In my previous articles, I’ve gone into detail about how and why trading works for millions of people all over the world. Now, I think it's time to discuss all the different Forex trading sessions so you're well-informed in the best times of day you should be trading. The Forex market can be broken up into four major trading sessions which are: the Sydney session, the London session, the Tokyo session and the New York session. You can expect the following market and closing times during U.S. seasons:
Nearly every trader will suffer from a big loss or several in their career, whether it’s due to a technology fritz, a stray from your strategy and discipline, etc. How to bounce back after a big loss isn’t too complicated, it can be accomplished with a few simple steps. The most challenging part of bouncing back is repairing the damage done to your confidence and self-esteem.
A range-bound market is a scenario where there's price blockage within the range on the price chart. Which means the general price action is situated between two specific levels, the high of the range, and the low of the range. You might hear some traders refer to range-bound market trading as “price consolidation,” “congestion phase,” or “flat market.” When the Forex pair is not going either up or down, it is considered to be in “consolidation phase,” or “horizontal phase.”
Throughout the plethora technical indicators that are used by many traders, momentum indicators are still proving to stand strong as a classic trading strategy. So, let’s dive in and start with what momentum trading even means. When you're referring to momentum in Forex, it means the strength of price with bearish momentum being the strength of a downward move in price and bullish momentum being the strength of an upward move in price.
Divergences are one of the most popular trading concepts because they offer very reliable and high-quality trading signals when combined with other trading tools and concepts. Although indicators are somewhat lagging, just as price action is lagging as well, when it comes to divergences, this lagging feature is actually going to help traders find better and more reliable trade entries! Divergences can not only be used by reversal traders but also trend following traders can use divergences to time their exits. Let’s dig into what a divergence is so you can get comfortable with using it in your strategy successfully.
There are a lot of people out in our big world who have probably heard about Forex trading, maybe from a family member, a friend, read an article, or seen an advertisement online, etc. Most likely, it has piqued your curiosity but you’ve never really pulled the plug on learning more. So, this article is for those of you who can relate to that, or for beginner traders who may feel they’re a bit in over their heads.
Demo accounts are being broadly used nowadays throughout the Forex industry. They're popular because they're easy to use and often free. Typically, when you partner with a brokerage company, you will receive a demo account already active and ready to go. I always suggest finding a demo account through a brokerage company so you can have access to trading education, advice and guidance.
Among your fellow trading community, you might come across some nicknames or slang for trading. You need to prepare yourself so you know what your peers are talking about, and for your own personal trading education, too. You might hear something such as, “I’m going short 5 lots in cable, what are you thinking?” Would you rather have no idea what that means, or would you want to know what your peer is talking about?
Knowing the difference between a strategy that's not working for you and your style of trading, and one that has given you a few losing trades lately is a tricky concept for a lot of traders to grasp. I hear about traders that have a few losing trades and think it's solely the strategy they're using, and so they switch strategies and are still experiencing losing trades. These are common problems that a trader will face, and making the wrong assumptions can lead to disastrous decisions. It’s important for you as a trader to truly understand how common losing trades are so you know what to expect, and really familiarize yourself with statistics behind trading.
Currency markets are prone to a range of factors which affect volatility and many traders look to adjust their strategies to gain on most volatile currency pairs. Volatility is typically measured using the standard exchange of currency and gives traders an expectation of how much a currency can detour from its current price over a certain period. The higher the volatility of the currency, the higher the risk will be.