The Frontiers Of Trading

By:  Ivan Cavric  Technical indicators are tools used by traders to analyze financial markets and predict future price movements. They are popular among traders because they help to identify potential trading opportunities and can assist in making more informed trading decisions. In this article, we will explore what technical indicators are, when they are used, and why they are popular for trading. What are technical indicators? Technical indicators are mathematical calculations based on the price and volume of an asset over time. They are used to analyze price movements and identify trends in the market. Technical indicators can be applied to any financial market, including stocks, bonds, commodities, and currencies. There are two types of technical indicators: leading indicators and lagging indicators. Leading indicators are used to predict future price movements and are therefore considered more valuable. Lagging indicators are used to confirm trends that have already occu...

by: Ivan Cavric Short-term day trading involves buying and selling securities within a single trading day. As a result, traders must be able to quickly identify trends and make informed decisions to maximize profits. In this fast-paced environment, using a moving average can be a helpful tool to assess market trends and make informed decisions. One of the most popular and effective moving averages used by short-term traders is the 6-period and 18-period smoothed moving average. This combination is considered the best because it strikes a balance between sensitivity and smoothness. The 6-period moving average is a highly sensitive indicator that can quickly detect short-term price changes. This is especially important for day traders who are looking for quick profits. However, a highly sensitive indicator can also lead to false signals, causing traders to make poor decisions. The 18-period moving average provides a smooth representation of the trend and eliminates short-term fluctuati...

  by: Ivan Cavric The Parabolic SAR (Stop and Reverse) is a technical analysis tool that was developed by J. Welles Wilder Jr. It is designed to identify potential reversals in price trends and can be used by traders to enter or exit trades. In this article, we will explore how the Parabolic SAR can be used to make more informed trading decisions. The Parabolic SAR is plotted on a chart as a series of dots, which are placed either above or below the price bars. The position of the dots indicates the direction of the trend, with dots above the price bars indicating a downtrend and dots below the price bars indicating an uptrend. The Parabolic SAR is based on the idea that as the price of an asset increases, the acceleration of the price increases as well. This acceleration is represented by the SAR dots, which move closer to the price bars as the trend continues. When the dots are close to the price bars, it indicates that the trend is strong and may continue. When the dots are furt...

By:  Ivan Cavric Fifteen years ago, the Forex market was a domain reserved for central banks, large hedge funds, and financial giants like Warren Buffet. Today, however, the Forex market is the most fluid in the world, with almost 2 trillion dollars traded daily from Sunday to Friday afternoon. This 24-hour accessibility, coupled with the advent of online trading platforms, has made the Forex market a popular choice for investors from all over the world. One of the main attractions of the Forex market is its accessibility. Trading occurs 24 hours a day, 5 days a week, which means that investors always have the opportunity to trade and potentially make a profit. Online trading platforms also make the process of trading easier and more personalized to suit the individual trader's needs and style. Another attractive feature of the Forex market is its size and liquidity. With a daily trading volume of nearly 2 trillion dollars, it is easy for investors to enter and exit positions in th...

By:  Ivan Cavric Forex training is the key to successful Forex trading.  Forex training is one of the most important aspects of the Forex market.  With good Forex training comes good profitability in the Forex market. As such, Forex training is one that is very worth to invest in. The benefits it reaps is high. Forex training courses will be very beneficial for you to obtain the necessary skills to get started in the Forex market.  Forex training more frequently or adding more sets may lead to slightly greater gains, but the small added benefit may not be worth the extra time and effort (not to mention the added risk of injury). Forex training is available via online courses, advanced trading workshops and one on one mentoring. Forex training is always an essential part in every step of daily life. Forex training and practice can mean the difference between success and failure and indeed between modest success and turbocharged success. Forex training for Forex offers...

By:  Ivan Cavric Any one who has ventured into the real market place would definitely have an idea what a Forex is and share the many promises and possibilities this horizon can bring. What Is Forex? FOREX stands for the very popular Foreign Exchange Market. Sometimes, though, people associate it or equate it to mean also currencies.   Basically, forex is where people trade. The objects of the trading are the different foreign currencies. People buy and sell the currencies. The exchange market and the trading as we know it today started in the 1970’s. It has no definite place. It has no definite location. The foreign exchange market is found wherever there is a financial center where people conduct constant exchanges and buying and selling. To ensure definite success in this field, the main goal has to be kept in mind. The keywords to traders in the foreign exchange market are to ‘buy low and sell high.’ This is the way to get the profits coming in. Why Are People Trading...

By:  Ivan Cavric   The Forex market is the largest trading network in the world with $1.8 trillion dollars being exchanged every day.  There are dozens of different currencies traded but the big players to focus on are all traded with the US dollar and include:  EUR (Euro), GBP (British pound), JPY (Japanese yen), CHF (Swiss franc), AUD (Australian dollar), NZD (New Zealand dollar), and the CAN (Canadian dollar).  Each of these currencies is exchanged with the currency of other nations at different exchange rates—which are always in a state of flux because the market trades around the clock (Sunday through Friday). The volatility and sheer size of the market means that there is ample fluctuation to produce big profits—and losses.  The challenge for the investor, as always, is to predict which direction the rates of currency pairs will fluctuate.   The beginning point in any investment strategy is determining what type of analysis will be used to h...

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 ...

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...

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...

By:  Ivan Cavric As you read forex charts, remember that the two fundamental approaches for online forex trading: fundamental analysis and technical analysis. Fundamental analysis doesn’t rely on forex charts. It scrutinizes political and economic indicators to determine trades. Charts here are deployed as used as a secondary reference. Technical analysis on the other hand, attempts to predict price swings by analysis of historical price activity. Those who use technical analysis study the relationship between price and time. The most actively traded pair of currencies is the Euro and the US dollar, so we will use them in our example. The dollar is on the right hand side of the chart and the Euro is on the left hand side. The currencies are expressed in relationship to each other in pairing. Forex charges will always display how much of the currency on the right hand side is necessary to buy a unit of the currency on the left side. Looking at the typical EU-USD, chart you will noti...

By:  Ivan Cavric I’m going to be 100% honest with you and tell you the following before you consider trading currencies: All forex traders, and I mean all traders lose money on trades. Ninety percent of traders lose money, largely due to lack of planning and training and having poor money management rules.  Trading forex is not for the unemployed, those on low incomes, who can't afford to pay their electricity bill or afford to eat. You should have at least $5,000 of trading capital (in a mini-account) that you can afford to lose. Don’t expect to start an account with a few hundred dollars and expect to become a kazillionaire.  The foreign exchange market is one of most popular markets for speculation, due to its enormous size, liquidity and tendency for currencies to move in strong trends. You would think traders all over the world would make a killing, but success has been limited to very small percentage of traders.  Many traders come with false hope of making a g...

By:  Ivan Cavric Forex trading has a big appeal among the people due to the possibility of creating instant wealth. If forex trading is equipped with a good strategy, preferably a unique one will be of great help in achieving success. Forex trading strategies reduce the risk irrespective of the person’s participation in position trading, or day trading, or swing trading provided they are disciplined enough to stick to the strategy adopted. The best forex trading strategies are adopted by forex traders who are blessed with keen market sense and also who are able to privy to get inside information. On the basis of that information they develop forex investment strategies. The forex trading strategies which are devised after observing the market for quite sometime gain profits by rising above the odds. The forex traders who are best in their profession do not enter a trade without devising an exit strategy. They are the people who know very well when to minimize their losses and when ...