stop loss page 2

The black swan is difficult and sometimes impossible, to predict. And yet, if the markets are falling, it means that someone has started to sell. It means that someone is aware of the situation and decides to act, collapsing the markets. This "someone" is the largest banks, investment funds, insiders, and other "close" people and companies, and then the algorithmic robots, smaller funds, traders, and so on down the chain begin to sell. As a result, the global financial markets collapse.

We can recall dozens of examples of panics in the markets when in a few trading days with a loud chuckle whole states went into the mire of market volatility. In addition to recent events, these include, for example, the March 2020 panic sell-offs. Most of these events will only be remembered by encyclopedias, but some remain on the radar, usually with the epithet "black." For example, the Black Mondays of 1929 and 1987 in the U.S. stock market.

A trader without a trading strategy is not a trader. Whatever the strategy is, it will help you make sense of the chaos in the markets. In this article, we will tell you what a trading strategy is and why you need it. You'll learn why without a well-thought-out strategy you'll either make unstable profits or lose your deposit. But first things first.

Investors trading in the financial market commonly face issues with equity, which creates difficulties in conducting operations with currency pairs and other assets. This lack of equity is primarily due to the modest income generated from investments. Consequently, investors explore various options to address this issue, with the most popular being a margin provided by brokerage companies as collateral while obtaining credit. However, the margin has its unique features and drawbacks that a trader must be aware of before making a decision.

An inside bar can be part of an extremely effective price action strategy. However, the effectiveness of the inside bar is highly dependent on the market context. In other words, the inside bar by itself is not a working trading setup. We need to see additional factors that tell us that the potential profit is worth the corresponding risk. And that's not always easy, because you have to consider several components at once.

In a nutshell, a Stop Out is actually a trader's bankruptcy. It occurs when there is not enough capital in the account to maintain open trades, and the broker closes them forcibly. This unfortunate situation is caused not only by losing positions but primarily by inappropriate money management. Today we will analyze why and under what conditions Stop Out occurs, and most importantly, how to avoid this situation.

Everybody makes mistakes sometimes - that's absolutely normal. Mistakes are especially common at the beginning of the professional journey. But the problem is not about them, but about how we assess these mistakes and whether we can find and eliminate the causes in time. One of the most common causes of mistakes is fear. The decisions we make, giving in to this feeling, make us break the rules of our own trading system and strategy. So what is this fear based on, how it affects us, and what to do to cope with it? Let`s try to figure it out.

Even good trading and investment strategies can lead to portfolio losses if the basic rules of capital management are neglected. In addition to the basic rules typical for investing and trading any assets, the crypto industry is characterized by a number of additional rules that are meant to reduce losses. Let's consider these recommendations today so you can enhance your crypto trading performance and benefit from any situation on the market.

Why are economies cyclical – growth is inevitably followed by decline? The fact is that all processes in the physical world are cyclical. The nature of any economy is based on supply and demand. And both buyers and sellers can be on the strong side. Suppose there is an economy in a phase of active growth, with low inflation, growing GDP, and other positive fundamentals. In such an environment, high and steadily rising prosperity would stimulate demand for goods and services and positively affect all production and increase the stock price of manufacturing companies.

Even good trading and investment strategies can lead to portfolio losses if the basic rules of capital management are neglected. In addition to the basic rules typical for investing and trading any assets, the crypto industry is characterized by a number of additional rules that are meant to reduce losses. Let's consider these recommendations today so you can enhance your crypto trading performance and benefit from any situation on the market.