The Relative Strength Index is probably one of the most popular price indicators and it is being used by those traders who are at the beginning with forex trading. However, the indicator might be misleading for most of the traders, as they fail to understand it properly, which leads to some painful mistakes. In this article, we will cover the basics of RSI and we will also try to answer the question: Is RSI good for Forex trading? General Information about RSI What is RSI? It is a technical indicator used to measure the strength of a particular trend, based on the closing price for a given period of time. The most popular period is 14, but other ones could be used, as well. The indicator can have … [Read More...]
Risk Aversion and Forex Trading
In order to understand better the market psychology, this time we will discuss another interesting concept, which is the risk aversion. The current economic context is another reason why we want to approach this subject. The global economy had been expanding since 2011 and since 2009 in the United States. A recession is something normal in this case, as the economic cycles principle is stating. During those periods, risks aversion appears as the market sentiment deteriorates. Let’s dig into this subject and see what the particularities of this concept are. What is risk aversion? Risk aversion is a situation when the market participants are no more willing to invest their money in risky assets (stocks, precious metals, commodities etc) and place their money into safe assets (bonds, bank deposits … [Read More...]
How to Think Outside of the Box in Forex
You’ve probably heard this phrase a lot of times and you haven’t manage to understand it. Also, even though you manage to understand, you don’t really find a way to apply it, so your actions will evolve for the better. Today we’ll cover this topic related to market psychology and mindset of trading and hopefully, you will be able to get what this is all about. We must say from the start that thinking outside of the box is a skill that can be practiced with time, so don’t worry if you are not able to master it right now. Crowd behavior and its bad consequences The Forex market is formed of a large number of people – a crowd and the way it evolves over is … [Read More...]
Understanding the Market Rhythm
An ordinary forex trader will go out and learn technical analysis, fundamental analysis, and sentiment analysis, as all the books and online courses are saying, but only a few go deeper than that and learn some subtle details of the market. That is what we are going to do today, as we aim to explain a bit what the market rhythm is and how it could help you to anticipate recurrent patterns in the market. What does rhythm have to do with Forex? Well, it does. The market functions exactly like a car piston. It cannot move in a single direction, without moving in the opposite. No matter how an impulsive trend it, if you zoom on the smaller time frames, you will see counter trend players. … [Read More...]
Jesse Livermore and Forex Trading
For those of you that heard about Jesse Livermore, you will find a little weird the analogy with forex trading. However, his methodology was focused on the technical aspects of price and that is why you may find some useful information which could be applied to trading. If you really want to learn more about him, we recommend the book “How to trade in stocks”. It is very short to read, but it really contains a lot of interesting and valuable points. Source:https://kingworldnews.com Briefings about Jesse Livermore He is regarded by many as one of the greatest speculators of all times. He made and lost fortunes at the beginning of the twentieth century. During the great crash of 1929, he made around 100 million US dollars, … [Read More...]
Treating Forex like a Business?
We won’t talk about any strategy or economic subject this time. Instead, we want to focus on something that is more like a psychological skill professional and successful traders manage to develop over time. It is in their mindset to have this approach and we’ll talk about it in a few seconds. What we are going to discuss won’t make you a millionaire in the next few months (sorry, if you were hoping that), but it will definitely help you be more prosperous and be more abundant. How ordinary traders approach forex trading If you have been trading for at least a few months, you are now able to spot some patterns in your behavior, which repeat themselves over and over again. The main thing that characterizes … [Read More...]
Stop Loss Hunting in Forex
If you are not new to forex trading, you have probably heard about the stop loss hunting myth and it can generally influence the way traders perceive the market. That is why in this article we will digest this issue and make clear once and for all if stop loss hunting is true or not and what any forex trader can do in order to avoid being involved in such situations. Retail trading and conflict of interest One thing that most of the retail traders do not know is that any broker that lacks regulation and internal ethic is basically functioning as a betting company. This type of broker is literally opening positions on the other side of the market without telling anything to traders. Also, the … [Read More...]
Tips for Professional Forex Trading
If you are reading this article you are most likely one of those that have a strong desire to achieve success in forex trading. However, when it comes to actually do what is required for that, you find it hard to implement all the things. Also, some of the information that had been given to you by all the “online expert traders” seems to be useless and that is why we want to give you a few trading tips that will certainly help you in your day to day activity. Tip #1 Focus on the process not on the reward We know that each one of you is trading because each of you wants to have more money. That is a fact which can’t be denied. However, … [Read More...]
