Depending upon the domestic as well as international economic situations the market conditions keep fluctuating. It is possible to make money no matter what the conditions of the market are. In simple words a downward moving market is referred to as a bear market, while the upward moving markets are bull markets. A particular currency gaining value is called bullish, but if it is losing value it is called bearish. In order to call the market bullish it usually requires the prices to have been gaining for a period of a few months. Bullish or...
Since mid-2012, stress in financial markets has abated substantially due to fiscal and structural reforms at the Member State level. The entering into force of the European Stability Mechanism (ESM) and the ECB's announcement of outright monetary transactions (OMT) added up to financial stability, alongside with the decision by the European Council to create a Banking Union. This was complemented by the completion of the negotiations on a program for Cyprus, and the agreement on lengthening loan maturities for Ireland and Portugal. But...
One of the key elements of understanding of currency pairs’ movement on the Forex market is a work on the trading news. The ability to work on the news is very important for both the novice traders and for the experienced ones, who seek to improve their trading skills. Making daily trading strategy, a trader needs to analyze Forex news calendar for the upcoming trading period. In order to trade successfully on Forex news you need to: Know the approximate time period when we can expect strong news outlet; Understand how the market...
Should price action for the EURUSD remain inside the 1.3750 to 1.3800 zone the following trade set-up is recommended: Timeframe: H4 Recommendation: Short Position Entry Level: Long Position @ 1.3770 Take Profit Zone: 1.3620 – 1.3670 Stop Loss Level: 1.3900 (We will not use a stop loss order to close this trade for a loss and execute this trade as advised below). We do use stop loss orders to protect our profits and close a trade for a profit. Each trader may decide if and where they would like to place the order. Hedge Level: Buy Stop...
Risk management is one of the most important aspects of forex trading as it will protect your account from losses and allow you to keep trading even after a loss. A lot of new traders do not implement the proper risk management strategy and often have one single loss which wipes out their profits and erase their trading capital. Without proper risk management no trader will succeed over the long haul and therefore it is very important to learn how to properly manage risk. Once a risk management plan is in place in order to protect your...
