We have already mentioned that all risk management in the Forex market requires a trading system that must be tested to achieve its function: obtain a good return on our foreign exchange trades. One of the practices that, in the long term, can become very convenient is to establish an adequate risk/reward ratio in our trades. Here we will explain the basics of this practice and how to put it into practice.
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Trading The Non-Farm Payroll Report (NFP)
In this article we will show an interesting way to trade with the data of the Non-Farm Payrolls of the United States.
There was a time when trading with macro data was especially interesting. If the data deviated x% of what the market was waiting for, we could perform a trade expecting the price to have an interesting continuity. In fact, not only can you manually perform the trade, but there are interesting software that could execute the operation in hundredths of a second by clicking the buy or sell button of our broker just by programming it (like Expert Advisors in MT4).
However, after a well-known broker was about to go bankrupt, due to the problems caused by this type of operation, the matter gradually became more complicated. In this way, trading on economic data as soon as it comes out, is no longer a good business. Although demo can be interesting, I assure you that trading in those seconds after the data is released can be a drama. Do not try that at home. However, trading with macro data can be especially interesting with the necessary adjustments.
I will show you one that has been especially useful to me.
Trading System with RSI and Stochastic Oscillator
This trading system based on technical analysis combine three of the most used technical indicators. The moving average is a trend indicator and the stochastic and the RSI are oscillators used to determine when the market is oversold and overbought and the strength of the price movement, so this combination can provide safer trading signals.
Introduction
This is a simple trading technique that combines the use of the RSI, the stochastic oscillator and the moving averages. It is an easy to use strategie that can be used to trade in any market. Because this trading technique use oscillators is most commonly recommended for markets that are not moving with a strong trend as it can produce multiple false signals.
If you use this strategy in a trending market, you must open your positions until all specified trading conditions are met.
Forex Currency Pairs – Definition and Quotation
What are Forex currency pairs?
In the Forex market, currencies are traded in pairs. In these pairs each currency has meaning in relation to the other, so always stick together.
The two currencies in a pair are traded against each other. The rate or price at which these currencies are traded is known as the exchange rate. The exchange rate is regularly affected by supply and demand for currencies that make up the pair.
High Wave Candlestick Pattern – Definition and Example
The candlestick pattern High Wave candle is a formation which indicates indecision in the market and it has a medium reliability. This pattern can be identified as follows:
- A small body of white or black color with fairly long tails above and below which could have or not the same extension.
- It can occur in both the higher parts (highs) as in the lowest parts (lows) of market trends.
The gambler’s fallacy in trading
Regarding the issue of probability, a lack of understanding can lead to incorrect assumptions and predictions about the occurrence of certain events. One of these incorrect assumptions is known as the Gambler´s fallacy.
In the gambler’s fallacy, an individual mistakenly believe that the occurrence of a certain random event is less likely to occur after an event or series of events. This line of thinking is incorrect because the past events do not change the likelihood of certain events occurring in the future.
For example, consider a series of 20 coin tosses in which all have landed with the head side facing up: Under the gambler’s fallacy, a person can predict that the next coin toss is more likely to fall to the tail side facing up. This line of thinking is an incorrect understanding of probability, because the possibility that a coin lands heads or tails is always 50%. Each coin toss is an independent event, which means that each and every one of the previous tosses have no effect on future releases.
ESMA and Changes in CFD and Binary Options for European Clients
What is the ESMA (European Securities and Markets Authority)?
If you do not know what the ESMA is and you are a CFD trader from Europe, in the next weeks and months, it will sound a lot. Todaw we will explain what is the ESMA and how it will influence European Trading in negative ways.
ESMA is the abbreviation in English of European Securities and Markets Authority.
It is a body of the European Union, whose mission is to protect investors and ensure the integrity, stability and proper functioning of financial markets. It would become like the regulator of regulators.
Engulfing Bearish Candlestick Pattern
The candlestick formation Engulfing Bearish is a highly reliable trend change pattern that is formed in bull markets and indicates that there is a high probability that the market will change its direction from bullish to bearish. Sometimes it could be the beginning of a bearish trend. This pattern can be identified in the following way:
- First we have a candlestick with a small white real body, followed by a black candle with a long real body that encompasses in its entirety the white real body of the previous candle. In other words, the range of the first candlestick is within the range of the second candlestick.
- The previous trend of the market must be bullish.
Forex Trading System Gurusomu
The polyvalent trading system “Gurusomu” is based on the famous Japanese indicator “Ichimoku“. This trading strategy can be used both for small timeframes (up to 30 minutes) for scalping and short-term trades, as well as for medium-term and long-term trades using 1 hour price charts and higher time frames. With this system we can trade with any currency pair and at any time. Naturally, if you want to do scalping, you will have to choose the time period where there is greater market volatility, and a Forex broker for scalping.
To trade safely in the Forex market, choose one of the best Forex brokers that are regulated. If you have doubts which to choose, you can always make a comparison between them.
Crypto Trading Available in Z.Com Trade and more
Update on Z.Com Trade
The broker Z.Com Trade has ended its operations and no longer offers brokerage services. It closed its offices in mid-2020.
The Forex and CFD broker Z.Com Trade (regulated by organizations such as the FCA) has announced a series of improvements in its services, including the addition of cryptocurrencies CFD (Contracts For Difference).
These services are described below:
These services are described below: