Strategies

There are many ways to profit on the Forex market. Anticipating the future price movements of currency pairs is one of them, and arguably the most widespread among retail Forex traders. Carry trades and accumulating rollover profits is also a popular trading approach, which is based on buying a higher-yielding currency and simultaneously selling a lower-yielding currency, making a profit on the interest rate differential. However, did you know that traders can also make profits with very low risk through Forex arbitrage? If you don’t know what Forex arbitrage is, then you're in the right place. In this article, we’ll cover everything you need to know about the Forex arbitrage strategy and give examples on how it works.

To trade on a financial market, you need capital. Capital is used to buy an instrument if your analysis shows that its price could increase in value, eventually leading to capital gains and a profit for the trader. The Forex market is no different – in order to start trading currencies, you need to invest a certain sum of money with your broker which is then used to buy and sell currencies. The amount invested has a direct impact on the amount of profits you can make, as larger trading accounts can open larger position sizes than smaller trading accounts (given the same amount of leverage). We will tackle the important question concerning the minimum amount of money needed to trade Forex in the following lines, and show you that there is no universal answer that applies to all traders.

Exploring the Strategy Page Like a pilot understands their navigational instruments, an investor needs to understand the tools, metrics and options available to them in order f...

Financial markets shouldn’t be traded without a sound tried and tested trading system, and ­­the Forex market is no exception. Making the right trading decisions and finding tradeable setups on the market all depend on the rules of your trading system. Without a well-defined system, entering the market would more resemble gambling than trading, which significantly increases the chances of blowing your account in the long-term. Given the importance of trading systems in Forex, let’s cover what trading systems actually are and what the benefits of defining a trading system as a part of a comprehensive trading plan are. In addition, we’ll show you a simple Forex trading system that works, based on high-probability price action setups on higher timeframes. Let’s get started.

The Forex market is a specific financial market that trades over-the-counter. This means that there is no centralised exchange involved in the settlement of Forex transactions, like in the case of the stock market, and Forex market participants trade more or less directly with each other. There are certain benefits with over-the-counter markets such as Forex, including the ability to trade around the clock as the market doesn’t depend on the open market hours of a centralised exchange.

If you’re asking yourself how to start trading Forex, don’t look any further. There are many important points you need to know before you start trading Forex, such as picking a broker, installing your trading platform, and analysing the market. These are just the essentials of trading, and you’ll need to gain experience on your own through trial and error on the market. There are also a few handy tips that can improve your trading performance, especially if you’re new to trading and thinking about how to enter the Forex market. In this article, we’ll cover everything you need to know to get started as soon as possible and show you how to get into Forex trading, how to open your first trading account, and how to start trading Forex online.

Forex candlestick patterns are a popular tool to analyse price charts and confirm existing trade setups. They have been used for hundreds of years by Japanese rice traders and have made their way to the West through Steve Nison’s books. In this article, we’ll cover what Forex candlestick patterns are, how they’re formed, and how to trade on them.

 Money management plays an extremely important role in Forex trading. Without proper risk and money management techniques, trading would not differ too much from gambling in a casino. Even the most profitable trading strategy won’t produce positive trading results if the trader doesn’t respect at least the most crucial concepts in money management. To help you out in your trading journey and to show how important Forex capital management in trading can be, we compiled a list of the top 10 Forex money management tips that every trader should know.  

The 1% risk rule is very easy to follow. For example, if you had only £100 (100%) in your trading account, only ever risk £1 (1%) per trade. It can be used by any forex trader, whatever their experience and trading account size, obviously though 1% is a lot more for some forex traders than others. In this article, we will explain why you should be following the 1% risk rule and explain how some forex traders follow it.

The 50-day simple moving average (SMA) is commonly plotted on charts and utilized by traders and market analysts because historical analysis of price movements shows it to be an effective trend indicator. The 50-, 100- and 200-day moving averages are probably among the most commonly found lines drawn on any trader or analyst's charts. All three are considered major, or significant, moving averages and represent levels of support or resistance in a market. So you’re wondering: “Which is the best moving average?” Well, there’s no best moving average out there because it doesn’t exist (as it depends on your objective current market structure). But in a healthy trend, the 50 day moving average is king. And that’s what you’ll discover in today’s post, so read on…

Let me ask you: Do you get stopped out of your trades only to watch the markets reverse back in your direction? Or perhaps you try to ride a trend only to get stopped out on the retracement. And you’re feeling… “Argh, the market is rigged!” Well, that’s because you put your stop loss at the same level as everyone else — and it makes you an easy target for a stop hunt. But don’t worry, all this will change. Because in this post, you’ll learn you’ll learn how to set a proper stop loss so you can reduce risk, maximize profits, and avoid stop hunting.

Trend following trading strategies are often the most successful trading strategies to use. As a beginner, they are the best strategies to follow because they are often easy to implement. By using them you can also learn how the market works and make a profit as well. Many traders, beginners and professionals alike, rely on trends. Some even say that you can make a living off just one pattern, that is if you know how to use it. This doesn’t mean though that trend trading is always easy though. You may have heard the phrase ‘the trend is your friend’. However, there is another phrase which is also true; “The trend is your friend until the end when it bends.” Wise words from professional trader Ed Seykota.