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Forex Blog & Articles

Forex Blog & Articles

This blog provides Informational & Educational material to help you grow your Forex Skills


BLOG FOREX INFORMATION & EDUCATIONAL ARTICLES - Ordered by Date Published
Is a demo forex account the right tool to help you practice trading?   Practice makes a man perfect! Someone wise once said. No doubt, the more you practice, the better you become at whatever it is you are doing. But take this with a pinch of salt. What if you kept practicing something, but have the wrong tools at your disposal? Regardless of how long you practice, when you use the wrong tools, chances are that you will not get ahead. Retail forex trading, as one might have already heard, often attracts just about anyone. The lure to speculate…
A beginner’s guide to understanding volatility in the financial markets As a trader, or even as someone who is interested in the financial markets, you might have come across the term volatility. Volatility in the financial markets is considered to be both a blessing and a curse for traders. But the bottom line is the fact that traders can't live without volatility and you can't really trade without volatility. Volatility defined In the simplest of terms, many traders have an understanding of what volatility is all about. When one talks about volatility, the first thing that comes to their mind…
2020 FX recap: The biggest currency market themes of 2020 The year 2020 will probably be remembered for a number of reasons with the coronavirus pandemic being the cornerstone marking a rather chaotic year in the financial markets. The pandemic which started in China around mid-December 2019 quickly engulfed the whole world leading to unprecedented decisions which impacted the day-to-day lives as well as government decisions and the financial markets. It was a volatile year nonetheless and the impact of this could be felt across all asset classes. Here is a quick recap of some of the remarkable milestones in…
The three candlestick patterns every trader should know When it comes to technical analysis, there are many ways one can analyze the markets. Among these different types, price action based technical analysis is commonly used by professional traders. The main difference between price action based technical analysis and an indicator based technical analysis is the fact that instead of relying on indicators, the trader focuses their analysis based on the candlestick patterns that form. A candlestick pattern, as you might know comes when you make use of the candlestick charts. The candlestick charts are one of the oldest methods of…
Sunday, 13 December 2020 09:29

Quick guide to economic recovery patterns

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Quick guide to economic recovery patterns In a post-Covid world, economists around the world have begun to throw out technical jargons that might seem as if using a few alphabets out of the English language. If you have been reading the news for a while, you might have come across terms such as the V-shape, U-shape, or L-shape being used on mainstream financial news networks. Interestingly, these are not new terms but have been there for a long time. In technical terms, these recovery patterns are referred to as recession shapes. Economists use these patterns to describe the different types…
How to protect yourself during the year end in trading? As forex traders, and especially day traders, one is often inclined to find trading opportunities regardless of the time of the day. However, as anyone who has traded for a while would know, liquidity is off the biggest concern. When there are not enough market participants, price action can behave erratically. This is especially true if you are trading with a forex broker that offers variable spreads. In such instances, the spreads are not fixed by the forex broker but keep changing depending on the liquidity offered by the forex…
Friday, 04 December 2020 12:15

What is reversion to the mean in trading?

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What is reversion to the mean in trading? As traders might know, there are many different ways that one could trade the forex markets. The most common approaches include trend trending. Trend trading is where, you are basically following the trend. This is a common approach as it is often considered safe. You are after all positioned in the general direction of the trend. Besides trend trading, there is also the counter trend trending. As the name suggests, counter trend trading is where you take an opposition position to the trend. This means that you are basically trading the corrections…
Top five economic indicators that influence the FX markets Trading the forex markets requires not just knowledge about technical indicators but also the fundamentals. It is after all, the fundamental news that brings and changes the trends in the forex markets. As a result, traders should keep an eye out on fundamentals as well. You don’t need to study economics but following some of the major fundamental news events can help you to understand the forex markets better. Here are top five economic indicators and reports that every forex trader should know about. Gross Domestic Product or GDP The Gross…
Three things to remember when investing in a forex managed account? For many traders or forex managed account is an easy way to make money in the forex markets. As the name suggests, a forex managed account is where an investor puts money into a managed account. The fund is usually managed by a forex manager. The basic premise behind a forex managed account is that, if you do not have the time or the knowledge of trading the forex markets yourself you could pull your money along with other investors to be managed by a forex manager. Although a…
Things to remember when trading the U.S. elections When the United States goes to polls, to elect a new president, the whole world watches. This is because the United States is the largest democracy in the world. Considering the fact that the US dollar is the official currency of the United States, it is not surprising to see why the elections play a direct role in the strength or the weakness in the USD. Come next week, the United States will be holding its general elections to elect it’s 46th President. In the current economic and geopolitical landscape, the US…
Know your instruments - Forex, Stocks, Indices, Commodities Retail traders are now spoilt for choice when it comes to what markets or assets they can trade. It was only a few years ago, that a retail trader only had access to trading the foreign exchange market. But this has changed quite a bit over the years. Now a days, more and more forex brokers offer their customers a wider choice of instruments that they can trade. While they may all seem the same at a cursory glance, these instruments have different characteristics. Thus, each of the instruments in the different…
Friday, 04 December 2020 12:09

How to read the order book

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How to read the order book In our previous example, we explained the basics of the order book. We also briefly touched upon the key aspects that make up the order book. In this article, we will look further into what an order book and how to read and interpret the information. To quickly touch upon the market depth once again, it is a measure of the volume of limit orders in real time. The market depth represents the trading platform or the exchange's activity. Generally speaking, the more activity there is in the market depth, the more interest there…
How to combine different types of analysis in Forex? There are several methods of analysis that are available for traders and investors in the financial markets. Whether it is forex, equities or futures, market participants can either choose to analyze the securities using technical analysis or fundamental analysis. In most cases, fundamental analysis is widely used in the equity markets, especially if you are a long term investor. Within the fundamental analysis, there are various schools of thought such as value investing, momentum investing, dogs of the Dow and so on. Similarly, in technical analysis too, there are different ways…
How to backtest your forex trading strategies Backtesting is one of the important things a trader needs to do before using a trading strategy, especially if one wants to use an automated trading system. As the name implies, backtesting is where a trader would test their strategy on historical data. This is useful as the backtesting exercise allows traders to understand how their trading strategy would have fared on historical data. It also allows traders to understand if there are any cracks. It is important to note that past performance does not guarantee future results. But having said that, back…
Five things to know about the U.S. Federal reserve bank The U.S. Federal Reserve bank is undoubtedly the most powerful central bank in the world. This comes due to the fact that the Fed oversees the monetary policy that directly impacts the U.S. dollar. The USD, as you would know is the world’s reserve currency. Nearly 90% of all global transactions are done in the U.S. dollar, including many economies borrowing in the U.S. dollar currency. Therefore, the Federal Reserve wields immense power over the currency, also known as the greenback. For forex traders, the actions from the Federal reserve…
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