There are two primary ways to become a more successful Forex trader - to practice, and to learn about the industry. At DailyForex, our goal is to simplify your trading so that you can trade easily and smartly. To this end, we offer you a collection practical articles written by our Forex experts to help maximize your trading success.
You can also browse our articles by category to find information and trading strategies that can help you improve your profitability and enhance your trading experience.
Everyone who looks at a Forex chart spanning longer periods, like the D1, notices two common features, which is price action either moves generally in one direction, known as trending, or bounces between two well-established levels, support, and resistance, known as ranging.
One of the most-commonly repeated trading mantras is that the ‘trend is your friend.’ I will examine why this principle is useful and what it means. I will also cover how to use a technical analysis approach for trend identification, and which are the Forex pairs that trend the most.
Unlike the equity market, where traders have tens of thousands of instruments with which to trade, the Forex market features significantly fewer currency pairs. Competitive Forex brokers typically list 60+ currency pairs. Despite the comparably small choice, traders must choose what Forex pair or cross they should trade as part of their strategy.
Traders have tens of thousands of instruments from numerous asset classes available to them to trade, which offers flexibility to earn money from financial markets. Two of the most-traded asset classes are Forex and Indices, with good reason.
CFDs are often the best instrument for active traders, but UK and Irish traders may have a more tax-efficient method: what is known as ‘spread betting’. I will explain key differences between CFDs and spread betting, allowing you to decide which derivative is the best fit for your trading requirements.
Over the last two decades, index trading has exploded in popularity and become the most common way individuals invest in the markets. Many investors today use only index funds to grow their accounts. And that is for good reasons: index funds have become low-cost and simple to use. Index funds are also easy to access, with banks, financial advisors, and brokers offering index investing. Read on to find out more about index trading.
Today, nearly all trading is “electronic trading.” Switch on your computer. Login to your broker’s account. See what you want to buy or sell. Click your mouse, and you are in a trade. It seems easy, right?
You’ll often hear traders blame their losses on some kind of nefarious practise known as “stop loss hunting”. This usually refers to an underhand practise by brokers undertaken to maximise client losses and hence their own profits, but it can also refer to a process undertaken by major market participants. It can even form the basis of a profitable trading strategy. Read on to find out how you can avoid having your stops hunted, and how you can exploit this phenomenon for a more profitable trading style.
Different financial instruments do not move in isolation. Instead, the markets are intertwined, and the prices of different assets are related. This concept is known as “correlation.” When asset prices are correlated, traders can compare the prices of one asset to another to make trading decisions.
Drawdowns are inevitable, and everyone will face a drawdown in Forex at some point in their trading careers. Without proper risk management, drawdowns can destroy a trading account even if the overall trading strategy is profitable.
There are three main types of price movements: trends, continuations, and reversals. To be a well-rounded trader, understanding all three types is essential. In this article, I examine reversals to help you build a strong foundation in price action and technical analysis, which should help make you a more profitable trader.
It is a fact that most independent self-funded traders are unprofitable. For example, Forex brokers required to report on client losses under EU law usually report that between 60% and 85% of their clients are losing money.
One unique feature of exchange-traded futures is they’re standardized. The way most companies do this is by using minimum lot sizes. The lot size for futures is the lowest ticket size of shares you can trade (futures).
As with everything you buy or sell, things are determined in measurement units, such as a dozen eggs or a pound of butter. The same applies when you’re Forex trading. When you place an order on the Forex market, the lot size is the unit of measurement to determine what you want. The size of the Forex trade is made up of lots, so it’s crucial to understand them to be successful in the global Forex market. Let’s dive in and learn more!