Resources

10 Rules of Technical Trading by John Murphy21.05.2015

In what direction will go the market? How far it'll get up or down? And when it will change the direction? These are the basic questions of a technical analyst. Additionally to diagrams, graphics and mathematical formulas used in the analysis of market trends, there are some basic concepts that can be applied to most of the theories used by today's technical analysts. John Murphy, a master in technical analysis of futures markets, based on his thirty years of experience, has developed ten fundamental rules of technical trading. These rules are intended to help to explain the general idea of ​​technical trading for novices and simplify the trading methodology for more experienced practitioners. These principles define the key tools of technical analysis and how to use them to identify the possibility of selling and buying. Mr. Murphy was the technical analyst for CNBC. For seven years he led the popular show "Tech Talk" and is the author of three best-selling books on the ...

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ECB’s QE: Don’t expect any wonders!17.05.2015

Post-2008, the recovery in the 19-member euro zone has been anemic, to say the least. In a latest, the bloc registered an annual 0.2% decline in prices, which is very symbolic considering that this is the first instance since 2009 and yet again stokes fears that the economy may enter a prolonged deflationary period, like Japan, which has failed to see any real inflation in more than two decades. While the US has shown a modest recovery since the recession, most of the European nations are still in the clutches of deflationary pressures. As a result, interest rates have been dragged down to historically low levels, to spur consumer spending and stimulating the investment cycle. With interest rates failing as a tool of economic recovery, the European Central Bank (ECB) had recently introduced an asset purchase program of €60bn per month, which will start in March 2015 and continue until at least September 2016. While the QE program came out bigger than many expected (most of the exp...

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Profit And Position Sizing: How They Work Together16.05.2015

Profit and position sizing is not limited to the Forex market. Anyone who is going to invest funds in any investment vessel such as stocks, mutual funds, commodities, bonds and anything else has to understand that position sizing is often the way to determine proper profit for an investment. You can think of position sizing as a risk management strategy. Risk Management Risk management is asking the question of how many lots are you going to buy or sell of a currency pair. Whether you ask this question subconsciously or not it is something that is in your mind. The problem is that many do it by pulling a number out of a hat, so to speak, which can lead to an improper formula with regards to profit. Position size must be a conscious choice where you follow a plan to ensure that position size is working for you in terms of gaining proper profit. You cannot be inconsistent with the amount you trade each. Rules have to be in place so that you are not risking it all based on the feeling ...

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Things To Follow When Trading Crude Oil13.05.2015

Forex brokers are going beyond trading pairs. You have a host of different options when it comes to investing your money. The old “eggs in one basket” saying that applies to diversifying your investments has never been easier. You can make certain your money is in more pots, while still leading to sound investments and the money making you want. Using the same platform with the same leverage and margins of currency pairs, you also have access to CFDs, ETFs, commodities, stocks and more. Included in these offerings are your ability to trade on crude oil price changes. Why Trade Crude Before you can examine important points about crude oil trading, you have to know why you would trade it. Crude oil is one of the hottest commodities because it is used on a daily basis. As an asset for Vanilla options through CBOT you can trade it over the counter (OTC) or through no dealing desks (NDD) through your broker to earn a return on your investment. There are two types of oil based...

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Common Mistakes of Beginners in the Forex Market! 10.05.2015

You can find many opinions and thoughts on the internet that say forex is kind of a game and is compared with casino. Having big profits is a matter of luck rather than using your skills and experience say many opinions. However, people with regular income work in the forex market, spend their time, do analyze, and all that indicates they are not lucky, they just do their work.  If you are a beginner in the forex market and also want to make it profitable for you, let’s talk about the most common mistakes. There are many traders whose deposits can grow extremely quickly and then, suddenly get empty because of wrong deals one after another. Following simple rules and avoiding the common mistakes will considerably increase your chances for constant profits and will make your forex activity look like a business and not like a casino game. So here are the ten mistakes of forex beginners: 1-      Lack of experience in the forex market Everyone knows th...

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