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In this article we will continue with the main ideas developed about the relationship between trading and psychology that we discussed in the article “Trading Psychology”. First at all in that article we discuss the fundamental role that psychology plays in the performance of a trader. Among other aspects, we explained that in most cases the traders loss money due to their fault and because they are not prepared psychologically to face the market environment.
Trading is a very hard game. A trader who wants to succeed must take very seriously what he is doing. You can not afford to be naive or to trade for hidden psychological reasons. Unfortunately, trading attracts impulsive people, players and those who think the world owes them something. If you practice trading for the excitement it produces, it is possible that you may perform many trades with little chance of sucess or accept unnecessary risks. The market does not forgive and the emotional trading always carries losses.
The feelings have an immediate impact on the trading account. May be you have a brilliant trading system, but if you are frightened, arrogant or upset is almost certain that your account will suffer. When you realize that the thirst for gambling is gaining or fear clouds your mind, you must stop trading. Your success or failure as a trader depends on controlling your emotions.
What is a pip? A pip is defined as the minimum possible change in the value of a currency pair. In this case the number of pips or points measures the difference between the entry price and exit price in any Forex trading. For example if the GBP / USD moves from 1.6225 to 1.6250, that is a rise of … Read more
When Forex traders talk about intraday trading, they are referring to buying and selling currencies (currency pairs) on the same day. Day traders often look small price movements and use large amounts of leveraged capital to make money with these little movements. In general, they look for markets with high liquidity – where large volumes of trades and sufficient market participants ensure that deals are closed instantly. Liquid markets (like the main currency pairs) also offer tight spreads – which means that the transactions are more profitable – and adjusted slippages, ensuring that trades are closed in the quoted price.
However, there are actually a number of daily trading strategies – including trading against the trend, daily pivots, momentum etc. Each of these similar approaches is used to identify an entry point, but the exit strategy is different in each case.
Like other brokers in the binary options industry, Finmax has many complaints from clients who claim to have been victimized by this company. Therefore, we recommend great care when trading with this broker.
Among other things, clients claim that Finmax has taken their money or is not allowing them to withdraw funds. We cannot confirm whether these statements are true or not, but we recommend investigating and being careful.
However, if you are interested in trading binary options and other instruments such as Forex and CFD through a recognized and regulated broker, you can try IQOption.
You can get more information about this company in the following guide: IQOption broker review
In this article, we will show you how the Parabolic SAR indicator can help you predict the market trend and its oscillations. The Parabolic SAR is another of the stock market technical indicators developed by the legendary Welles Wilder, who published it in his well-known book “New concepts in technical trading systems“, along with the RSI, the ATR, and the … Read more
What is a Gap and Trap? A “Gap and Trap” is a price formation that can be observed in a individual stock, a market index, a currency pair, futures contract or other instrument or asset traded in financial markets. The “Gap and Trap” occurs when there is an upward gap between one trading session and another, and investors begin to … Read more
Much has been said about the broker 4XP (Forexplace) and what happened with this company and its customers. Certainly it is a clear example of the care that must be taken when choosing a broker and put our money in their accounts. Previously we had 4XP on our list of Forex brokers and we promoted its services but after seeing … Read more
Every time we trade in the currency markets, all positions must be closed within two business days. Despite this, every trader has the option to renew all his open positions easily without the need for physical delivery of the foreign exchange contracts with which he is negotiating.
For example, if a trader buys $10,000 on Monday is in the obligation to make delivery of those $10,000 no later than Wednesday of the same week, unless he want to renew the position, which is called Rollover. Currently, most Forex brokers include among their services to their customers the option of renewing their open positions automatically (the rollover is credited or debited automatically if the client does not close their positions before a certain hour) or manually, which is also known as tom/next swaps a trade for the next day of the position´s settlement.
Thus, rollovers or swaps involve the application of a credit or debit in the operator’s trading account, which is based on the positions that remain open in the market at precisely 17:00 pm EST and differentials in interest rates between the currencies that make up the pairs with which we are trading. In this case, if we have an open position in which we proceeded to sell the currency that has the highest interest rate, our trading account will be debited (the account will be charged with the difference in the interest rate applied on the total volume of the position). But if in that position the same currency was bought, the account will be credited by the broker (the money deposited in the account is equal to the interest rate differential applied to the size of the position).
These are open positions in the Forex market which are not closed at the end of the trading day in which they were opened. In the stock market an overnight position is considered at risk because it is common, for as long as the exchange is closed (after the trading session), that some events may occur which can negatively impact the price of the stock traded.
In the Forex market, which is an international financial market that operates continuously 24 hours, it has been set the 17:00 EST (00:00 UTC) as the final hour of the trading day. At this time, any position that is still open is considered an overnight position. This hour is strict. If you open a position at 23:59:59 UTC and close this same position at 00:00:01 UTC, it will be considered an overnight position.