CFD (contract for difference) is a financial-derived trading arrangement. In CFD, differences between closing and open trade prices get cash-settled. It is also an advanced strategy of trading commonly used by experienced traders. It is, however, prohibited in the U.S.A. When trading CFD, it means you have agreed to exchange an asset’s price difference from the moment the contract is opened to when it closes. A vital benefit of this kind of trading is that you’ll be able to speculate the movement of prices in all directions. As such, the loss or profit you will make will depend on whether your forecast was wrong orRead More →

The current capital market is quite volatile. This volatility has not only had an impact on asset classes but is also controlling the demand of financial products offering leverage. Contract for differences is a financial tool used to track a variety of assets. These underlying assets include cryptocurrencies, indices, commodities, individual equity shares, and forex. CFD is different from underlying tools in that you aren’t required to post the total capital amount to purchase underlying instruments. As an alternative, you need enough capital to cover the price change of the place you want to enter and exit the trade. Can CFDs offer leverage? Each CFDRead More →

Forex exchange involves trading currencies with the aim of profiting from the variation in currency prices. It is a lucrative business that you can perform any time of day considering the forex market operates 24/7 5 and ½ days a week. However, success in the forex trade is not a guarantee but requires one to know how to trade and understand the tricks of ins and outs in the trade. The following comprises some tips you can employ in forex trade to ensure successful trades. 1.           Learn the Market Take the time to educate yourself on matters to do with foreign exchange trade. Take asRead More →

In any trend-following strategy, there are two outcomes any trader wishes for. These are to enter a trade on time and exit it on time. All traders aim to detect trend changes early enough and exit the transaction on time after exploiting it to the fullest. This is easy in theory and more difficult in practice, with most indicators lagging and not as reliable as they should be.Read More →

The Fibonacci retracements use the Fibonacci sequence that was discovered by Mr. Fibonacci, an 11th-century mathematician. It is argued that there are Fibonacci numbers that occur everywhere in nature, and traders use this sequence in forex trading. Fibonacci retracements are identifiers of key support and resistance levels. When a market curve has made a large upwards or downwards move and seems to flatten at a certain level, this is usually when traders can do the Fibonacci level calculations. In Fibonacci retracements, traders set a target on a set of percentage points on a trade of a particular commodity. If the price falls beyond the lastRead More →

Measuring Forex Market’s Volatility Using Bollinger Bands

Technical analysis has become very common in the forex market. Bollinger Bands, created by John Bollinger in the 1980s, is being used for exceptional insights into price and volatility. He used a moving average technique with two trading bands.  The bands have to be above and below the MA. Compared to a normal MA, the percentage calculation of Bollinger bands is attained by adding and subtracting a standard deviation calculation. Standard deviation measures volatility to show how the market stock price varies from its actual value. Hence, Bollinger bands adjust to the market condition by measuring the price volatility. Using Bollinger bands, a forex traderRead More →

Throwbacks And Pullbacks In Forex Trading

One of the leading ways forex traders succeed is learning the ability to identify price patterns and act accordingly based on the movements. Some chart patterns are easy to read, while others are challenging, especially to the novices. Throwbacks and pullbacks are technical indicators with patterns that novices take time to understand. They can cause panic, especially to novice traders leading to the early exit of the trade. However, once they learn how to read and follow the patterns, throwbacks, and pullbacks become some of their best technical trading strategies. The trading strategies present forex traders with reliable profit-making opportunities, and they are amongst theRead More →

The Difference between Technical and Fundamental Analysis

Market Analysis is one of the most continuous and deepest debates since time immemorial as far as the forex market is concerned. This debate has always revolved around how to determine the best market analysis method when it comes to forex dealings. Although there has been no actual conclusion that has been arrived at, having adequate knowledge on all forms of analysis has been widely advocated for. Technical and fundamental analysis are two of the most common market evaluation methods particularly when forex trading is considered. Technical analysis is defined as investigation of both previous and ongoing price patterns in an attempt to accurately forecastRead More →

Benefits Of Technical Analysis As A Forex Trader

As a forex trader, if you want to make money, you need to understand the different strategies and techniques you can use. Technical analysis and trading is one of the most common and profitable ways to trade. Technical analysis is a technique that uses tools known as indicators to analyze historical data on the price of currency pairs and the movement of markets to help traders make trading decisions. Indicator tools used in technical analysis include Fibonacci lines, technical oscillators, moving averages convergence/divergence, and Bollinger bands among others. Technical analysis is used by many traders as their main method of trading. As such there areRead More →

Mistakes you Should Avoid when Using Fibonacci Retracement Tools

Fibonacci retracement is a technical analysis strategy that traders use to determine resistance and support levels. This strategy relies on the concept that markets will recall a predictable section of a move before they can proceed in the initial direction. There are some mistakes you should avoid when using Fibonacci retracements as we shall see in this article.  Fibonacci Retracement in technical Trading Many technical traders use Fibonacci retracements to determine strategic areas for stop losses, transactions, or target prices to help them enter at a better rate. Many indicators incorporate the retracement approach like Elliott Wave theory, Gartley patterns, and Tirone levels. After notableRead More →