Learn More About Forex and Stock Market

WHAT IS TRAILING STOPLOSS? Instead of manually adjusting your stop-loss order, you can enter a trailing stop-loss that will trail, or stay below, the current price by the amount you set. The stop-loss will be automatically adjusted each time XYZ makes a new high. Thus, a sell trailing stop order sets the stop price at a fixed amount below the market price with an attached "trailing" amount. As the market price rises, the stop price rises by the trail amount, but if the stock price falls, the stop loss price doesn't change, and a market order is submitted when the stop price is hit. Difference Between a Stop-Loss Order and a Trailing Stop Order The difference between a regular and trailing stop-loss order is that the regular stop-loss must be changed manually, while a trailing stop-loss is adjusted automatically based on the amount or percentage you set. A trailing stop loss saves you the time and effort of recalculating and changing your stops manually and takes...

The Moving Average, MA for short, is probably the most popular trend following indicator used by Forex traders. In this blog we will discuss more about Moving Average (MA) What is Moving Average? A moving average is a type of lagging indicator that accumulates past price points and then averages them to provide a technical analyst with a better sense of where a security went over a period of time. There are a handful of different moving averages, including the simple moving average (SMA) and the exponential moving average (EMA). Moving averages help forex traders make effective transactions by aiding them in evaluating the price history of a currency pair or related investment. More specifically, these averages make it easier for investors to interpret the price fluctuations of an asset by smoothing out their random movements. One sweet way to use moving averages is to help you  determine the trend . The simplest way is to just plot a single moving average on the chart...

"Fail to Plan and You Plan to Fail" Having a Forex trading plan is one of the key elements to becoming a successful Forex trader. Many traders never even make a trading plan, let alone use one regularly. It’s very important that you do both; make a trading plan and use the one you make…don’t just make one and then never look at it like many traders do. Assessing your skill Have you tested your strategy? Are you confident that it would work? Can you follow your strategy without hesitation? If you haven’t mastered your trading strategy yet, it might be best to practice and tweak it until you’re confident in implementing it. Set your risk level When trading, you should set a risk level that you’re comfortable with. Professional traders tend to risk no more than anywhere between 1-5% of their capital – what you choose should be dependent on your trading style and risk tolerance. Set yourself goals Before you start trading, you should set yourself goals in terms of re...