of the fractional money management system. He says that the number of units traded is based on operational risk. It means that the risk of a trade is a part of the net worth. The amount of capital or money that a person risks losing for each transaction is the operating risk.
1. What is the Kelly Criterion?
Many investors around the world think about the importance of diversification, and when it comes to investing money, that amount will be prudent depending on the stock or sector. Kelly's criterion is used to know how to manage your money. This criterion is simply to bet a predetermined portion of the capital and can be the opposite of intuition.
1. The Real Secret Strategy For Success
The real secret is to know how to manage the risk of investment and be ready for the worst. The first thing that every trader knows is when and how much to invest at the moment doing a market analysis. The analysis provides you with information about and establishes the times of less risk and more profit in the markets.
European Financial Stability Fund (Euroval)
Known as the Euro, it is the European Financial Stability Fund, established to support indebted euro area countries.
European System of Central Banks
The combination of the European Central Bank and the national central banks of each Member States of the European Union.
A market crash is also equal to a massive loss of money. You can be up one day watching all your trading strategies failing while the numbers go through the wrong road.
Where You Fail: Thinking You’ll Be Right
Forex trading comes from Foreign Exchange, which is the conversion of the currency of a country into another currency. Those who trust investing in Forex believe that it is a safer bet than investing in the stock market.
They work with a sense of security that is not infallible but looks more consistent and trustworthy. Forex trading is as risky as other trades, even if the possibilities seem to be in favor of the traders. It is widespread that many Forex traders use words like “will” and “is” when talking about the market they are trading.
So, be sure to stay tuned, and as always, you will be able to find everything on our homepage.
We also want to say a HUGE THANK YOU to all of those who sent us your valuable feedback via the comments and email. And especially Thank You for all the positive feedback we kept receiving throughout the whole year. This keeps us excited to continue our work and strive to deliver even more value in 2020.
The Fx Trading Revolution website was upgraded on many levels in 2019 - aimed at helping traders on their path to being profitable in the Forex market.
Among others, here are the highlights of 2019 in short:
The Fx Trading Revolution team will continue to work with sedulous commitment on the goal to aid traders in making a better decision every time they are faced with a choice.
2019 was a smooth ride for the markets, and generally calm for Forex as well. We are looking forward to conquering new challenges and always staying prepared for what’s to come next in the markets.
We all had another great year, thanks mainly to you - our readers!
THANK YOU ALL and we wish you a Merry Christmas and a Very Happy New Year!
All the best.
Team FX Trading Revolution
Why should you care about it?
As a trader, it is essential to pay attention to the possible changes in the economy. These changes affect the financial markets directly, and the consequences of economic crisis or recessions can endanger many of the investments that traders may have, resulting in significant losses and even bankruptcy.
A recession can produce a domino effect on the economy. Most of it created because of panic. The devaluing of assets, the sudden closure of medium and small companies because they can't pay their employees, and many other problems cause people to get worried as they watch their pockets getting emptier.
During trading hours, users can both buy and sell shares and manage them passively as funds. The fund manager will try to copy an index development as close as possible. The manager will purchase the same securities that make up the index and transfer them into the fund’s portfolio.
Euro Interbank Bid Rate
Also referred to as EURIBID. It is an informal term that refers to the EURIBOR counterpart. The EURIBID is the average interest rate where it shows the demand from banks on euro loans for other banks on the interbank money market.
The symptoms are always a piece coming out of the big picture, but they are not hard to spot.
Money is nothing but a tool of war for those who dream of empires. That's true during the industrial revolution and 'it's true now. During the age of the gold standard, the U.K. applied monetary pressure to other nations to protect the empire. Nowadays, China has been accused multiple times of currency manipulation to favour their export industry. But these two nations aren't the only example. During the Cold War, several countries engaged in currency exchange manipulation as the U.S. and the USSR fought satellite wars.
Some businesses do not pay dividends but offer their shareholders free shares. The tax office also considers this to be a dividend, and hence, this revenue is subject to taxation.
Some funds have at least 66% invested in equities. They are characterised by short-term exchange rate fluctuations, even fractions of percentages in a few months. They are risky funds suitable for the most extended investment horizon due to the advantage of the long-term highest appreciation potential.
1) Signal Sellers
Signal sellers are commercial firms, pooled asset managers, managed account companies or individual traders that express their ability to have a constant edge on the market. To be precise, they claim to identify the best time to open or close a position based on expert guidance.
Some scammers will collect money from unseasoned traders before disappearing. Others will intermittently recommend some good trades, to keep perpetuating the signal money. All and all, it is best to avoid anyone who claims to have a 100% track record when it comes to market signaling.
One of the most important things that differentiates a winning trade from a poor one is information. An informed trade, based on key insights, has a higher likelihood of success than a mere hunch or guess. Trading is not like gambling - it’s not a question of blind luck that gets you winning trades, despite what some traders think.
When getting started into the world of forex trading, the amount of information can seem overwhelming enough to convince you to enter trades blindly by guessing your way into the markets. While you may get lucky every now and then, it’s a matter of probability, and it’s not enough.
So which sources should traders follow?
An educated, insightful trade backed with the right information (charts, news, updates, analysis tools, etc) can help you maximize your profits. And who’s going to hand you this information? Forex traders and investors have a wide variety of websites, big and small, to choose from, but how do you know which is the right resource to depend on for advice or for backing up your daily activity?
The big names in the market, such Market Watch or Bloomberg, are obviously worth following. But what if that’s too advanced and high level for you to grasp, especially as an amateur trader? Or what if it is overwhelming and feels like too much information for your size?
You then need to turn to websites that are focused on what you actually need - In-depth courses, guides, strategies and education to learn the basics of forex trading, keep you updated with all the important news and market updates that can affect your trades, provide real time quotes, charts and trading tools, and give you tips and trade ideas from time to time.
An emerging market (EM) currency is the money of a nation that is considered to be transitioning from underdeveloped to developed.
Currently, five nations are more or less considered the emerging market's darlings. Collectively, they are known as 'BRICS' (Brazil, Russia, India, China, and South Africa). But, as of recent Brazil has fallen a bit out of grace. It's political scandals, and an increase in unemployment has made traders drop the BRL altogether.
Everyone knows or have heard about the wolves of Wall-Street. These people are usually traders who work for Goldman Sachs, Merril Lynch, JP Morgan, CityGroup, Morgan Stanley, and others.
Whenever the central bank of a country introduces a change in its economy, the numbers on the financial markets around the world will go upsides or downsides. Traders are aware of this, so they follow the events closely in order to stay informed and know how to act.
What Is Forward Guidance?
Central Banks make public communication about the state of the current economy, and what would possibly be the outcome for future monetary policy. This communication practice is called Forward Guidance and is significantly helpful for traders.
Forward Guidance gives an estimated path for the interest rates that affect the decisions for making inversions or adjusting the prices on different business. It notes the public about possible changes in the economy; that way, it won’t come as a surprise when it happens. Forward Guidance is now widely used by most of the major central banks in the world, including the US Federal Reserve, the Bank of England, the European Central Bank, and the Bank of Japan.
Luckily for you, you’re about to learn about a money management technique that will probably end up saving you a lot of money!
Fixed Ratio is what they call it, and you’re about to know what it is!
That is why it is vital to make highly rational decisions while looking at a trading chart. The behavior of the masses is simply an aggregate of individual actions. From mass hysteria to bullish overperformance, all of it revolves around how millions of people feel about the conditions of a given situation.
There are three main groups in the COT report:
Knowing the groups is nice, but what matters is what a trader can do with such information. These are the most common ways top-traders use the COT report.
Ordinary shares, which represent the most common issued shares. Shareholders have the right to take part in the profits generated (called “dividend right”), general meetings, and liquidation balance. The contrary to an ordinary share is called a priority share.
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