A
Aisley Crooner
@aisley
Last seen:
2 months ago
Market is a mechanism for taking money from the impatient and giving to the patient
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You need to be able to take the money out of your account when you are done trading for the day. Leaving funds in your account will just lead you into taking random trades and spiralling downward from there. You start making small $5 losses and you keep trying and before you know it youve lost $5 twenty times.
The reason why these patterns always change is because the market is ruled by banks/hedge funds who are always changing they way their algos trade so as to remain competitive. When they notice that people have figured out their algo playbook, they change the way they send in their orders causing the market pattern to change for another week or so.
You will start being a profitable trader, when you realize the market changes pattern every now and then. This is why consistency is important because when you show up and trade everyday, you begin to see patterns. For example for one week straight the pattern for a particular instrument could be rejection as a session high then downward trend, and it could last for a week. For another week, the presiding pattern could be breaking of a session low and continuation etc. One of the key skills a trader should have is the ability to observe and decipher hidden patterns on charts.
The truth is that no strategy works all the time so traders need to accept losses as they come withiut trying to revenge trade. In forex trading you have a set of good days and bad days, and theres nothing you can do about it when the bad days come. Ideally a trader should have daily loss limits and once reached, he/she should stop trading.
I guess you mean trying to get a better price using multiple entries. So, if I entered the first sell, Ii would wait for price to go up before entering the second sell and maybe with a bigger lot size?
No, the bond market is closed on Veterans Day because bonds are government securities and since government offices will be closed the bond market will also be closed.
It's basically trading something which you do not physically have. If I enter into an agreement to buy a car from you for $5,000 in two weeks' time, I can go and look for another buyer willing to pay $6,000 and sell the contract to him then keep the difference of $1,000 as my profit. So, I profited off your car without taking ownership of it. This is the same model used by online brokers when people trade CFDs.
Maybe you are trading with a bias and trading against the trend. What I mean is there are times when you enter the market thinking it should go in a certain direction and when that doesn't happen you keep doubling down and losing. For example if you entered the market with a short bias and you see that the market trend is actually upward you should switch your bias and follow the trend.
Robinhood DRIP does not buy into Net Asset Value discount, I prefer using Trading212 or Interactive Brokers for DRIP
Gold is actually more expensive to trade because many brokers charge excessive spreads on it, so you need to have a sizeable account balance to trade gold.
Gold is mostly active during the NY session (during London session it mostly ranges) and the NY session is notorious for news releases making it a very volatile session.
Speaking of volatility, gold is also more volatile than forex pairs so you could incurr huge losses in the blink of an eye.
Major forex pairs are not limited to the NY session they see modest price movement even during the London session and major forex pairs also have lower spread making them cheaper to trade.
So, for me I think trading gold may be better if you have a huge trading account balance (so you can set wider stop losses) and a tested strategy for trading gold.
If not, you may want to consider trading major currency pairs if your account balance is small and you are a beginner who is not yet experienced and has not yet developed a solid strategy for trading gold.
Gold is really volatile and is not an instrument you use to learn how to trade, so the choice is yours.
I have traded both stocks & forex cfds and in my opinion technical analysis is more effective when trading forex.
Deflation explained
Deflation is the absence of inflation meaning the country's inflation rate has dropped below 0%. When there is deflation, most consumers stop spending money because they expect the prices of goods to drop further. Imagine you buy something for $10 today and tomorrow it is selling for $5; you would have lost $5.
When deflation causes consumers to stop spending money, producing companies begin to record lower sales, workers get laid off etc. This reduces the GDP of the country's economy thus making it an unattractive destination for foreign investors and ultimately weakening its currency.
Disinflation explained
Disinflation is when inflation is present but the rate at which it is increasing is small and not a threat. Remember a low inflation is good for an economy and the ideal inflation rate is 2%.
Disinflation may not really harm a currency as long as the inflation is still within the acceptable range of 2%. So, disinflation is better for a currency when compared to deflation.
To add to what @dominykas said, imagine your broker has a 20% stop out level and your margin level has fallen to 25%, you will be at the verge of being stopped out of the market. But if you have a deposit bonus of, say 50%, it will boost your margin level to 75% thus buying you more time in the market for the tides to change.
Gold & the us dollar prices move in opposite directions. When the price of one is high, the other will be low. The reason is that gold is priced in the us dollar so when the dollar is high, other currencies become weak relative to the dollar. When other currencies are weak, it costs more to buy an ounce of gold & so the demand for gold drops thus causing gold prices to drop due to low demand.
When wind speeds in the North Atlantic Ocean reduce, wind turbines & other renewable energy sources which use wind as a source of power are unable to work at full capacity.
This means UK & EU residents will have to rely more on natural gas for heat during the winter, thus increasing its demand & driving up the price.
For me, I dont trust any signals sent to me by a forex broker because i dont beleive they truly care so much that they want me to win.
I mean if they cared so much, they would have built more risk management features into their trading platforms, or even given us one spread-free trade per day. It seems everything to them is about making a profit.
I used to feel the same way about metatrader when i began trading but with time i realized metatraders bland user interface void of any fancy designs makes it lightweight and easy to install/uninstall plus metatrader starts up faster than most trading platforms. Once you open the metatrader app, it initializes fast so you dont miss out on a trade.
If you look at a rival trading platform like cTrader, it is so heavy and takes several minutes to install. Even when you open cTrader it doesnt load as fast as metatrader does thus if you are in a hurry to place a trade you may not meet up.
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