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Showing posts with the label #USDCAD

Trading Psycology and Methodology

Currency Pair Analysis: Perform a world class analysis to determine which currency pairs have the greatest profit potential. Trade Management: Trade management techniques to take the most of each trade when the market moves on their favor. Study the Market: Entry system adapts to the current market conditions, follow the market instead of guessing. Risk Management: Risk management techniques to set stop loss and take profit orders at optimal levels. Accept risk and feel comfortable with their trading, they know it’s the only way to get consistent results. Money management techniques to allow the geometric growth of their account and avoid the risk of ruin. Long-term analysis:  Methodology to determine which currency pairs have the greatest profit potential. Short-term analysis:  Entry systems: breakout, retracement and continuation price action entries. Capital management:  Determine the formula that you will use to decide how much capital to risk on each t...

Learn Forex Carry Trade Strategies

What is a Carry Trade? A  carry trade  is when you buy a high interest currency against a low interest currency. For each day that you hold that trade your broker will pay you the interest difference between the two currencies as long as you are trading in the interest positive direction. Carry Trade Offers Two Ways To Profit The forex carry trade is a type of strategy in which traders sell currencies of countries with relatively low interest rates, and use the proceeds to buy currencies of countries that yield higher interest rates. Forex carry trading leverages the differences in interest rates between countries. For example, one country’s central bank may lower interest rates in order to create economic stimulation, while the central bank in another country maintains higher interest rates. In effect, the forex trader borrows money in one country with a lower interest rate, and invests it in another country with a higher interest rate, and keeps the differ...

Learn More About Trading Breakouts

Breakouts are a common phenomenon in the Forex market  and occur across different chart intervals. It is therefore no surprise that break out  trading strategies  have become one of the most popular ways of  trading Forex , besides other strategies such as trend following methods. What is Breakout in Forex? A  breakout  is a price movement of a security through an identified level of resistance, which is usually followed by heavy volume and an increased amount of volatility. Traders buy the underlying asset when the price breaks above a level of resistance or when it breaks below a level of support. A breakout is the point at which the  market price  breaks away, or moves out of a  trading range . The trading range can be for any length of time but once prices exceeds the high or low of the range, a breakout has occurred. The accepted market wisdom is “buy low sell high”. What is False Breakout in Forex? A  false breakout  ...