Posts Tagged ‘Forex trading’

What is a downtrend? This video is for beginners and you will find an explanation for a downtrend. A downtrend consists of a lower highs and lower lows. Connect two consecutive highs to draw a downtrend line. The downtrend line becomes psychologically more significant, when price touches the line multiple number of times. This attracts the attention of the sellers into the market. You can draw a parallel line to this downtrend line. The upper line acts […]

In this video, you will learn a forex trading strategy of how to prevent losing trades using the average true range indicator. This strategy acts like a trading filter to prevent you from trading under certain market conditions, when your target for the day exceeds the reading in the ATR indicator. This indicator measures the market volatility and provides you the expected movement for the market for a particular timeframe over a period of time. The default […]

In this video, you will learn about the sideways price movement called the range in forex trading. You might have learnt about the uptrend and the downtrend. An uptrend is made of higher highs and higher lows. A downtrend is made of lower highs and lower lows. However, when the price is moving sideways, then the price is said to be range bound. This indicates a lack of a trend in the market. The price oscillates between […]

This video discusses about the pros and cons of trailing stops in forex trading. So, trading is not only about controlling risk, but also about controlling winning trades. Consider an example. Assume that you take a short position with your initial stop-loss above the highs. In this case, the market moves in your favour, and moves to the downside. Now, you can set your take-profit level. Move your […]

This video explains you about how to deal with false breakouts in forex trading. To trade with the trend, you first need to identify an existing trend. So, drawing trendlines makes it easier to spot trends. It would be tempting to sell at a top zone or to buy at a bottom zone. But the chances are highly likely that the existing trend will continue in its direction before reversing. You may […]

What is a trading strategy based on? In this video, you will find answers to this question. A trading strategy should be based on three types of analysis. They are sentimental analysis, fundamental analysis, and technical analysis. Sentiment analysis helps you to identify the mood or the sentiment of the market. It comes with experience. However, it is not rule based, and traders need to rely based on their experience only […]

In this video, you will have a clear understanding about trends, and how to draw trendlines properly on your chart. You can look for three types of trends in the forex market. They are uptrend, downtrend, and the sideways trend. For an uptrend, you look for the market to make higher highs and higher lows. For a downtrend, look for lower highs and lower lows. Connect at least two higher lows to draw an uptrend line. Similarly, connect two […]

This video talks about a trading strategy of how to trade during the holidays. During the month of December, traders take break to spend their time with their families, as you have Christmas and New Year holidays. With traders and hedge fund managers moving away from the charts, it reduces the volatility in the market significantly. So, markets turn very quiet during the holidays. Market lacks volatility and price goes sideways […]

Bulls are investors who speculate on the price rise of a financial asset. They rely on a bull market or an uptrend to buy as asset. However, bears are investors who speculate on the price fall of a financial asset. They depend on a bear market or a clearly defined downtrend to sell an asset. Bulls and bears control the supply and demand in the market. For example, when a currency appreciates in value, then its demand in the market also increases, and investors look to buy […]

You don't have to be trading full time by sitting in front of your computer the whole day. So, it is sufficient if you can allocate 8 hours a day for full time trading. Still, you will have plenty of time to do other things like spending your time with your family, etc. It is good to have other sources of income. It will eliminate the financial […]