Understanding correlations is a great way for traders to form opinions on markets that they may previously not follow. The idea of a correlation is to take two seemingly different markets or assets and see how market price moves relative to each other. Even though gold is no longer used as a primary form of currency in developed nations, it continues to have a strong impact on the value of those currencies. Moreover, there is a strong correlation between its value and the strength of currencies trading on foreign exchanges. Correlations...
Have you ever thought of giving it all up and turning your back away from forex trading? It probably happens to everybody. The obvious reason why you want to quit trading is most likely due to huge losses along with being scammed by marketers promising rags to riches within the end of the week. You have tried just about everything and nothing seems to work. Quitting seems like the only reasonable choice to make. However, more often than not, this is the exact period where you learn some of the most important lessons as a forex trader. The...
Social trading is the process through which online investors rely on user-generated financial content gathered from various applications as the major information source for making financial decisions. Social trading allows traders to trade online with the help of others and some have claimed shortens the learning curve from novice to experienced forex trader. Traders can interact with others, watch others take trades, then duplicate their trades and learn what prompted the top performer to take a trade in the first place. Social trading is...
According to most, if not all, central bankers quantitative easing following the 2008 global financial crisis was the tool which prevented deflation from taking place. Quantitative easing programs were in most cases bond purchases by central banks in order to push down yields. Some central banks, like the Bank of Japan, also purchased equity stakes in order to combat deflationary pressures in the hope to kick-start the economy. Now, central banks are looking to increase interest rates and decrease their huge balance sheets which were acquired...
When most people think of currency trading, they picture it as a short-term activity where traders make money from day trades. But this gives the wrong impression of forex trading as a way to get rich quick, and ultimately, holding a position long-term may prove to be more profitable than a series of short-term trades. There is no widely-accepted definition but generally, long-term trades are those that last several weeks or months. One of the main advantages of long-term trading is you aren’t required to find new opportunities every...
