Trading Blog

The world’s largest oil producer and supplier is poised to go public before the end of 2019 with a valuation of $2 trillion. 

Following your instincts while trading isn’t necessarily a bad thing, if you have the experience to justify taking the risk. However, trading on instinct alone or on a hunch that you will be proven right will never get you on the path of consistent profitability.

Expert Advisors (EAs), trading robots and other automated trading solutions such as mirror trading and copy trading are transforming the retail trading industry. Beginner traders find these automated solutions more user-friendly than ever before and even though there may be some tweaking involved, the results are quite promising in some cases. 

In truth, there is no perfect system that you can abuse to make money off the market. However, it’s also correct to assume that if you let go of the bad habits and accept that forex is a speculative market, you may end up developing a strategy that actually works.   

Market risk refers to the risk of losing your invested capital due to rapid market movements. When the market moves in the opposite direction of your trade, you will start losing money and the losses will continue to run until you close the position. A stop loss order can help minimize financial losses by placing a limit on the amount you are comfortable losing. 

Cryptocurrencies offer exciting opportunities for speculators due to their extreme appreciation and depreciation cycles. Bitcoin and specifically the BTC/USD pair are one of the most popular trading instruments for retail traders around the world. 

Currency exchange rates are vulnerable to an array of external forces throughout a trading session. Surprise economic announcements, sociopolitical turmoil and trade wars have a tremendous impact on trading volume and liquidity in the market. However, a more predictable and crucial factor to consider is interest rates and the monetary policy of the country’s central bank.   

Thanks to the popularity of online and CFD trading, retail traders now enjoy direct access to the forex market which is a decentralized network of large banks and financial institutions. Forex broker across the globe facilitate currency trading among other exciting assets thereby providing traders with remarkable profit opportunities without leaving their home

While online trading is mostly marketed as an easy way to achieve financial success and independence, the truth is that it requires a substantial amount of time and luck to remain consistently profitable over a long period of time. Beginner traders should first focus on education rather than profits. 

Forex news can have a significant albeit short-term impact on currency exchange rates. If the news is unexpected or doesn’t confirm the market’s sentiment, you are likely going to notice sharp spikes and increased volatility as liquidity dries down.