Category: Forex Education - Page 9

Differences between a bull market and a bear market

When we begin to analyze financial markets, the first thing to be clear about is that prices basically move in two trends. On the one hand we have the bull markets and on the other hand the bear markets. Each type of market offers specific characteristics and requires a different way of trading. In this article we will analyze this.

In fact, trading in bull markets is usually the most common, but there are also those who use the bear markets to find the best opportunities. Markets in general are very volatile and quite irregular. So much that it often seems complicated to predict the fluctuations of the assets that are listed on financial markets.

Next we will analyze both types of markets to distinguish the characteristics that each one has and check which market can best adapt to us, according to our investor profile. Pay attention to the following and you can choose with criteria which market is best for you to get a better return on your capital.

Trading Using the Simple but Effective Rule of 2 Candles

by rcanessa

This trading technique that can be found for free on forums and websites like this has the advantage of requiring no more than a few minutes a day so it is perfect for traders with many occupations and with no time to see charts and analyze the market all day. Furthermore, the procedure of The rule of the two candles is not complicated and can be learned very quickly.

Basically, this strategy is based in the identification of an “Inside Bar” as shown in the following image:

Donchian Channels – Definition and Calculation

by rcanessa

El Donchian channel is a technical indicator trend type represented as a dynamic market price channel based on price movements.

The Donchian channel is a technical indicator, as it is part of the technical analysis. In addition, it is a trend indicator because it aims to identify which is the main market trend. And, its graphic representation is as a dynamic channel. What does dynamic mean? That is a channel that changes as the price moves. Its appearance is as follows:

Trading Contest “Top Trader” of the broker FXPrimus

by rcanessa

The Forex and CFD broker FXPrimus (regulated by organizations such as CySEC) organizes a trading tournament for real accounts that takes place every month and offers interesting prizes to the winners in three different categories. This contest is called the “Top Trader Challenge” and will be held from mid-2019 to mid-2020. At the end of the competition, FXPrimus will conduct a raffle among all winners of the previous rounds, where prizes such as a private jet ride and a BMW X1 sDrive 20i Sport will be raffled.

In this contest all clients of this broker, both new and existing, who open a real trading account and deposit at least $100 USD can participate.

The Calmar Ratio – Profitability and Risk Indicator

by rcanessa

The Calmar Ratio is an indicator that is designed to measure and compare the performance of an investment portfolio or trading system.

The interesting thing about this ratio is that it summarizes how the profitability of the period has been with respect to the assumed risk.

Although it is a less known indicator than the Sharpe ratio, the Calmar ratio is currently widely used in the financial industry. It was first published in 1991 in the Futures magazine and was developed by Terry W. Young; precisely its name comes from the acronym formed from the name of the newsletter that the author sent to his clients, called CALifornia Managed Accounts Report. The Calmar ratio is defined as the ratio between the annualized profitability of the system and its maximum drawdown in absolute value.

How to trade Forex with economic news?

by rcanessa

The events and economic news bring strong movements in the financial markets at the time of publication. In this article we will explain all the keys to trade these scenarios successfully.

It is possible that more than once we have suffered the consequences of economic or political events with an open position. In such situations we observe how the market, suddenly, takes a strong impulse and sometimes advances in our favor and others against us.

There is no doubt, before and after the publication of an economic news the market reacts, and in many occasions in a very violent and unpredictable way. If you do not know how to handle these situations well, it is possible that you make the wrong decisions, those that inevitably lead to loss.

The objective of this article is precisely to learn how to improve your trading during these situations and try, with success, to trade with economic news. Being in a position to be able to make the appropriate decisions when important economic events are published, so that we can take advantage of the high volatility that occurs.

RoboForex RAMM Investment Accounts

by rcanessa

What are RAMM accounts? The RoboForex RAMM (Risk Allocation Management Model) account system is a type of Forex trading account management service that is becoming a rapidly growing form of investment in the foreign exchange market and is based on efficient risk management and the proportional allocation of benefits. It is based on the concept of PAMM-managed accounts, offering the … Read more

Investors pending on geopolitical tensions and turbulence in oil markets

by rcanessa

The weekly opening is being conditioned by this weekend’s attacks with drones against oil production facilities in Saudi Arabia and the disappointing economic data from China, two factors that triggered risk aversion.

Texas WTI oil prices rose 16% at the weekly opening, after it was known that attacks on Saudi facilities will reduce production by 50%, which is 5% of world production. It is the biggest interruption in the supply of crude oil in history, which also caused a historic rise in oil prices.

The president of the United States, Donald Trump, authorized the use of the country’s emergency reserves to guarantee the oil supply and also he said the country will respond to the attacks he attributes to Iran. For its part, Saudi Arabia has said that it is prepared to restore half of the production this Monday.

The Most Popular Forex Strategies

by rcanessa

Do you want to trade in the forex market but you still don’t know how to do it? Do you have doubts about doing short or long term operations? Don’t you know what kind of analysis to use? If you are a trader who is starting in the exciting world of Forex and doubts assail you with any of these questions, then we present a few types of strategies, the most popular in the market, so you can decide which one suits better to your needs.

If, later, you decide to train in more depth in any of these trading methodologies, you can always find more information here (see article on trading systems) or in the different publications specialized in trading strategies that we have on this website.

What loss limit can I use in my trades?

by rcanessa

Again, as long as I speak of losses, I must start this article by saying that is completely impossible to avoid losses. Sooner or later they come to all traders. A good trader simply accept them consciously, which also involves applying systematic rules to keep the losses well controlled.

This article will not discuss the position of the stop loss, it will focus on the loss limit on volume that should be applied in all trades. That is, the maximum amount of money that would be lost if the operation goes wrong. Knowing this amount is essential to calculate the size of the trade.

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