The Relative Strength Index (RSI) is one of the few trader's instruments able to go ahead of the price. Of course, such situations do not happen every day, however, this feature is really interesting and useful for the analysis of the current market situation.
Playing on exchange markets, including Forex, a trader will inevitably come across such phenomena as Margin Call and Stop Out. At first they seem to be synonyms but in fact their meanings are completely different. Let us look at the terms more closely.
The name MarSe was derived from the names of two trading strategies – Martingale and Surfing. The Surfing strategy has been created by Victor Borishpolets for daily trading on Forex and the stock market. The system is based on the RSI.
Stop Loss (SL or stops) and Take Profit (TP or target price) are orders meant for the player’s safety. They are, by nature, reverse orders: ex. if a pair was bought, a triggered stop or target price initiates a reverse transaction (selling) thus locking in profits (TP) or losses (SL).
Ichimoku Kinko Hyo is a technical analysis method devised in 1926 by Goichi Hosoda, better known under the pen-name Sanjin Ichimoku. In Japanese Ichimoku Kinko Hyo roughly means “instant representation” or “one glance cloud chart”. The indicator was designed in addition to candlestick charts on the commodity market, and the author used it successfully for rice trading. Later it was elaborated and introduced to the public in 1968, since then being one of the traditional instruments of Japanese traders.
Leverage means the ratio between the money you own and that borrowed from the broker. Different brokers offer different leverage sizes, which also depend on the market you are trading.
To trade with leverage, one must understand what it is and what we need it for. Leverage is a ratio of borrowed money to your own funds. It is also called trading leverage or financial leverage. To better understand what leverage is, study an example below.
We hope that this post will be interesting and useful to both beginners of the Forex market, who’d like to invest minimum money, and experienced managers, who invest large amounts of funds in diversified investment portfolios.
There are a lot of discussions about trading within the boundlessness of the Internet, both in conventional businesses and state-financed organizations. People say and write a lot of different things. More often than not, they are sure that trading can’t be regarded as a primary source of income.
As soon as they get a little free money, beginners open another position and, when it comes to the crunch, lose all their orders and entire deposit. To avoid such situations, people created and developed some specific rules to manage their capital and risks.