Posts Tagged ‘Forex trading’

The term eurodollars refer to the US dollar deposits held in non-US banks. It refers to the deposits held in European and Asian banks. After the end of the second world war, the US dollar was used to bring recovery in Europe. There are two markets for the US dollar. The domestic market in which the US dollars are used by the people in the US, regulated by the Fed, and deposits are FDIC insured. The second market refers to eurodollars, which means […]

Start by paper trading: Do not risk your hard earned money in trading without adequate experience. So, start with a demo account or paper trading. Observe your performance for a couple of months by using a trading journal. If you are consistent with profits, then move towards a real account. With demo trading, there is nothing to lose or any psychological pressure involved. Use limit orders: Use […]

From large financial institutions to small retail traders, traders are involved in trading currencies, commodities, precious metals, etc. Fear of fluctuations in the market is the driving factor for these investments. In combination You need to some research before investing in these markets. Understand the benefits: Investing in precious metals like gold is seen as a way to shield your investment from inflation. Central banks combat inflation by using their monetary […]

Technical analysis can be both simple and complex based on how you perceive it. If you want to enter a long position, then your focus should be on finding an uptrend. Overall Trend: Your first step is identify an existing trend. You can use trendlines, moving averages, etc. Support: Areas of congestion and previous lows below the current price mark the support levels. A break below the support […]

Stick to your trading strategy: Do not let emotions influence your trading decisions. Day trading is a risky venture. Hence, pay attention to money management. Do not change your strategy: if you find it not working anymore. Pay attention to volatility. Do not worry about losses as they are inevitable in trading. Pay attention to the economic calendar: News announcements and economic releases have […]

Indicators can be leading or lagging. Leading indicators help you predict potential reversals. For example, you can use the MACD divergence for a potential reversal. Lagging indicators are useful once a trend is established. For this, you can use the moving average indicator. Understand the concepts of support and resistance: Support refers to the level at which the buyers stop the price from falling further down. Resistance refers to the level where sellers […]

1. Get access to currency charts that shows you up-to-date information. You access them on the MetaTrader platform, which is given for free from your online broker. 2. Choose the timeframe that you are comfortable with. It should match your trading style and personality. You can choose the 5-min and the 1-hour chart for scalping. You can use the 4-hour and daily chart for intraday trading. You can […]

1. Support and resistance: Support and resistance are important tools in technical analysis. A support level represents a level at which a financial asset is prevented from falling further down. A resistance level is a level, which prevents an asset from rising any further. Support and resistance are correlated with supply and demand of an asset. 2. Identify head and shoulders pattern: This is a reversal pattern occurring at the end of an uptrend. It […]

There are so many trading systems to choose for trading. So, it can get difficult to choose the good one among the many. There should be a way to determine good systems from the rest. It is done by following a set of criteria. Use a mechanical system: The trading system needs to be 100% mechnical without human intervention. It should not be altered to suit the current data. The trading system […]

The RSI is a technical indicator, which is extremely popular among forex trader. It is a momentum indicator that compares the magnitude of recent gains to recent losses. It is used to determine overbought and oversold conditions in the market. The RSI indicator shows a scale of 0 to 100. Above 70 is considered overbought. Below 30 is considered oversold. You can use this indicator in conjunction with the moving average […]