Hi guys, I have been using reddit for years in my personal life (not trading!) and wanted to give something back in an area where i am an expert. I worked at an investment bank for seven years and joined them as a graduate FX trader so have lots of professional experience, by which i mean I was trained and paid by a big institution to trade on their behalf. This is very different to being a full-time home trader, although that is not to discredit those guys, who can accumulate a good amount of experience/wisdom through self learning. When I get time I'm going to write a mid-length posts on each topic for you guys along the lines of how i was trained. I guess there would be 15-20 topics in total so about 50-60 posts. Feel free to comment or ask questions. The first topic is Risk Management and we'll cover it in three parts Part I
Why it matters
Using stops sensibly
Picking a clear level
Why it matters
The first rule of making money through trading is to ensure you do not lose money. Look at any serious hedge fund’s website and they’ll talk about their first priority being “preservation of investor capital.” You have to keep it before you grow it. Strangely, if you look at retail trading websites, for every one article on risk management there are probably fifty on trade selection. This is completely the wrong way around. The great news is that this stuff is pretty simple and process-driven. Anyone can learn and follow best practices. Seriously, avoiding mistakes is one of the most important things: there's not some holy grail system for finding winning trades, rather a routine and fairly boring set of processes that ensure that you are profitable, despite having plenty of losing trades alongside the winners.
Capital and position sizing
The first thing you have to know is how much capital you are working with. Let’s say you have $100,000 deposited. This is your maximum trading capital. Your trading capital is not the leveraged amount. It is the amount of money you have deposited and can withdraw or lose. Position sizing is what ensures that a losing streak does not take you out of the market. A rule of thumb is that one should risk no more than 2% of one’s account balance on an individual trade and no more than 8% of one’s account balance on a specific theme. We’ll look at why that’s a rule of thumb later. For now let’s just accept those numbers and look at examples. So we have $100,000 in our account. And we wish to buy EURUSD. We should therefore not be risking more than 2% which $2,000. We look at a technical chart and decide to leave a stop below the monthly low, which is 55 pips below market. We’ll come back to this in a bit. So what should our position size be? We go to the calculator page, select Position Size and enter our details. There are many such calculators online - just google "Pip calculator". https://preview.redd.it/y38zb666e5h51.jpg?width=1200&format=pjpg&auto=webp&s=26e4fe569dc5c1f43ce4c746230c49b138691d14 So the appropriate size is a buy position of 363,636 EURUSD. If it reaches our stop level we know we’ll lose precisely $2,000 or 2% of our capital. You should be using this calculator (or something similar) on every single trade so that you know your risk. Now imagine that we have similar bets on EURJPY and EURGBP, which have also broken above moving averages. Clearly this EUR-momentum is a theme. If it works all three bets are likely to pay off. But if it goes wrong we are likely to lose on all three at once. We are going to look at this concept of correlation in more detail later. The total amount of risk in our portfolio - if all of the trades on this EUR-momentum theme were to hit their stops - should not exceed $8,000 or 8% of total capital. This allows us to go big on themes we like without going bust when the theme does not work. As we’ll see later, many traders only win on 40-60% of trades. So you have to accept losing trades will be common and ensure you size trades so they cannot ruin you. Similarly, like poker players, we should risk more on trades we feel confident about and less on trades that seem less compelling. However, this should always be subject to overall position sizing constraints. For example before you put on each trade you might rate the strength of your conviction in the trade and allocate a position size accordingly: https://preview.redd.it/q2ea6rgae5h51.png?width=1200&format=png&auto=webp&s=4332cb8d0bbbc3d8db972c1f28e8189105393e5b To keep yourself disciplined you should try to ensure that no more than one in twenty trades are graded exceptional and allocated 5% of account balance risk. It really should be a rare moment when all the stars align for you. Notice that the nice thing about dealing in percentages is that it scales. Say you start out with $100,000 but end the year up 50% at $150,000. Now a 1% bet will risk $1,500 rather than $1,000. That makes sense as your capital has grown. It is extremely common for retail accounts to blow-up by making only 4-5 losing trades because they are leveraged at 50:1 and have taken on far too large a position, relative to their account balance. Consider that GBPUSD tends to move 1% each day. If you have an account balance of $10k then it would be crazy to take a position of $500k (50:1 leveraged). A 1% move on $500k is $5k. Two perfectly regular down days in a row — or a single day’s move of 2% — and you will receive a margin call from the broker, have the account closed out, and have lost all your money. Do not let this happen to you. Use position sizing discipline to protect yourself.
If you’re wondering - why “about 2%” per trade? - that’s a fair question. Why not 0.5% or 10% or any other number? The Kelly Criterion is a formula that was adapted for use in casinos. If you know the odds of winning and the expected pay-off, it tells you how much you should bet in each round. This is harder than it sounds. Let’s say you could bet on a weighted coin flip, where it lands on heads 60% of the time and tails 40% of the time. The payout is $2 per $1 bet. Well, absolutely you should bet. The odds are in your favour. But if you have, say, $100 it is less obvious how much you should bet to avoid ruin. Say you bet $50, the odds that it could land on tails twice in a row are 16%. You could easily be out after the first two flips. Equally, betting $1 is not going to maximise your advantage. The odds are 60/40 in your favour so only betting $1 is likely too conservative. The Kelly Criterion is a formula that produces the long-run optimal bet size, given the odds. Applying the formula to forex trading looks like this: Position size % = Winning trade % - ( (1- Winning trade %) / Risk-reward ratio If you have recorded hundreds of trades in your journal - see next chapter - you can calculate what this outputs for you specifically. If you don't have hundreds of trades then let’s assume some realistic defaults of Winning trade % being 30% and Risk-reward ratio being 3. The 3 implies your TP is 3x the distance of your stop from entry e.g. 300 pips take profit and 100 pips stop loss. So that’s 0.3 - (1 - 0.3) / 3 = 6.6%. Hold on a second. 6.6% of your account probably feels like a LOT to risk per trade.This is the main observation people have on Kelly: whilst it may optimise the long-run results it doesn’t take into account the pain of drawdowns. It is better thought of as the rational maximum limit. You needn’t go right up to the limit! With a 30% winning trade ratio, the odds of you losing on four trades in a row is nearly one in four. That would result in a drawdown of nearly a quarter of your starting account balance. Could you really stomach that and put on the fifth trade, cool as ice? Most of us could not. Accordingly people tend to reduce the bet size. For example, let’s say you know you would feel emotionally affected by losing 25% of your account. Well, the simplest way is to divide the Kelly output by four. You have effectively hidden 75% of your account balance from Kelly and it is now optimised to avoid a total wipeout of just the 25% it can see. This gives 6.6% / 4 = 1.65%. Of course different trading approaches and different risk appetites will provide different optimal bet sizes but as a rule of thumb something between 1-2% is appropriate for the style and risk appetite of most retail traders. Incidentally be very wary of systems or traders who claim high winning trade % like 80%. Invariably these don’t pass a basic sense-check:
How many live trades have you done? Often they’ll have done only a handful of real trades and the rest are simulated backtests, which are overfitted. The model will soon die.
What is your risk-reward ratio on each trade? If you have a take profit $3 away and a stop loss $100 away, of course most trades will be winners. You will not be making money, however! In general most traders should trade smaller position sizes and less frequently than they do. If you are going to bias one way or the other, far better to start off too small.
How to use stop losses sensibly
Stop losses have a bad reputation amongst the retail community but are absolutely essential to risk management. No serious discretionary trader can operate without them. A stop loss is a resting order, left with the broker, to automatically close your position if it reaches a certain price. For a recap on the various order types visit this chapter. The valid concern with stop losses is that disreputable brokers look for a concentration of stops and then, when the market is close, whipsaw the price through the stop levels so that the clients ‘stop out’ and sell to the broker at a low rate before the market naturally comes back higher. This is referred to as ‘stop hunting’. This would be extremely immoral behaviour and the way to guard against it is to use a highly reputable top-tier broker in a well regulated region such as the UK. Why are stop losses so important? Well, there is no other way to manage risk with certainty. You should always have a pre-determined stop loss before you put on a trade. Not having one is a recipe for disaster: you will find yourself emotionally attached to the trade as it goes against you and it will be extremely hard to cut the loss. This is a well known behavioural bias that we’ll explore in a later chapter. Learning to take a loss and move on rationally is a key lesson for new traders. A common mistake is to think of the market as a personal nemesis. The market, of course, is totally impersonal; it doesn’t care whether you make money or not. Bruce Kovner, founder of the hedge fund Caxton Associates There is an old saying amongst bank traders which is “losers average losers”. It is tempting, having bought EURUSD and seeing it go lower, to buy more. Your average price will improve if you keep buying as it goes lower. If it was cheap before it must be a bargain now, right? Wrong. Where does that end? Always have a pre-determined cut-off point which limits your risk. A level where you know the reason for the trade was proved ‘wrong’ ... and stick to it strictly. If you trade using discretion, use stops.
Picking a clear level
Where you leave your stop loss is key. Typically traders will leave them at big technical levels such as recent highs or lows. For example if EURUSD is trading at 1.1250 and the recent month’s low is 1.1205 then leaving it just below at 1.1200 seems sensible. If you were going long, just below the double bottom support zone seems like a sensible area to leave a stop You want to give it a bit of breathing room as we know support zones often get challenged before the price rallies. This is because lots of traders identify the same zones. You won’t be the only one selling around 1.1200. The “weak hands” who leave their sell stop order at exactly the level are likely to get taken out as the market tests the support. Those who leave it ten or fifteen pips below the level have more breathing room and will survive a quick test of the level before a resumed run-up. Your timeframe and trading style clearly play a part. Here’s a candlestick chart (one candle is one day) for GBPUSD. https://preview.redd.it/moyngdy4f5h51.png?width=1200&format=png&auto=webp&s=91af88da00dd3a09e202880d8029b0ddf04fb802 If you are putting on a trend-following trade you expect to hold for weeks then you need to have a stop loss that can withstand the daily noise. Look at the downtrend on the chart. There were plenty of days in which the price rallied 60 pips or more during the wider downtrend. So having a really tight stop of, say, 25 pips that gets chopped up in noisy short-term moves is not going to work for this kind of trade. You need to use a wider stop and take a smaller position size, determined by the stop level. There are several tools you can use to help you estimate what is a safe distance and we’ll look at those in the next section. There are of course exceptions. For example, if you are doing range-break style trading you might have a really tight stop, set just below the previous range high. https://preview.redd.it/ygy0tko7f5h51.png?width=1200&format=png&auto=webp&s=34af49da61c911befdc0db26af66f6c313556c81 Clearly then where you set stops will depend on your trading style as well as your holding horizons and the volatility of each instrument. Here are some guidelines that can help:
Use technical analysis to pick important levels (support, resistance, previous high/lows, moving averages etc.) as these provide clear exit and entry points on a trade.
Ensure that the stop gives your trade enough room to breathe and reflects your timeframe and typical volatility of each pair. See next section.
Always pick your stop level first. Then use a calculator to determine the appropriate lot size for the position, based on the % of your account balance you wish to risk on the trade.
So far we have talked about price-based stops. There is another sort which is more of a fundamental stop, used alongside - not instead of - price stops. If either breaks you’re out. For example if you stop understanding why a product is going up or down and your fundamental thesis has been confirmed wrong, get out. For example, if you are long because you think the central bank is turning hawkish and AUDUSD is going to play catch up with rates … then you hear dovish noises from the central bank and the bond yields retrace lower and back in line with the currency - close your AUDUSD position. You already know your thesis was wrong. No need to give away more money to the market.
Coming up in part II
EDIT: part II here Letting stops breathe When to change a stop Entering and exiting winning positions Risk:reward ratios Risk-adjusted returns
Coming up in part III
Squeezes and other risks Market positioning Bet correlation Crap trades, timeouts and monthly limits *** Disclaimer:This content is not investment advice and you should not place any reliance on it. The views expressed are the author's own and should not be attributed to any other person, including their employer.
Former investment bank FX trader: Risk management part 3/3
Welcome to the third and final part of this chapter. Thank you all for the 100s of comments and upvotes - maybe this post will take us above 1,000 for this topic! Keep any feedback or questions coming in the replies below. Before you read this note, please start with Part I and then Part II so it hangs together and makes sense. Part III
Squeezes and other risks
Crap trades, timeouts and monthly limits
Squeezes and other risks
We are going to cover three common risks that traders face: events; squeezes, asymmetric bets.
Economic releases can cause large short-term volatility. The most famous is Non Farm Payrolls, which is the most widely watched measure of US employment levels and affects the price of many instruments.On an NFP announcement currencies like EURUSD might jump (or drop) 100 pips no problem. This is fine and there are trading strategies that one may employ around this but the key thing is to be aware of these releases.You can find economic calendars all over the internet - including on this site - and you need only check if there are any major releases each day or week. For example, if you are trading off some intraday chart and scalping a few pips here and there it would be highly sensible to go into a known data release flat as it is pure coin-toss and not the reason for your trading. It only takes five minutes each day to plan for the day ahead so do not get caught out by this. Many retail traders get stopped out on such events when price volatility is at its peak.
Short squeezes bring a lot of danger and perhaps some opportunity. The story of VW and Porsche is the best short squeeze ever. Throughout these articles we've used FX examples wherever possible but in this one instance the concept (which is also highly relevant in FX) is best illustrated with an historical lesson from a different asset class. A short squeeze is when a participant ends up in a short position they are forced to cover. Especially when the rest of the market knows that this participant can be bullied into stopping out at terrible levels, provided the market can briefly drive the price into their pain zone. There's a reason for the car, don't worry Hedge funds had been shorting VW stock. However the amount of VW stock available to buy in the open market was actually quite limited. The local government owned a chunk and Porsche itself had bought and locked away around 30%. Neither of these would sell to the hedge-funds so a good amount of the stock was un-buyable at any price. If you sell or short a stock you must be prepared to buy it back to go flat at some point. To cut a long story short, Porsche bought a lot of call options on VW stock. These options gave them the right to purchase VW stock from banks at slightly above market price. Eventually the banks who had sold these options realised there was no VW stock to go out and buy since the German government wouldn’t sell its allocation and Porsche wouldn’t either. If Porsche called in the options the banks were in trouble. Porsche called in the options which forced the shorts to buy stock - at whatever price they could get it. The price squeezed higher as those that were short got massively squeezed and stopped out. For one brief moment in 2008, VW was the world’s most valuable company. Shorts were burned hard. Incredible event Porsche apparently made $11.5 billion on the trade. The BBC described Porsche as “a hedge fund with a carmaker attached.” If this all seems exotic then know that the same thing happens in FX all the time. If everyone in the market is talking about a key level in EURUSD being 1.2050 then you can bet the market will try to push through 1.2050 just to take out any short stops at that level. Whether it then rallies higher or fails and trades back lower is a different matter entirely. This brings us on to the matter of crowded trades. We will look at positioning in more detail in the next section. Crowded trades are dangerous for PNL. If everyone believes EURUSD is going down and has already sold EURUSD then you run the risk of a short squeeze. For additional selling to take place you need a very good reason for people to add to their position whereas a move in the other direction could force mass buying to cover their shorts. A trading mentor when I worked at the investment bank once advised me: Always think about which move would cause the maximum people the maximum pain. That move is precisely what you should be watching out for at all times.
Also known as picking up pennies in front of a steamroller. This risk has caught out many a retail trader. Sometimes it is referred to as a "negative skew" strategy. Ideally what you are looking for is asymmetric risk trade set-ups: that is where the downside is clearly defined and smaller than the upside. What you want to avoid is the opposite. A famous example of this going wrong was the Swiss National Bank de-peg in 2012. The Swiss National Bank had said they would defend the price of EURCHF so that it did not go below 1.2. Many people believed it could never go below 1.2 due to this. Many retail traders therefore opted for a strategy that some describe as ‘picking up pennies in front of a steam-roller’. They would would buy EURCHF above the peg level and hope for a tiny rally of several pips before selling them back and keep doing this repeatedly. Often they were highly leveraged at 100:1 so that they could amplify the profit of the tiny 5-10 pip rally. Then this happened. Something that changed FX markets forever The SNB suddenly did the unthinkable. They stopped defending the price. CHF jumped and so EURCHF (the number of CHF per 1 EUR) dropped to new lows very fast. Clearly, this trade had horrific risk : reward asymmetry: you risked 30% to make 0.05%. Other strategies like naively selling options have the same result. You win a small amount of money each day and then spectacularly blow up at some point down the line.
We have talked about short squeezes. But how do you know what the market position is? And should you care? Let’s start with the first. You should definitely care. Let’s imagine the entire market is exceptionally long EURUSD and positioning reaches extreme levels. This makes EURUSD very vulnerable. To keep the price going higher EURUSD needs to attract fresh buy orders. If everyone is already long and has no room to add, what can incentivise people to keep buying? The news flow might be good. They may believe EURUSD goes higher. But they have already bought and have their maximum position on. On the flip side, if there’s an unexpected event and EURUSD gaps lower you will have the entire market trying to exit the position at the same time. Like a herd of cows running through a single doorway. Messy. We are going to look at this in more detail in a later chapter, where we discuss ‘carry’ trades. For now this TRYJPY chart might provide some idea of what a rush to the exits of a crowded position looks like. A carry trade position clear-out in action Knowing if the market is currently at extreme levels of long or short can therefore be helpful. The CFTC makes available a weekly report, which details the overall positions of speculative traders “Non Commercial Traders” in some of the major futures products. This includes futures tied to deliverable FX pairs such as EURUSD as well as products such as gold. The report is called “CFTC Commitments of Traders” ("COT"). This is a great benchmark. It is far more representative of the overall market than the proprietary ones offered by retail brokers as it covers a far larger cross-section of the institutional market. Generally market participants will not pay a lot of attention to commercial hedgers, which are also detailed in the report. This data is worth tracking but these folks are simply hedging real-world transactions rather than speculating so their activity is far less revealing and far more noisy. You can find the data online for free and download it directly here. Raw format is kinda hard to work with However, many websites will chart this for you free of charge and you may find it more convenient to look at it that way. Just google “CFTC positioning charts”. But you can easily get visualisations You can visually spot extreme positioning. It is extremely powerful. Bear in mind the reports come out Friday afternoon US time and the report is a snapshot up to the prior Tuesday. That means it is a lagged report - by the time it is released it is a few days out of date. For longer term trades where you hold positions for weeks this is of course still pretty helpful information. As well as the absolute level (is the speculative market net long or short) you can also use this to pick up on changes in positioning. For example if bad news comes out how much does the net short increase? If good news comes out, the market may remain net short but how much did they buy back? A lot of traders ask themselves “Does the market have this trade on?” The positioning data is a good method for answering this. It provides a good finger on the pulse of the wider market sentiment and activity. For example you might say: “There was lots of noise about the good employment numbers in the US. However, there wasn’t actually a lot of position change on the back of it. Maybe everyone who wants to buy already has. What would happen now if bad news came out?” In general traders will be wary of entering a crowded position because it will be hard to attract additional buyers or sellers and there could be an aggressive exit. If you want to enter a trade that is showing extreme levels of positioning you must think carefully about this dynamic.
Retail traders often drastically underestimate how correlated their bets are. Through bitter experience, I have learned that a mistake in position correlation is the root of some of the most serious problems in trading. If you have eight highly correlated positions, then you are really trading one position that is eight times as large. Bruce Kovner of hedge fund, Caxton Associates For example, if you are trading a bunch of pairs against the USD you will end up with a simply huge USD exposure. A single USD-trigger can ruin all your bets. Your ideal scenario — and it isn’t always possible — would be to have a highly diversified portfolio of bets that do not move in tandem. Look at this chart. Inverted USD index (DXY) is green. AUDUSD is orange. EURUSD is blue. Chart from TradingView So the whole thing is just one big USD trade! If you are long AUDUSD, long EURUSD, and short DXY you have three anti USD bets that are all likely to work or fail together. The more diversified your portfolio of bets are, the more risk you can take on each. There’s a really good video, explaining the benefits of diversification from Ray Dalio. A systematic fund with access to an investable universe of 10,000 instruments has more opportunity to make a better risk-adjusted return than a trader who only focuses on three symbols. Diversification really is the closest thing to a free lunch in finance. But let’s be pragmatic and realistic. Human retail traders don’t have capacity to run even one hundred bets at a time. More realistic would be an average of 2-3 trades on simultaneously. So what can be done? For example:
You might diversify across time horizons by having a mix of short-term and long-term trades.
You might diversify across asset classes - trading some FX but also crypto and equities.
You might diversify your trade generation approach so you are not relying on the same indicators or drivers on each trade.
You might diversify your exposure to the market regime by having some trades that assume a trend will continue (momentum) and some that assume we will be range-bound (carry).
And so on. Basically you want to scan your portfolio of trades and make sure you are not putting all your eggs in one basket. If some trades underperform others will perform - assuming the bets are not correlated - and that way you can ensure your overall portfolio takes less risk per unit of return. The key thing is to start thinking about a portfolio of bets and what each new trade offers to your existing portfolio of risk. Will it diversify or amplify a current exposure?
Crap trades, timeouts and monthly limits
One common mistake is to get bored and restless and put on crap trades. This just means trades in which you have low conviction. It is perfectly fine not to trade. If you feel like you do not understand the market at a particular point, simply choose not to trade. Flat is a position. Do not waste your bullets on rubbish trades. Only enter a trade when you have carefully considered it from all angles and feel good about the risk. This will make it far easier to hold onto the trade if it moves against you at any point. You actually believe in it. Equally, you need to set monthly limits. A standard limit might be a 10% account balance stop per month. At that point you close all your positions immediately and stop trading till next month. Be strict with yourself and walk away Let’s assume you started the year with $100k and made 5% in January so enter Feb with $105k balance. Your stop is therefore 10% of $105k or $10.5k . If your account balance dips to $94.5k ($105k-$10.5k) then you stop yourself out and don’t resume trading till March the first. Having monthly calendar breaks is nice for another reason. Say you made a load of money in January. You don’t want to start February feeling you are up 5% or it is too tempting to avoid trading all month and protect the existing win. Each month and each year should feel like a clean slate and an independent period. Everyone has trading slumps. It is perfectly normal. It will definitely happen to you at some stage. The trick is to take a break and refocus. Conserve your capital by not trading a lot whilst you are on a losing streak. This period will be much harder for you emotionally and you’ll end up making suboptimal decisions. An enforced break will help you see the bigger picture. Put in place a process before you start trading and then it’ll be easy to follow and will feel much less emotional. Remember: the market doesn’t care if you win or lose, it is nothing personal. When your head has cooled and you feel calm you return the next month and begin the task of building back your account balance.
That's a wrap on risk management
Thanks for taking time to read this three-part chapter on risk management. I hope you enjoyed it. Do comment in the replies if you have any questions or feedback. Remember: the most important part of trading is not making money. It is not losing money. Always start with that principle. I hope these three notes have provided some food for thought on how you might approach risk management and are of practical use to you when trading. Avoiding mistakes is not a sexy tagline but it is an effective and reliable way to improve results. Next up I will be writing about an exciting topic I think many traders should look at rather differently: news trading. Please follow on here to receive notifications and the broad outline is below. News Trading Part I
Why use the economic calendar
Reading the economic calendar
Knowing what's priced in
First order thinking vs second order thinking
News Trading Part II
Preparing for quantitative and qualitative releases
Data surprise index
Using recent events to predict future reactions
Buy the rumour, sell the fact
The mysterious 'position trim' effect
Some key FX releases
*** Disclaimer:This content is not investment advice and you should not place any reliance on it. The views expressed are the author's own and should not be attributed to any other person, including their employer.
From the first half of the news trading note we learned some ways to estimate what is priced in by the market. We learned that we are trading any gap in market expectations rather than the result itself. A good result when the market expected a fantastic result is disappointing! We also looked at second order thinking. After all that, I hope the reaction of prices to events is starting to make more sense to you. Before you understand the core concepts of pricing in and second order thinking, price reactions to events can seem mystifying at times We'll add one thought-provoking quote. Keynes (that rare economist who also managed institutional money) offered this analogy. He compared selecting investments to a beauty contest in which newspaper readers would write in with their votes and win a prize if their votes most closely matched the six most popularly selected women across all readers: It is not a case of choosing those (faces) which, to the best of one’s judgment, are really the prettiest, nor even those which average opinions genuinely thinks the prettiest. We have reached the third degree where we devote our intelligences to anticipating what average opinion expects the average opinion to be. Trading is no different. You are trying to anticipate how other traders will react to news and how that will move prices. Perhaps you disagree with their reaction. Still, if you can anticipate what it will be you would be sensible to act upon it. Don't forget: meanwhile they are also trying to anticipate what you and everyone else will do. Part II
Preparing for quantitative and qualitative releases
Data surprise index
Using recent events to predict future reactions
Buy the rumour, sell the fact
The trimming position effect
Some key FX releases
Preparing for quantitative and qualitative releases
The majority of releases are quantitative. All that means is there’s some number. Like unemployment figures or GDP. Historic results provide interesting context. We are looking below the Australian unemployment rate which is released monthly. If you plot it out a few years back you can spot a clear trend, which got massively reversed. Knowing this trend gives you additional information when the figure is released. In the same way prices can trend so do economic data. A great resource that's totally free to use This makes sense: if for example things are getting steadily better in the economy you’d expect to see unemployment steadily going down. Knowing the trend and how much noise there is in the data gives you an informational edge over lazy traders. For example, when we see the spike above 6% on the above you’d instantly know it was crazy and a huge trading opportunity since a) the fluctuations month on month are normally tiny and b) it is a huge reversal of the long-term trend. Would all the other AUDUSD traders know and react proportionately? If not and yet they still trade, their laziness may be an opportunity for more informed traders to make some money. Tradingeconomics.com offers really high quality analysis. You can see all the major indicators for each country. Clicking them brings up their history as well as an explanation of what they show. For example, here’s German Consumer Confidence. Helpful context There are also qualitative events. Normally these are speeches by Central Bankers. There are whole blogs dedicated to closely reading such texts and looking for subtle changes in direction or opinion on the economy. Stuff like how often does the phrase "in a good place" come up when the Chair of the Fed speaks. It is pretty dry stuff. Yet these are leading indicators of how each member may vote to set interest rates. Ed Yardeni is the go-to guy on central banks.
Data surprise index
The other thing you might look at is something investment banks produce for their customers. A data surprise index. I am not sure if these are available in retail land - there's no reason they shouldn't be but the economic calendars online are very basic. You’ll remember we talked about data not being good or bad of itself but good or bad relative to what was expected. These indices measure this difference. If results are consistently better than analysts expect then you’ll see a positive number. If they are consistently worse than analysts expect a negative number. You can see they tend to swing from positive to negative. Mean reversion at its best! Data surprise indices measure how much better or worse data came in vs forecast There are many theories for this but in general people consider that analysts herd around the consensus. They are scared to be outliers and look ‘wrong’ or ‘stupid’ so they instead place estimates close to the pack of their peers. When economic conditions change they may therefore be slow to update. When they are wrong consistently - say too bearish - they eventually flip the other way and become too bullish. These charts can be interesting to give you an idea of how the recent data releases have been versus market expectations. You may try to spot the turning points in macroeconomic data that drive long term currency prices and trends.
Using recent events to predict future reactions
The market reaction function is the most important thing on an economic calendar in many ways. It means: what will happen to the price if the data is better or worse than the market expects? That seems easy to answer but it is not. Consider the example of consumer confidence we had earlier.
Many times the market will shrug and ignore it.
But when the economic recovery is predicated on a strong consumer it may move markets a lot.
Or consider the S&P index of US stocks (Wall Street).
If you get good economic data that beats analyst estimates surely it should go up? Well, sometimes that is certainly the case.
But good economic data might result in the US Central Bank raising interest rates. Raising interest rates will generally make the stock market go down!
So better than expected data could make the S&P go up (“the economy is great”) or down (“the Fed is more likely to raise rates”). It depends. The market can interpret the same data totally differently at different times. One clue is to look at what happened to the price of risk assets at the last event. For example, let’s say we looked at unemployment and it came in a lot worse than forecast last month. What happened to the S&P back then? 2% drop last time on a 'worse than expected' number ... so it it is 'better than expected' best guess is we rally 2% higher So this tells us that - at least for our most recent event - the S&P moved 2% lower on a far worse than expected number. This gives us some guidance as to what it might do next time and the direction. Bad number = lower S&P. For a huge surprise 2% is the size of move we’d expect. Again - this is a real limitation of online calendars. They should show next to the historic results (expected/actual) the reaction of various instruments.
Buy the rumour, sell the fact
A final example of an unpredictable reaction relates to the old rule of ‘Buy the rumour, sell the fact.’ This captures the tendency for markets to anticipate events and then reverse when they occur. Buy the rumour, sell the fact In short: people take profit and close their positions when what they expected to happen is confirmed. So we have to decide which driver is most important to the market at any point in time. You obviously cannot ask every participant. The best way to do it is to look at what happened recently. Look at the price action during recent releases and you will get a feel for how much the market moves and in which direction.
Trimming or taking off positions
One thing to note is that events sometimes give smart participants information about positioning. This is because many traders take off or reduce positions ahead of big news events for risk management purposes. Imagine we see GBPUSD rises in the hour before GDP release. That probably indicates the market is short and has taken off / flattened its positions. The price action before an event can tell you about speculative positioning If GDP is merely in line with expectations those same people are likely to add back their positions. They avoided a potential banana skin. This is why sometimes the market moves on an event that seemingly was bang on consensus. But you have learned something. The speculative market is short and may prove vulnerable to a squeeze.
Two kinds of reversals
Fairly often you’ll see the market move in one direction on a release then turn around and go the other way. These are known as reversals. Traders will often ‘fade’ a move, meaning bet against it and expect it to reverse.
Sometimes this happens when the data looks good at first glance but the details don’t support it. For example, say the headline is very bullish on German manufacturing numbers but then a minute later it becomes clear the company who releases the data has changed methodology or believes the number is driven by a one-off event. Or maybe the headline number is positive but buried in the detail there is a very negative revision to previous numbers. Fading the initial spike is one way to trade news. Try looking at what the price action is one minute after the event and thirty minutes afterwards on historic releases.
Some reversals don't make sense Sometimes a reversal happens for seemingly no fundamental reason. Say you get clearly positive news that is better than anyone expects. There are no caveats to the positive number. Yet the price briefly spikes up and then falls hard. What on earth? This is a pure supply and demand thing. Even on bullish news the market cannot sustain a rally. The market is telling you it wants to sell this asset. Try not to get in its way.
Some key releases
As we have already discussed, different releases are important at different times. However, we’ll look at some consistently important ones in this final section.
Interest rates decisions
These can sometimes be unscheduled. However, normally the decisions are announced monthly. The exact process varies for each central bank. Typically there’s a headline decision e.g. maintain 0.75% rate. You may also see “minutes” of the meeting in which the decision was reached and a vote tally e.g. 7 for maintain, 2 for lower rates. These are always top-tier data releases and have capacity to move the currency a lot. A hawkish central bank (higher rates) will tend to move a currency higher whilst a dovish central bank (lower rates) will tend to move a currency lower. A central banker speaking is always a big event
Non farm payrolls
These are released once per month. This is another top-tier release that will move all USD pairs as well as equities. There are three numbers:
The headline number of jobs created (bigger is better)
The unemployment rate (smaller is better)
Average hourly earnings (depends)
Bear in mind these headline numbers are often off by around 75,000. If a report comes in +/- 25,000 of the forecast, that is probably a non event. In general a positive response should move the USD higher but check recent price action. Other countries each have their own unemployment data releases but this is the single most important release.
There are various types of surveys: consumer confidence; house price expectations; purchasing managers index etc. Each one basically asks a group of people if they expect to make more purchases or activity in their area of expertise to rise. There are so many we won’t go into each one here. A really useful tool is the tradingeconomics.com economic indicators for each country. You can see all the major indicators and an explanation of each plus the historic results.
Gross Domestic Product is another big release. It is a measure of how much a country’s economy is growing. In general the market focuses more on ‘advance’ GDP forecasts more than ‘final’ numbers, which are often released at the same time. This is because the final figures are accurate but by the time they come around the market has already seen all the inputs. The advance figure tends to be less accurate but incorporates new information that the market may not have known before the release. In general a strong GDP number is good for the domestic currency.
Countries tend to release measures of inflation (increase in prices) each month. These releases are important mainly because they may influence the future decisions of the central bank, when setting the interest rate. See the FX fundamentals section for more details.
Things like factory orders or or inventory levels. These can provide a leading indicator of the strength of the economy. These numbers can be extremely volatile. This is because a one-off large order can drive the numbers well outside usual levels. Pay careful attention to previous releases so you have a sense of how noisy each release is and what kind of moves might be expected.
Often there is really good stuff in the comments/replies. Check out 'squitstoomuch' for some excellent observations on why some news sources are noisy but early (think: Twitter, ZeroHedge). The Softbank story is a good recent example: was in ZeroHedge a day before the FT but the market moved on the FT. Also an interesting comment on mistakes, which definitely happen on breaking news, and can cause massive reversals.
Pro Traders, What Do You Say When Asked About Your Job?
While things are usually relatively simple together with your relatives and shut friends, speaking about your Forex trading job with people you’ve just met is for the foremost part rather hard. The poll below is meant for people that are already earning their living (at least partially) through Forex, but the whole post are going to be interesting to anyone who is stepping into exchange trading or financial trading generally because it's strongly connected to one’s social life and to how traders are perceived by the overall public. Forex trader explains what he does for a living A Forex trader is misunderstood when he says what he does The chances are if you're an experienced Forex trader, you've got already answered this question countless times. Unfortunately, for a few unfathomable reason, the trading profession gets some negative reputation from non-trading people. sort of a fellow trader has put it, there's tons of “judgment that comes from preconceived or stereotypical views”. Another one said that “people are generally prejudicial towards ‘day-trading‘”. and therefore the opinion that trading features a “pretty bad connotation” was also mentioned. People might even go as far as think you're some kind of fraudster. But albeit the knowledge of your profession doesn’t sway people towards inferior opinion about you, they're going to likely start asking many questions: about current and future currency rates, which currency they ought to hold their money in, what proportion does one earn, how they ought to invest money, and so on. and a few people are often very intrusive about it. In addition to attracting many questions from normal people, being open about your trading career tends to draw in wrong sort of persons too. All kinds of scammers, swindlers, and panhandlers will start seeing you as their appropriate target. Worse than that, in some countries, Forex trading is prohibited. therein case, it'd be a matter of private safety to return up with a plausible yet untruthful answer when someone gets interested by how you earn your daily bread. Visit : ICM Capital Dubai At first glance the difficulty at hand might sound sort of a laughable matter that mostly concerns unsociable introverts, but actually , it's much deeper. The roots of the matter run into the important social stigma attached to both financial trading generally and Forex especially . I often say either that i'm online entrepreneur or that i'm a programmer because I hate explaining what Forex is which it isn’t a scam (Forex trading has this reputation where I live). If i'm certain about the one who asks that he or she know what Forex trading is, then I usually just say that i'm a trader. What's your go-to answer about your job? Forex trader (truth). Fund manager (you are managing your funds!) Analyst/Consultant (mostly true for all traders) Programmer (if you automate your trading) Business owner (trading may be a business after all) Gambler (there may be a grain of truth in it!) Self-employed (or something similarly vague) Unemployed (lie) Just some random profession (lie) Other (Please specify in comments.)
I'm 19 got accepted to one of the best colleges in Sweden but don't believe in the ordinary 9-5 life. Should I drop everything and chase my own career? Help
This story will be quite long but anyways a little back story about me. From the age of 16-19 I went on one of the hardest "high school programmes" and graduated with a scholarship for great achievement. For those of you who don't know our school system is divided by elementary school from the age of 7-16 and High School 16-19 and then lastly college. I've always wanted to break free from the 9-5 system and had a hard drive. I don't want to work an ordinary job to afford going on trips then and then so I've always had a hard drive to hustle. During my second high school year I met my best friend and we started going into E-com business which is essentially online stores. We did not get a lot of sales but we got a wide network. During my third year me and my best friend really exceeded and once sold for 1.8k dollars in one day. But when we we're supposed to do our biggest projects ever corona came and shut a lot of business down. This summer after high school me and my friend went our seperate ways. He started to work and doing side hustles like Forex trading (trading currencies) and he's doing really well now. And it gives me a lot of anxiety because he's succeeding while I'm not. I actually got into forex myself and it went decently but when the summer ended I started college. And I feels like I don't have time for anything other than school. Some school days start at 8.am, ends 5.pm and then another 3-4 hours of studying because it's needed which leaves my school day ending at 9.pm. Since I've started college I've not been happy and It feels like I can't juggle between my side hustles and school. I know that everything is possible but it seems like time is not enough and I don't wanna drop out because it's hard to convince your family to support you chasing a "lost dream". They don't believe in anything than the "work" life. It feels like I owe them to go to college since it's almost a standard in Sweden. I'm ready to drop it all and start my "own" life but are unsure. I love travelling but haven't been able to do that for a couple years since I've been so buried in school and other things. To add a little perspective into the mix I'm the middle child who's gotten everything that I wanted and the "good son" in the family. All of this has made me feel like I owe them to follow the school path. Also any succesfull people who are willing to hire me so I can drop everything and start doing my own thing without attachment? Jokes aside(not really joking) but what are your thoughts? I'm not sure if I got everything written down since I've bascially had a mental breakdown these past days and decided to write this in 5 minutes.
There are a lot of opportunities online for anyone that wants to make a little extra money. From a part-time hustle to an all-out digital career, there are loads of ways that you can make money with an electronic device, and a connection to the internet.
Paid Surveys - Did you know that thousands of South Africans earn extra income by simply participating in online surveys to help local companies improve their products? Finally, now you have an opportunity to do this as well! You can find a list of the top survey sites for South Africa HERE
Selling Your Photos Online - Selling photos is a wonderful way to make money online if you have an aptitude for photography. Two popular platforms that you can try are Shutterlock and Unsplash. Every platform will have different requirements, but they will all pay you in hard cash. Though the photography market is quite hectic, it’s still a good method of gaining a passive income if you’re persistent and professional. Plus, the opportunity for additional sales is higher when your photos become popular. Many companies need photos of landscapes, and we all know that South Africa has some of the most amazing scenery in the world. In some cases, a smartphone is enough to get started, depending on the stock photo site you choose.
Be a Freelance Content Writer - Freelance writing is a serious online business. The internet enters most areas of our life, and the need for blog articles and various types of content is exploding. There are many kinds of online writing work, and many people need things like product descriptions or simple reviews. Before going further in this direction, you first need to set up a blog or website. This will be an amazing portfolio where you can demonstrate to potential clients or businesses that you can deliver great work. A LinkedIn profile can be created to function as an online portfolio as well. Don’t forget that many writing clients will want to see specialized work, so be sure to consider what area you would like to specialize in. The pay for online writing varies, but with some practice, you should be able to make a decent part-time income.
Sell Unwanted Goods - You can sell your unwanted stuff to people who want it and make your side business a real money maker. There’s plenty of options to use for sales such as Gumtree or Amazon. Don’t forget to do some research and see what assets have recently been sold so you have a target price. If you a business, you can sell other people’s goods as well. Many people don’t have the time or patience to sell goods online, and you can do it for them. If you charge a reasonable percentage of the sales, you can make a solid business out of selling used goods online.
Build a Personal blog/website - Not only can you write for companies to gain income but you’re also able to run your own blog to raise money as well. Set your expectations at a reasonable level because this job requires consistent practice and lots of patience. Bloggers make a profit, often through press coverage, advertising products, and writing sponsored guest posts. You will need to run the blog for a while before you can expect to see any profits, but it is very simple to get started. Check out some of the other ideas on this list for ways to leverage a blog for greater income, like selling drop shipped items.
Legitimate Remote Jobs can Pay Real Money - Many companies are heading to a work-from-home style of business since this type of model helps save money, and eliminates the risk of illnesses. People are completely flexible while working for a company and selecting where they decide to spend their time.CrowdSource, for example, hires remote writers, editors, and other jobs that can be done easily from anywhere. Companies like Fast Chart offer work-from-home options for medical transcriptionists. You can also try seeking opportunities at LiveOps, a call center staff. You might be surprised at how much time and money you save when you work at home. There is no transit, and you can cook for yourself. Think about it!
Become a Dropshipper - Dropshipping is not a strange term, especially when eCommerce is booming. Anyone can be a drop shipper since the work requires low investment at the beginning and also guarantees minimal risk. The system operates by purchasing the stock (goods) from a third party supplier or manufacturer, who then fulfills the customer’s request. You don’t have to shop or handle goods in advance because the product comes directly from the vendors whenever an order is placed by a customer. There are many dropshipping platforms out there, and some are basically free to use. You will need to figure out how to market the goods, which is where a blog or website comes in very handy.
Affiliate Marketing - Affiliate marketing is a popular method of making money online in South Africa and across the world. You can sell into a variety of markets with this business model, and make money almost anywhere. You can generate revenue from product sales. In other words, affiliate marketers will refer readers to a lot of products and get a small cut from them. Once a customereader buys products, you will earn a commission. A widely known approach is to start creating your own blog in a specific niche and to establish a trustworthy community that can purchase your promotions. Unlike dropshipping, you simply get a commission and have no other responsibilities. So easy! Check out SA’s leading affiliate network – https://www.affiliate.co.za/
Online Business with Etsy - Try selling DIY designs and crafts on Etsy if you’re a skilled maker. An Etsy shop is basically free to operate, and you can make real money with the platform. Once your registration is complete, you can start posting photos of your works, and people can purchase your products. There is really no limit to what can be sold on Etsy, but make sure that you are able to send your goods to other countries, as many buyers are likely to be in the EU or North America. A PayPal account is important to have and also a popular payment choice so that customers can pay you quickly. Take nice pictures of the items to help draw purchasers into a sale. Make sure that you have good customer service as well, or you won’t be selling on the platform for very long!
Forex Trading - You might have heard about trading FOREX or Contract For Difference (CFD) trading. The basics of this online money-making are simple. You will choose a currency pair, and bet on the direction of one currency vs. the other. For example, you could speculate that the EURO will appreciate vs. the RAND (or just about any currency). If you are correct, and then sell the contract, you will make profits. While this might sound easy, most people who do this lose money. In addition to currency, most retail FOREX brokers will allow you to trade in other markets, such as commodities, or shares. If you are looking for a reliable income, this probably isn’t right for you. On the other hand, if you don’t mind taking on risks, trading FOREX can be extremely profitable.
Forex Trading Basics Reddit - Forex Glossary Terms For Beginners
What is Forex - Terminology
https://preview.redd.it/pmjpy8sqh1x51.jpg?width=580&format=pjpg&auto=webp&s=b02715d6d6f153592a967f577c18578363ca731c The FOREX market is the largest financial market in the world. On a daily basis, trillions of dollars are traded in different currencies around the world. Being FOREX the basis for international capital transactions, its liquidity and volume are much greater than any other financial market. It is estimated that the average volume traded by the world's largest stock exchange, the New York Stock Exchange (NYSE) in a full month, is equal to the volume traded daily in the Forex currency market. In addition, it is estimated that this volume will increase by 25% annually. 80% of transactions are between the US dollar (USD), the euro (EUR), the yen (JPY), the British pound (GBP), the Swiss franc (CHF), and the Australian dollars (AUD) and Canadian (CAD).
What is traded in the Forex market?
We could just say that money. Trading in FOREX simultaneously involves buying one currency (for example euros) and selling another (for example US dollars). These simultaneous purchase and sale operations are carried out through online brokers. Operations are specified in pairs; for example the euro and the dollar (EUR / USD) or the pound sterling and the Yen (GBP / JPY). These types of transactions can be somewhat confusing at first since nothing is being purchased physically. Basically, each currency is tied to the economy of its respective country and its value is a direct reflection of people's perception of that economy. For example, if there is a perception that the economy in Japan is going to weaken, the Yen is likely to be devalued against other currencies. In other words, people are going to sell Yen and they are going to buy currencies from countries where the economy is or will be better than Japan. In general, the exchange of one currency for another reflects the condition of the health of the economy of that country with respect to the health of the economy of other countries. Unlike other financial markets such as the stock market, the currency market does not have a fixed location like the largest exchanges in the world. These types of markets are known as OTC (Over The Counter). Transactions take place independently around the world, mainly over the Internet, and prices can vary from place to place. Due to its decentralized nature, the foreign exchange market is operated 24 hours a day from Monday to Friday. >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated OnInvesting.com|Free Forex Signals Trial:CLICK HERE TO JOIN FOR FREE
The 8 most widely used currencies (USD, EUR, JPY, GBP, CHF, CAD, NZD, and AUD) are known as “ major currencies ”. All other currencies are called " minor currencies ." You don't need to worry about minor currencies, as you probably won't start trading them for now. The USD, EUR, JPY, GBP, and CHF currencies are the most popular and most liquid currencies on the market.
• Base currency
The base currency is the first currency in any currency pair. It shows how much the base currency is worth against the second currency. For example, if the USD / CHF has a rate of 1.6350, it means that 1 USD is worth 1.6350 CHF. In the forex market, the US dollar is in many cases the base currency to make quotes, the quotes are expressed in units of $ 1 on the other currency of the pair. In some other pairs, the base currency is the British pound, the euro, the Australian dollar, or the New Zealand dollar.
• Quoted currency
The quote currency is the second currency in the currency pair. This is often referred to as a "pip-currency" and any unrealized gains or losses are expressed in this currency.
A pip is the smallest unit of the price of any currency. Almost all currencies consist of 5 significant digits and most pairs have the decimal point immediately after the first digit. For example EUR / USD = 1.2538, in this case, a pip is the smallest change in the fourth decimal space, which is, 0.0001. A notable exception is the USD / JPY pair where the pip equals $ 0.01.
• Purchase price (bid)
The buying price (bid) is the price at which the market is ready to buy a specific currency in the Forex market. At this price, one can sell the base currency. The purchase price is displayed on the left side. For example, in GBP / USD = 1.88112 / 15, the selling price is 1.8812. This means that you can sell a GPB for $ 1.8812.
• Sale Price (ask)
The asking price is the price at which the market is ready to sell a specific currency pair in the Forex market. At this price, you can buy the base currency. The sale price is displayed on the right-hand side. For example, at EUR / USD = 1.2812 / 15, the selling price here is 1.2815. This means that you can buy one euro for $ 1.2815. The selling price is also called the bid price.
All Forex quotes include two prices, the bid (offer) and the ask (demand). The bid is the price at which the broker is willing to buy the base currency in exchange for the quoted currency. This means that the bid is the price at which you can sell. The ask is the price at which the broker is willing to sell the base currency in exchange for the quoted currency. This means that the ask is the price at which you will buy. The difference between the bid and the ask is popularly known as the spread and is the consideration that the online broker receives for its services.
• Transaction costs
The transaction cost, which could be said to be the same as the Spread, is calculated as: Transaction Cost = Ask - Bid. It is the number of pips that are paid when opening a position. The final amount also depends on the size of the operation. It is important to note that depending on the broker and the volatility, the difference between the ask and the bid can increase, making it more expensive to open a trade. This generally happens when there is a lot of volatility and little liquidity, as happens during the announcement of some relevant economic data.
• Cross currency
A cross-currency is any pair where one of the currencies is the US dollar (USD). These pairs show an erratic price behavior when the operator opens two operations in US dollars. For example, opening a long trade to buy EUR / GPB is equivalent to buying EUR / USD and selling GPB / USD. Cross-currency pairs generally carry a higher transaction cost.
When you open a new account margin with a Forex broker, you must deposit a minimum amount of money to your broker. This minimum varies depending on each broker and can be as low as € / $ 100 at higher amounts. Each time a new trade is executed a percentage of your account margin balance will be the initial margin required for a new trade based on the underlying currency pair, current price, and the number of units (or lots) of the trade. . For example, let's say you open a mini account which gives you a leverage of 1: 200 or a margin of 0.5%. Mini accounts work with mini lots. Suppose a mini lot equals $ 10,000. If you are about to open a mini lot, instead of having to invest $ 10,000, you will only need $ 50 ($ 10,000 x 0.5% = $ 50).
Leverage is the ratio of the capital used in a transaction to the required deposit. It is the ability to control large amounts of dollars with relatively less capital. Leverage varies drastically depending on the broker, it can go from 1: 2 to even 1: 2000. The most common level of leverage in Forex can currently be around 1: 200.
• Margin + leverage = dangerous combination
Trading currencies on margin allows you to increase your buying power. This means that if you have $ 5,000 in account margin that allows you a 1: 100 leverage, you can then buy $ 500,000 in foreign exchange as you only have to invest a percentage of the purchase price. Another way of saying this is that you have $ 500,000 in purchasing power. With more purchasing power you can greatly increase your potential profits without an outlay of cash. But be careful, working with a high margin increases your profits but also your losses if the trade does not progress in your favor. >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated OnInvesting.com|Free Forex Signals Trial:CLICK HERE TO JOIN FOR FREE
Someone posted on here a few days ago asking about forex and forex trading in Kenya, I have gone through the responses and clearly, most people don’t have an idea. It is 3am in the morning and am in a good mood so let me make this post. This will be a comprehensive and lengthy post so grab a pen and paper and sit down. We’ll be here a while. FIRST OF ALL, who am I..? I am a forex trader, in Nairobi, Kenya..i have been actively involved in forex since I found out about it in Feb 2016 when I somehow ended up in a wealth creation seminar (lol) in pride inn Westlands, the one close to Mpaka Rd. Luckily for me, it was not one of those AIM global meetings or I’d be on Facebook selling God knows what those guys sell. I did not take it seriously till August of the same year and I have been active ever since. I don’t teach, mentor or sell a course or signals, I trade my own money. I am also posting from a throwaway account because I don’t want KRA on my ass. What the fuck is forex and forex trading. In simple plain English, forex is like the stock market but for currencies. Stock Market = Shares, forex = currencies. If you want more in-depth explanation, google is your friend. These currencies are pegged on specific countries, united states- dollar, UK- pound, euro zone- euro, Switzerland- Swiss franc, Kenya- Kenya shilling.. you get the point. Now, there are specific events and happenings between these economies that affect the movement and values of the currencies, driving their value (purchasing power up and down). Forex trading exploits these movements to make money. When the value is going up, we buy and vice versa (down –sell) Is forex trading illegal in Kenya? Is it a scam? Illegal, no. scam, no. All the banks in the world do it (KCB made about 4 billion from trading forex in 2019) Have there been scams involving forex in Kenya? Yes. Here is one that happened recently. This one is the most infamous one yet. Best believe that this is not the end of these type of scams because the stupidity, greed and gullibility of human beings is unfathomable. However, by the end of this post, I hope you won’t fall for such silliness. What next how do I make it work..? Am glad you asked. Generally, there are two ways to go about it. One, you teach yourself. This is the equivalent of stealing our dad’s car and hoping that the pedal you hit is the brake and not the accelerator. It is the route I took, it is the most rewarding and a huge ego boost when you finally make it on your own. Typically, this involves scouring the internet for hours upon hours going down rabbit holes, thinking you have made it telling all your friends how you will be a millionaire then losing all your money. Some people do not have the stomach for that. The second route is more practical, structured and smarter. First Learn the basics. There is a free online forex course at www.babypips.com/learn/forex this is merely an introductory course. Basically it is learning the parts of a car before they let you inside the car. Second, start building your strategy. By the time you are done with the babypips, you will have a feel of what the forex market is, what interests you, etc. Tip..Babypips has a lot of garbage. It is good for introductory purposes but not good for much else, pick whatever stick to you or jumps at you the first time. Nonsense like indicators should be ignored. The next step is now the most important. Developing the skill and building your strategy. As a beginner, you want to exhaust your naivety before jumping into the more advanced stuff. Eg can you identify a trend, what is a pair, what is position sizing, what is metatrader 4 and how to operate it, what news is good for a currency, when can I trade, what are the different trading sessions, what is technical analysis, what is market sentiment, what are bullish conditions what is emotion management, how does my psychology affect my trading (more on this later) an I a swing, scalper or day trader etc Mentors and forex courses.. you have probably seen people advertising how they can teach and mentor you on how to trade forex and charging so much money for it. Somehow it seems that these people are focused on the teaching than the trading. Weird, right..? Truth is trading is hard, teaching not quite. A common saying in the industry is “Those who can’t trade, teach” you want to avoid all these gurus on Facebook and Instagram, some are legit but most are not. Sifting the wheat from the chaff is hard but I did that for you. The info is available online on YouTube, telegram channels etc. am not saying not to spend money on a course, if you find a mentor whose style resonates with you and the course is reasonably priced, please, go ahead and buy..it will cut your learning curve in half. People are different. What worked for me might not work for you. Here are some nice YouTube channels to watch. These guys are legit..
After a short period of time, you will be able to sniff out bs teachers with relative ease. You will also discover some of your own and expand the list. Two tips, start with the oldest videos first and whichever of these resonates with you, stick with till the wheels fall off. How long will it take until things start making sense Give yourself time to grow and learn. This is all new to you and you are allowed to make mistakes, to fail and discover yourself. Realistically, depending on the effort you put in, you will not start seeing results until after 6 months. Could take longeshorter so there is no guarantee. Social media, Mentality, Psychology and Books Online, forex trading might not have the best reputation online because it takes hard work and scammers and gurus give it a bad name. However, try to not get sucked into the Instagram trader lifestyle as it is nowhere close to what the reality is. You will not make millions tomorrow or the day after, you might never even make it in this market. But that is the reality of life. Nothing is promised, nothing is guaranteed. Your mentality, beliefs and ego will be challenged in this market. You will learn things that will make you blood boil, you will ask yourself daily, how is this possible, why don’t they teach this in school..bla bla bla..it will be hard but growth is painful, if it wasn’t we’d all be billionaires. Take a break, take a walk, drink a glass of whatever you like or roll one..detox. Chill with your girl (or man) Gradually you will develop mental toughness that will set you up for life. Personally, I sorta ditched religion and picked up stoicism. Whatever works for you. Psychology, this is unfortunately one of the most neglected aspects of your personal development in this journey. Do you believe in yourself? Can you stand by your convictions when everyone is against you? Can you get up every day uncertain of the future? There will be moments where you will question yourself, am I even doing the right thing? the right way? It is normal and essential for your growth. People who played competitive sports have a natural advantage here. Remember the game is first won in your head then on the pitch. Books: ironically, books that helped me the most were the mindset books, Think and grow rich, trading for a living, 4 hour work week, the monk who sold his Ferrari..just google mindset and psychology books, most trading books are garbage. Watch and listen to people who have made it in the investing business. Ray Dalio, warren, Bill Ackman and Carl Icahn. This is turning out to be lengthier than I anticipated so I’ll try to be brief for the remaining parts. Brokers You will need to open up an account with a broker. Get a broker who is regulated. Australian ones (IC Market and Pepperstone) are both legit, reliable and regulated. Do your research. I’d avoid local ones because I’ve heard stories of wide spreads and liquidity problems. International brokers have never failed me. There are plenty brokers, there is no one size fits all recommendation. If it ain’t broke..don’t fix it. Money transfer. All brokers accept wire transfers, you might need to call your bank to authorize that, avoid Equity bank. Stanchart and Stanbic are alright. Large withdrawals $10k+ you will have to call them prior. Get Skrill and Neteller if you don’t like banks like me, set up a Bitcoin wallet for faster withdrawals, (Payoneer and Paypal are accepted by some brokers, just check with them.) How much money can I make..? I hate this question because people have perceived ceilings of income in their minds, eg 1 million ksh is too much to make per month or 10,000ksh is too little. Instead, work backwards. What % return did I make this month/ on this trade. Safaricom made 19.5% last year, if you make 20% you have outperformed them. If you reach of consistency where you can make x% per month on whatever money you have, then there are no limits to how much you can make. How much money do I need to start with..? Zero. You have all the resources above, go forth. There are brokers who provide free bonuses and withdraw-able profits. However, to make a fulltime income you will need some serious cash. Generally, 50,000 kes. You can start lower or higher but if you need say 20k to live comfortably and that is a 10% return per month, then you can do the math on how big your account should be. Of course things like compound interest come into play but that is dependent on your skill level. I have seen people do spectacular things with very little funds. Taxes..? Talk to a lawyer or an accountant. I am neither. Family? Friends? Unfortunately, people will not understand why you spend hundreds of hours watching strangers on the internet so it is best to keep it from them. Eventually you will make it work and they will come to your corner talking about how they always knew you’d make it. The journey will be lonely, make some trading buddies along the way. You’d be surprised at how easy it is when people are united by their circumstances (and stupidity) I have guys who are my bros from South Africa and Lebanon who I have never met but we came up together and are now homies. Join forums, ask questions and grow. That is the only way to learn. Ideally, a group of 5-10 friends committed to learning and growth is the best model. Pushing each other to grow and discovering together. Forex is real and you can do amazing things with it. It is not a get rich quick scheme. If you want a quick guaranteed income, get a job. And now it is 5am, fuck. This is oversimplified and leaves out many many aspects. Happy to answer any questions.
What you must know about getting gold trading signals
Trading gold is considered as a natural part of Forex trading. Gold provides a lot more opportunities in trading profits more frequently than the traditional Forex currency pairs. Traders going for just a few hundred and few thousand dollars may trade in Gold online at the most cost-effective rates. Profitable gold trading is done with the application of the analysis methods. It is also possibly filtered with doing a fundamental analysis of gold trading signals where the details will support the historical data. Gold trading signals There are so many ways of making a profit from gold. Investing in gold or buying gold means investing a lot of time and effort. Trading in gold means that there is a lot to buy or hold for a long period. Gold trading means buying or selling various times in a small period like a few hours, days or months. One can invest in gold with just a few US dollars or buy gold in the form of nuggets or coins or by buying a small share in Gold bullion present in secure vaults. Physical gold is also an investment that also involves a lot of problems in storage and proof. Gold trading allows you to make more frequent and larger profits than one can make with investing and holding gold. This happens even when there are up and down fluctuations in gold prices. How to trade in gold When it comes to trading at the gold price, the traders require something quite closely linked with the value of gold. It is worthwhile to note that gold trading signals play a vital role in this. Options and futures for trading in gold One of the important ways for trading in gold represents gold through a major and regulated exchange. This needs a deposit of nearly $ 5,000 with future brokerages. This is because the smallest of the Gold futures can expire in just early 33 ounces of Gold. It involves buying or selling just a single contract with a margin to support the trade. Another alternative solution is to trading shares in ETF which owns Gold and where the price fluctuations mirror close fluctuations in the price of Gold. But, this needs opening an account with brokerage offering direct tradings in stock shares. The stockbrokers generally require a minimum deposit of the few thousand dollars and it also requires charging a sizable or minimum commission spread on every trade. A share of SDPR gold usually costs a person one-tenth of the value of an ounce of gold in US dollars. But this is going to be a truly expensive gold trading method. Mining shares for trading gold Buying and selling hare in gold mining companies is another method of gold trading. It involves consideration of various factors like speed, costs, and the minimum deposit required. It also has an added drawback that the value of gold is just one of the important trading factors driving the price for minimum sharing. Gold trading with forex broker Gold trading is a fast, easy and practical method of trading in gold. It is cost-effective for everyone who wants to spend a few hundred dollars on Gold trading. Several Forex Brokers offer to trade in spot Gold or the actual price of Gold in an ounce. Talk to Gold Trading experts to learn more on Gold trading signals and various methods of profitable trading in gold.
I was trying to find the lowest cost brokers that aren’t just mobile apps that offer passive investments in the assets I’m looking for on top of the usual equity and bonds I already have. I’m hoping this will help people in my situation. I looked for a comparison website and found: https://brokerchooser.com/ which helped but I still had to dig around to get the direct comparison I needed all in one easily visible table. What are your thoughts and experiences on the below brokers like customer service etc with these platforms? Trading212 looks to be the cheapest and best all round but I’ve read bad experiences. To diversify my portfolio I’m looking at:
Individual shares and Crypto (a very small gamble 1% of total)
Higher risk corporate Bonds,
1 - 4 Can be invested in via ETF’s offered by most of the online brokers below. 4 - 5 Can be invested in using the other platforms below: Crowdcube, Seedrs, Syndicate room, Crowdproperty. 1 and 6 I think need higher cost traditional brokers like HL/Black rock etc but I’m not sure. Here’s my comparison:
Free trades per month
Fees (deposit etc)
Bank transfer or debit card?
Stocks ETF/ETCs Forex Crypto ISA
Free ISA, no trade fees, CFD account has charges inc: 0.5% currency conversion charge, no forex fees
Debit card: Yes - Bank transfer: Yes
$0 for US stock $6.95 for non-US
Cannot find on FCA register
Cannot find on FCA register
Stocks ETF/ETCs Forex Crypto Commodities via CFD’s No ISA
- $5 withdrawal fee - Deposit and withdrawal fee of 0.5% - exchange fee (50 pips) 0.5cent/$1 e.g $7.5 on $500 - If no activity for 12 months charged $10 per month - 0.75% fee to buy bitcoin
Debit card: Yes - Bank transfer: No
Mobile app only Stocks ETFs ISA
ISA £3/month 0.90% forex fee
Debit card: No - Bank transfer: Yes
Mobile app only Stocks Crypto Commodities No ISA
Complex fee structure
Debit card: Yes - Bank transfer: Yes
Stocks ETF Funds Bonds Options Futures Crypto No ISA
High fees (complex structure)
Debit card: No - Bank transfer: Yes
Other investment platforms:
Fees (deposit etc)
High fees 2% set up fee 1.5% – 2.3% annual 20% performance fee Life-time management fees of between 12.5% and 24.3%
7.5% of any profit Plus variable sale fees
0% fees however returns capped at 8%.
Have you used any of these before or do you have alternatives?
Education and training in trading are not needed: False - By Mickael Mosse
By Mickael Mosse - Blockchain and Cryptocurrency Expert Trading now is a common word in the financial field. But its meaning has myths and assumptions around it, viewing trading as an easy way to make money. Mickael Mosse sees traders as professionals in the crypto world, and their practice as a great option to use cryptos. Trading is the opposite of investment because it aims to short-term goals following multiple market strategies enveloped by buy-and-hold timing. Its success as a financial profession depends on the ability to be profitable over time. Now, traders can trade with assets like commodities or with cryptos; we will talk about the second one. Crypto trading could be:
Reposting because I didn't get input last time. Demographics: Indian. Male. From ProspeFrisco Texas. Middle/Upper class area. I would say my high school is very competitive. Intended Major(s): Computer Science ACT/SAT/SAT II: SAT: Have not taken a real test. I have taken three practice test all resulted 1440+. Prepping for 1500+, but consider my score to be a flat 1400 for now. UW GPA and Rank: UW: 3.981 Rank: 12/979 Coursework: Freshmen Year: - Honors French 1 (Highest Level that year available to me ) - HonoGT Geometry (Highest Level that year available to me ) - Honors Computer Science 1 - Honors Biology (Highest Level that year available to me ) - AP Human (Highest Level that year available to me ) (4) - Honors English 1 (Highest Level that year available to me ) - Outdoor Education (Required) - Digital Art and Animation (Required) Sophomore Year: - Honors English 2 (Highest Level that year available to me ) - Honors French 2 (Highest Level that year available to me ) - AP Computer Science A (Highest Level that year available to me ) (5) - AP Computer Science Principles (Highest Level that year available to me ) (4) - AP World History (Highest Level that year available to me ) - AP Biology (Highest Level that year available to me ) (3) <-- Not sending this score - Honors Chemistry (Highest Level that year available to me ) - Honors Algebra 2 (Highest Level that year available to me ) - Academic Level Architecture (Highest Level that year available to me ) Junior Year: - AP English 3 (Highest Level that year available to me ) - Independent Studies in Video Games (AP Level but not AP) (Highest Level that year available to me ) - Honors UIL Math Prep - Ap Physics 1 (Highest Level that year available to me ) (5) - Academic Level US History - AP Chemistry (Highest Level that year available to me ) (4) - AP Environmental (Highest Level that year available to me ) (5) - Honors Pre-Cal (Highest Level that year available to me ) Senior Year (will take upcoming year): - Honors Computer Science 3 (Highest Level that year available to me ) - Honors Computer Science 2 (Highest Level that year available to me ) - AP English 4 (Highest Level that year available to me ) - AP Gov/Econ (Highest Level that year available to me ) - AP Physics C (Highest Level that year available to me ) - AP Calc BC (Highest Level that year available to me ) - AP Stats (Highest Level that year available to me ) - Still Deciding but not AP for sure. Awards: - Adobe Certified Associate - Visual Design using Adobe Photoshop CC2015 - Aloha Math Competition Certificate. - UIL Math Competition Certificate. - Multiple Student of the month award Extracurriculars:
I am an intern at Visual Technologies LLC. I have helped in 4 projects regarding computer science for outside companies. This is one of my biggest achievements as a real company was willing to work with me and we ended up doing 4 projects together helping me grow every second of me working with them. After two successful projects with them, I was given some responsibilities such as following up with clients and other things. This gave me a sense of accomplishment because this would mean that they saw qualities in me that they would look for in a “normal aged” programmeconsultant.
2020 - I have worked for Cutco for about 3 months in which I have learned many skills for marketing. I have been promoted and over $3000 in sales. Other details mentioned earlier.
2019-2020- For UIL math we program our calculators to make tests easier for us. Last year I was one of the top coders for UIL math right after my seniors. I made programs that were complex. Although I didn't create many programs, I made programs that other programs were not able to create the year before because they were termed as “too hard”. Me being able to code those programs gave me the stance as a well-known programmer for UIL Math - an achievement in itself.
2016 - 2021 has offered free tutoring to many students who strive to be better but cannot afford fees. I have given at least 80 hours of free tutoring (not for school)
2020 - I have also worked for Ambit and have managed a successful team of over 50 members as I am a regional consultant for the company. I am in the top 10% of the company according to my boss, but I don't know whether this is true or not. I can certainly say that more than half of the people working do not make it to the level I am at. This company is an electricity company, and I have capitalized on selling our service to apartment complexes. I have also helped many high schoolers needing a job to find success in this business.
2020- I volunteered to make a system for the school called “Corona Tutors”. This is a platform where students can anonymously ask questions and receive answers from other students who want service hours. This fixes many problems: this eases the extreme dependence of teachers being online 24/7, this makes sure that students are getting their questions answered, this also allows students who want to help society. This is an official Prosper resource on their webpage which students can use at their will.
2017-2020- I have been a volunteer at ICNA Relief committed about 2 hours each week, and puts me right over 300 hours of community service. We as a group have made a rationing system where we try to fairly distribute goods and other goods as per people's needs. We help with anything from getting food to getting families a laptop for their kid's education.
My love for business goes very far. In 7th grade, fidget spinners were very popular and amazon took 3 months to ship them. This was perfect for a mini business, so I bought a fidget spinner directly through the supplier (AliExpress) and got my shipment. Not only did I retail them I also wholesale them in the mall to any store that was allowed to sell them. I came profitable from this business, but it was not the money that made this great, it was the contact I got through this business. - 2016
2020 - I resold brand new bikes with a high markup. One day scrolling through Facebook marketplace I realized that some bikes were being sold for almost 2x their price at Walmart. (During COVID) I simply contacted my contacts and was able to get about 200-250 brand new bikes. Since this was a very big investment I had five partners with me, and we marked them up according to market price a month later (150% return on investment)
2020 - When school ended, I started to get a lot of Forex trading ads, so I chose to take a look into what it was. Forex trading is a currency exchange and is highly risky. When I started to learn about it I started to see that there were groups called “signal groups”. These groups told you when to trade what and claimed that they have a 99% accuracy on their trades being profitable. Instead of trading, I chose to get in contact with famous traders and offer them a lucrative cut for simply sending a message in a group chat about what they are trading. For one month I tested the service and then put it into action for the public. The program kept working until all traders were able to work and then it was shut off making sure that more one was a loss.
2020 I have written a book/report that I have published it on Amazon. This report took me 200+ hours to make. As we learn in school, there is a rise in global warming, and it is our job to find alternative ways of fuel and stop the rise in global warming. I took an already done research - well in parts in college language- and made it into a more understandable report considering almost every aspect of the situation. I covered everything from the experimental design to how we can use the waste product in everyday life to how we can scale this project to how even a high schooler can make a difference by simply taking initiative and presenting this idea to their school. This report allowed me to take complex language and make it into an everyday language report. I showed my report to many people in the community and it was very satisfying to hear from their parents when they said “my son is going to present this idea to his school because they mostly have a lot of oil”. The report is about converting waste cooking oil to biodiesel.
2015 - 2020 - I have helped my mom in her business called “BLANK (don't want to say) Designs Collection”. Simply by watching her sell and trying it myself I acquired skills that I use to this day not only for business but simply for communicating. Currently, I am a social media and online sales handler for the company.
2018 - 2020 - I have been a part of Mu Alpha Theta for two year tutoring students for Math. Last year I was one of the top tutors for Mrs.Wood for algebra 2. I went there every time I did have an eagle time activity.
2020 - I recently joined the Science Honor society; we have helped the science fair in their activities.
Essays/LORs: Essays, I have not started. Letter of Rec: I have three incoming from my teachers. English/CounseloComputer Science/ Math (waiting for response) Schools: - MIT, - Brown University - Caltech - Carnegie Mellon - Columbia University - Cornell University - Duke University - Georgia Institute - Hamilton - Harvard University - Johns Hopkins University - Princeton University - Purdue University - Rice University - Stanford - UMich - UT Austin - UT Dallas - Texas A&M - UC Berkley
Education and training in trading are not needed: False - By Mickael Mosse
By: Mickael Mosse - Blockchain and Cryptocurrency Expert Trading now is a common word in the financial field. But its meaning has myths and assumptions around it, viewing trading as an easy way to make money. Mickael Mosse sees traders as professionals in the crypto world, and their practice as a great option to use cryptos. 📷 Trading is the opposite of investment because it aims to short-term goals following multiple market strategies enveloped by buy-and-hold timing. Its success as a financial profession depends on the ability to be profitable over time. Now, traders can trade with assets like commodities or with cryptos; we will talk about the second one. Crypto trading could be:
The act of buying and selling cryptos by an exchange service.
Read more details of these crypto trading options here. What is cryptocurrency trading, and how does it work? by IG Let’s demystify the next myth about crypto trading by Mickael Mosse’s explanations. Education and training in trading are not needed; it is just a random thing.
Bitcoin Broker Understand the Benefits of CryptoCurrency Trading
Bitcoin is a cryptocurrency, which can be spent, saved, or invested, and it can be stolen too. Trading with Bitcoins was considered to be risky, but the current trends show that it has become a big hit the binary options sector. This decentralized currency is not regulated by any Government, or by any central authority. What determines the price of Bitcoins? Bitcoin's price is determined according to the supply and demand ratio. Price increases when the demand increases, the rates plummet downwards when the demand falls. Bitcoins in circulation are limited, and new ones are created at a very slow rate. Since it does not have enough cash reserve to move the market price, its price can be extremely volatile. Bitcoin trading is popular because of -
Low inflation risk - Inflation is the biggest issue for traders, because all the currencies lose some of their purchasing power when the reserve banks keep printing more currency. With Bitcoin minting system being limited to just 21 million Bitcoins, it hardly gets impacted with inflation.
Low collapse risk - Currencies fluctuations depend on government trade policies, which at times cause hyperinflation, and even lead to the collapse of currency. Bitcoin is a virtual universal currency, which is not regulated by any government.
Simple, safe and cheap - The Bitcoin payments take place between peer-to-peer without any intermediary, which is why it is simple and cheap.
Easy to carry - Bitcoins worth million dollars can be carried in your pocket, in a memory stick. This cannot be done with gold or cash.
Untraceable - Issuance of Bitcoin is not regulated by any government, so the risk of seizure is nil.
Binary options Bitcoin trading platform bitcoin binary options are getting familiar with popularity of these Bitcoins, and its constant fluctuating values. Therefore they are using this opportunity to offer traders with the latest volatile crypto-currency as an additional payment method. Bitcoin brokers providing crypto-currency as trading option include -
One touch option - Bitcoin trading can be done with AnyOption or one-touch option. For example the current popular currency pair is BTC/USD.
SetOption - The latest option available for asset trading is BITCOIN/USD.
Bitcoin brokers provide a simple trading online platform. All you have to do is visit their website, enter your details, and create an account. You can start with demo account to understand the market action. The trading screen is simple.
Pick the price direction (UP/DOWN)
Select the timeframe
Is Bitcoin trading secure? Bitcoin network is possibly the world's vast spread computing project. The most common weakness here is the user errors. Bitcoin wallet files can get lost, stolen, or deleted accidentally just like any other files in the digital form. However, users can use sound security strategies to protect their cash. Alternatively, you could choose the service providers who offer high-level security, as well as insurance against loss or theft. We provide latest information on Bitcoin brokers and online trading platforms on our website. Please visit our website to check out the broker reviews in order to make the right choices.
In this review, we are taking a look at a trading platform that is used by traders all around the world. BrokerXP offers a varied range of financial products with competitive fees and an easy-to-use trading interface. With advanced trading tools and charting features. BrokerXP Slogan
If trading fees are important to you, then BrokerXP has you covered. BrokerXP offers low spreads that are available to all customers. For forex traders, BrokerXP has no fees at all, this means that you can maximize profits when trading currency pairs. The broker also offers a guaranteed stop-loss order which Is when clients get their stop-loss order rate guaranteed when setting a risk threshold in their position. BrokerXP also offers a 200:1 leverage ratio, which means that for every $1 in your account, you control $200 in the market. So if you are trading and don’t have much capital, you can still generate significant income as your profits can be multiplied by 200x. However, if you are a beginner then it is not advised that you use leverage on your trades. As profits are multiplied, so are losses. Before leveraging, learn the basics and trade using a demo account as this can stop you from losing too much money when you start trading actual capital.
MT4 and BrokerXP have end-to-end encryption that secures trades and funds that are within the trading account itself. Imagine your trading account like a debit card, you wouldn’t put thousands of dollars in your debit card and leave it on a park bench. So when choosing what trading platform you want to go with, make sure that they take the security of your account and funds are serious as you do. To find more answers please watch this video https://www.youtube.com/watch?v=VyMdFz8Rh18
MetaTrader 4 is seen as the flagship trading platform, used by individual traders at home and large institutional investors alike. The platform is available on iPads, iPhones, Android phones, Android tablets, and just about any other web-enabled device. If you want to use the desktop version, instead of the web-app version, then you can download the desktop version and trade from the version. Once you’ve downloaded or loaded the platform, you can log in using your BrokerXP credentials. You can customize the charting interface, changing between light and dark mode, along with some other interface elements. Like with most online platforms, the security flaws come as a result of the customer not securing their side of things. This means that when you are trading, make sure to use long passwords that are difficult to guess and crack. Also, try and avoid trading on public computers as these can lead to your account being compromised. On MT4 you will notice some phrases on the trading interface, here is some explanation of what they mean. When you see the Symbol tab, this means that you can choose between markets. BrokerXP offers many different trading asset options. You can trade forex, gold, stocks indices, and more. The volume tab is where you decide on your trading size. When you see 1 lot, this is equal to 100,000 units of the base currency. The Type tab is where you decide on your trade execution mode, we advise that you stick to ‘instant execution’ as this will place a trade as soon as your press ‘buy’ or ‘sell’. If you set a ‘pending order’, then the platform will make the trade when the market opens back up. The forex market is open 24/7, so this execution method will rarely be available. Stop-loss is another term that you may see on the MT4 interface, this means that your trades are exited when your profits hit a predetermined point. Depending on what type of trader you are, the platform will offer you a specific set of charting timeframes that best suit you. For example, if you are day trading you may look at charts on a 10-minute timeframe. MT4 offers charting timeframes for 1 minute, 5 minutes, 10 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, 1 day, and 1 month. You can also set custom timeframes in case the standard ones are not suitable for your trading technique. Along with advanced timeframes, MT4 also offers 30 technical indicators such as the Elliot Wave indicator, Bollinger Bands, and pivot points, along with many more. There are also third-party add-ons that can be integrated with the platform in order to customize your interface further. Add-ons like Stealth Orders and Alarm Manager are two of the most popular addons. The first is an extension, Stealth Orders is designed to anonymize trades, with Alarm Manager helping coordinate alerts and notifications. With MT4, you can also create your own extensions using Java API, which is one of the platforms most advantageous features, as it can make everything unique.
BrokerXP Mobile Trading
The MetaTrader 4 mobile app is designed with the main focus being on ease-of-use. The mobile app is packaged with lots of research tools, advanced charts, and watch lists for scanning, with many more features. When using BrokerXP’s mobile trading app (MT4), the look and feel of the mobile app have the same appearance as the web version. This means that if you know to operate the web-based platform, then the mobile app will be easy for you to grasp. With charting, you are given the same charts that are offered on the web app. However, due to the mobile screen being smaller, carrying out advanced forex analysis may be more difficult on mobile devices. But for making orders, setting stop loss or checking basic tasks, the mobile app is more than capable of doing so. The main benefit of using the mobile app is that you can make trades on the go. You no longer have to be at your computer or office in order to set trades. Let’s say that you make a trade at home then go grocery shopping. Whilst you are out you realize that you didn’t set stop-loss in your rush and your pair is depreciating when you check. Now, you can use your mobile to exit a position immediately, you don’t need to wait until you get home.
BrokerXP Customer Service
BrokerXP has a great dedicated customer service team, they are very professional and offer solutions to all of the problems that you could present them with. If you are a new trader, then you may encounter some problems when trying to get to grips with a new trading platform, so BrokerXP offers extensive educational resources. These educational resources are designed to help people familiarise themselves with the platform and all of the financial assets that are available to be traded on the BrokerXP platform. The MT4 platform also has a customer support team that is able to deal with any questions or issues that you are having on the trading side of things. MT4 also has a community section for traders, where questions about trading can get answered. A community forum is a great place for you to get tips about trading and non-essential things that the customer support team may not need to answer. For customer service, you could read here and on this link. To conclude, BrokerXP is one of the best choices for financial asset trading available. Their low fees and advanced features make it perfect for beginners and pros alike. For more reviews, you should visit official reviews on the website, Trustpilot andSitejabber. We highly suggest visiting also on Patch following links for more info and updated news https://patch.com/california/los-angeles/calendaevent/20200929/898131/brokerxp-reviews-are-happening https://patch.com/california/los-angeles/classifieds/announcements/171418/brokerxp-is-having-own-reviews-in-pacific-palisades
Forex currency trading is the process of trading in foreign exchange. It’s the market wherein different currencies are traded against each other, based on the exchange rates of those currencies. There was a point at which this was the realm of the larger banks and the incredibly wealthy, but that no longer applies. Almost anyone can now partake in Forex trading, as the capital requirements ... Forex market is open 5 days a week and traders can get their forex trading accounts and begin the trades. Moreover, there are many opportunities in the market and around 4 trillion dollars are traded each day. However, forex for beginners need to have proper strategies since if the price of one currency is depreciating there is another currency whose value will be increasing so there is always ... Trading foreign exchange on the currency market, also called trading forex, can be a thrilling hobby and a great source of income. To put it into perspective, the securities market trades about $22.4 billion per day; the forex market trades about $5 trillion per day. You can trade forex online in multiple ways. Forex trading involves significant risk of loss and is not suitable for all investors. Full Disclosure. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. *Increasing leverage increases risk. GAIN Capital Group LLC (dba FOREX.com) 135 US Hwy 202/206 Bedminster NJ 07921, USA. GAIN Capital Group ... Uncover the best forex online currency trading strategies, including day trading, swing trading, scalping, and more. Additionally, we’re going to share a few important recommendations that experts use before entering a trade. If this is your first time on our website, our team at Trading Strategy Guides welcomes you. Make sure you hit the subscribe button, so you get your Free Trading ... ACCESS GLOBAL FOREX MARKET & 45+ CURRENCY PAIRS. Expand your investment portfolio with more than 45 currency pairs on a global Forex market. Being one of the most volatile trading environments with a $6.3 billion-dollar daily turnover, it seems to be home to the most profitable bids online. Forex Trading Currency Exchange. Forex Trading Exchange. Menü . Menü. Suche. Suche nach: Suche schließen. Menü schließen. Kategorien. Trading Signale. Ist Florian Steiner Trading seriös? Beitragsautor Von Marvin Neuhauser; Beitragsdatum März 1, 2020; Keine Kommentare zu Ist Florian Steiner Trading seriös? Wer sich mit dem Traden beschäftigt, wird mit Sicherheit bei seinen Recherchen ...
I Tried Forex Day Trading for a Week (Complete Beginner ...
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