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.

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...
Trading Tips for FOMC event

Trading Tips for FOMC event

Trading Articles
The US FOMC's (Federal Open Markets Committee) monthly statement is due out later today during the US Sessions. Given the circumstances, it is touted to be one of the key policy making events this year with repercussions reaching far and wide. Here are some trading tips to bear in mind for the trader, those who are gearing up to trade based off this news releases. Protecting your equity Equity protection cannot be stressed enough and trading during such volatile events can make or break your fund. It brings to question the topic of placing your stops correctly. Due to the nature of the event, prices can spike in either ways, thus what would seem like a logical stop level can easily be taken out only to have your trade move back to the original direction. The possibility of the trade brea...

Currency Trading Strategies That Work

Trading Articles
There are many different trading strategies that traders employ but very few of them actually work, in this article, I am going to write about what works in the Foreign Exchange (or Forex) market and why. Any trading strategy, no matter what it is, will not work if it does not employ at least one edge to give the trader better than 50/50 odds of either being right or of then gaining more from a winning trade than they will lose on a losing one. If trades were simply entered on a coin toss and exited at random then the traders doing this would, on average, win as often as they lost with the size of the average losing trade being equal with the size of the average winner. In a scenario like this traders would slowly lose all the money in their trading accounts as the costs of trading (i.e...