Divergence in Forex Trading Explained
Divergence is a strong signal in forex, trading which can show the upcoming market changes. At the least, divergence signals can indicate a correction. At most, they can signal a market reversal. When a trader sees the divergence signs, it means they should get ready for placing sell orders.
Overcoming Fear: What Leads to Losses in Trading
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.
What Is Bitcoin and Why It Will Always Be a High-Risk Asset?
If you set yourself a goal to make a list of the most popular assets of the last couple of years, Bitcoin is bound to be at the top - for many reasons, due to the excitement, which was created around it due to its increased rate, when it turned from a little-known but cheap crypto into a high-value asset for investments costing tens of thousands of dollars. In turn, this led to the popularity of digital currencies in general, they began to be noticed and actively traded by all: from retail traders to the largest financial institutions in the world.
Economic Indicators That Impact The Market | Daily Market Analysis
Every month is full of news that is important to those who follow the financial markets. This is information about various economic indicators. As a rule, it comes from government agencies, industrial organizations, and scientific institutions. Most of this news is released according to a pre-determined schedule. Publicly available information gives an indication of the state of the national economy, such as the unemployment rate, inflation, and consumer spending.
How to Cut Losses Trading Cryptocurrencies
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.
The Ultimate Beginner’s Guide to Trend Trading
Forex trend trading is exactly the way many traders use to make a profit on the currency exchange. Trend trading has many advantages: the ability to take a large number of pips due to a strong, directional price movement, a high probability of profit, and good accuracy of signals. These are the reasons that allow traders to use trend trading effectively. Let's consider the basic algorithm of trend trading to learn how to make the most of the price movement and make minimum mistakes, which, no matter how hard one tries, will still happen from time to time.
What Is a Demo Account and Why Is It So Important?
A trader gradually learns the essence of exchange trading. In this case, he can choose two ways - to use a demo account or trade immediately for real funds. Both approaches are valid, and the choice of one of them depends on the personal preferences of an individual. A demo account is a free account that can be opened at a broker's platform and involves trading with virtual capital. A trader performs the same operations but spares himself the risk of losing funds. Today we are going to find out where to open a demo account for a beginner trader.
Understanding Forex Liquidity
Every trader who plans to trade shares on the stock market or forex instruments needs to understand what liquidity means. After all, a proper understanding of the concept of liquidity can help choose assets that are more promising from the perspective of potential gainfulness and, therefore, increase income. In this article, we will discuss why liquidity is so important and what factors influence it. We will also tell you which formulas can be used to calculate various liquidity ratios and how to apply them in practice.
Top Forex Trading Strategies for 2023
How do you know which trading strategy will work best in your particular case? You won't use them all at once. What kind of trading should you choose? Intraday, swing, position trading, or scalping? Or combine several trading strategies? Let`s try to break it down.
The Bearish Trend: How to Benefit from Falling Markets
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.