Forex basics

Forex basics are the necessary knowledge and terms, without which you can’t start a trading career. Here you will learn what spread, options, types of accounts, pending orders and scalping strategies are. You’ll find answers to questions about how to choose a broker and trade on news with minimal risk, learn how to choose currency pairs. This section will reveal the secrets of training features and help you understand how to earn on Forex and succeed, while reducing risks and losses.

Many beginning traders sincerely believe the highest volatility is inherent in currency pairs, but it is one of the most popular errors as really powerful trends are often created by the CFD market on non-ferrous metals.

We offer those who loves graphical creations the facilitated option of wave trade quite available to beginners both by the level of knowledge and a deposit amount. Especially as even the experienced traders who are constantly practicing the wave analysis consider joint combinations of Woolf's Waves and Elliott’s Waves rather effective.

The idea of a price turn (Pivot Level or Pivot Point) for the first time was offered by G. V. Chase in the 30th years and since then searches of optimum techniques of trade at the key levels don't stop. Camarilla Equation system uses the property of the market to return to the closing price of a previous period – it is considered that it`s simple and effective.

As a rule, it isn't enough to trader to determine a point of a turn and the most probable price, there is a wish also to calculate the moment of emergence of this price, that is to answer the most important question – «when». The correct creation of angular patterns as which special case are Fibonacci’s Fan and Gann’s Fan allows determining approximate «route» of the price including key time points on this way.

It is a favorite graphical figure of large speculators because the Forex Triangle with equal probability can be both models of continuation of a trend, and a turn figure. Inside of such constructions the market is consolidating, warns about the forthcoming throw and if to learn to understand such signal, then the profitable transaction is provided to you.

The successful dealer always knows not only how, but also what, when, to whom on the most beneficial price to sell it. The challenging and correctly chosen goods for the transaction − is an additional insurance of success. Let's try to describe several problems which the trader faces in the case of the choice of a Forex trade asset.

Today Forex technical analysis just like the traffic regulations: everyone study, some of them - remember, and very few correctly apply. Let's try to understand whether really technical analysis is a guarantee of reliable earnings or they slightly increase chances of success. And is it possible to catch this chance.

Far from everybody is ready to trade by tools which requires not only studying the technical and fundamental analysis, but also accounting of national traditions − all that on Forex slang is called «exotic». Let's consider features of trade in European currencies − these assets are always available, more liquid and, as a rule, much more profitable.

There is an opinion the Tactica Adversa is applied for time estimation of strong trends in any sphere of activity, which able to provide a big mass of data for the analysis, for instance, exchange prices. The next attempt «to squeeze» the price estimation in tough time frames, and successful probably.

There are the market`s laws which will earn a profit at any time and on any asset. Any trader dreams to see in the market the thing, that no one of the crowd sees, but also the considerable courage is necessary to do the necessary actions in time. The Murrey`s levels were created for those who wants to be actual and strong.

The debates on what governs the market – technique or base, probably, are timeless. Nevertheless, today fundamental analysis is a necessary element of confident trading on any asset, and underestimation of its influence may cause serious losses. Let`s consider its main factors and technique of application.

It is assumed that only the one who believes that a cataclysm is possible can avoid it. Modern times of crisis almost completely changed the dynamics of markets, decreasing technical dependences and increasing the value of fundamental factors. But any experience in trade on Forex in times of crisis – it will be definitely useful.

Everyone heard this popular word, along with dozens of stories, that you may easy and fast earn on they. But Forex correlation as indicator of direct and implied connections between trading assets can be not only profitable, but also dangerous, therefore work with them requires considerable practice and serious approach to risk.

Advertising says that the fractal analysis allows to study dynamics of the market without long handling of historical data – it is enough five bars for primary assessment. Symmetry of long-term and short-term price fluctuations in the market doesn't raise doubts any more, but it`s better to be careful using fractals on Forex.

None of the new ideas can`t be implemented without the conflicts today, and HFT-trading is not an exception. You can perceive in different ways an informational and technical advantage of the high speed actions of speculators: from delight to criminal, but you will not ignore these modern predators already.

Thanks to informational technologies classical technical analysis became available to each trader today, actively advertised and develops, but at the same time increasingly works against small player. Why all Forex technical indicators in varying degree lies, whether it is worth using them in the modern market and how to reduce possible losses?

Finally all efforts of a technical analysis come down to estimate direction and trend volume, and therefore any assistant can be helpful in searching of a key point. Forex divergence trade situation are considered to be a strong advance reversal signal, but they are work unstably - their reliability raises reasonable doubts. Let`s try to explore.

Financial market has always been regarded as the one of the most risky fields of activity. Risk diversification as an integral component of any successful business enables to achieve the main goal of any investments which is to increase the probability of profit with minimal losses.

The financial market exists due to the competition between the strong and weak participants. The serious predators («wise money» or smart) take profit by manipulating the money and trade decisions. Nevertheless the large Forex players are not the enemies but rather more experienced partners for the reasonable trader.

Novice traders often hear about increase in volatility after the release of important news, but few people can explain clearly how to use this information in practice, so today let's talk about how to trade on news.