Category: Forex Basics

Avoid Trading the Martingale Way

If someone came to you and said that there was a trading strategy where you were always guaranteed to make a profit, there is a very good chance that you wouldn’t believe them. However, such a strategy does exist. It’s known as the martingale – and you should avoid it at all costs.

The martingale isn’t unique to forex trading. In fact, you could just as easily use it in a casino – and people have being trying that for more than 200 years. The problem is that there is an extremely good chance that you will run out of money before you ever make that elusive profit.

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Understanding Currency Correlations

Understanding Currency Correlations

Often, novice currency traders look at individual currency pairs as if they existed in a vacuum. However, the truth is that correlation plays a big role – often, one currency pair will rise when another one rises. In other cases, two currency pairs tend to move in the opposite direction to each other. This is

Price Action is Not a System

Price Action is Not a System

Many forex traders like well-defined guidelines when they trade. This is a key characteristic of many trading systems, which provide a rigidly defined set of rules and leave traders with very little room for applying their own insights and instincts to the market. While it is an attractive idea to have a trading system that

Market Movers Podcast Test Episode #8: correlations, geo-politics and the pounding of the pound

Market Movers Podcast Test Episode #8: correlations, geo-politics and the pounding of the pound

Here is another test episode of Market Movers, presented by Lior Cohen of Trading NRG and Yohay Elam of Forex Crunch. As you can see from the title, we are still in a testing period. You are welcome to listen, subscribe and provide feedback. We added a nice intro and a nice outro this time. In today’s

How to Profit from a Falling Dollar

How to Profit from a Falling Dollar

It pays to be the only major power in a world war to avoid fighting on native soil. The United States emerged from World War II in just such a position as the only economy standing. In an agreement hammered out in Bretton Woods, New Hampshire in 1944, forty-four world nations agreed to hitch their

Live To Trade Another Day

Live To Trade Another Day

In traditional investing, risk is viewed as volatility or standard deviation of the asset’s marked to market value. Standard deviation tells you how much an investment’s value will fluctuate from the average return. The more volatile the investment is likely to swing (both positively and negatively) around it’s own historical average, the more risky an

How ‘not to trade’ breakouts

How ‘not to trade’ breakouts

Breakouts are classic price patterns that traders have been using for years to make profitable trades. Breakouts work so well because they indicate a market that has started a new trend, one which could ultimately last for a long time and lead to spectacular profits. In short, they signal a complete change in direction for

Can we rely on all regulated Forex brokers?

Can we rely on all regulated Forex brokers?

There is one word that a lot of the world’s population associates with the financial world. That word is ‘greed’. The collapse of the markets a few years ago did not help, but the financial world was linked to that word for years prior to this anyway. It is only once a few stories appeared

7 Questions to ask before each trade

7 Questions to ask before each trade

Forex traders typically have a plan of action before they play the markets and putting a plan into practice is an essential component of trading success. Whether you have a trading plan or not, asking these questions before each trade can put you in a better frame of mind and increase your chances of beating

How to Trade What You See

How to Trade What You See

There is one constant message that is drummed into every forex trader – trade based on logic, not emotions. Unless you can control your emotions, you will start to make trades for which there is no real justification. This in turn leads to losses – which can quickly deplete your trading capital. However, it’s all