Education - Basic, Page 15

  • Using Retracements to Find Entry Point

    The term retracement represents an opportunity to enter a trade when a market reverts to a lower or higher price after it has experienced a gain or decline.  Using a number of different technical analysis tools a trader can define specific levels that represent prior support and resistances levels to

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  • The Danger of the Martingale System in Forex

    The Danger of the Martingale System in Forex

    Risk management is the backbone of trading a successful portfolio of financial instruments.  The risk you assume when you place a trade is directly correlated to the reward you would like to achieve.  As your risk increases, the reward you expect to achieve may also increase, and finding the optimal

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  • A Beginner’s Guide to Commodity Markets

    While most traders are more familiar with stock markets or foreign-exchange markets, commodity markets have had a huge impact on economies throughout history. In fact, there is some evidence that futures in rice may have been traded in China over 6000 years ago, and more recent commodities crises have led

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  • Trading Exotic Currencies

    Trading Exotic Currencies

    The Foreign Exchange market is the largest and most liquid financial markets in the world, with nearly 5 trillion in daily turnover.   The market allows individuals, corporations, banks and speculators to exchange one currency for another.    In a typical currency transaction, one party exchanges a quantity of one currency for

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  • Liquidity

    Liquidity

    The liquidity of a financial instrument is often overlooked, as investors strive to produce the best risk adjusted returns.  Market liquidity usually fluctuates, but can be extremely illiquid as investors rush toward the exits during adverse market conditions.  Despite the liquidity associated with US stocks and ETFs, traders need to

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  • Liquidity

    Guaranteed Stop Loss in Forex

    The Stop Loss is a commonly used function in forex which is used to control losses to an acceptable level if a trade goes against the trader. A stop loss order is an instruction to the broker to automatically close a forex position if the price action moves contrary to

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  • The Spread

    The Spread

    The spread is the difference between the bid price and ask price of a currency pair. Usually long orders are executed at ask price and short orders are executed at bid price. Once a trade is executed, the trader’s position is thrown into debit, according to the financial value of

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  • What is a PIP?

    What is a PIP?

    The Percentage Interest Point or PIP is the smallest unit that measures the change in the price of a currency. Pricing in forex is usually done to 4 decimal places, or in the case of the Yen crosses, 2 decimal places. One PIP is the equivalent of 1/1000th of a

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  • Trading Patterns

    Support and resistance levels along with trend lines form the basis of trading patterns which have been used throughout history to predict future market movements in forex trading. The concept is based on the theory that history, along with human psychology, repeats itself, and that a specific grouping of market movements

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  • What is a Vanilla Option?

    A vanilla option is an uncomplicated type of financial derivative contract which gives the holder of that option the right but not the obligation to buy or sell this contract at a given price within a set time frame.This means that a vanilla options contract has standard features of a

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  • Back to Basics with Technical Analysis

    ChartsIn trading, a chart is a picture which reflects the movements of a financial security plotted over time and each type of chart has its benefits as well as drawback.Line ChartThe most basic chart is a line chart.  A line chart reflects one point during a specific period.  The most

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  • Fundamental Analysis: A Forex Perspective

    Fundamental analysis in forex is a type of market analysis in which the trader or market analyst attempts to carry out an evaluation of currency pairs in order to determine the true or inherent value of one currency against another, using economic and socio-political factors that affect either the currency

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  • Quiz Yourself: What Kind of Precious Metal are You?

    Have you always been fascinated by precious metals but never knew why? Answer a few simple questions and find out what kind of precious metal are you. You are more than welcome to share your quiz results and your thoughts with us and with your friends on the comments section below

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  • Market Makers vs Agency Model Brokers

    A lot has been said about these types of brokerage business, but we are here to show you a wise, yet unpopular opinion.Last years Market Makers have been blamed for all the evil in the forex market, as these brokers are actually expecting a trader to lose the money. Agency

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  • The Car Driver and the Trader

    There are a lot of similarities between a car driver and a trader. In fact, you, a growing trader, would learn a lot by imagining yourself to be a car driver. When you start driving a car for the first time, you are pretty much overwhelmed. There are so many

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  • Types of Trading – Which Type Suits You

    There are different varieties of trading that are based on the trading behavior, length of the trade and the type of the analysis one goes with, etc. but there are three most important types of trading – scalping, day trading and swing trading. Not that the other types are irrelevant,

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  • Forex Analysis Guide

    Chapter 1: What is Forex?Forex Analysis Guide“Forex” or foreign exchange is by definition a currency trading market. It is regarded as the world’s largest market with a daily turnover of roughly 3 trillion U.S dollars. Instead of goods being traded in the forex market, currencies of the world are being

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  • How to Cope with Losing in the Market

    Face it, who can deny that unmistakable feeling of euphoria when they make a killing from the market? Compare that to the stomach-churning pain of when you get it wrong then lose money, and you have a wide range of emotions. The gulf between pleasure and pain can often feel

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  • 3 Sure-fire Ways to Eliminate Your Fear in Trading

    The emotions of fear and greed have driven the markets since the very concept of a marketplace was conceived. But these emotions do not have to have an adverse effect on our trading performance, if we know how to deal with them. In this article I shall discuss ways to

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  • Forex Trading Guidance For All

    Pursuit of Happiness is one story almost all of us are familiar with, a man’s story of rags to riches in the Wall Street. Sheer luck was not what made him successful. Determination to thrive and keep trying was what had him reach the benchmark. The biggest problem with us

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