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Showing posts with the label forex strategies

Scalping in Day Trading: Understanding the Methods, Pros and Cons

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by: Ivan Cavric Scalping is a popular trading strategy in the world of day trading. It involves buying and selling financial instruments, such as stocks or currencies, within a single trading day in order to make quick profits. Scalpers aim to profit from small price movements and typically hold their positions for just a few minutes or seconds. There are several methods used in scalping, including: Trend following: This method involves identifying a trend in the market and then placing trades in the direction of that trend. Scalpers using this method will look for short-term price movements that align with the overall trend. Pros: It can be an effective way to capitalize on short-term price movements. Cons: Identifying trends can be difficult, and there is a risk of missing out on potential profits if the trend changes. News trading: This method involves taking advantage of market-moving news events, such as earnings reports or economic data releases. Scalpers using this method wil...

Understanding Forex - Money Management.

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By:  Ivan Cavric This is a series of articles about The Foreign Exchange Market. You will learn here what Forex is , how it works and how profitable it can be. The whole series contain  the following articles .  What is Forex Technical analysis Fundamental analysis Money management Compound interest Money Management. This is one of the most important aspects of a good trading system. Even if your market forecasts are accurate, you may still not be profitable in the long run unless you implement proper money management techniques.  Money management refers to how you manage your trading capital. It has to do with how much money you invest on each trade. Also, how much do you expect to make on each trade compared to how much you are risking. Furthermore, you can also use different kinds of orders that allow you to manage your trades automatically like stop loss, limit order and trailing stop. In my opinion the two more important aspects of money management are position ...

Understanding Forex - Fundamental Analysis

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By:  Ivan Cavric This is a series of articles about The Foreign Exchange Market. You will learn here what Forex is , how it works and how profitable it can be. The whole series contain  the following articles .  What is Forex Technical analysis Fundamental analysis Money management Compound interest Fundamental analysis. Forex fundamental analysis strategies consist on studying economic factors of a country to forecast the future value of its currency. This includes, but it is not limited to: economic condition, monetary policy, etc. Fundamental analysis focuses on studying economic, social and political factors that drive supply and demand. Some important indicators are interest rates, inflation and unemployment. Political decisions are also important. Bellow you can find some of the most important fundamental analysis indicators and their definition. You can learn more about these indicators and how they are used on www.investopedia.com. Producer Price Index - PPI A fam...

Understanding Forex - Technical Analysis

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By:  Ivan Cavric This is a series of articles about The Foreign Exchange Market. You will learn here what Forex is , how it works and how profitable it can be. The whole series contain  the following articles .  What is Forex Technical analysis Fundamental analysis Money management Compound interest Technical Analysis. Unless you are new to trading you probably know already that technical analysis is a method of forecasting future price movement of commodities, securities, etc (in this case currencies) based on chart analysis, pattern formations, technical indicators, etc. Forex can be traded technically and in my opinion it is quiet predictable.  No trading strategy will work 100% of the time. That's why you need proper money management techniques. Anyway, technical analysis is important to determine where the price of the currencies is going, also when to enter and exit positions. There are different technical analysis techniques that you can implement to your trad...

Profitable Forex Strategies And Techniques

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By:  Ivan Cavric This article is mostly for people that already know what the Forex market is and at least know the basic concepts. If you have no clue about what this market is or you have never heard about it, I will give you a very brief explanation bellow. Forex is the acronym for Foreign Exchange Market. This is the biggest and most liquid market of the entire world today. One to three trillion dollars exchange hands at Forex every day. That’s a huge amount of money. No stock market exchange of any country come close to this.  This market is huge. It is a sea of money full of sharks and dangerous waters, but it is also the only market where you at least hypothetically can make $1,000,000 in two weeks starting with only $1,000.   I say hypothetically because what happens often is that people blindly gamble their money at Forex without knowing anything about it and they lose their shirt. That’s why I say to you: be careful! This market is prof...