- First steps in the Forex.
- Skrill, Neteller and trader. A time-tested connection.
- Forex market, what is it?
- Forex Quotes. General concept.
- Forex trading.
- Forex Brokers. How to choose.
- Mini Forex. Type of earnings or illusion?
- Forex Training. Where will you learn to be a trader?
- Forex books for successful traders.
- Forex Trading. Five commandments of success.
- Forex trading. The dangers of selfishness.
- Forex Analytics. Who to trust?
- Fundamental and technical analysis of Forex.
- Forex Strategies. Time component of trading.
- Forex trading signals.
- Forex Indicators. A look at the future from the past.
- Forex programs. Evolution of decision-making.
First steps in the Forex.
The rapid development of high-speed Internet has significantly reduced the role of dealing
centers as platforms for traders to work, and has divided already
divided traders. Personal communication, exchange of opinions and
ideas, and even quick help to a friend - all this has become
somewhat difficult. Nowadays, trading is mostly done from personal or
work computers, and each trader often rotates in a heap of their own
problems. Is it good or bad? As with every problem, there are two
sides to it. On the one hand, a trader, and especially a novice
trader, has less to listen to the opinions of other, more
experienced, though not always successful market players. The
negative point is that such isolation makes it impossible to consult
on any issues. For example, very often there are questions about
choosing or changing a broker, about the advantages and disadvantages
of various dealing centers. Especially the lack of information
affects those who are at the beginning of a great trading path.
The question of choosing a broker is not an idle one. Moreover, this is the most important question for a person who has chosen the trading path. The choice of a broker depends not only on the comfort of trading transactions, which is important in itself, but also on the basic security of invested funds. And the operations themselves for entering and withdrawing financial amounts should be simple and clear for the trader. Therefore, an analysis of brokerage firms it is best to start with a review of the proposed terms of trade, and I also have to check their financial transactions. Forex is no longer the prerogative of residents of megacities. In any place where there is an Internet connection, anyone can try their hand at trading financial instruments. It is not necessary to open an account in the geographically nearest dealing center, and financial transactions are carried out through a nearby Bank branch. It is enough to register in Skrill and Neteller payment systems once, and the geopolitical distance of the trader from the dealing center will go by the wayside. Of course, it is assumed that the chosen brokerage company must support working with these online payment systems. According to statistics, about 95% of traders solve their financial issues using Skrill and Neteller. And this mass character in itself indicates the reliability and convenience of this method of interaction with the broker. Now you can go to the choice of the dealing center where the trader is going to open a trading account. Today, one-day firms are rarely found (firms that immediately close as soon as they collect a certain amount of money from people). However, there are not many truly long-standing and successful dealing centers. Often their fruitful activities are carried out without the pompous and annoying promotions that are typical of less successful brokerage firms. Therefore, it is sometimes quite difficult for a novice to separate the real grains from the tares that are shiny with falsity.
Skrill, Neteller and trader. A time-tested connection.
Any work must be paid for. This postulate is equally true for an employee and for a person
engaged in individual entrepreneurship. Unfortunately, the realities
of our time often make undesirable adjustments to the process of
filling the household budget. And the real island of prosperity in
this regard is the work of a trader in the financial markets. A very
important positive point in the work of a trader is that the
principle of his activity practically excludes intermediary chains,
because his work is purely individual and to some extent depends only
on the work of his broker, the second important positive point is the
complete freedom to manage their own finances. Especially when the
dealing center has a cash input and output system integrated with
online payment systems. Today, most Forex brokers
operating around the world support these electronic payment systems.
Why are these payment systems so popular? First of all, because of security. These systems have a high degree of security designed specifically for online payments. Secondly, the convenience of working with systems. This convenience is associated with a very clear and simple form of financial transactions. To send money or get it through these systems-it will require very little action - even a schoolboy can do this. In addition, the transfers themselves are made instantly and around the clock. After closing a trade at 3 am, the trader can immediately send the resulting profit to his wallet. And his order will be executed by the system. Here all hours are working, and there is simply no time for breaks. And the procedure for withdrawing money from Skrill and Neteller systems is thought out to the smallest detail. The owner of a web wallet can exchange their virtual money for cash, transfer it to their own Bank account, pay for various services, or even send a Western Union transfer to themselves anywhere in the world. For example, relaxed, resting in the shade of palm trees on the Caribbean coast, spend a good trading operation, and it is even nicer almost immediately and to earned to time to open the next trade went unnoticed. Both Skrill and Neteller systems allow this. Moreover, this convenience is almost free of charge. The systems charge very low fees for their services; their commissions are among the lowest among e-money systems. In addition, Skrill and Neteller systems have been around for more than 15 years. These systems can even be called veterans of Internet payments. And to the credit of these veterans, they did not stop at the success achieved, but continue to develop further in the dynamics of consumer needs. Every year, the list of services of these systems is constantly expanded and integrated into real areas of everyday life. Even utility payments can be made without getting up from the computer table. In short, for a trader, Skrill and Neteller systems are inconspicuous, but very reliable assistants that combine the functions of an accountant, cashier, and security guard, and for all this, the systems take a very low remuneration. Over more than 15 years of operation, these benefits have already been appreciated by more than 30 million users, and this list is constantly growing. Today it is very difficult to imagine that a trader does not have a web wallet. Forex trading is inextricably linked to the use of Skrill and Neteller systems. Therefore, any novice trader, before starting their activity, first becomes a user of Skrill and Neteller . Fortunately, this procedure is simple and convenient.
Forex market, what is it?
What is Forex? This Is Money. Moreover, the word Money should be written with a capital
letter, because the amount of money that passes through various
market trading platforms every day is really impressive, because
according to various analysts, it is from 8 to 15 trillion dollars.
For the most part, this is the money of large exporters who are
forced to exchange their earnings from the currency of the country of
import into domestic banknotes through banks. Banks that invest their
savings in a particular currency, insurance and investment funds are widely represented.
It would seem that what does the average citizen care about these trillions of other people's money? Let them be bought and sold by Bank clerks and financial analysts, building up the purse strings of their companies. But no. Recently, due to the computerization of trading operations, work on the Forex market has become available to ordinary citizens. Modern technologies have brought the Forex market through computer monitors to every home. Now anyone can try to catch the bird of fortune, watching the fluctuations in the exchange rates of world currencies. Buy cheaper, sell more expensive-the principle of any trade, including trading currency pairs on the Forex market. Moreover, various ads that are widely distributed on TV screens and on the pages of printed publications tell us in sufficient detail about the attractiveness of trading operations through the Forex exchange. Who is interested in this ad? It should be said that the Forex market itself is a global trading platform that is not linked to any country in the world. Communication between the seller of currency and its buyer is carried out through specialized brokerage offices, which, thanks to the installed software, allow you to conduct financial transactions for their clients. It is these brokerage offices, or otherwise-dealing centers, that attract interested individuals and legal entities to trade. Their benefit is explained by receiving a certain percentage of Commission, or spread, that is, a small monetary difference between the price of buying a currency and selling it. Naturally, the more market players perform trading operations, the greater the broker's profit. And is it profitable for the trader and how much personal money you need to invest in order to extract some income in the future?
One of the really interesting advantages of trading on the Forex market is the marginality of trading. Simply put-any trader, the brokerage company guarantees the receipt of a certain credit, or leverage, the amount of which is determined when entering into a contract with a dealing center. Usually, this leverage is scaled in the size of 1:50. In other words, for one dollar invested by the client, the broker gives 50 of its own and helps the client to purchase a larger number of banknotes that interest him. This means that opening a real account does not require the amount of ten thousand dollars. Moreover, some dealing centers offer to open an account, starting even from the amount of $ 1. It is natural that you will not get rich from such a contribution, but as a learning process, such activities are quite acceptable.
In short, despite the supporters and opponents, the number of which is approximately the same, the Forex market was yesterday, is today and will be tomorrow, and it is up to everyone to trade on its platforms or remain a bystander.
Forex Quotes. General concept.
In contrast to the usual designation of the price, Forex quotes, it is not so much the
price of a particular product, as a reflection of the value of one
type of currency relative to another. The instruments presented on
the Forex market trading platforms, in the part of it that involves
trading in monetary units, are designated as currency pairs. For
example, EUR/USD, GBP/CHF, or AUD/NZD. The currency that is specified
in this pair first is called the base currency, and Forex quotes
reflect the ratio of this base currency to the second monetary unit
of the pair. Speaking about the fact that the EUR/USD pair is
currently quoted at 1.4755, we mean that right now 1 Euro is
equivalent to 1.4755 US dollars, or for 1 Euro, the Forex market
offers this amount of American currency. Similarly, the definition of
quotes in relation to other currency pairs.
In addition, Forex quotes, when conducting trading operations, are offered by the broker in the form of two values of numbers. Here the analogy with an ordinary exchange office is appropriate, where its owner buys currency at one price and tries to sell it at another. So the brokers of Forex market. They offer the trader two prices of one financial instrument. One of them is called bid price and corresponds to the price at which the trader can sell the base currency of this pair, the second is called ask price and shows the price of the base currency at which the trader can make a purchase at a given time. Sales and purchases of the base currency are made only relative to the second currency of this pair. The arithmetic difference between the ask and bid price is called the spread. For example, if we open an order for the EUR/USD currency pair in the trading terminal, we see the entry 1.4935/1.4937. Here 1.4937 price is the ask price, the value of 1.4935 – bid, and the difference between the values of these numbers, equals 2 points, will be defined as a numeric expression of the spread.
The essence of trading operations on the world financial market is reduced to a simple
exchange of currencies, which are represented by pairs. Thus, when
working with a currency pair, for example, EUR/USD, a trader can at
any time buy a European currency relative to the us dollar, or Vice
versa, sell European banknotes against an American counterpart. This
currency pair is included in the definition of a financial
instrument. Of course, the notion of financial instrument is more
extensive, in addition to the currency pairs these include different
options, futures, quotes, indexes.
For ease of calculation, any trading account opened by a trader in a brokerage company is calculated in US dollars. Accordingly, the resulting profit or loss is recorded in the values of this world currency. Although, for calculating the monetary equivalent of the indicators of the trader's account, there is a more precise definition of the pip. A pip is a single indicator of changes in the value of a currency. For example, buying euros in the mentioned EUR/USD at 1.4500 and closed the trade when the price has reached values of 1.4550, the trader earned 50 points profit. At the cost of a point of $1, his income was 50 american dollars.
In order to start trading on the Forex market, you must sign an appropriate agreement with the selected brokerage company or dealing center. The broker is the link in the trader – Forex chain that connects the workplace of a market participant directly with the trading platform. After that, the necessary software, called a trading terminal, is installed on the user's computer through the broker's website. The most common program is considered to be the MetaTrader 4 platform. The intuitive interface, the presence of a large number of built-in indicators, the ability to add custom indicators and expert advisors, options for changing the design, a sufficient number of educational and reference literature on working with the terminal, make this platform really very popular. Both novice Forex traders and experienced traders feel equally confident on it, and working with the program does not imply a confident knowledge of the computer by the user.
Naturally, Forex trading involves an Internet connection. How else can a broker bring a market participant to trade on the exchange? From his computer, the trader, through a special order, gives an order to the broker to buy or sell a particular currency. Moreover, this order must be executed as soon as possible. You can't do without high-speed Internet here. Moreover, trading on the Forex market implies a rapid change of situation, so an order that is not executed in time simply deprives the trader of profit. What if such a failure was caused by the Internet provider? No one will undertake to calculate a businessman's lost profit. Therefore, the trader's workplace must be equipped with at least two Internet connections, and from different providers.
So, the contract with the broker is concluded, the trading terminal is installed, the Internet connection is correct and reliable, and Forex trading can be started.
Forex Brokers. How to choose.
For anyone who wants to become a participant in the Forex market, sooner or later there is
a question of choosing a broker to carry out their trading
activities. This issue is very responsible and requires a serious and
thoughtful approach. The success of the work depends to a large
extent on the choice of a broker, and if the decision is
unsuccessful, it will certainly not lead to ruin, but the loss of
money, nervous and moral forces can be very noticeable. How can I not
make a mistake in choosing a financial partner, and start working,
focusing entirely on trading, and not on clarifying the relationship
on the eligibility of certain actions of the broker? Many years of
experience of active traders can help in this issue.
According to a survey of experienced players of trading platforms, the reliability of the company is firmly in the first place when choosing a financial partner, which includes Forex brokers. It will be unpleasant to Deposit personal money to a trading account in an organization that will simply cease to exist in a day. And although such cases are no longer so typical in our time, nevertheless, sometimes this happens.
Next, the importance of such an aspect as the size of the spread of currency pairs. This question is very relevant for traders who have chosen intraday trading on the Forex market as their activity. They fighting for every point in their deal, while working in small time intervals, so trading with a spread of 20-25 points is simply unacceptable for them.
The technical aspects of the broker's work, such as the order execution time and the resulting amount of slippage, are also important for the trader. By engaging in intraday trading, and opening an order at a favorable price, the trader expects that within a few seconds and at the requested cost, his order will be placed on the market by the broker. Deep disappointment sometimes awaits market participants when their order is executed after a longer time interval, calculated in minutes and at the price that was originally planned to be the closing price of the transaction.
And, of course, an important factor is a trader-friendly system for entering and withdrawing funds. The procedure for adding a Deposit or withdrawing a certain amount from it should be simple and clear, and the financial chain itself should contain a minimum number of links. It is desirable that the broker can offer several options for financial turnover, such as Bank transfers and others payment system.
In order to determine the quality of brokers' work, first you need to install the trading terminals of prospective candidates. Use demo accounts to conduct a test trading mode. Next, you should get information about the size of spreads from the official sites that all Forex brokers have. Well, the most important thing is not to be lazy to collect information from other thematic sites, ask Forex experts.
Mini Forex. Type of earnings or illusion?
It is gratifying to note that for those who want to learn how to trade on Forex
platforms, today the trading conditions provided by brokerage
companies are incomparably better than even a few years ago. Some
brokerage companies, in an effort to attract more clients to trading
financial instruments, have significantly lowered the entry bar for
opening deposits. Of course, the reality is that most of the
population will not be able, and will not want to open trading
accounts in the amount of several thousand us dollars, and the
reduction of the price threshold was really a mutually beneficial
decision that suits both brokerage companies and Forex adepts. If the
former decided to make a profit not from qualitative, but from
quantitative indicators, attracting more and more willing, the latter
acquired a real opportunity to test themselves in a new business with
the investment of a small initial capital. So there was an offshoot
of Forex called mini Forex. But lowering the bar for opening deposits
is not a complete list of opportunities provided by modern dealing
centers for new and old traders. Perhaps the most important and
positive innovation was the division of the trading contract into
components, and giving the trader the opportunity to trade not even
0.1, but 0.01 part of the contract. However, this was not without a
trick. Some brokers hastened to announce the possibility of working
mini Forex on their terminals, indicating the minimum Deposit rates
of several hundred us dollars, but leaving the minimum value of the
trading contract at the rate of 0.1 of the main one. These points
should be taken into account.
Naturally, this trend did not go unnoticed by the public and immediately gained both supporters and opponents, who believe that mini Forex is not a trade, but just a continuation of the educational process with the addition of adrenaline. You can treat such judgments differently, but the positive aspects in trading on mini Forex, however, are present. Let's try to justify the main ones:
First, mini Forex can really be regarded as a continuation of your studies. And this is an exceptionally positive moment! After all, you can hone your skills, and raise the account to the level of" big " money, or Vice versa, disappointed in the trade, do something else, without reproaching yourself for wasting large amounts of money. It is unlikely that any other type of business activity will allow you to experiment with business by investing several tens of dollars.
Secondly. If you take as a postulate the opinion that a trader is considered successful if he is able to increase his trading account by 20-30% per month, and then take a calculator… By simple calculations of geometric progression, it turns out that from the invested hundreds, for a year you can get a very interesting amount, and for two, three? Moreover, the gradual increase in the Deposit occurs simultaneously with the acquisition of experience. Well, if the trader does not have enough knowledge and skills to increase the Deposit monthly, then the blows of fate on small investments are perceived incomparably easier than when working with a large account.
Let the supporters and opponents of mini Forex trading continue to argue, this is not the point. The main thing is that anyone can try their hand at a new business by investing a small amount of money.
Forex Training. Where will you learn to be a trader?
Popularization of Forex as a type of interesting and profitable business often raises
the question for novice traders – where can I get training in
Forex trading to get the necessary knowledge for further fruitful
work? On the one hand, there is not a single educational institution
that trains professionals of this category, and even in the directory
of professions there is no mention of the specialty of a financial
market trader, on the other hand, there are such specialists. And
there are many of them, including quite successful ones, who for
obvious reasons do not advertise their activities. The lack of
official recognition of the profession does not prevent them from
earning. Where do representatives of this profession come from?
Most people get their initial training in Forex trading at training courses in brokerage companies or dealing centers. We should not think that those well-known postulates can somehow bring the interested person closer to work in the specialty. Yes, actually, these training courses are more focused on other goals. No, some knowledge here will certainly give, but most of the training material is mixed with frankly advertising statements about the high profitability of the trader's work, and that anyone can get such a high profit if they open a real account in this particular dealing center. The General level of knowledge that such Forex training provides is very low. However, this stage should be passed by all beginners. Go through, thank you for the science and immediately say goodbye to the hospitable broker, in no case succumbing to tempting offers to open a Deposit. Training has just started, and you should not rush to invest real money.
Well, the further process of obtaining knowledge, which lasts throughout the entire activity of the trader, occurs solely as a result of self-education. This is a very difficult and important moment. Many beginners, after reading one or two books on Forex, consider themselves masters of trading and, after completing their training activities, completely immerse themselves in conducting currency operations. The result of their work is known in advance and it's sad. Few people think that in any other business, to get real results in work, you will need to work hard for more than one year. Obviously, first you will need to get an education in a higher educational institution, then you will need to gain invaluable experience over the years. In order for yesterday's student to become a professional in some field, it will take many years of painstaking work. Many people understand this, but not where the conversation concerns working in the Forex market. The apparent ease and simplicity of trading experienced traders, hide the hard work of their thoughts, and the profit they receive overshadows the critical self-esteem of new traders. They no longer need Forex training, they know how to open an order and read price charts. This overestimation of their own strength is responsible for most of the failures of market players. The statistic shows that only 5% of traders are successful, while all the rest feel the bitterness of losing the entire Deposit or a large part of it a little earlier or later. To avoid this, you should carefully consider the issues of your own education. In addition to basic knowledge, you will need to read more than a dozen special books, some of which you can find on the Internet, for example, on special thematic forums. You can also find other useful information on these forums. The only thing to remember is that when communicating on the Internet, a novice trader can fall under someone else's influence and start thinking not independently, but through the prism of the concepts of a newly minted guru. This should be avoided. The ultimate goal of Forex training is to develop a trader's own trading system that is proven and tested. In order to make sure that your trading system are correct, you will need to open a demo account with the chosen brokerage company and test your achievements for a long time, polishing the system and honing your skills. And only after that, if you successfully pass the exams yourself, you can start working on a small Deposit. Well, Forex training always continues, as long as the trader is engaged in trading currency instruments.
Forex books for successful traders.
Any professional activity of a person implies becoming a specialist through a training
system. The activity of a Forex trader is no exception. Moreover,
working on financial platforms is very specific in terms of
education, because so far no educational institution trains
specialists in this field. Therefore, the acquisition of the
necessary level of knowledge and appropriate skills is an individual
occupation of each trader. Now it is quite easy to find a variety of
training courses on the Internet. But most of them imply that the
trader has certain basic knowledge. And it is this basic knowledge
that can only be learned from special books, which have grown up for
more than one generation of traders.
Of course, trading in financial instruments is widely covered in various textbooks and methodological materials. Forex books are published with an enviable speed and consistency, their range has long passed over 1000 titles. And such an abundance of educational literature often plays a cruel joke with a novice trader. He greedily rereading everything in a row, collects a lot of information in his head, which does not help him, but, on the contrary, hinders him in further work. After all, books are written by people who have a certain experience, and this experience is purely individual. And the proposals voiced by the authors of various publications are often contradictory. Therefore, for a beginner, it is better at first to limit yourself to reading generally accepted works. These must-read books include, for example, the books of B. Williams, namely "Trading chaos", "New dimensions in stock trading", "Trading chaos-2". Forex books by this author, despite the fact that they tell in great detail about the complex nature of the Forex market, are written in simple and accessible language. These works have long been the desktop books of professional traders. Here is a very detailed description of the methods of market analysis, the basic concepts of working on financial platforms, and the techniques for extracting profit. The author also pays great attention to the psychological aspects of trader behavior. The books of B. Williams were written not yesterday,but still have not lost their relevance and this is evidenced by a huge number of reprints and a certain shortage of these works on paper. Usually in stores, books by B. Williams sell like hot cakes, they are so popular among Forex and other traders.
No less important for a trader are the works of another, no less famous author - Alexander elder: "how to play and win on the stock exchange", " trading with Dr. elder. Encyclopedia of stock trading " and "Basics of stock trading". These works have long earned the fame of bestsellers. Elder's Forex books cover all the versatility of a trader's work. Here you will find detailed information about the methods of technical analysis, as well as about the psychology of a successful trader and a trader who is unsuccessful. How to become successful and get a stable profit – all this is very detailed, step-by-step and interesting narrated by a professional trader, an expert in technical analysis, a recognized person in the entire trading world. Here a.Elder touches on important issues of risk management, rightly considering that this moment is no less important than the technical methods of working on financial platforms.
And finally, a book that at first glance does not contain specific techniques and recommendations for today's Forex trader. Moreover, it was first published back in 1923. But, almost a century ago, it was this work that taught traders of all subsequent generations a lot. This is Edwin Lefebvre's Memoirs of a stock speculator, which is still considered the most famous book about working on the stock exchange. And let the Telegraph be replaced by the Internet, and the cost of shares is no longer written in chalk on the Board, and there are modern programs for analyzing the purchase and sale of tools. The psychology of the currency speculator, and most importantly, the psychology of the crowd, has not changed over the years. Undoubtedly, this work will be one of the most popular in the modern 21st century.
Just as it is difficult to imagine a high school graduate not holding a "Primer" in his hands, so it is unlikely to meet a successful trader who has not read the works of these famous authors. It is based on the materials described in these books that currency market professionals build their trading systems and control their own psychological state, skillfully avoiding many mistakes that were warned by trading Masters of previous years. Smart, as you know, learns from other people's mistakes.
Forex Trading. Five commandments of success.
The trader's success or failure in Forex trading does not depend on the geographical
location of the market participant, specialty, or academic degree.
Analyzing the invaluable experience of venerable "gurus" of
financial markets, we can identify five characteristic features, or
commandments, that will help a novice currency trader become a
1. Don't buy someone else's EA. Agree, if You had a similar robot that trades day and night, allowing you to make a profit, would you sell it, and in General – share the idea with someone? Unlikely. Most likely, people trying to sell such an MTS are engaged in programming, not trading. In addition, Forex Trading is not so much the trade itself as the philosophy of life, but any philosophy, it is primarily thoughts and reflections, and can a program replace a person in this? Dubiously.
2. All well-known traders have spent a lot of time on their own training. You don't need to be a genius to succeed in Forex trading. Moreover, any person can achieve positive results in this business. But first you need to thoroughly understand the subject of study. Two-week courses at Forex brokers ' dealing centers provide only the most superficial, introductory material. Combining the study of special materials with trading on a demo account, trading beginners should persistently advance in the educational process, having precisely worked out for themselves certain rules of Forex trading. And it is the development of such rules in the system, the ability to make a trading plan that will mark the end of the first part of training. Because the second part-the perfection of trading, occurs constantly.
3. The trading system should be simple. The abundance of indicators strongly clogs the chart. Makes it difficult to perform analysis. Signals, often contradictory, received from various sources, simply prevent you from making the right decision. Looking at the graph loaded with all sorts of colored lines and arrows, you should remember the old saying that the best system is the one that can be described on the back of a postage stamp.
4. Strict risk management. Money Management. The success of trading on the Forex market is based on the ability of the trader to correctly manage the funds of their own trading account. It is not recommended to open positions at once for more than 1% of the Deposit amount. When setting break-even stop-losses, you can of course increase the amount of funds involved up to 2%, but it is very dangerous to cross this threshold further. Forex Trading is not the best place for risky operations and adventurous decisions. You should also remember that your open positions for trading should always be protected. Do not neglect the installation of protective orders. A small loss of funds is better than the loss of the entire Deposit.
5. Discipline. Having established a set of rules for Forex trading, you should strictly adhere to its implementation, regardless of how many negative trades you had in a row. Discipline will keep any person's inherent emotions under control, giving way to common sense. Because emotional trading is a very quick step to losing your Deposit. It is better to skip some time, stay out of the market, calm your feelings, but in no case give in to momentary impulses.
Anyone can earn money by trading on the Forex market. And the effort invested in learning the trading process will sooner or later be rewarded. And these simple rules will only help bring the trader closer to the time of stable wins, because only positive stability is the measure of success in any business.
Forex trading. The dangers of selfishness.
Forex trading does not fit into the framework where it is trying to drive the teachers of
many training courses at dealing centers, who talk about Forex
trading as a primitive action – bought cheap, sold expensive.
If it were so simple, Forex trading would become the only occupation
for people all over the world, although it is unclear who would then
buy what and from whom. In fact, trading currency instruments
differs significantly from the usual concept of trading primarily in
its psychological component. You can teach anyone to open or close a
trade, but only a few people can learn to think in such a way that
trading operations are successful. Moreover, one of the reasons for
unsuccessful trading on the Forex market lies in such an inherent
quality of most people as selfishness or selfishness.
The desire to try their hand at trading in financial markets usually comes to quite Mature, self-sufficient people, often successful in some kind of activity, their own business. These people have their own experience of working, doing business and are used to the fact that their opinions are considered by others. With the same attitude, they start trading on Forex, trying to impose their opinion on the market and make it take account of itself. It is not difficult to guess the future prospects of such traders.
Nothing makes a trader's life more difficult than the trader himself. A professional trader analyzes the market and makes decisions based only on his own trading system. he understands that his vision and prediction of the behavior of a particular currency pair is not necessary or interesting to anyone. There is a signal, it buys or sells the currency. No signal, he sits and waits patiently for it. And all, no emotions. The dilettante, trying to show his importance to others, and often to himself, devotes most of his time to forecasts. He tries to impose his opinion on the market by opening positions often intuitively. His own aplomb prevents him from evaluating the actual situation, prevents him from making the right trading decisions. Even more perplexing is the behavior of traders who have opened the wrong position and continue to increase it with additional orders, in the hope that the market will "come to its senses" and the trend will turn in the right direction. An error leads to an error, and their sum only brings the time of the fiasco closer. For the huge power of Forex, one person, or even a group of individuals, is nothing, just a grain of sand. Currencies will move in one direction or another, obeying only their own laws and laws, regardless of the desire of the trader, his opinion. And this in no way should lead the trader to infringe on his dignity. It is necessary to protect your trading from your own "I" and not to confuse the result of trading with your own self-esteem.
Forex trading is a job. The task of a trader is to do it well, achieve some positive results for themselves, and make a profit. To do this, you need to see the market, not yourself in the market. To subdue your ego, to submit to the will of the majority that moves a certain trend - this is a task for a trader. And the quality of its implementation distinguishes true professionals from the total number of traders.
Forex Analytics. Who to trust?
It is known that if we ignore the calculations of your own trading system and try to trade
according to analysts Forex, then after few trades you can just leave
this, considering it is clearly hopeless, because the views of the
various strategies and tactics stock trading is often ambiguous and
even contradictory. Although for experienced traders, this phenomenon
has long been familiar. They simply do not look for other people's
tips, moreover, they do not perceive Forex Analytics as a guide to
Indeed, Forex Analytics is the usual opinion of ordinary people who are somehow connected with trading financial instruments. No one is forbidden to have an opinion on any issue, nor is it forbidden for Forex market analysts who Express a purely personal point of view on the vision of the market situation. One of them, it seems that the dollar relative to the Euro in a month will literally collapse, the other holds opposite positions. Another thing is how to treat these forecasts for an ordinary trader?
It is known that Forex trading has a strong psychological component. Much, if not everything, depends on the trader's state of mind. Unfortunately, self-confidence does not come immediately. Beginners trading, usually do not have this feeling. Having in their Arsenal a unique trading system that has proven the practice of their work flawlessly, they are often very susceptible to the opinion of a more experienced friend, even if not very successful. Therefore, for novice market players, even a casual phrase heard by a Forex analyst can completely change his, as it turns out later, correct opinion. It would be better to avoid this. Not to let someone else's authority crush your own opinion is a very important psychological task on the way to trading skill. Of course, you can listen to the opinions of other people, and you can not fail to hear the analysis of your friends, especially when trading in the dealing center, where Forex Analytics is distributed everywhere. Usually a trader, trading on his trading system, in the event of failure begins to experience mental anguish, expressed in the words:"I would rather listen...". It is easy to challenge this point of view, but in order to further share this psychological responsibility, it makes sense for a novice trader to join forces with a colleague of approximately the same level of knowledge, or even with several companions. It is desirable, of course, that their trading systems are similar and the trading principles are approximately the same. By communicating with each other and analyzing the market due to their knowledge and experience, they are more likely to achieve success in trading than by listening to the diverse opinions of trade experts.
And for whom, then, does Forex Analytics exist at all, who listens to the opinions of financial experts? The trouble is that venerable financiers build their forecasts through the prism of their own trading strategies, the secrets of which, for obvious reasons, they do not share. No one but him knows, and in what perspective the analyst makes his forecast, which trading schedule is really working for him, weekly or hourly? It would seem-a nuance, but without knowledge of the features of the trading system, all the Analytics built on its analysis turns into a set of smart, but useless words for another trader. Only your own calculations based on your own knowledge will provide the trader with a path to victory, and all other Forex Analytics are only the subjective opinion of various people.
Fundamental and technical analysis of Forex.
Any analysis aims to assess the current situation as accurately as possible and take
certain steps to improve it. This formulation is perfect for trading
on the Forex market. To understand the present, looking into the
past, in order to predict the future-to solve this problem, the
trader conducts Forex analysis.
Actually, there are two types of analysis of the trading situation – fundamental and technical. Some analysts also note the presence of probabilistic analysis, that is, analysis based on mathematical calculations of probabilistic coincidences of past situations in the future.
Perhaps, the Forex market by its nature is not affected by news indicators, which are the basis of fundamental analysis. Any trader knows a lot of examples when the output of completely negative data on the economy, such as the US, the dollar continued its growth, even without reacting to the cataclysms. There are also reverse examples. Obviously, the wide geography of the market, when the difference in time zones does not contribute to the fact that players from all over the world gather at the same time at trading terminals, makes the relevance of fundamental news somewhat secondary. Most traders prefer technical analysis of Forex to fundamental analysis.
Forex technical analysis incorporates three main trading postulates:
- the price takes into account everything;
- the price is moving;
- history repeats itself.
It is the latter aspect that makes the trader carefully look at the price charts, determining the possible development of future events based on historical data. It does not matter what the trader is guided by in the analysis method. Someone calculates the number of waves of movement, someone focuses on the price figures of a reversal or continuation of the trend. For some, the combinations of Japanese candlesticks are close and clear, for others, it is enough to know the location of the price relative to the daily average. In any case, a Forex trader performs technical analysis only using the method of their own trading system. It is important for him to determine the state of the market. The price is directed towards the momentum or Vice versa, the currency is in correction. Understanding this, the player can predict with sufficient confidence the further movement of the currency pair and try to make a personal profit from it. Ideally, following the rule of directional price movement, the trader will try to open a deal in the direction of the current trend, waiting for the end of the corrective price movement. And regardless of the time interval in which the trader works, entering the market in the direction of the trend is always the most preferable.
Summing up, we can say that trading on the Forex market is not so much opening or closing a position, but rather a preliminary invisible work on understanding the trading situation. And how good and reliable a trader is able to assess the situation, how correct is his analysis of the Forex market, the more profitable will be his future work.
Forex Strategies. Time component of trading.
Trading currency instruments on the Forex market implies some knowledge of the trader
that goes beyond the ability to open or close a position. Conducting
any market analysis becomes meaningless, and impossible, if the
trader has not defined a Forex strategy for himself, has not chosen
the most comfortable trading conditions for himself based on the time
intervals of price movement. For successful trading on the Forex
market, a trader must determine exactly in what time period (TF) his
work on opening and closing transactions will be performed. How long
it should hold a position, which serves as a criterion for entering
the market or the necessary conditions for closing a position. This
is the initial principle of any trading system. It is stupid to talk
about the prospects of changing the dollar exchange rate by the end
of the year, looking at a 15-minute chart. Moreover, the analysis of
graphs of large time periods, is unlikely to help successful trading
in intraday mode. Although, of course, it is necessary to know the
direction of the trend of the senior TF.
Depending on individual preferences and the size of the trading account, there are three temporary trading strategies:
- long-term trading involves a long stay in the market (up to several months), the working schedule here is the daily schedule, and the analysis is carried out on a weekly TF. This Forex strategy is used by experienced traders and investors and requires a fairly significant Deposit amount.
- medium-term trading. Here, trends exist from a few days to a few weeks. Working charts in this case, depending on the desire of the trader, can be one-hour or four-hour TF. Preliminary analysis for the work is carried out on the four-hour and daily charts, respectively. This is the most common type of temporary Forex trading strategy that unites both very green beginners, experienced traders, and professional market participants. Relatively small market noise, relatively small stops attract the largest number of traders.
- short-term trading. Working charts, depending on personal wishes, can be 1, 5 or 15 minute charts, some even trade on tick charts. Charts for analysis range from 15 minutes to one hour, respectively. Trading in such temporary modes is the lot of high-level professionals. The instantaneous change of the situation, the risks of short-term price fluctuations cause the trader to be in constant tension throughout the entire trading time. The advantages of this Forex strategy include small stops. Unfortunately, every novice trader, for various reasons, tries himself in this temporary sector. As a result, the exhausting trading mode sooner or later leads an inexperienced person to make mistakes, which often leads to the loss of the trading account.
Choosing the right Forex strategy is a significant component of a trader's success. Without the correct positioning of your trade, without taking into account the time scale, trading becomes meaningless as intuitive inputs and outputs, and this intuitiveness will sooner or later lead to the loss of the Deposit.
Forex trading signals.
In essence, Forex signals are an algorithm that tells the trader about the possibility
of opening a position in one direction or another. Forex trading
signals are generated within the trading system that guides the
trader in their work. For some, this is a breakdown of a certain
price level, for others-the intersection of averages, in any case,
Forex signals serve as a green semaphore signal to start trading.
At the same time, the trader needs to know that Forex signals are a purely individual concept. When trading in financial instruments there is no single command to the beginning of the action. This depends on many factors, primarily on the time interval that the player has chosen to conduct their currency operations. Entering the market on a 15-minute working chart does not mean a simultaneous command for a trader on a four-hour chart. Moreover, intraday trading often occurs in contrast to the existing trend of the higher TF, and traders who trade at large time intervals do not perceive Forex signals of this kind.
In addition, there are confirmed Forex signals and those that have not received confirmation. Confirmed trading signals should include the signal that has not lost its relevance after some time. So, for example, make sure that the received signal is correct, making sure that it does not disappear through a bar or candle equivalent to the timeframe of the selected chart.
Usually, a trader is guided by a set of Forex trading signals, not trusting each of them. Each trader determines the number of trading signals confirming decision-making independently, but opens a position only when at least 75% of these signals show one-way action.
Forex trading signals are an important trading tool, but at the same time, trading on the interbank currency market itself involves a little more than blind obedience to even a confirmed signal. Trading currency pairs is subject to a combination of various aspects, mostly psychological. Therefore, even the most truthful Forex signals are only a tool in the hands of a trader, but how skilled these hands are depends only on the level of training of the market player.
Forex Indicators. A look at the future from the past.
The historical set of mathematical functions of various price and volume ratios for a
certain time expressed by a graphical representation of data is a
dry, at first glance, formulation, but very accurately reflects the
principle of operation of such irreplaceable trader's assistants as
Forex indicators, which are necessary for technical analysis of the
Using indicators, the player can determine the presence of a trend and the degree of its intensity at any time period of the price chart of the selected pair. Determining the trend direction is the most important stage of technical analysis. For this alone, we can pay tribute to the programmers who automated such necessary analysis tools for everyone. To date, Forex indicators have thousands of types built using various algorithms. But, basically, Forex indicators are divided into two classes – trend detection indicators and oscillators. Although the fact that oscillators do not indicate the direction of the existing trend is a rather erroneous concept, but most of all, their advantage is shown in a trend-free or flat market.
The mathematical calculation based on which modern Forex indicators are built makes it much easier for a trader to analyze the trading situation. It does not need to collect historical data for many years, carefully calculate the scale of the correction or the levels of the end of the trend goals. It is enough to apply a certain set of indicators, and in a few moments the necessary information will appear on the price chart. In addition, pragmatic Forex indicators allow the trader to avoid the emotional background of making trading decisions. Especially if its trading system is based on a combination of several different indicators. Yes, most likely, the trading system itself is mostly based on the use of certain indicators. At the same time, Forex indicators and mechanical trading systems built with their application can in no way replace the work of a trader. Trading on the Forex market is not as easy as it may seem at first, and blind obedience to the signals of indicators, without using other knowledge, will never lead a trader to success.
Moreover, the trader should remember that Forex indicators are not predictors that guarantee the price behavior in the market at the next moment in time. Rather, Forex indicators are statistics that, year after year, collecting bits of fait accompli, allows the trader to guess how future events will develop based on historical data. But the success of the trader's activity in the Forex financial market depends on how professionally the trader can use the information given to him.
Forex programs. Evolution of decision-making.
Now it is difficult to imagine that not so long ago, a trader, for trading on the Forex
market, independently drew charts of movements of currency pairs,
developed his own analysis systems, and for trading operations called
his broker on the phone and told him what he needed to do at the
moment - open or close a position.
The development of the Internet has greatly facilitated the life of a currency speculator, primarily by developing and implementing special programs. Forex programs very quickly and firmly entered our life, and their convenience is difficult not to appreciate. Indeed, now a trader can give a broker a trading order in one click, set up their own terminal for analytical work with any indicators and expert advisors, and getting new quotes and their graphical display is completely automatic in continuous mode.
Initially, Forex programs were divided into trading and analytical programs. The former were intended only for communication with the broker, and the latter allowed the trader to analyze the market situation and make decisions. However, with the advent of the MetaTrader trading terminal, these once separate functions were included in a single shell. When you install this platform from the broker's website, it already binds the trader to a specific trading platform, and when you give an order, you can be sure that the dealing center system will accept it, understand it, and instantly execute it. In addition, MetaTrader is not only a user-friendly feature. The Meta Quotes Language built into the platform allows the trader to develop their own tools that they need for fruitful work. These can be various indicators, expert advisors, or even their own mechanical trading systems, which can be immediately tested in the terminal in various modes. For all its versatility, the MetaTrader program is very simple for the user. First of all, it is multilingual, which in itself removes a lot of different problems. Secondly, a very clear interface and various user settings. The developers of the platform obviously understood that not every successful trader should be a competent programmer, and they managed to solve this problem brilliantly. Well-organized and built-in support, assistance and training service. The solution of many issues and problems that may arise when working with the platform is covered in great detail and, most importantly, accessible. It is not surprising that since the release of the first version of the terminal, it has rapidly gained popularity, both among traders and dealing centers, most of which have adopted it. Moreover, a number of large brokerage companies have developed and successfully implement Forex training programs on their own websites, where the center's specialists show the principle of how a trader works using the MetaTrader terminal, while simultaneously introducing them to the skills of conducting trading operations. And the benefits of such training courses are obvious.
Computer technologies are developing rapidly. What could only have been a dream ten years ago is quickly becoming a familiar reality. MetaTrader has become a popular tool in just a year, first replacing, and then simply replacing other trading platforms. And I must say, this is really a worthy tool for a trader, allowing you to focus exclusively on the tasks of extracting profit in your work.