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About fxfarmerashik

  • Birthday 11/20/1988

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    Forex Trading, Technical Analysis, Market Observe, Day Trading

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  1. GOLD PRINTS MILD GAINS INSIDE BULLISH CHART PATTERN. USD WEAKNESS, INCREASING ODDS OF SOFTER NFP KEEPS BUYERS HOPEFUL. COVID JITTERS, JAPANESE POLITICS, AND US ISM SERVICES PMI ARE IMPORTANT TOO. Gold (XAU/USD) prices step back from an intraday high surrounding $1,815, up 0.12% on a day near $1,812 heading into Friday’s European session. In doing so, the yellow metal rises the most in three days inside a bullish chart pattern ahead of the key US Nonfarm Payrolls (NFP). Gold prices cheer upbeat market sentiment and weaker US dollar to stay firmer. That said, the US Dollar Index (DXY) refreshed monthly low in Asia before recently paring the losses to 92.20. Firmer risk appetite could be linked to the softer catalysts for the US jobs report for August marked a soft NFP, versus 750K expected and 943K prior, pushing away the Fed tapering concerns. Also positive for the mood could be the receding hospitalization in the US and mixed numbers in Asia–Pacific, not to forget the vaccine optimism surrounding the UK. The Initial Jobless Claims and Continuing Claims eased from the market consensus for the week ended on August 27 Thursday and the four-week average of Initial Jobless Claims also declined from 366.75K to 355K. Previously, the ADP Employment Change and the employment component of the US ISM Manufacturing PMI both signaled a contraction in the US jobs and marked the need for further easy money policies. Additionally, talks of Japanese PM Yoshihide Suga’s resignation and the UK’s battle for the likely stringent virus-led lockdown in the future also portray the current risk appetite and underpin the EUR/USD bulls. That said, S&P 500 Futures rise 0.20% intraday, tracking the Wall Street benchmarks that closed mildly positive on Thursday whereas the US 10-year Treasury yields drop 0.4 basis points (bps) to 1.29% by the press time. Moving on, gold will cheer a likely weakness in the US jobs report for August as it cuts the odds of the Fed’s tapering. However, the key employment details are famous for delivering surprises and hence keep the traders on their toes. Also important will be the US ISM Services PMI for August, 61.5 forecasts compared to 64.1 prior. By Dailyforextrading.net
  2. According to my perspective, I think choosing a good broker to assess our own needs. Here are several questions you have to consider: Are you going to day trade a large amount or a small? Trade very small moves, or capture bigger moves? If your day trades a lot and captures small moves, consider an ECN broker. You'll pay a commission on trades but the spreads are much tighter, which matters when trading small moves. Search only for "ECN Forex Brokers." Remember one thing, broker won't works better if you don't have enough trading knowldge. So learn first or follow others guideline like ForexCopier provides copy trading service. You should explore more yourself.
  3. There are a few things you have to check if you're still a rookie trader: Security: The first and foremost characteristic that a good broker must have is a high level of security. So check it first. Transaction Costs: No matter what kind of currency trader you are, like it or not, you will always be subject to transaction costs. ... Deposit and Withdrawal: Good forex brokers will allow you to deposit funds and withdraw your earnings hassle-free.. ... Here I mentioned only three signs of choosing a trusted broker but one thing you have to think, good broker won't work until your trading capability is not fair enough. So learn it then join. If you start immidiately without zero trading knowledge then copy trading is a good choice for you and here ForexCopier can help you out.
  4. What do you think that forex is hard to trade? No, it is not at all. Because traders are making mistakes that's why the ratio is still high. The average mistakes are: MISTAKE 1: DO NOT STOP TRADE WHILE LOSING EVERMORE MISTAKE 2: DO NOT USE "STOP-LOSS" WHEN MAKING TRADE MISTAKE 3: RISKING HUGE MONEY FOR A SINGLE TRADE MISTAKE 4: CHOOSING THE WRONG BROKER MISTAKE 5: POOR TRADING PLAN MISTAKE 6: EXPECTATION BEYOND IMAGINATION MISTAKE 7: DO NOT FOCUS MULTIPLE TIMEFRAMES MISTAKE 8: DO NOT FOLLOW THE TREND MISTAKE 9: INTENDING ON MONEY MISTAKE 10: BOOK IS KING OF IDEOLOGY BUT AVERAGE SHOW ZERO INTEREST You should google of every aspect of mistake and try to avoid one by one. Just one more thing I wanna share with you that there has so many possiblities to follow someone trade and use it at your account. Traders named it by copy trading that ForexCopier giving nowadays. Many possibilities will open by using thier copy trading support.
  5. One of the hidden truths behind profitable trading is to focus more to avoid losses than making profits. Not only at the beginning but you also have to always focus on avoiding unnecessary risks and losses. And, take my words this should be your main objective in order to build a successful trading career. Question: How the hell do I even do that? Answer: Stop-Loss orders are the smart solution that will be able to diminish your troubles. Besides, Stop-loss is used by numerous traders all across the globe. It prevents you from making haste decisions. And the next BEST thing? Your trades will be stopped on certain points which often saves you from HUGE losses. Because what’s there to say, " The Forex market is quite unpredictable". So, the stop-loss order can be referred to as a vastly essential trading asset for both experienced and new traders. From ForexCopier.com you should get a few advanced benefits: Ignore original order’s SL and TP. Set custom SL and TP for orders which are opened on Receiver account. Move SL and TP of copied order according to the difference between prices of initial and copied orders. Think of a stop-loss as an insurance policy: You hope you never have to use it, but it's good to know you have the protection should you need it.
  6. In most novice cases I found that traders do not know that, "Is he trading or gambling? Between trading and gambling, there are huge changes. In this article, we will know a brief description about it. What is a Trader? A trader is an individual who engages in the buying and selling of financial assets in any financial market, either for himself or on behalf of another person or institution. The main difference between a trader and an investor is the duration for which the person holds the asset. Investors tend to have a longer-term time horizon, while traders tend to hold assets for shorter periods of time to capitalize on short-term trends. Now, we will know how to identify a Trader-- Has an effective trading methodology Trades according to plan and never deviates Journals all the trades and review them regularly Always identifies the potential risk and limits it Thinks of profits as a bonus Always remain neutral over a win or a loss Sets no expectation on the outcome of every trade Practices "set-and-forget" trading approach Only trades when his trading edge presents What is a Gambler? Gambling (also known as betting) is the wagering of money or something of value on an event with an uncertain outcome, with the primary intent of winning money or material goods. Gambling thus requires three elements to be present: consideration, risk, and a prize. Now, how will you identify a gambler-- Doesn't have a trading edge Doesn't follow a trading plan Doesn't journal and review past trades Pays little to no attention to risk management Thinks and focuses only on profits Rides the emotional roller coaster while trading Always predicts, guesses and hopes Is addicted to watching the flashing quotes Trades far more frequent than he should The Bottom Line However, you have to be in the market as a trader or you can't last long. And if you have a forex no deposit bonus, then it might be easy to increase some capital into your account. Best of luck!
  7. Since fundamental analysis is about looking at the intrinsic value of an investment, its application in forex entails looking at the economic conditions that affect the valuation of a nation's currency. Here we look at some of the major fundamental factors that play a role in a currency's movement. Economic Indicators Economic indicators are reports released by the government or a private organization that details a country's economic performance. Economic reports are the means by which a country's economic health is directly measured, but remember that many factors and policies will affect a nation's economic performance. Gross Domestic Product (GDP) GDP is considered the broadest measure of a country's economy, and it represents the total market value of all goods and services produced in a country during a given year. Since the GDP figure itself is often considered a lagging indicator, most traders focus on the two reports that are issued in the months before the final GDP figures: the advance report and the preliminary report. Significant revisions between these reports can cause considerable volatility. The GDP is somewhat analogous to the gross profit margin of a publicly-traded company in that they are both measures of internal growth. Retail Sales The retail-sales report measures the total receipts of all retail stores in a given country. This measurement is derived from a diverse sample of retail stores throughout a nation. The report is particularly useful as a timely indicator of broad consumer spending patterns that are adjusted for seasonal variables. It can be used to predict the performance of more important lagging indicators and to assess the immediate direction of an economy. Revisions to advanced reports of retail sales can cause significant volatility. The retail sales report can be compared to the sales activity of a publicly-traded company. Industrial Production This report shows a change in the production of factories, mines, and utilities within a nation. It also reports their "capacity utilization," the degree to which each factory's capacity is being used. It is ideal for a nation to see a production increase while being at its maximum or near-maximum capacity utilization. Consumer Price Index (CPI) The CPI measures change in the prices of consumer goods across over 200 different categories. This report, when compared to a nation's exports, can be used to see if a country is making or losing money on its products and services. Be careful, however, to monitor the exports — it is a popular focus with many traders because the prices of exports often change relative to a currency's strength or weakness. In the end, the fundamental analysis is the primary key in forex analysis. It's important to take the time to not only look at the numbers but also understand what they mean in how they affect a nation's economy. When properly used, these indicators can be an invaluable resource for any currency trader. Source: https://www.investopedia.com/articles/trading/04/031704.asp
  8. Forex trading has always been a challenge to many. However, this year appears to be tougher as even this is affected by the pandemic. Add the fact the United States recently elected a new president. These factors play very important roles when it comes to trading in general. Last week, the news made everybody optimistic about the vaccine that could stop the pandemic. Because of vaccine optimism, the currency market started to liven up once again. However, it appears to be short-lived as a few countries have reported more virus cases. For just a few days, the positive movement of the currency market has hit the pause button. Now, even if this is the case, there are still people who are suddenly interested in trading, particularly in Forex. This could be because people now have more time to look into things. The health crisis has also somehow made people more concerned about their financial state that they are now finding ways to be financially stable. While Forex trading could be a great solution to secure your financial situation in the future, know that this can still be very risky. There are many things that you should know but it’s also important that you won’t commit these mistakes that led Forex traders into the zeroes. Don’t just jump into it You may have heard plenty of success stories in Forex trading and that’s good. There are success stories because Forex trading could work. However, don’t just jump into it. This is a serious matter that you need to educate yourself on. Having the money to trade doesn’t mean that you’re ready. Take advantage of the digital age and get all the resources that you can get. Read books, attend seminars or webinars, watch videos, read articles, and use demo accounts. And if you want to know certain comparisons between demo and live trading accounts then the following guide might help you, https://topasiafx.com/blog/demo-trading-vs-live-trading The more you know and the more practice you get, the better. Think of getting into Forex trading as getting into a war. You should never go to war without weapons and combat skills. Not looking for the right broker Once you start to educate yourself about the world of Forex exchange, you will get to know how important it is to trade with the right broker. Only deal with regulated Forex brokers. The last thing that you want is to lose your money because of a trading scam. Luckily for you, it’s so easy to look up the best Forex brokers out there. Just make sure that once you start with a broker, you don’t go all-in right away. Also, don’t get easily enticed by bonuses. Take it slow and build a relationship with it. Go for small trades first. Earning a lot of money shouldn’t be your only goal This is a mistake that many people have whenever they think about Forex trading. This is ultimately the goal but if you’re just starting, set a small goal first. Preferably for newbies, your first goal should be learning the ins and outs of Forex trading. Your main goal at the start and as you get used to the trading market is to stick to your trading plan. This leads us to the next mistake you should avoid. Not having a trading plan is not acceptable A trading plan is necessary no matter what. This guides you through your exchange journey. Part of educating yourself is learning how to make a solid trading plan. A trading plan should include the rules that you will set for yourself before you get into any trades and before you get out of a trade. The training plan should consist of the guidelines of what you should be looking for before entering a trade, the amount of money that you can risk in a trade, the specific market condition to look out for tor if you should get out of the trade to stop losses or to ensure profits, and the set time for the market to reach your target. It should be your goal to stick to your trading plan. All your trade and movements should be noted down. Make sure that you record everything so that you have something to review. It doesn’t matter whether a trade failed or succeeded. Either could help you in your future trades and could help you master the art of trading. You don’t control the market Once you’re used to Forex trading and you’ve already profited from this, you’ll learn that this can be a very exciting and thrilling activity. This is comparable to what gambling can make you feel and it could be addictive. During an all-time high, you may get the impression that you are already in control of the market. However, keep in mind that you never are and never will be. You can’t dictate the market no matter how good you are at trading. All you can do is to act on what the market is telling you. If the market price is where you want it to be, then that’s when you trade.
  9. Researchers have thoroughly analyzed the myriads of trading platforms. The ones on our list are picked for their overall quality, which is a level above what you’d find with the competition. Before we dive into detailed examinations, I want to explain my selection criteria. This section will help you choose the best Forex trading platform for yourself. Reliability Foreign currency trading is fast-paced, so you need a reliable platform. You don’t want it crashing or freezing when you’re about to make a move. This is especially important for those who wish to make frequent high-risk trades. Ease of Use It’s always great to have plenty of features at your disposal, but that shouldn’t come at the cost of efficiency. Making or losing trades should be as simple as possible because that’s the primary role of the Forex trading platform. Furthermore, no one enjoys being confused, so the best interfaces have additional tools and charting options clearly displayed. I suggest looking for very customizable platforms. Setting it up just the way you want will help you feel at ease and in control. Fees Every platform has costs and charges that you have to take into consideration before committing. Analysis Tools and Charting Trading FX takes a lot of practice, and even the best Forex brokers, dealers, and traders need to conduct a thorough analysis of their work on a regular basis and, if needed, adjust their strategy. Good analysis tools are vital for this aspect of Forex trading. Some of these include moving averages, trend indicators, indicators of volume, and many other useful instruments. Charting capabilities are closely related to analysis tools since many traders prefer to have their research results displayed visually. With certain platforms, you’re allowed to create customized charts, as well as add drawings and labels. The very best trading platforms even enable you to place trades directly from the chart within the platform. Automation Automated trading features enable traders to set up triggers that buy or sell currencies when the appropriate conditions are met. These are quite handy because they allow you to maintain a presence on the FX market even when you aren’t in a position to do so in person. The orders you configure can be market, stop, stop-limit, trailing stop, trailing stop-limit, market-if-touched, and limit-if touched. As you can see from any trading platform comparison, all the vendors differ when it comes to the number of automation options. New traders should avoid overreliance on software to perform trades for them. As convenient as automated trading systems are, these can’t measure up to the expertise of professionals. Although automation eliminates human error that usually stems from emotional decision-making, other glitches like internet or hardware malfunctions can still occur. Testing Some Forex platforms such as FP Markets have a backtesting feature. You can use it to try out trading strategies you’ve developed by applying them to past market conditions. Once you’ve done that, you can identify defects in your strategies and optimize them accordingly. However, a backtested strategy isn’t foolproof, as backtesting is based on the hypothesis that a successful tactic from previous situations will work in the future. cheers!
  10. The wide world of trading has helped many people buck the trend of their 9-5 job, or at least helped them discover new ways to earn money. Finding a new source of income is important for building an independent life that can help you retire early, send your kids to college, live comfortably, or just give you some peace of mind in the bank. Forex trading is one of these potential income sources that may interest you if you are looking for ways to earn more money and learn new skills. First things first though are that you need a refresher on some of the terms and phrases that you need to know before you even commit to a real trade scenario. Just like riding a bike, you want to know what it is you are doing before going for a ride, and Forex trading can be intimidating to those that do not know much about it. Check out these must-know terms to help you get started on your Forex trading journey. 1. Currency Pair Trading currency means exchanging it on the global market. This global market is full of different types of currency, so currency pairing is the simple term to describe this exchange. USD (U.S. Dollar)/EUR (Euro) is a common example of a currency pair, so is something like GBP (Great British Pound)/CAD (Canadian Dollar). Currency pairing is also useful for traders as it allows for analysis for market research. Using currency pairs of common currencies, called major pairs, are the most traded, then you have things like cross pairs which are not major pair currencies, then exotics, for lesser currencies. As you can see, this is one of the more easy terms to understand as it relates to the actual currency you are trading within a broad sense. 2. Pip Pip, or percentage in point, is the 4th decimal point of a currencies value. So if you looked at a currency that was traded at 0.7842, the 2 is considered the pip. This value will fluctuate as markets naturally change short and long term, but the pip helps determine the value of trade when converting one currency to the aforementioned currency. Pips are a small but useful term to know, and once you get trading regularly you will be able to identify them easily to help you maximize your potential. 3. Stop-Loss Stop-loss is a term that relates to specific trading orders. The stop-loss is the action of setting a signified price to sell in order to prevent any loss. The stop obviously indicates the point at which you will hold until then sell, and loss speaks for itself in limiting any damage. This is one of the best Forex signals to receive, it helps limit any further loss, or keeps you from losing gains on a trade in the first place. Stop-loss is an important thing to know for beginner traders to help them make logical, not emotional trades. 4. Bullish/Bearish This term applies to financial markets as a whole, and you have likely heard them thrown around numerous times. Bullish, or bull market, is a euphemism to indicate that the markets are doing well and that there is expected growth to continue. Bearish and bear markets indicate a slowing down and decline of expected growth. The bull is meant to be a forward-moving, aggressive animal, while the bear in this context is an animal that spends a lot of its time sleeping, hibernating. These are useful terms to know what to expect out of trades regarding the general market movement. 5. Bid and Ask Price The bid and ask price are two terms that you are going to want to know when it comes to trading. These terms are associated with the price of a trade. The bid price is what a trader sets as the amount they will trade a currency pair for, while the asking price is what a trader will buy a pair for. What is known as the spread is the difference between those prices. Bid and ask price are key terms in understanding how Forex trading works and it is good to familiarize yourself with it quickly. 6. Trading Platform How do you actually start Forex trading? Well, you need a trading platform to do so. Much like using software to do your taxes, you need something to trade on. These platforms contain all of the information you need to understand what is happening in the market. Charts, live updates, tickers, as well as connection to your account. These platforms, often provided when you sign up with a regulated Forex broker, come in many forms. They range in fees, functionality, and efficiency as one would expect. Advance tip: if you are a complete beginner then try to use the demo trading account first and later on when you'll think that you're ready switch to the live account. 7. Futures This term is thrown around a lot when people talk about markets for Forex and stock alike. Forex futures are the date in which a deal is set, a contract for a specific time. The contracts are traded at set values and are intended to be finalized before that expiry date. Some people intentionally buy futures contracts with the sole purpose of selling them well before the expiry date because it is hard to know how the values will fluctuate. These speculators sell and attempt to profit before the end of these contracts are realized, or do so to prevent losses. Forex trading is a really interesting way that people have used as an alternate source of income, and in many cases, a replacement for their current employment. While Forex trading is not easy, and it is not for everyone, it can be something fun to get involved in when you do your research and treat it as a serious business, because it is. Before you start making any trades and using any of your money you want to learn as much as you can, and these are some common terms in Forex trading that any trader should know.
  11. Owing to modern advancements, the world has seen quite a lot of financial developments. One such development, Forex and CFD trading has become quite popular amongst traders due to various factors such as ease and availability. However, if you’e interested in investing in Forex, it becomes essential that you choose the proper Forex and CFD broker. So, to assist you, this CFD trading guide will help you choose the one that is the best and most reliable for you. 1. The Regulations Must Be Proper The very first and the most important thing to consider before choosing a trading broker is the regulation. Now, no matter how much security, various platforms today are full of fraudulent traders brokers who may take away all your funds. In such a situation, it becomes important that the broker protects your rights and your interests. For example, these regulations can help in protecting your funds if or whenever your broker has disappeared or doesn’t have sufficient funds. It also ensures that your funds are kept safe and secure in a separate account than the broker’s account. Additionally, such regulations help in maintaining and encouraging fair trading practices. This ensures that the execution of your trades is at the proper and recent market prices. However, to gain all of the above benefits, you need to go for a licensed broker. You also need to make sure it has a clean record. 2. Security Policies One of the biggest risks of financial platforms is the disclosure of confidential information such as your bank account details, card details, and even your I.D proof such as a passport. Thus, this is where data security comes into consideration. When you’re choosing a Forex and CFD trading broker, you need to take care of security concerns. There are plenty of chances that cybersecurity may not work as efficiently as it should. This can put your financial data as well as personal data at a high risk of theft. Hence, it becomes necessary to go for a broker that offers proper security via a cybersecurity firm and necessary encryptions. 3. Friendly Trading Platform The trading platform needs to have a friendly user-interface to make it easier for you. An easy to use user-interface will give you a smooth and fun experience while trading. You need to ensure that the trading software provides you easy navigation, technical analysis tools, Forex indicators, charting capabilities, etc. All these factors will make it easier for you to succeed. Also, try to use a demo trading account at first then move on to real trading accounts. Besides, catch the certain differences between demo and live trading: https://topasiafx.com/blog/demo-trading-vs-live-trading The software needs to look secure and reliable. Additionally, it should include risk management functionality and customizable add-ons. The good news is you can get a free demo from most Forex and CFD brokers. During the demo, you are free to check out the software and test out the platform to decide if it is the right one for you or not. 4. Responsive Customer Support If you get into trading, you need a broker with responsive and reliable customer support. You are vulnerable to face issues all the time that you need to solve as soon as possible. A broker with good customer support can help you solve your problem efficiently if you ever faced one. They will also be always there to answer any inquiry or doubt that you have. A possible issue you might face could be related to deposits, withdrawals, incorrect execution of trades, and other such issues. That is why you need someone that you can contact to help you solve the issue immediately. Good customer support should give you the option to contact them through multiple ways such as live chat, email, and phone. It could be a bonus if they provide different languages other than English. 5. Fast Deposit and Easy Withdrawal The broker of choice should allow you to deposit money in several ways. It should include debit cards, credit cards, wire transfers, and bank checks. This wide range of methods will make it much easier for you to deposit money and start trading right away. Regarding withdrawals, you need a broker that provides a wide range of payout options. Moreover, your broker needs to give you the smoothest and fastest withdrawal process possible. You need to pay attention to the deposit and withdrawal fees if there are any. Some brokers take more fees than others. Also, there might be a daily withdrawal limit, so check that out before you start trading as well.
  12. When I was 16 I decided I wanted to be a millionaire. I wasn't from a wealthy family, and I witnessed how my parents, especially my dad, struggled and worked hard to make ends meet. I knew I didn't want to walk down that road, so from this point on I continually studied and sought ways to make money. It eventually became clear to me that I had three primary means to get rich: own a business, invest, or combine the two. I discovered that I liked the idea of using money to make more money, and soon got fixated on investing. This was how I got introduced to Forex trading. Unsurprisingly, I made a lot of mistakes early on. I blew out several trading accounts, with each loss leading to more pain and despair. However, there were also moments of victory. There were times when I would make more in hour trading than I would in a week at my job, all with a few clicks of the mouse. It was surreal. These were the feelings I clung to in my early days. It took me about 42 months to make my first windfall in forex trading. I was still a student at that point, trading in between classes and assignments. I remember feeling at the time that it seemed as if I’d been trading forever when in reality it had only been about three and a half years. Going forward, I carried on that momentum to build a trading business around my personal trading. People and companies started inviting me to give my insights at forex trading conferences around the world, and I had the honor of training traders at banks, fund management companies, and prop trading firms. In an effort to save others the time it took me, I’ve compiled a list of four Forex trading strategies for beginners that embody everything I’ve learned over the last 20 years about how to trade forex and make money from it. Step 1: Learn How To Read Charts The price chart is one of the crucial things a forex trader must know and understand. I always find it funny when new traders go looking online for forex trading tutorials on trading strategies and then proceed to lose money when they try to implement them. Why does this happen? The simple answer is you have to learn to read the price chart! Trying to use someone else’s trading strategy without being able to read the chart is like trying to do hurdles before you can walk. The reason for this is simple—no forex trading strategy works 100% of the time. If you rely solely on one trading plan to use at all times, it will eventually fail you. By learning how to read charts, specifically the forex price action and technical indicators like support, resistance, and trendlines, you will not only understand what is happening but why. Step 2: Control Your Risk Trading is all about controlling your risk. Applying inappropriate risk is one of the primary reasons most forex beginners blow out their accounts when trading. For example, you should never be risking 100% of your account on a single trade. That’s akin to gambling. As a general rule, most Forex trading for beginner books will tell you to risk anywhere between 1-3% of your account per trade. But this low-risk strategy has drawbacks as well. If you have an account worth $1,000 and you risk 1% ($10) on a trade, you will have to make a lot of profitable trades to grow your account. This could lead you to overtrading, which could in turn increase your losses. Ultimately, you have to find the balance of risking enough to make the trade worth it, but not so much that your risk-reward ratio is too imbalanced. Step 3: Consider The Risk-Reward Ratio Too Every trade you enter should have a defined risk-reward ratio. That means knowing how much you are prepared to lose in addition to knowing how much you’re prepared to make. In other words, have specific buy and sell targets on the upside and downside before you enter a trade. Step 4: Test The Effectiveness Of A Strategy Before You Use It There is a straightforward way to ascertain the effectiveness of a forex trading strategy. This process is called backtesting. Backtesting involves reviewing the results of trades made using a particular technique over a period. My general rule of thumb is I will consider a strategy if I observe a net profit for three consecutive years. I do my backtesting on the demo trading platform, which allows you to backtrack to the period you wish to start testing from. Advance tip: You shouldn't use live trading accounts for backtesting several strategies it can cost you BIG TIME. Besides, if you don't know the significant differences between live trading and demo trading then the article stated below is highly suggested for you. Demo Trading vs Live trading. Step 5: Don't Get Emotional There is a concept in poker when a player gets too emotional after losing money and starts playing differently to win it back. This situation is known as tilt. While Forex is a different ballgame entirely, the same concept applies. Understand that losing is an inherent part of trading. You should expect and prepare for it instead of getting vengeful. One way to keep your emotions in check is to never carry over the results of a previous trade into a new one. Treat every trade as if it’s an entirely new entity and approach it with a clean mindset. If you find yourself carrying over positive or negative reactions from your previous trades, that’s a recipe for clouded judgment. Another pro tip for controlling your emotions during trading: whenever you feel agitated or emotionally-charged, take a break. Stop trading until you have regained your composure. cheers!
  13. After a harsh week in which the EUR/USD was exposed to downward momentum, pushing it towards the 1.1688 support, and with the start of this week’s trading, the pair tried to rebound higher with gains to 1.1793 before settling around the 1.1775 level at the time of writing. However, TopAsiaFX has stated that attempts to rebound lacked strong momentum to stabilize above the 1.1800 resistance, and the efforts of the Euro are hindered by concerns about the strength of the second wave of the Corona pandemic and the measures of European countries to contain the outbreak of the deadly disease. These restrictions directly affect the European economy, which is still suffering from the consequences of the first wave. At the same time, and with these concerns, the European Central Bank monitors the economic performance of the bloc to determine its appropriate policy. In this regard, European Central Bank Executive Board member Yves Mersch said yesterday that policymakers will carefully examine the economic data received before the next policy session to ensure that the impact of coronavirus containment measures is not repeatedly considered in light of extremely unstable expectations. “Looking to the future, in the current environment of high uncertainty, the European Central Bank’s Governing Council will carefully evaluate the information received, including developments in the exchange rate, while ensuring that this information received, such as information related to containment measures that were included already at our baseline, were only counted once in our assessment.” He also said that the economic recovery in the Eurozone remains incomplete and prone to setbacks. The policymaker emphasized that the Board of Directors continues to prepare to adjust all its tools, as appropriate, to bring inflation back to its target level. The UK is leading European efforts to contain the pandemic. As authorities across the UK impose new restrictions on business and social interactions as COVID-19 infections are soaring in all age groups, where parts of the country’s hospital beds and intensive care wards are filling up. One of their main goals is to reduce the pressure on the NHS ahead of the winter flu season. In this regard, public health experts say that the lockdown could help reset the epidemic to a lower level, giving doctors time to treat patients and providing breathing space for the government to improve its response. Britain has the most serious outbreak of the Coronavirus in Europe, with more than 43,700 confirmed deaths. According to the technical analysis of the pair: We are still waiting for the EUR/USD to stabilize above the 1.1800 resistance, for an opportunity for a stronger correction upwards, and we expect the pair to remain stable between the 1.1660 support and the 1.2000 psychological resistance for a period of time, as shown on the daily chart. The psychological resistance at 1.2000 brings condemnation from monetary policy officials at the European Central Bank, as the Euro’s high exchange rate harms the European economy, which depends on exports at a time when it suffers from the effects of the pandemic. At the same time, the 1.1660 support raises buying interest among currency traders. As for the economic calendar data, today: The German producer price index will be announced, then the Eurozone’s current account will be released. During the American session, building permits and the housing starts in the United States will be announced.
  14. We have all had to re-invent our approach to business in the wake of the crisis created by the Covid-19 pandemic. But we have learned during the pandemic that crisis is not all-together bad. Crisis helps us think deeper, stretch our imagination, restructure our organizations, and discern the real needs of our business. But how do we, as business owners, crisis-proof our business? We may not be able to stop the crisis from coming, but our business can cope with it better when that crisis does arrive. Risk and crisis management are consistent features of Forex and currency trading. Here are a few areas where small business owners can draw significant wisdom from the art of currency trading. Avoid false advertising Many small businesses constantly grapple with the crisis of customer defection or a consistent inability to attract and keep new customers. The problem is often with their marketing strategy. A leisurely scroll through your timeline on social media will expose you to a myriad of ads from small and medium-sized businesses all vying for your attention. In many of these ads, you will find one nasty feature; false advertising. While these ads promise astonishing freebies or cut-price deals, the reality behind often reveals something totally different. I once received mail from an advertising business I had almost patronized. It read, "I noticed you stopped short of making the purchase. Hey, I know the ad was a bit deceptive but..." Needless to say, that put me off from the business. One key feature of Forex trading is the risk factor especially when you aren't using accurate trading signal.. It is one of the most glaring features of the market, so glaring that Donald Trump's Covid-19 diagnosis caused quite a stir. Every serious-minded Forex trader, trainer, or broker reveals the nature of risk involved in trading while advertising their services or teaching their courses. My early foray into Forex trading brought me in contact with FxBro, a sibling run Forex trading community where they were so vocal about the risks of trading Forex that it almost seemed like it was their marketing strategy. However, I noticed I was drawn to Maksim and Nina Konstantinov's strategy (Fx Bro Co-founders) because their clear warnings made me appreciate even further their offer of guidance. While taking advantage of PPC campaigns and ad marketing that social media provides, you must realize that building a loyal following does not involve sacrificing the truth on the altar of appeal. It is pertinent that you market nothing beyond what you can offer, and though you must engage your creativity in marketing, you must also draw the line just before creativity begins to drift into dishonesty. In co-founder of Fxbro Maksim Konstantinov's words, "When we fall downstream, we always say it loud and explain to our customers that even after the 15 years experience I have garnered trading Forex, we can still make losses and so would they". Konstantinov finds that having begun from scratch himself and experiencing all the downturns, it is great to always be clear about the risks while advertising. This is the attitude that marketers should have across the board and is one of the most powerful ways to avert the crisis of customer defection. Spin the wheel, don't reinvent it Two years ago, I served on the panel for a grant-issuing body for upcoming African entrepreneurs. As I sat on that panel, I discovered that almost 90% of those who were unsuccessful were failing because they were trying hard to reinvent the wheel. They were trying to run a business that was novel in every single aspect. Their crisis was a "lack-of capital," and it was self-engineered. Granted, innovation and invention are generally good for business, but they are not always necessary, especially when there already exists verified working systems that are yielding massive results in your industry. Forex trading platforms realize that many people are not going to sit down to study the technicalities of the market, so to enable the largest number of people to invest, they have to integrate a "Mirror Trading System." Alex Campbell, Chief Executive Officer of Vast Triumph, in explaining their "mirror trading" and AI strategies that have been used to great effect, explained it as "a system that minimizes the need for vast knowledge and experience of the market. Mirror trading pairs investors and new traders with our top-earning traders, yielding results for investors without the exertion of personal trading." No system guarantees success, but if you can find working, proven systems for your business to adopt, I often advocate the "Ctrl C, Ctrl V" approach. There is no shame in copying working systems. Given the same circumstances, there is no reason they won't work for you. Upcoming entrepreneurs can stand out with their company culture, values, and mission, but when it comes to business strategy, learn what works and spin the wheel. When you insist on constantly treading uncharted waters you are easily prone to unforeseen errors. Protect today with yesterday My first attempt at trading the Forex market saw me obliterate a $300 account in one day. It hurt, and I learned. Crises are unavoidable in business, but if you are keen on documenting your experiences and adjusting your business to become resistant to that same crisis, you'll win in the long term. The human body becomes more and more immune to the diseases it has survived before, Hurricane-prone areas of the state begin to re-imagine its infrastructure to withstand such a harsh climate. Likewise, in Forex, every successful firm or trader has a "trading journal," where they document all their moves in the market to further understand how it moves and reacts. For small business owners, it is necessary to know that to become crisis-proof, you may have to cherish and document all wrong business steps as well as the right ones. Not moaning over losses and failures is the best way to understand business and, more specifically, your industry. Nothing you read in books will prepare you for the business experience you gain firsthand, so write your own books by keeping records, and make sure your business evolves with this knowledge. Balanced risk-reward ratio The question I get asked often from young entrepreneurs is "How do I maximize profit?" This question is vital but becomes a bit worrying when I see these businesses trying a little too hard to make money from every margin in their business. Often, profit maximization can become the direct opposite of customer satisfaction. Small businesses must be satisfied with bearing a lot of risks. To do this, you would have to find a balance between profit and risk. This place of balance is a place where you do not overextend yourself as a business, yet offer the customers enough satisfaction to warrant their continued investment. In currency trading, trade is considered bad when the risk far outweighs the profit potential, and trade is safe to engage in when the risk-reward ratio is at least balanced. This is an invaluable tool for all successful currency traders and firms: risk management. To prevent a crisis, you need to become analytical, patient, alert, balanced, truthful, and customer-centered. This makes it far easier to evolve positively as a business and grow a thicker skin in the wake of a crisis.
  15. Foreign exchange brokers offer traders leverage on their accounts that allows them to enter into larger trades at no additional cost. A $10,000 size account with 50 times leverage implies a trader has access to $500,000 in buying power to do what they wish. It is best to read and understand a leverage guide to understand the pros and cons of trading with someone else’s capital. But it might be a necessary evil as the forex market is void of gigantic daily moves that are common in the stock market. Ironically, the foreign exchange market is the largest and most liquid market in the world as $4 trillion worth of currencies trade hands on a daily basis. No Leverage, No Gains Advanced forex traders with a $10,000 account balance with no leverage can consistently make a profit day in, day out. But without the compounding power of leverage, a $10,000 balance that earns a spectacular 15% annual return (by forex standards) will likely find their efforts to be futile. Perhaps even a complete waste of time. Meanwhile, in the stock market universe, a 15% move for a $1 trillion valued tech's heavyweight like Apple or Amazon can be generated in a few short days. Much larger gains can happen in hours, if not minutes. In forex trading, a 5% daily fluctuation is considered a very large move. Much larger moves, such as the10% reaction in the British pound in reaction to the Brexit vote is a once a decade event, if not longer. So traders need leverage. They may not like it and very few can avoid it. As such, leverage is a fact of the game and a mandatory tool to generate any sort of meaningful profit. Leverage Options Leverage amounts vary from broker to broker and some may reserve their highest leverage to experienced and responsible traders only. Here is a breakdown of what is an appropriate amount of leverage for traders at different stages in their trading career. Foolish Traders- 20 times leverage: Foolish traders are usually newcomers with zero experience and close to zero trading knowledge. They may have been tempted to sign up for a brokerage account after watching a compelling ad or are looking to take advantage of compelling sign-up offers. Chances are likely they will blow through their account in days, if not hours. Beginner Traders - 50 times leverage: Beginner traders likely spent time learning about trading strategies through online courses, books, or browsing YouTube videos. They are prone to make beginner mistakes and have minimal risk management strategies. They are likely to enter into a few profitable trades and will blow out their account in weeks. Moderate Traders - 100 times leverage: Moderate traders have spent a lot of time practicing their strategies in a paper account. They understand the importance of risk management and show discipline in quickly exiting a trade that moves in the wrong direction. These traders will likely use their margin responsibly and wait for the once a week opportunity to go big and take advantage of a unique opportunity. The odds of success aren't in their favor but a select few will end up making a lot of money over time. Advanced Traders - 100 to 300 times leverage: Advanced traders have spent years studying the forex market and anything short of making $100,000 a year in profit is considered a poor year. Advanced traders are extremely patient, knowledgeable, and disciplined. Professional Traders - 400 times leverage and above: Professional traders are likely backed by an extremely large account balance and may not even need this level of margin. But it is made available to professional traders to take advantage of a unique opportunity. While advanced traders are happy to make $100,000 a year, a professional trader expects to make this amount in one single trade while using accurate trading signals. Conclusion: Recognize The Dangers Of Leverage Some brokers might extend generous amounts of leverage to all traders and there is a good reason for them to do so. Brokers likely invested a great amount of money into their internal risk management systems that will automatically sell out a position before a traders’ balance hits zero. It is easy to understand how an inexperienced trader would be attracted to unusually high leverage. They might even have a gambler’s mentality that a new car or house is within reach after two or three highly leveraged trades are closed out. For some, they might hit a jackpot and win the big prize, but for the vast majority of people, this is nothing but a dream.

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