Trading Articles

Read all the articles related to forex trading and binary options trading. Our forex articles help both new traders as well as experienced traders to help improve your trades. Our articles are focused on forex as well as binary options trading. The forex articles section is updated every week, so keep checking for new articles.

Introduction to Renko Charts

Introduction to Renko Charts

Trading Articles
Renko Charts is a type of charting concept that was developed by the Japanese. Renko (or Renga) is the Japanese word for Brick and aptly reflects the nature of the Renko charts. Renko charts are constructed by plotting price movements as bricks of a certain size. Unlike its close cousin, the Bar Chart or Candlestick chart which plots Price’s Open/High/Low/Close against Time on the x-axis and Price on the y-axis, Renko charts purely reflect price movement and is time independent. Although most Renko charts do have time plotted on the x-axis, it is irrelevant. Renko charts are considered to be pure price action minus the noise one gets to see on Bar or Candlestick charts. The Renko’s or bricks are printed next to each other. So when price moves up by a certain number of pips, a bullish Re
Do traders and gamblers meet in Forex?

Do traders and gamblers meet in Forex?

Trading Articles
There are a lot of people out there that consider retail Forex trading as a casino packaged up as financial trading and those people more often than not are gamblers. For the typical gambler it is perfect, they can control their risk and project the image of being a trader, which has much less of a stigma attached than being an outright casino going, poker playing gambler. These people usually place trades that far exceed their means using massive leverage and lose all their money in most cases but sometimes win big and they feel and embrace the thrill of the market. Now, trading is definitely not gambling even though it can be used for gambling by gamblers. There are professional traders out there that consistently profit from trading, manage the money of others, make respectable money
How Japanese Candlestick’s Express Sentiment

How Japanese Candlestick’s Express Sentiment

Trading Articles
We might look at them every single day and dream of them but do you actually know the history of the candlesticks used on charts, otherwise known as Japanese candlesticks. Believed to have been born as the idea of Munehisa Homma in the 1700s, Japanese candlesticks first appeared in Japan. Munehisa was a Japanese rice trader and apparently identified that fear and greed affected the price of the markets, in addition to the law of supply and demand. The principle of the Japanese candlesticks is to measure the emotions in the market. The candlestick allows the trader to read more into the sentiment of the market that could otherwise be seen with a line graph. The time period a candlestick represents is often changed to help the trader get a holistic overview of the market 'emotion'. These ...
Trading CFD’s? Three things that you should know

Trading CFD’s? Three things that you should know

Trading Articles
CFD, or Contract for Difference is a form of derivatives trading that offers certain distinct advantages compared to trading the security directly. Most notably, CFD trading is more commonly used for Stocks and commodities rather than spot forex. If you are considering trading CFD's then here are 5 things to bear in mind before you short or long that contract. But before we get into the details, a little bit about CFD's. Contracts for Difference or CFD for short is a contract that is agreed upon between the buyer and the seller. In most cases, the broker with whom you trade CFD's is the seller of the contract. During the term of the contract, if the value of the security increases, the seller pays you the difference and if the value of the security decreases, you end up paying the selle...
Four Reasons why you shouldn’t trade Twitter Stocks (CFD)

Four Reasons why you shouldn’t trade Twitter Stocks (CFD)

Trading Articles
As twitter gears up for its IPO we notice a spike in forex brokers offering promotions trying to get mileage out of the Twitter IPO's buzz. While the marketing message looks nice a juicy on the surface, scratching the surface throws up an entirely different picture. One broker that caught our attention was Avafx/Avatrade who offers a free no deposit bonus for trading twitter CFD stocks. Here are 6 reasons I think of why you shouldn't fall for this marketing trick, atleast when it comes to CFD stocks. #1 Trading from IPO date makes sense if you actually own the shares When a company goes public, they usually make use of an underwriter to facilitate the IPO flotation. These underwriters are institutions which are the biggest holders of the shares in the company. After which probably ot...