Tag: trading forex

Trading the Flag patterns the right way

Trading the Flag patterns the right way

Trading Strategies
In the realm of the many different types of chart patterns, the flag patterns presumably fall into the category of one of the most safest chart patterns to trade. The reasoning behind this statement comes from the very definition of flags (and pennants). Definition of the Flag Pattern A flag (Bullish or Bearish) is indicative of a continuation of the prevailing (underlying or the main) trend. When a flag pattern is identified on the chart, it usually points to a pause in a rally creating a tight range type of price action. This pause usually results in a break out as price tends to resume its previous trend. Unlike other chart patterns such as the famous Head & Shoulders, which generally points to a reversal of trend (or in some cases as a continuation pattern), it is relatively d...

Getting started with Forex Trading

Trading Articles
Getting started with Forex Trading can be intimidating and complex for those who are just considering exploring the world of forex trading. Contrary to popular notion, getting started with forex trading is infact really simple and easy. What it takes is a bit of time and understanding on how the financial markets work and also in identifying your trading strategy and style which usually takes a few months to a year to perfect the art. It is true that most new traders who are getting strated with forex trading usually end up most of their capital within the first three months. A large part of this can be attributed to the fact that the moment new traders start to taste the profits, greed takes over logic and they end up losing their initial capital as well as the profits that they have g...

What are the Downsides of the Forex Market?

Trading Articles
While the forex market often has a positive image, there are still some negative things about it that people should also understand. Knowing these downsides help one to deal with forex market more efficiently. Below are some of the disadvantages that one can encounter with forex market: 1. Forex market works 24/7. While this seems a great benefit since you can trade anytime, anywhere, this also has a negative side. This means traders need to spend much time on trading sessions. Especially it concerns for beginners. They don’t know when it’s better to trade Forex. 2. Perhaps you are aware that there are many trading instruments available. However, there are very limited options when it comes to the fx market. In addition, forex-related transactions are often carried out with liquid as

Forex Basics: Bull Markets vs. Bear Markets

Financial Markets Explained
When trading Forex or any other financial markets, you may often hear the expression “bull market” or “bear market." Well, these are currencies/commodities/shares, but ANIMALS, that are traded. Though the actual origin of those “bulls” and “bears” is still under debates I have a simple explanation for you. We mention the “bull market” when we see a financial instrument trending upward. Therefore, people are buying it (a currency, gold, etc.). And the “bear market” describes totally opposite tendency – a trend is going downward as people do selling. Although these are the simplest definitions which I gave you, there are other ways of discerning the two types of markets. Traders will look into the chart to use the set of indicators or conditions, which help them to determine which (“bu

4 Crucial Principles a Forex Trader Needs to Follow

Trading Articles
If your decision to join Forex trading family is adamant then you must know that for trading this biggest market in the world you need the same qualities which serve us in life. Don’t lie to yourself After you missed a trade or placed the one which is totally out of your trading plan criteria, take a necessary break: try to identify the reasons for those actions or non-actions. What emotions lead to this ending? Being truthful to yourself in finding mistakes and correcting them is a big deal of a mature trader’s thinking. Admit that even robots fail, so common mortals leave by mistakes and should learn from them. No taking personally Remember that trading is business and this kind of market appreciates no greed or fear. You must be detached from all of your emotions, opinions,