In the first part of this guide, we have learned that trading requires knowledge and preparation, and it is not easy cash as advertised. Before setting unrealistic goals, it is important to keep in mind that trading is risky and losses are a part of the process. Learning forex trading involves analyzing the market and understanding the technical analysis (chart patterns, indicators, candlesticks).

CFDs or Contracts for Difference are derivative products that allow traders to speculate on the price movements of various assets without actually owning them. They are a relatively new product that emerged at the end of the 20th century as a result of the internet revolution, which enabled traders to make short-term trades at the touch of a button. CFDs are offered by the most popular brokers today, and they allow for greater leverage and the ability to trade a wide range of markets, including stocks, indices, currencies, and commodities.

In today's world, trading has become an attractive career choice for many individuals looking for financial independence and flexibility. However, becoming a successful trader requires more than just basic knowledge of financial markets and investment strategies. It takes discipline, perseverance, and a willingness to continuously learn and adapt to the ever-evolving trading landscape. In this article, we will explore the key steps and habits needed to become a successful trader in 2023 and beyond.

Almost all experienced traders of the forex market agree that it is necessary to set stop losses in any style of trading. Beginners, newcomers to the market, often neglect this rule, but with time they also come to understand it (or they simply stop trading because of the constant losses). Let's try to figure out why a Stop Loss is so important for successful trading and sustained profits.

As the statistics show, 2/3 of people who ventured into forex trading or another form of trading in financial products eventually give up the undertaking altogether. For decades, scientists have studied failure rates in the financial industry and concluded that a novice trader has about a 10% chance of success. Longevity in the market is a prize that only goes to the most diligent and persistent.

As we know, forex trading is a very risky business. In other words, a trader can lose capital, if the market rate changes to an unfavorable side. However, the threat of financial losses in trading cannot be totally ruled out. To receive earnings and minimize possible losses the corresponding risks need to be managed properly. Thus, risk management plays a critical role in trading on the currency market. It is necessary to find out what risk management means when it comes to trading on the forex market.

In the bright, loud advertisements everything is so easy and beautiful: novice traders get quick returns with minimal time expenditures, and they reach stable earnings. In reality, the situation looks somewhat different: the majority of newcomers play by intuition and lose the whole deposit in a short period of time. Only a precise and skillful strategy will let the forex traders reach their goal. Today we will talk about trading strategies: the essence of trading strategy, their types, and application. Basically, everything a beginner trader must know before jumping in with both feet.

During the pandemic alone, the U.S. Federal Reserve bought a whopping $3.3 trillion in Treasury bonds and $1.3 trillion in mortgage-backed securities to lower borrowing costs. The reverse process, quantitative tightening (QT), where central banks reduce balance sheets, is much rarer. The Fed is the only central bank that has actually made such an attempt, but it had to stop abruptly in 2019 because of market turmoil. So the asset reduction plan would take the central bank into relatively uncharted territory.

Every trader has at least once heard of aggressive intraday trading when numerous trades are placed during a trading session. Such a trading style is called scalping. Today we will learn what scalping is, how trading using this method works, and what its advantages and risks are. What Is Scalping in Plain Language? Scalping is a kind of speculative intraday trading strategy based on opening many short-term trades to get a small return on them and sum up the expected rate of return.

According to some participants of the forex market, night trading is impossible. Indeed, market activity is very low compared to the daytime, but it is this moment that allows you to place the most profitable trades. The reason for this is the benefits of a low activity state of most players in the financial markets.