May 8, 2017 (Last updated on May 9, 2017)
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Arbitrage is a practice of earning money by simultaneously buying and selling the same asset on different markets without exposing yourself to the asset value risk. The simplest example of FX arbitrage would be to buy a currency at one broker at an Ask price that is lower than the Bid price you can sell it …
December 13, 2016 (Last updated on December 19, 2016)
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Currency trading is by and large carried out in the OTC (over-the-counter) market. Lack of a central regulatory authority has given rise to numerous Forex brokers with offices in exotic locations. A large section of the retail traders depend on these Forex brokers to trade currencies from the comfort of their home. While it just …
August 2, 2016
As per efficient market hypothesis, it is almost impossible to outperform the market. The reason is that market’s efficiency ensures that relevant details of an asset are incorporated in the prevailing trading price. It means that, theoretically, there is no possibility of buying and selling an asset low and high respectively. …
July 11, 2016 (Last updated on August 19, 2017)
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Many think of bitcoin as an investment and rightly so, it has grown from being worth fractions of a penny to being worth hundreds of dollars in a few short years. Price fluctuations have made it a popular commodity to trade both in the futures market and in real time. Bitcoin now easily surpasses $100 …
July 4, 2016
Food has a direct effect on the performance of a trader. A healthy diet keeps a trader alert and active throughout the day. This would ultimately enable a trader to have a clear understanding of the price movement in the market, to validate signals without lack of concentration and to take successful trading decisions without any dilemma. In this regard, let …
June 21, 2016 (Last updated on May 18, 2017)
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Three years after publishing our first extensive comparison of the top Forex calendars of that time, we return to the subject with the information updated to reflect everything that the industry has to offer in 2016–2017.
Technical analysis is the statistical study of market data (price, volume, etc.), while fundamental analysis is …
March 25, 2016 (Last updated on May 8, 2017)
While all transactions in a stock or futures markets are carried out under the supervision of an exchange, Forex is an over-the-counter market where the transacting parties can be from different corners of the globe. Thus, in the interest of investors, it becomes all the more important for the regulatory authorities to closely monitor the brokers facilitating the trades. …
March 22, 2016 (Last updated on December 21, 2016)
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Originally, I intended this post as a do-it-yourself guide on how to add alerts to MetaTrader indicators without knowing how to code at all. But writing it, I came to realization that even if a trader knows nothing about MQL language and coding he will have to learn some basics through this guide …
March 18, 2016 (Last updated on June 23, 2017)
The normal gap trading strategy — that is buy/sell after a weekly gap to profit from gap’s compensation — has a nice statistical evidence behind it. But what do we know about forecasting the weekly gaps based on information available to us on late Friday session?
I have decided to backtest …
March 14, 2016
Market Profile indicator is a powerful tool developed by a CBOT trader. Its original purpose was to graphically organize price and time information obtained during a trading session in a manner useful to traders. Today’s Forex market is quite different from what commodity futures trading was back in 1985 …
May 25, 2015 (Last updated on May 31, 2015)
Without looking at any charts, my first thought about the strongest major currency during the last five years would have been the US dollar. After all, it was the major winner in the global financial crisis of 2008 when the markets had run for safety while the dollar’s rivals fared poorly. …
April 24, 2015 (Last updated on May 31, 2015)
If you ever wondered what is the total cumulative risk of your currently open orders and positions, then my latest MetaTrader tool — Risk Calculator — will help you to answer that question even if you have many orders with interwoven stop-loss and take-profit levels.
Although, I am …
April 20, 2015 (Last updated on May 23, 2017)
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The aim of a Forex trading checklist is to prevent impulsive trading and accidental mistakes. An essential checklist for smooth execution of a basic Forex trading entry is presented below. Feel free to build on it and modify it according to your trading style.
August 11, 2014 (Last updated on February 17, 2016)
The influence of the US presidential cycles on the stock market is known for years. There are articles published in the peer-reviewed economics journals focusing on the idea of trading using the presidential cycle as a signal. One of the latest such articles is The Four-Year U.S. Presidential Cycle and the Stock Market published in Graziadio Business Review by Marshall Nickles …
August 19, 2013 (Last updated on August 20, 2013)
It strikes me how some traders use their reward-to-risk ratio as a base for setting either take-profit or stop-loss of their positions. They usually follow these steps or similar: set stop-loss to some important chart level, multiply the stop-loss in pips by desired reward-to-risk ratio and get the take-profit level from it.…
