Tag: FBI Forex

Combining Fundamental or Technical analysis for better results

Traders in the beginning usually wonder what should be their first step / Which strategy to choose or what to pay attention to; while entering any global financial markets? One of the first most important thing traders learn is that there are two distinct types of analysis – Technical and Fundamental. Combining both of the fundamental and technical analysis, one might know and understand the market better and predict the future direction of the price movement with higher accuracy.

In order to comprehend the combination of these two analyses, one should first need to understand both the analysis clearly along with their distinct features.

Technical analysis


Technical analysis is constructed around price chart analysis. Technical analysts use past price performance to draw certain assumptions and estimate existing market conditions. By using support and resistance levels along with technical indicators, traders can determine finest entry and exit points (when it is possible to enter and exit deal). This type of analysis can give a plethora of useful information and help predict the direction of a future trend. However, it can hardly tell what price will be in the long run, as the price chart cannot offer extensive information on the future performance of an asset.

Fundamental analysis

Fundamental analysis, on the other side, is revolved around the study of real-life phenomena which can affect the price of the asset. The direction of the latter will depend upon the information provided in the said release. The good news (outstanding financial performance, new cost-cutting initiative, higher than anticipated growth prospects) optimistically affects fundamentals. The bad news (poor financial performance, bad press coverage) pessimistically disturbs intrinsic value and drag the market price down, as well. The same principals are applied to currencies, commodities, ETFs and all the exchange-traded assets.

Combination F&T


Combining Fundamental and technical analysis is not an easy task, yet it can be useful in a number of ways. Keeping track of the recent trading volume and monitoring the activity is one of the wisest decisions. A trader can use volume indicators to check the power of a dominant trend, as a rule, trading volume accelerates when a trend gains momentum. When trading volumes decline, it can be a sign of an upcoming trend reversal. Market behavior is determined by the actions of specific traders.

The experts of Traders Factory (which is the best signals provider company) generally depict when to enter, exit or put a stop loss for a currency pair.

Money management Strategy

Getting the right direction while trading forex is only one side of a coin, money management is the other side. Even the great trades and the most profitable trading strategies won’t work well if traders don’t have a good money management rules in place to protect their winning trades, cut their losses, and grow their trading account.

Hence, here, the article has covered some of the things which no one can tell the traders about Forex trading and money management that they need to know now!

What is money management?

Money management in Forex simply defines a set of rules that maximize traders profit and reduces losses and grow traders’ trading account. It generally happens with the beginner traders who tend to neglect even the basic money management rules and end up losing their entire money.
Analyzing the market and deciding whether to go long or short will be difficult for beginners. This is the reason thinking about money management and risk is fully boring at first.
Well, without a proper strategy and money management, traders cannot become a profitable trader.

Let’s have a look at what Money management strategy can do;

• Money management Helps in avoiding substantial losses,
• Increases the volume of opportunities to invest,
• And Exterminates emotional trading

Frankly speaking, the strategy is simply a way of analyzing how much fund traders can afford to invest without any issues, which is an extremely significant factor to understand while trading. By taking some time to evaluate this, they will find it easy to improve their emotions.
If traders are trading with money that they cannot afford to lose, they may find it problematic to have a successful trade which can lead them to take an illogical decision and further financial decline. Hence, the traders are suggested to be vigilant.

The traders may need to change their trading viewpoint from trading indecently to trading cautiously. Well, it simply means that, they need to think once how they have earned their money, how long they spent and how hard they had to work to earn such amount. Of course, all the traders out there want to protect their hard-earned money right?

The best Forex money management system needs to be a well-versed and comprehensive system that utilizes most.

Trades factory helps all the beginners and experienced traders to trade smartly and set up the money management strategy well. The company is well-known as the best Forex advisory company among all the companies that provide services related to Forex.

4 Essential Tips to Apply on Day Trading

Day trading is an act of buying and selling the financial instruments or securities even multiple times within a single day. Doing it correctly, anyone can improve their trading skills. But it may consist lots of risks for newbies or anyone who doesn’t follow a well-thought-out strategy. Almost all the traders perform day trading but it’s not suitable for all of them.
Let’s see some of the tips to make your Day trading better:


1) Understand the market thoroughly
The traders can’t apply this tip to general trading procedures (although it is essential to know and understand them) but rather to major events that takes place daily. Every trader already know that important news and announcements have the potential to move the market. Remember that even when trading in shorter time intervals, fundamental factors can still affect the outcome of your deals


2) Allocate funds
No matter how much money you allocate to each and every trade, it should be thoroughly calculated. You should never invest a fix amount neither the whole of your investment. Rather you should make a strategy of investing 3% to 4% of your total balance. It should never exceed. You should keep yourself safe from a losing streak.


3) Set aside time
Day trading needs a scheduled time as it is a time-demanding pursuit. In fact, most of the successful day traders spend their whole day doing trade as a job holder spends his whole day working in office. Day traders do not have business hours and usually spend time monitoring the markets as much time as they can. Day trading is never an easy money, it needs time, effort and passion.


4) Time your trades
It is essential to see the right time to pick the right moment to open your deals. The experienced traders always enter the market when the volatility is high. Since Forex is traded 24*7 globally, with New York, London, Singapore and Tokyo being the most notorious exchanges, the highest volatility will be observed when there is more than one exchange is open. Certain specialist, however suggest novice traders to trade when the market is less volatile, to manage their risk properly.
Anyways, it is up to you to find a suitable entry and exit moment, trading style and develop your trading strategies accordingly.

What is the difference between Forex and CryptoCurrency?

There are many factors that make cryptocurrency different from forex, although exceptional aspects of both markets attract the traders similarly. Talking about the forex market as we all know it is the biggest financial market where almost every currency is traded by a huge voluminous amount of liquidity, which makes it very prone to the economical events of different countries such as political announcements, inflation numbers, and jobs reports. Being a global market, it is influenced by a number of features such as political announcements, inflation numbers, and jobs reports. On average, around $6 trillion is traded in the Forex per day.
The Cryptocurrency which is often referred to as ‘digital currencies’ and is not the same as the currencies like US Dollar, Canadian dollar or Japanese yen.
Whereas, currencies in the Forex are backed by the centralized Government but crypto is not. They are programmed online and reversed by a peer-to-peer verification that stops you from using a cryptocurrency (like Bitcoin) most of the time.
Features of Forex and CryptoCurrency:

  1. CryptoCurrency
    (a)Finite supply available
  • Demand gets increased when there is a limited supply. From the time when there is a limit on how many cryptocurrencies can be generated, the value often accelerates, As an example Bitcoin.
    (b)Quick and permanent transactions
  • Cryptocurrencies have low transaction costs as a central bank and other third-party vendors don’t take a transaction fee.
    (c)Available to anyone.
  • Cryptocurrency market is a platform that gives different levels of investment opportunities to both of the parties world-wide. This procedure allows individuals use and trade cryptocurrencies even in under Developed countries without nearby banking institutions.
  1. Forex Trading
  2. Unlimited supply.
    As The Forex market comprises of the world’s global financial markets, there is an unlimited supply of currencies that are available to trade.
    (a)Leverage.
  • Usually, the ratio of leverage provided in the Forex market is 100:1, meaning you can take a Forex trading position worth $100 for only $1. Though this also means losses can rise rapidly.
    (b)Very high liquidity.
    The number of participants are much more than any other market, hence, it is quick and simple to trade. In other markets, even a single investor can massively influence the market such as the stock market but it does not happen with Forex.
    (c) Influenced by global news, announcements, earnings reports, etc.
    Forex market is influenced by global news, announcements, earnings, reports etc which can make it easier to find trading opportunities.
    There is high volatility in both the Forex market and cryptocurrency. However, the more risk you take the more reward.
  • Bottom line
    Trading whether in Forex or in Crypto both involves a high level of management. It needs effective equity planning, the right strategy, proper risk management, perseverance and a strong desire to continuously learn.
    Trades Factory provides a platform with learning plus earning opportunities. Trades Factory prefers in following the correct strategies and provides the same to their students too.

What are the most profitable Forex currency pairs for scalping?

As almost all the Forex traders already understand, scalping conditions involves short-term transactions to make profit. It can be explained as a highly focused trading method, which needs strong knowledge of technical and fundamental analysis and complimentary technical setup in order to make profit for scalpers.
As the strategy is leaning towards a special kind of movement in the market, it is compulsory for the scalper to know which currency pairs are most suited to scalping strategies. Normally speaking, it is accurate to trade the smallest-spread currencies which have the lowest costs too. Widely, it is suggested that one should use the most traded currencies as those have the top liquidity in the market.
We will classify 3 types of currency pairs most suited to scalping, to emphasize which currencies scalpers must pay more attention.
Note: This is just an example as at the movement the market is in consistent fluctuation and instability appears all the time. The unspecific currencies are the one that can easily change with time during certain examples.
Major currency pairs
The purported majors are the currencies by the most powerful and leading economic countries in the world. The main distinctiveness is liquidity and openness to the market shocks.
Major currency pairs contain the following pairs:
EUR/USD
USD/CHF
GBP/USD
USD/JPY
Carry currency Pairs
The main features of carry currency pairs are that they are traded in the entire world and they are very unpredictable. It can be easy to acknowledge that these are unstable pairs, but their progression and transformation straightly depend on the evolutions of the interest rate.
Let’s have a look at the examples of carry currency pairs category.
USD/JPY
EUR/JPY
USD/JPY
EUR/USD
AUD/JPY
NZD/JPY
AUD/USD
EUR/AUD

Exotic currency pairs
The important features of exotic currency pairs are that they are unique, less-liquid and less familiar Forex pairs than the other two earlier divisions on currency pairs.
Lets’s have a look at some of the exotic currency pairs.
USD/SEK
USD/ZAR
USD/TRI
NOK/USD
BRL/USD
Conclusion
It is actually suggested that only the experienced scalpers can trade this category as the unpredictable gaps appear frequently.
But, even beginners who have great knowledge of money management strategies may find them perfect for scalping as well.

How can you recover lost money in Forex trading?

Life is not always a bed of roses nor a bed of thrones, it’s a bed of roses filled with thrones.
You have to face problems and happy moments simultaneously. Similarly, Forex is also not easy neither impossible.
It’s not easy doesn’t simply mean very hard, so don’t stress. Forex trading is a clash against big money banking system who usually place traps for traders to get foreign money and less spend local money.
As a result almost all the traders, typically beginner lose their money on these battles. So, you shouldn’t give this moment if you want to make money and want to level up your living standard.
Following some of the steps, you can reduce your losses and accelerate profitable trades.
Let’s check out.
STOP Right Now
If it’s your disaster day then you should stop your trading daydream right now. Don’t ruin it and prevent yourself from stress. If you don’t stop or change your current strategy that is not going right, it can lead you down and will make you mentally exhausting.
When you find yourself angry then you should stop being that. Generally, people can’t control their emotions, but, in trading, if you don’t control your emotions it can lead you to fall down.
Reset your mind and refresh yourself.
A huge loss grounds stress, anxiety, anger and frustration, and hate comes up in the end. It can also bring suspicion about foreign exchange trading system. And you might also think about taking revenge against the broker or even the market. But, eventually, you will get to understand that there’s the least way to recover lost money without a clear mind.
Hence, what you have to do is refresh your mind. Omit your psychological self-harming problems and other dilemmas. You might get your key and ride towards the profit.
Find the real reason-
Is losing money your fault? Did you lose your way during trading? I mean, did you perform according to your strategy? If everything was according to your strategy what’s gone wrong? Is it a matter of technology? Or the breaking news made your trading fall down?
If a piece of sudden news changes the market it’s not your fault, don’t blame yourself nor your luck.
Do you give credit to your luck if something good happens? No. Then why blame your luck when it’s bad?
You will get many reasons to blame your luck, give excuses for the loss and some of these are definitely meaningful, I might understand so do you.
Fix issues-
Fix the issues and get your money back. The most important option in trading is Stop Loss (L/S) to get success. Don’t forget, do use it. Simultaneously, Take Profit (T/P) option should be used with stop loss.
Don’t over trade on losing trades. It’s time to learn that over trading is not for you. You are not a kid, stop and change your strategy.
Now, if your trading is going well and your new strategy is working, then you are the winner! Well, making lots of money is not a real destination. In my view, building your own method with a well-researched plan should be the real mission.
Happy Trading!