Are you interested in trading, yet discouraged by your lack of experience and knowledge about all the trading instruments, than you should try demo trading. Forex trading is not something where you can just dive into without any experience and preparation. Even when you think that you are ready and prepared it seems it will become real once you send an actual trade to the forex market. Demo trading can help you discover what type of trading suits you the best, but you should know that no matter how well disciplined you’ll become and no matter...
Knowing the amount of risk on each trade is one way to limit it and to protect your trading account. The risk-reward ratio is a parameter that helps a trader to determine the level of risk in a trade. It shows how much a trader is risking versus the potential reward (or profit) on a trade. While this may seem simplistic many traders neglect taking this step and often find that their losses are very large. The risk reward ratio is simply a calculation of how much you are willing to risk in a trade versus how much you plan to aim for as a...
This week was filled with PMI reports which gave some key insights about how different economies are performing. This directly influences the currency of the country and forex traders need to always pay close attention to key economic reports. The forex market saw volatile moves this week and while different factors have impacted currency pairs in a different way, the PMI reports did play a role in it as well. Monday started out not with a PMI report, but with the second best thing in the US; the Chicago Fed National Activity Index....
Those forex traders who frequently tune into business news channels such as CNBC or Bloomberg in order to keep up with fundamental developments, geopolitical events and other interesting business news stories may have pick up that the strong rally in the S&P500 and other US equity markets is the most hated rally in the US. Some call it yet another bubble which will burst and while the equity markets remain in an uptrend, the hatred increases. As you all know, nothing can go up in one straight line forever. The rally in US equity markets...
Many new forex traders often make the mistake to jump around from timeframe to timeframe as they are looking for profitable trades. This is a very big mistake and can lead to unnecessary losses. Discipline and patience are key components of a successful forex trader and so is knowing that a strategy is built on one timeframe. Some traders create different trading strategies for different timeframes which is perfectly fine. The primary reason why jumping around from timeframe to timeframe will often result in losses is that a currency pair can...
