Experience is a guarantee of successful trading outcomes. Though when you are just starting, or want to understand the peculiarities of the market and exercise all possible resources for your improvement, you need to pay attention to trading tools which will bring you only benefits. The most appealing advantage of these tools is that they save your time! Let us go through three reputable useful tools to enhance your trading performance level, save time and increase profitability.
Forex Education
Education on Forex trading and financial markets for beginners and professional traders interested in earn money trading
Calculate the risk of ruin (or probability of success) of a trading system
This is probably one of the most important articles for long-term success in trading that I have written so far. If I am not mistaken, this is the first time I have written about it, although the issue of risk of ruin is of the utmost importance in achieving long-term profitability. It is about evaluating, objectively, the risk I have of losing a certain percentage of the capital dedicated to investment and trading.
We have talked a lot in the past about drawdowns in general and in trading systems in particular. Specifically, we have explained the concept of the historical maximum drawdown as a risk measure of any kind.
When using a trading system in Forex and in other markets we must be able to answer two questions:
- With a certain capital, what risk do I have of suffering catastrophic losses in the system/portfolio due to lack of funds?
- If I want to risk only a certain capital, what probability of success do I have in the long term?
They are two questions that come to express the same thing, the relationship between the probability of long-term success and the capital available for the system/portfolio. Naturally we all know that the more we put in, the better, but it is about optimizing the use of money, right?
Tickmill Broker: Platform, Regulation, Deposit | Complete Tutorial
In this guide of the Forex broker Tickmill, we will learn more about this company. Among other things, we will explain how to open a practice demo account with this broker and how to manage its Metatrader 4 trading platform, one of the most popular and widespread platforms in the online retail financial world. You can find more information about … Read more
Bullish Doji Star Candlestick Pattern
The candlestick pattern Bullish Doji Star is a trend reversal formation that occurs in bear markets and all timeframes, which indicates that there is a certain probability that a change will occurs from bearish to bullish trend. This is a pattern with an average level of reliability, which can be identified as follows:
- The previous trend in the market before the pattern appears is bearish.
- In the first period a long black candle is formed
- In the second period a Doji is formed with a bearish gap in the price.
- Doji shadows (upper and lower) are not extensive.
How can I learn to maximize profits and minimize my losses in trading?
There are certain facts that have remained strong in recent years in connection with trading. Experienced and successful traders point out that, despite being able to develop trading strategies with high probability of success that allow them to enter the market at the right time through their systems signals they almost never close a position in the optimal moment.
Close the trades at the right time is one of the most challenging aspects of trading in general and for many beginning traders it is difficult to understand that the market exits are difficult to visualize and we just have to execute them as part of our trading plan. In this case, the trades must be closed according to our trading plan with no doubt and fear even if it appears that there are some pips or points that were closed for closing a position “too soon”. We may be able to achieve excellence, but perfection (as far as trading is concerned) is an impossible ambition.
How to choose a Forex Signal Provider?
Before choosing a Forex signals provider and spend our money paying for their signals, we must take into account a number of important factors since the offer of this kind of services is quite important and each of these services has a number of features both positive and negative which should be assessed in advance.
In this article we will provide a few tips that should be taken into account when selecting a good Forex signal provider that allows us to invest more safely in the Forex market:
Effects of Macroeconomic Events in the Forex Market
The traders and investors that trades in the Forex market in the short term focus mainly on the most important economic news of the week and how they can affect the prices of different currency pairs in the market. This can work well for many traders, however it is also important to take into account the most important economic events worldwide. The reason is that large-scale macroeconomic events usually generate significant movements in markets. The effect results in a change that goes beyond a simple variation in prices that may last one or two days, depending on its scope and importance, and have the potential to transform the viewpoint or fundamental consensus for periods that can last for months or years.
For example, events such as wars, natural disasters, international high-level meetings, political uncertainty, and others, often have significant physical and psychological effects on the financial markets like Forex because of their rarity and their irregularity. These events can cause radical changes in the currencies value, so the trader should keep an eye on them, analyze and understand the underlying direction of the market sentiment before and after the macroeconomic event occurs, and anticipate the market reaction. All this can help investors make high profits or at least allows you to prevent major losses that could even end up with your trading account.
COVID-19 Crisis Triggers Global Debt
The COVID-19 pandemic is also having dire consequences for the economy. One of the most notable effects in a large increase in public and private debt.
The world was still resentful of the great recession of 2008 when the Coronavirus health crisis erupted. With the virus spreading massively and many economies still paralyzed, states are coming to the rescue of the economy. For this, large economic stimulus programs are required, which, among other measures, include tax cuts, tax exemptions and loans on favorable terms.
Trying to avoid the fall of strategic companies, to support small entrepreneurs and to avoid a fall in the income of the most affected workers, the governments issue debt to obtain the necessary financing.
Bank for International Settlements (BIS)
What is the Bank for International Settlements (BIS)? The Bank for International Settlements, or BIS because of its acronym in English, is an international organization dedicated to stimulating monetary and financial cooperation worldwide. This large entity is often seen as a kind of central bank supervisor. This organism was born in 1930 and is therefore considered the oldest financial institution … Read more
Personal Income and Consumption Index Indicator
General definition
The Personal Income and Consumption Index is a report from the United States that includes both personal income and consumption expenditures from all sources. This is a monthly figure, which always refers to the two previous months in which the Bureau of Economic Analysis of the Department of Commerce discloses the report.
In this case, the personal income and savings data, which is also covered by the report, provide economists and market analysts an insight into future spending (consumption) trends in the economy of the United States.