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Elliott developed the Elliott
Wave Theory in the late
1920s by discovering that stock markets, thought to behave
in a somewhat chaotic manner, in fact, did not. They traded
in repetitive cycles, which he discovered were the emotions
of investors as a cause of outside influences, or
predominant psychology of the masses at the time. Elliott
stated that the upward and downward swings of the mass
psychology always showed up in the same repetitive patterns,
which were then divided into patterns he termed "waves".
In this lesson, I will talk about the different ways how you can trade forex during key economic news events.
Most common used news strategies:
- Trading the Numbers
- Straddle the News
- Hedging the News
|Moving Average Convergence/Divergence (MACD)
What is it?
MACD is one of the most popular oscillator used by currency traders.
This is a momentum indicator can be used to confirm trends, while also
indicating reversals, or overbought/oversold conditions. The MACD is
calculated by taking the difference between the 2 exponential moving
averages. The two that is usually used are the 26-day and 12-day moving
Trading currencies involves more than technical knowledge and
up to date information regarding market news and events. Each trade has
its own numeric particularities, which will determine your profit/loss
depending on several factors, such as: lot size, pip value, spread and
leverage. This article will explain in 3 examples how you can manage
your buy/sell orders in order to successfully achieve the expected
results for each one of them.
Money management is a critical point that shows difference between
winners and losers. It was proved that if 100 traders start trading
using a system with 60% winning odds, only 5 traders will be in profit
at the end of the year. In spite of the 60% winning odds 95% of traders
will lose because of their poor money management. Money management is
the most significant part of any trading system. Most of traders don't
understand how important it is.
For many new forex traders, the promise of quick riches is difficult to
resist. That is the main reason why every day so many people from all
walks of life begin trading the forex market. While some element of
this “keep your eyes on the prize” mentality is necessary to get
traders through the tough times, on any given trading day one should
really focus on other things first.
Like any other business in the history of business, your broker’s
raison d’etre, is to make as big a profit as possible. There are about
as many ways to go about this as there are brokers. For those who are
in it for the long haul, however, it is generally best to adopt a set
of practices which are deemed fair by their clients: certain boundaries
are set, and operating beyond them can cost a brokerage its reputation,
and along with it its clients.
Choosing a good forex broker is one of the most important decisions you
need to make at the beginning (or at any point) of your forex trading
career. Do not take this decision lightly, but at the same time don’t
stress over it – the process does not need to be complicated – just
like in your trading decisions, once you do your homework, things tend
to fall into place. Chance favors the prepared trader and everything
you need to make an informed decision is listed right here.