Category: Forex Basics

The Advantages of Using a PAMM Account

You may have heard about PAMM accounts for forex trading, and might have wondered what they are. In essence, a PAMM account allows one trader – the manager – to make trades on behalf of other investors who are not actively involved in forex trading.

In a way, you can think of this as being similar to the way a stock market mutual fund works – although there are some significant differences.

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Copy Trading. Pitfalls and Tips

Copy Trading. Pitfalls and Tips

Copy Trading or Mirror Trading is catching on for better and worse. Having traded and worked in the retail CFD/spread betting arena for some years I made all the mistakes starting out. Over leveraging, no idea of a target price, no capacity to cut a loser, or to hold a winner. Then as I learned

Getting to grips with trend following – part 2

Getting to grips with trend following – part 2

According to Wikipedia, trend following is an investment strategy that is based on the technical analysis of market prices, rather than on the fundamental strengths of the companies. While that is true in part, it’s also correct that trend following is not merely technical analysis. Indeed, trend following is much more. It is a philosophy,

How to Avoid Recency Bias

How to Avoid Recency Bias

One of the biggest enemies that any trader has is recency bias. This is the phenomenon that occurs when we pay more attention to things that have happened recently than to things that have happened in the past. This is natural human behavior, but it leads to bad trading decisions. A simple example of this

Getting to grips with trend following – Part 1

Getting to grips with trend following – Part 1

According to Wikipedia, trend following is an investment strategy that is based on the technical analysis of market prices, rather than on the fundamental strengths of the companies. While that is true in part, it’s also correct that trend following is not merely technical analysis. Indeed, trend following is much more. It is a philosophy,

How to Anticipate Trends

How to Anticipate Trends

One common misperception with forex trading is that traders are able to predict trends. In other words, they use technical analysis to determine when the market is going to move in a particular direction. Unfortunately, nothing could be further from the truth – traders try to anticipate trends by looking at patterns that have resulted

Learning from Your Very Worst Trades

Learning from Your Very Worst Trades

The human mind is interesting. Rather than learning from past mistakes, most people tend to focus on the positive and forget failures. While this may help them to keep a more balanced attitude towards life, it is also a major liability when it comes to forex trading. Why do we ignore bad trades? There are

Identifying When To Let Your Forex Trades Run Towards Bigger Profits

Identifying When To Let Your Forex Trades Run Towards Bigger Profits

For every hundred traders you come across who trade in short time frames, you may find two who are making a profit worth mentioning. The rest are struggling trying to figure out why they can’t seem to get ahead. The reason is simple to figure out if they would slow down and think about their

How to Use Horizontal Levels and Price Action to Trade Forex

How to Use Horizontal Levels and Price Action to Trade Forex

While there are numerous forex trading strategies, perhaps one of the simplest – and most successful – is to use horizontal levels and price action. While there are more complicated strategies, many successful professional forex traders use this approach as the core of their own strategy. To know how this strategy works, it is important

Currency Myths

Currency Myths

There is a lot of conflicting advice in the forex market, making it difficult to know what is real and what is a myth. Both novice and veteran traders fall victim to myths, experiencing both frustration and trading losses when they do. This is why it is important for any forex trader to know the