Swing trading is an approach to financial markets that appeared quite a long time ago. It should be3 noted that this is not a system but a style of trading. This means it can contain several tactics and strategies of market behavior.
Author: Dmitriy Gurkovskiy
On Forex, under a signal, we mean a complex of circumstances, indicators, and events that show the trader in which direction they should open a trade, in other words, whether they should buy or sell.
A drawdown is a decrease in the balance and equity on the trading account; to put it simpler, a drawdown is a loss. Drawdowns can be of two types: floating and fixed.
Each of the models discussed reflects the most frequent approaches of traders to money management. We will have a look at both the advantages and drawbacks of the systems. The most experienced and skillful traders sometimes mix these models, however, only in compliance with their trading strategies.
The Trailing Stop is a much flexible and comfortable way of using the Stop Loss. With this instrument, the trader gets an opportunity to use the whole potential of the market movement, simultaneously reducing the risk of large losses.
Beginner traders usually consider money management to be some dull paperwork; outwitting and conquering the market for a short-term profit seems much more exciting. Short-term effects give you the feeling of a victory but are very few. Such an approach tends to end up in a failure as it is, in essence, playing with the market but not a serious systematic approach. And after the trader realizes that trading requires a strategy and a plan, they start to consider studying some money management models.
Everyone who comes to the market craving for money thinks that they will be among that 10 % of successful traders that can be called "cream of the cream". Such a way of thinking is logical and natural, because — who will ever aim at bad results? Well, a question emerges then: where do the remaining 90% appear from? What happens to them next? Why do these statistics of 90% losing traders against 10% gaining ones exist at all?
In this article, we are going to speak about the essence of HFT, its history, its development, its principles and the part it plays on the modern financial markets, as well as about its types and strategies and its perspectives.
A lot is a volume of an operation on the Fore market, which is defined by global standards. 1 lot always equals to 100,000 units of a base currency.
The Head and Shoulders pattern is a classical pattern of technical analysis. Let s have a look at its main elements as well as the characteristics of trading with the use of it.