Month: March 2021

How to deal with stress and psychological stress in forex trading?) We all want to read and study topics related to strategy, analysis and Forex trading. For many traders, this is normal and understandable and is the simplest part of the trade. By contrast, emotion control and capital management belong to a vague category of knowledge in currency trading. On news channels, intermediary sites, news sources and analysis, both visual and online, you can find a presentation of the various market movements and strategies on which hot discussions are based, but commentators who are not usually trading themselves do not feel the importance of discussing the psychological side of trade in their presentations. However, the fact is that most Internet traders fail, and the main reason for the lack of success is the failure to control their feelings and achieve mental discipline. In some cases, you will find that the trader does not even reach the level that can lead to good knowledge of economic statistics and data to support trading in order to achieve better results. Instead, many accounts are erased early because traders behave like frightened rabbits in a market that is always charged with tension. Clearly, those seeking success in trade must devote a great deal of their efforts to refining their skills in psychological control. What do we look for in trade? Look for money and profits. But does the money and market movements that create it respond to our joy, pride, sadness or despair? Are markets becoming more cruel to us when we feel sad or more kindly when you feel that you are the invincible person? Do we achieve greater success when we trade on an unfounded basis of optimism or act and we are pessimistic or terrified? What is the best way to manage our emotions? The best way to manage our feelings is to isolate them completely while dealing with markets. Prices move according to short-term emotional reactions and long-term economic dynamics. But all of them can only be assessed by using logic because it is the only tool possessed by humankind. Some may raise his voice and say, and perhaps his words are justified, since markets move according to sentiment, when isolated and completely excluded from our decisions, we lose the opportunity to understand the markets. In response, we say that human beings are understood and analyzed by reason alone, and since emotions are logically unpredictable, so there will be no benefit in trying to trade markets based on emotional reactions. Feelings are unpredictable, we know it perfectly. So what is the logic in trying to assess and predict market movement on a personal basis that can not be understood or predicted? Bottom line, the emotions do not exist in a successful trade function. There should be no joy when you make a profit or a pain or grief at a loss. We can listen to the fruits of our profits with friends and family later, but if we try to enjoy them during trade, our happiness will soon turn into sadness. Unless you are able to understand the wisdom of Forex, do not waste your time checking the list of forex brokers to find the best option for you. The first step in Forex is to control your emotions and without it your broker or teacher will not help you much.

Forex trading defects) What I read a lot about the advantages of automated trading for Forex, but you should also know that trading using expert advisors is not necessarily the magic lamp of success as it seems at first glance. Everything has its advantages and disadvantages; so is the case with automated trading, where it continues to be accompanied by some disadvantages. You can see the most prominent of these shortcomings from the list below: . Personal intuition is lacking in circulation Computers do not have personal intuition or so-called sixth sense. Although some traders do not believe in the importance of this sentimentality in trading, some rely heavily on it – so automated trading may not be an appropriate option for these types of traders. Seamless implementation of transactions and the work of expert consultants without interruption are indispensable in automated trading systems. But unfortunately it may be difficult to keep the consultant running when relying solely on the PC at home or work. This means that you will have to use a dedicated server to run automated trading robots. The impossibility of applying some strategies in the form of automated experat. It is very difficult to encode wave analysis strategies and most basic analysis tools in the form of automated programs. The current level of artificial intelligence applications does not allow these tasks to be automated to perform better than manual methods. Failures sometimes depend on software and a number of other systems and although these systems are stable this does not mean they are infallible.   Continuous monitoring while doing a lot of work automatically but still needs to be monitored in order to verify that everything is working properly.   Not optimized is not always optimal is a problem not only in automated Forex system – many systems can not be optimized. Traders who use e-trading services can create trading systems that appear to be theoretically optimal but perform poorly in actual market conditions One of the most important disadvantages of trading is sudden market changes that may result in strong price movements. The trading platform will not know if the Federal Reserve raised interest rates through a surprise statement announced without an appointment. Another example may be a sudden political development, Gold and the fall in US dollar prices when North Korea launches a missile over Japan again in 2017 and that is why the program will not stop itself. There are several ways that traders try to overcome these obstacles. For example, if the programming language allows adding inputs to these conditions, such as automatically stopping the trading program if prices move more than a certain amount of points or if the trader stops trading itself when markets In the waiting phase for a specific event, a specific appointment preset does not correspond to the input of a particular trading program. As I have seen, there is nothing perfect in this world, and even automated trading that may seem interesting and widely popular also encounters some fateful problems. The wise decision here, in my personal opinion, goes out to use both types to make the most of it. For example, automated systems can be used to perform tasks that are easy to complete in the form of an expert consultant, while you can rely on manual systems with strategies that are difficult to program, such as simple trading systems that rely on graph and basic analysis models, The best option in this case.

Competition and war between currencies) What is the secret behind the desire for a weak currency? . In fact, many countries prefer strong currencies during periods of economic expansion, where strong currencies allow increased purchasing power of citizens. A strong currency can lead to a higher quality of life. It also helps in controlling inflation Although the currency is weak but has its own benefits – at least from the point of view of countries that favor that theory. When a country’s currency is weaker than its currency counterparts, its exports are cheaper and more attractive. Perhaps Japan is one of the countries that is known for its desire to keep its currency relatively weak. For their desire to keep the price of their exports lower and then accept people in other countries to buy their products. The same is true of China, a country that favors a weak value for the yuan relative to the US dollar, simply because more Americans want to buy cheap Chinese products. With lower export prices, a country can sell more goods to other countries. This, in turn, can promote and create jobs where weak-currency countries are forced to produce more goods to meet the growing demand for their cheap products. This situation can also promote economic growth. The devaluation of the currency could push economic growth forward and that is why many countries are concerned about the weaker currency during periods of economic recession Problems caused by currency wars While some believe that currency weakness can be useful in times of economic recession, others suggest that problems with currency wars can in turn lead to more problems. Many countries may resort to devaluation at the same time and this is one of the biggest issues that can actually lead to some kind of instability. When everyone tries to have the upper hand by maneuvering the currency, this will make the global market economy increasingly unstable. Ultimately, it can discourage investment and commercial reality, which actually limits growth rather than encouraging it Many people saw that the biggest threat posed by currency wars was the large scale of economic inflation on a large scale. When money supply increases, when currencies are devalued, prices rise. The purchasing power of the currency is reduced and what you can buy in one unit of currency is much less than it was. The purchasing power of the citizen is lower. Inflation is desirable, to some extent, by the secondary product of economic growth. But big inflation would stifle economic growth and eliminate middle-class savings. When this happens, it makes the whole system unstable, and can lead to economic collapse. Some fear that currency war, especially in the world economy, which has become a very integrated system, can lead to widespread inflation and thus a serious problem for the entire system. A comprehensive currency war can lead to a number of problems related to the global economy and lead to insufficient economic stimulus for any country

The 3 most famous traders in the history of forex) Jesse Livermore Born in Massachusetts, Jesse Livermore and Riston began his career in trading when he was only 14 years old. In just one year, revenues increased to $ 1,000, which is currently equivalent to $ 23,000. Livermore is widely recognized for winning and losing multi-million dollar deals in its trading history. His wealth as a result of trading amounted to $ 100 million (equal to 1.384 billion in 2014), although he lost all his wealth in 1934 and then ended his life in 1940. He noted that he would write down certain accounts about future market prices and would verify their accuracy later. Initially, it was his first investment in the stock market with a brokerage firm not licensed to deal in securities. However, his success in dealing with stocks brought him a lot of enemies, especially from the tycoons and decision makers, preventing the deal with most brokerage firms. This work enabled him to monitor the market and know the ways in which traders deal in a precise system based on the rules and scientific foundations and then put it in his famous book, explaining his philosophy of securities trading, which involves the growth of the volume of one trading center linked to the price in the right direction and cut losses Super fast . His available works have left open sources for traders to gain inspiration and increase their profits. William Delbert Gan Is a famous trader who developed unique technical analysis tools which are now called Gan indicators. It is known as Circle 360, with 9 squares, hexagonal shape, or Gan corners. Forecasting methods are based on ancient mathematics, geometry, astrology as well as astronomy. He has two books on circulation in which he presented his financial philosophy, but there are very contradictory views on the value and feasibility of his writings, and there are many doubts and speculation whether his actions are legal or not. However, he has produced a completely new perspective and view in the financial markets, as well as achieving huge fortunes based on his opinion of the financial market. George Soros Soros is a Hungarian-born American citizen, entrepreneur, investor and philanthropist. And head of Soros Fund Management – one of the best successful companies in the history of the hedge fund industry. He is one of the richest people in the world. Also known as “the man who broke the Bank of England” during the black Wednesday of the British currency crisis in 1992 where he managed to profit a billion dollars through speculative only and based on his good expectations. Between 1979 and now, George Soros has donated millions and billions of dollars to various charities. He also played a major role in the peaceful transformation of capitalism in Eastern Europe. Soros, as an author, is known to focus primarily on the concept of reflexive thinking. Showing how the bias of individuals entering the transaction market potentially shifts the fundamentals of the economy. Soros is famous for saying that different principles attract market changes whether they are “close, to balance” or “out of balance”

Forex trading features)  Expert Advisors Many traders (especially beginners) view it as a “magic lamp” for success in the Forex market. They expect every expert consultant they buy or are on their way to make quick profits without any risk. Expert consultants, certainly, are not the “magic lamp” in Forex. Automated trading is just another tool to ease the trader’s life, and sometimes to improve its profitability. The following is a list of the real advantages of trading Forex using expert advisors: Expert consultants provide the ability to trade at times when you can not trade manually. You can create an expert advisor to trade on your behalf when you are asleep, away from the trading platform, or even when you are too busy and do not have time to sit in front of the trading platform. Of course you can hire someone else to trade on your behalf when you are busy, but this solution will not be effective in many cases. A strict trading system is another advantage of Forex trading. If the expert adviser is provided with a specific strategy, he will deal with the specific parameters of this strategy without deviating from it in any way. Therefore, you will be advised to hire an experienced consultant to implement the trading strategy if you find it difficult to follow the signs issued by your system and you have always wanted to modify them. Automated trading excludes any human emotions from market behavior. Computers and software are not affected by human emotions, and therefore will not be overly traded when they are lost. If you do not have enough control over your feelings, then you’ll find great use in automated trading. Expert consultants deal with complex strategies without any problems. Tracking a large number of indicators, and comparing them in terms of the priority of entry points, is not an easy task for the trader, and here comes the role of an expert consultant who can do this easily and in a few moments. The error is human as the old Roman proverb says. The significance of this saying is that whatever your experience in Forex trading you will inevitably commit many stupid mistakes throughout your career. Computers are different from humans in this regard. As long as they are programmed without errors, the expert advisor will not make any mistakes during trading. There are many things that a trader can not do on his own – trading strategies, time frames or multiple currency pairs at once is one of them. If you want to apply the trading system to multiple time frames or currency pairs – then the best option would be to hire an expert consultant. And also if you want to test several systems at once – you will not be forced to use expert consultants. Time spent interacting with events and analyzing them, and decision making may be critical for many Forex trading systems. For this reason, traders may not have the opportunity to interact with current events quickly enough, which is a function of automatic trading systems. In another article we will talk about the disadvantages of automated trading in Forex

Ways to detect fraud in Forex As the popularity of Forex trading increases, cheating activities are increasing. Since Forex involves trading money on an international scale, often on the Internet, good chains of fraud attempts are beginning to emerge. Ironically, many of these fraud artists can find their footprints in newspapers, television, and other print media. While these cheating attempts can be easily monitored by experienced traders, new speculators find it difficult to distinguish between what is real and what is not. It is essential that you thoroughly look at everything related to Forex trading and which company you are likely to trade with before you deposit any investment money. The last thing you will need to know is if the company you invested in is subject to SEC investigation for fraudulent crimes. In such circumstances it will be impossible to recover your money from this company because the claims by people who have been scammed like you will be much higher than the payments that can be guaranteed by the government. One of the ways to detect the attempts of a monument in Forex trading is when you hear someone announce a forex trading system that does not involve any risk. It is common axiom that risk is a close adjective of Forex trading, and generally no one can claim otherwise, otherwise it is a liar or rather a criminal. Successful Forex trading requires the availability of knowledge, discipline and a prudent strategy for trading but does not require a magical or risk free program that can guarantee the profit of money in this field. One of the other common methods of cheating professionals in Forex is to offer and promise job opportunities for people who will use their trading systems. This is usually a trick to convince you to spend your money with them. It’s all about catching people with their money so they spend it in this company. These companies usually offer promises that they will save the company’s money for trading by people who will use their trading system. But why should they do that? All they do is try to lure people with their training systems and then try to convince them that those who excel during the training period will be hired by the company and traded with their real money that will enable them to make a fortune in a short time. All reputable Forex trading sites are often found in CFTC or NFA members. Make sure there are no claims on the company you will deal with and that they are members of one of these organizations before you consider dealing with them. Since the FX market is relatively unorganized, in many cases Forex attempts are technically well prepared and may involve intermediaries manipulating prices through methods that can not be traced by the average trader. For this you must be careful not to fall victim to such mediators.

You can succeed in Forex trading if you are busy؟ Forex Trading is a new and promising market for aspiring individuals who want to test their skills in a competitive environment with the right to huge profits. Mastering forex trading is not easy, you need to commit to devote some time and effort to learning and training on how to trade, this is necessary before achieving any desired results and at any level. This fact may sometimes irritate some potential traders to the point where they may be forced to abandon the idea of ​​currency trading because of the restrictions they impose on their times and their normal lives. In this article we will take a look at the reasonableness of the experience of currency trading in part to the average person. Perhaps the most obvious advantage of the Forex trading experience is the almost unlimited degree of flexibility that we can find in this market. The partial nature of the graphs means that ignoring the costs of the broker or trading, whether in the long run or short, are fundamental, no less important than technical analysis. On the other hand, dealing from the point of view of fundamental analysis means the possibility of applying different methods altogether when choosing between trade in the short or long term. Therefore, one can be a Forex trader for some time both in the long and short term but he will have to use different options as well as the need to change the approach he will adopt in trading. Part-time rolling in the short term will have to follow fully the technical approach along with the application of capital rules with precision and discipline. In this case, the timing of entry will not mean much but it would be highly desirable to avoid periods of high volatility unless one has enough time to absorb the continuous flow of market news. As such, part-time traders will prefer to deal with a quiet market and fairly stable trades dominated by technical factors. As for the part-time trader in the long term, he will have to choose the market entry times accurately. Since the long term trading center requires a deep understanding and analysis, it is important that the actual performance of the trade precedes a period of deep and accurate analysis. The main advantage of trading in a fundamental and long-term approach is to provide significant potential for both huge profits and risk reduction when compared to other assumptions. Long term traders should use low leverage levels because they will have to keep the trading position open for a long time and thus avoiding market volatility will make use of high or even moderate levels of leverage to be avoided in order to reduce the probability of loss. The existence of clear criteria determining the conditions of closing the trading center. In fact, it is not possible to make a decision about the company most suitable for the experience of trading full-time only by reading the reviews of forex brokers on the Internet or go behind the assessments available. You will need to go on your own to test the company effectively and for some time. This is because part-time trader needs a high degree of accuracy and reliability from the broker who deals with him because he can not afford to fail the trading platform he uses in the few times that will be available for him to sit on the Internet and start trading. For this, check your choices; But in any case, Forex trading for some time is a practical choice as long as it has enough training.

How to deal with loss in Forex?( The most important rule in the area of ​​currency trading is to try to reduce your losses as much as possible. When your losses are small, you can stay in the market for as long as you can, even when you are moving against you, so that you can benefit from market conditions when you start moving in the direction you want. One of the best ways to keep your losses at a minimum is to determine the maximum loss you can afford even before you open the trading center. The maximum loss or loss is the maximum amount of capital you can remain comfortable even if you lose it during trading. Keeping your maximum losses at a certain percentage of your account balance will not stop you from trading at any time. Unlike 95% of forex traders who lose their money just because they have not followed prudent rules to manage their capital within their trading system, you will remain in good shape using this golden rule of capital management. Let’s use an example. If you have a $ 1000 trading account and start trading at $ 100, you may be losing three consecutive times. This will reduce your trading capital to $ 400. Then you may decide to trade at $ 200 in the next trading center because you think there is a greater chance of making profit after losing three consecutive times. If the trader decides to trade at $ 100 in the next trading center because he thinks he is able to make a profit, his capital will decrease in case of loss to $ 250. In that case, the chances of making money are almost non-existent because he will have to win about 150% of his capital until he reaches the point of parity. If the maximum loss has been determined and committed, the trader may not find himself in this position.  And other way to use your trading strategy, and to accurately transmit the results of your trades to the profit and loss rates and the expectations of the strategy. For example, if your strategy shows a profit rate of 75%, you should expect 25 losing trades after you have 100 trades in the Forex markets. However, if your strategy is performing as it was during the experiment, you still have to record profits if the forecast value of the trading strategy obscures its effectiveness. Therefore, you must deal with the losses as a normal part of the trading sequence in the Forex markets, which produces profit-loss ratios for your trading strategy. However, if you trade in the Forex markets in an illogical way, you will not be able to put your losses in a very clear frame, and you may be scared as a result. Trying to force operations to succeed when all the market conditions are not in your favor is not wise, and will only result in substantial financial losses. Instead, you have to develop a psychological state that enables you to deal with losses as they are by analyzing them mechanically and with cool nerves. You have to study it systematically, and then move on to the next process

(How did forex start?) The origin of the Forex trade has been traced back to its history years ago. Different currencies and the need to exchange them have existed since the days of the Babylonians. He calculated that they were the first to use paper notebooks. Speculations were barely speaking. These days the value of goods was expressed in the form of other goods. The clear limits of this system encouraged more acceptable means of exchange. It was necessary to establish a common rule for calculating the value. In some economies, things such as teeth, feathers and even stones were used at some times, but later on, the use of minerals, especially gold and silver, was used to dig a prominent place as an acceptable means of payment and also as a storehouse of value that could be trusted. Trade between the peoples of Africa, Asia and others was done through this system. Money was initially manufactured from the preferred metal in stable political systems, introducing the paper form of government bonds also gained acceptance in the Middle Ages. This type of bond or paper currency was more successful by imposing it through force than persuasion until it became the basis of the modern currency system in today’s world. Before the First World War, most central banks supported their currencies by making them convertible into gold. However, the standard gold swap system had weaknesses during the cycles of contraction and boom. When an economy recovers, it begins to increase the pace of its imports from abroad so that its gold reserves are reduced to support its currency. As a result, money supply dwindles as interest rates rise and economic activity slows down to recession. in the end. . The Great Depression and the abolition of the gold standard system in 1931 created a period of calm in the activity of the Forex market. From 1931 until 1973 The European Economic Community introduced a new system of fixed exchange rates in 1979 known as the European Monetary System. Europe’s pursuit of currency stability continued with the signing of the Maastricht Treaty of 1991, which not only aimed at stabilizing exchange rates but also replaced many of them in euros in 2002. London was and remains the main center of the offshore market. In 1980, it became the main center of the Euro-Dollar market when British banks began lending in US dollars as an alternative to the Pound. In order to maintain its leadership position among global financial centers, the non-persistence of the fixed exchange rate regime gained new significance with the events in Southeast Asia At the end of 1997, some of the currencies were devalued against the US dollar, while others were left unchanged, especially in South America, which was also in dire straits at this time. While businesses have to face a more volatile currency environment during these years, investors and financial institutions have found new ground to work on. The Forex market initially operated under the control of central banks and government institutions but later absorbed various other financial institutions. At the moment, it also includes dot com companies as well as those operating on the Internet. The size of the Forex market is currently dwarfed by any other market for investment. The foreign exchange market is the largest financial market in the world where it trades approximately $ 1.9 trillion a day. It is estimated that more than $ 1200 billion a day is traded daily and thus can easily be said that the Forex market is a very lucrative opportunity for discerning investors

(The main difficulties facing a forex trader) Most traders spend years trying to look for a set of indicators that only a few Forex traders know that will enable them to become wealthy in a short time. But there is no such thing as a fantastic indicator or a set of indicators that can enrich anyone in a short period of time. The main reason for this is market changes, each moment is unique. Any Forex trading system will inevitably fail at one time or another. Therefore, our goal will be to find the Forex trading system that fits our character as traders, otherwise the trader will have difficulty tracking this system. Unfortunately, most traders are attracted to the Forex market because of the desire to increase money. This is mainly due to the fact that advertising always tries to show or suggest that trading and making money in Forex are easy. But in fact, trade in itself is very easy for anyone to do. It’s just as difficult as a single peak, but the second part of trading is not that simple. Making money or achieving continuous profitability results is difficult as it requires a lot of learning, patience, discipline and commitment. This list will continue with you forever. Most traders ignore that they will not have to use capital management rules until they achieve sustained profitability results. But capital management allows you to increase your profits systematically and also reduce the risk you face in each trading center. Capital management tells you how much risk you can incur in each single trade. Using capital rules is essential if you want to achieve the objectives of your business. Using capital management rules, you are sure you can stay in the market tomorrow, next week, next month and even in the following years Psychological discipline is one of the most forgotten topics. One of the most important principles of the financial market is that the price of any financial asset depends on the realization of all individuals involved in the market or so-called “herd.” In other words, the price of any financial asset is determined according to the factors of fear, greed and hope of all traders. You must be aware of all the psychological factors affecting the decisions of traders will definitely put the possibilities of trade in your favor. Learning is the basis of knowledge in any human system. Just as engineers and doctors need long years of university education before earning their degree, Forex traders are also required to spend many years studying. It is recommended that you find someone with experience to guide you through the trading process because some information may take you without knowing the wrong path.