Category: Forex Basics

Hammering out the Hangman: A Beginners Look into Candlestick Reading

In the beginning of trying to understand the complexities of Forex trading, a new investor is going to be inundated with charts of every shape, size and time frame. All of these are designed to help a trader track trends and identify good starting positions. One of the most helpful for its depth of information is the candlestick chart.

The candlestick chart is your basic line graph intensified. It is easily identifiable by the thick vertical line with thinner lines protruding from the top and bottom. Those thinner lines, which are referred to as shadows or wicks, are telling you the range of the currency’s price during the time period while the thicker part, or real body, is representative of the range between the  open and close price.

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The World MoneyShow Toronto–October 16-18

The World MoneyShow Toronto–October 16-18

US and Canadian equity markets trading near all-time highs amid record-low volatility has many pointing to a sense of “complacency” in the markets, like it’s possible that the “easy money” has already been made. That’s why 40+ leading investing and trading experts will be speaking LIVE and in-person at The World MoneyShow Toronto, and will reveal their latest

The Advantages of Using a PAMM Account

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

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