Learn More About Forex and Stock Market

Crude Oil: Oil prices were stable supported by hopes that talks in Beijing between U.S. and Chinese officials might defuse trade disputes between the world's biggest economies OPEC-led supply cuts also tightened markets. There is also concern that a worldwide economic slowdown will dent fuel consumption. Looking at oil supplies, 2019 crude prices have been supported by supply cuts from a group of producers around the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC member Russia. Brent crude futures were at $57.42/barrel rose 0.2% from their last close. WTI crude oil futures were at $48.56/barrel rose 0.1% Gold: Gold prices slid on Tuesday in Asia, as the U.S. dollar rebounded after falling for four straight sessions amid expectations that the U.S. Federal Reserve may shift its position and slow down future increases in interest rates in 2019. Gold Furures for February delivery declined 0.5% to 1,283.50  Price...

What is the need of Currency Exchange? There has never been a more challenging and exciting time to be trading in the  foreign exchange market . What started out as a market for professionals is now attracting traders from all over the world and of all experience levels.  The forex market  mainly exists because of the need to ease or facilitate currency exchange. There is a need to  exchange currencies  because one country’s currency is not accepted in another. Currencies are needed everywhere to facilitate trade of goods and services. How Currency Exchange Works? The forex market works just like the other financial markets.  Currencies  are sold and bought at the current rate. The price of a currency with respect to another currency is called the exchange rate. Since the U.S. dollar is the currency that dominates in financial markets,  exchange rates  are expressed mostly in US dollars. Except when the exchange rate is pegged or fix...

Participants of  Forex market  are divided into two groups by their activity and influence on exchange rates: Market Makers Market Users ( same as price takers ) Who are Market Movers? The notion of  market makers  involves large banks and financial institutions, which determine the current level of the  exchange rate  due to a significant proportion of their operations in the total world market.   Market makers set the current exchange rate by conducting  transactions  with each other, as well as with smaller banks, which are also market participants. Market makers set the exchange rates for the smaller banks, organizations and individuals. Market makers constantly monitor the rates of various trading tools (ex.  Forex currency pairs ) as they enter into the transactions with them. Market makers are market participants who provide the  liquidity  of certain instruments, exposing orders to buy or sell. Market m...

BASIC CURRENCY AND QUOTE CURRENCY A currency pair is the quotation of two different currencies, with the value of one currency being quoted against the other. The first listed currency of a currency pair is called the base currency, and the second currency is called the quote currency. Currency pairs compare the value of one currency to another — the base currency (or the first one) versus the second, or the quote currency. It indicates how much of the quote currency is needed to purchase one unit of the base currency. EXCHANGE RATE An exchange rate is the price of a nation’s currency in terms of another currency. Thus, an exchange rate has two components, the domestic currency and a foreign currency, and can be quoted either directly or indirectly. In a direct quotation , the price of a unit of foreign currency is expressed in terms of the domestic currency. In an indirect quotation , the price of a unit of domestic currency is express...

People always want to find the best type of trade to invest in. This particularly holds true for short-term and long-term trading. This decision, however, varies from person to person. Ideally, the trader must decide on a trading type that best suits his/her personality. Let’s us take a closer look at short and long-term trading to gain some insight. Short-term trading  When the duration between buying and selling ranges from a few days to a few weeks, it is considered as short-term trading. Pros of short-term trading Faster means of making money: The benefits of a trade can be realized in a short period through this method. You can earn profits within a day by investing in intraday trading. Short-term risk: If you discover that a wrong decision was taken on a trade, you can free up the capital invested and reinvest it in fresh stocks. This is because capital is at risk for a shorter period. Cons of short-term trading Volatile market: There are chances that you m...

The Forex Insight for 24th May for major currency pairs are as follows: EUR/USD The EUR/USD pair held on to its modest recovery gains above the 1.1700 handle. The ongoing US Dollar profit-taking slide, triggered by a dovish assessment of Wednesday's FOMC meeting minutes. USD showed little signs of easing amid a sharp retracement in the US Treasury bond yields and following an unexpected rise in the US initial weekly jobless claims. The pair would need to advance beyond 1.1790 to gain some further upward traction and retest the weekly high at 1.1829. GBP/USD GBP/USD: bulls capped by the 100-hr SMA, but if that were to give, opens risk towards key 1.3450 (50-W SMA). GBP/USD is trading at 1.3387, with a high of 1.3422 and a low of 13349. The technical readings lean bearish and are stacked up against the bulls. However, 1.3301 comes as the Dec 14 low and a potentially strong level of support. 1.3040 is a key downside t...

EUR/USD The EUR/USD pair finally broke down of its European session consolidation phase and tumbled below the 1.1900 handle in the last hour. The pair extended overnight rejection slide from the vicinity of the key 1.2000 psychological mark and traded with a bearish bias for the second consecutive session on Tuesday. The USd Dollar continued gaining positive traction, further supported by resurgent US Treasury bond yields, and kept exerting downward pressure on the major.  The selling pressure remained unabated following the release of US monthly retail sales data, coming in to show a m-o-m growth of 0.3% for April. The positive in-line figure were further complemented by an upward revision of previous month's sales, now showing a growth of 0.8% m-o-m as against 0.6% reported earlier, and stronger than expected Empire State manufacturing index, which rose to 20.1 for May from 15.8 in April. GBP/USD The GBP/USD is trading around 1.3460, down 0.65% on the day. US 10-year ...

NO TRADING PLANS: A trading plan is a strict set of rules, half of which a trader draws from their trading strategy and the other one from their money management strategy. The plan may be then complemented by as many more points as the trader sees fit. WHAT IS TRADING PLAN: Specific market conditions for entering a trade; The amount of money to risk in a trade; Specific market conditions to get out if you are wrong (stop-loss); Specific market conditions to get out if you are right (take-profit); Approximate time for the market to reach your target; Note down and record everything! Write this list down as postulates and have it front of you before, after, and during your trading. RISKING TOO MUCH ON ONE TRADE: Never take too much risk in one trade. Forex brokers are allowed a lot of freedom in terms of leveraging their trading account, while beginner Traders lag behind in money management discipline. A combination of these two leads to high risk, hazard trading. Always...

Best Currency for Swing Trading Swing trading in Currency is a Short to long term trading style that requires patience to hold your trades for several hrs to days at a time. Swing Trading ideal for those who want to trade but can’t monitor charts throughout the days. Swing trading call can be generate by giving few hours of day during market hours or after market hours. This is probably best suited for those who have full-time jobs or school but have enough free time to stay up-to-date with what is going on in the global economies. Swing Trading in Currency Trading in Currency? Currency is best instrument for Swing trading. As both side goal keeper is Government. Currency mostly stable instrument. EUR ,USD, JPY, AUD, CHF, GBP make best pairs for Swing Trading as per our opinion. Swing trading attempts to identify “swings” within a medium-term trend and enter only when there seems to be a high probability of winning.       Because trades last much longer tha...

Forex trading – or foreign exchange trading – is all about buying and selling currencies in pairs. For the buying and selling of currencies, you need to have information about how much the currencies in the pair are worth in terms of the other. This relationship is what defines a  currency pair . A currency pair quotes two currency abbreviations followed by the value of the base currency based on the currency counter. MAJOR BEST CURRENCY PAIR The US dollar is the preferred reference in most currency exchange transactions worldwide. It is the dominant reserve currency of the world. The following are not necessarily the best Forex pairs to trade, as they are the ones that have high liquidity and occupy the most foreign exchange transactions: EUR/USD (Euro – US dollar) USD/JPY (US dollar – Japanese yen) GBP/USD (British pound – US dollar) AUD/USD (Australian dollar – US dollar) USD/CHF (US dollar – Swiss franc) USD/CAD (US dollar – Canadian dollar) The valu...

Non farm payrolls in the US increased by 164 thousand in April of 2018, following an upwardly revised 135 thousand in March and well below market expectations of 192 thousand.  The most important payroll statistic that is analyzed from the report is the  non-farm payroll  data, which represents the total number of paid U.S. workers of any business, excluding general government employees, private  household employees , employees of  nonprofit  organizations that provide assistance to individuals, and farm employees. Non Farm Payrolls Indicator The Non Farm Payrolls indicator measures the net change in the number of people employed within the U.S. economy in jobs other than those which are farming or agriculture related. When the NFP data is rising, it means businesses within the United States are hiring more staff, usually in response to improved economic conditions and increased demand for their products or services either domestically or overseas...

Everyone is aware of very famous maxim of Forex that states,"Cut Your Losses, But Let Your Profit Runs".  Sounds great, but how exactly do you maximize your profits? If you cannot develop a trading strategy to achieve this objective, then your chances of making a good Forex living are greatly diminished. Holding The Winning Positions Sometimes, it is so hard to hold on to winning trades. This is because the fears that can frequently arise at the sight of a large profit can entice you to close your positions prematurely. You could well do this action because you become scared that a sudden reversal will generate a significant loss. Correct Stop-loss and Targets. If you were unfortunate to suffer a series of consequent losses, then you could experience a severe drop in confidence. You may then develop a tendency to snatch at smaller profits before they can achieve their real earning potential. Sadly, you have probably entered good trading opportunities, but eit...

To win in the markets, we need to master 3 essential components of trading: 1. Sound Psychologoy 2. A Logical Trading System 3. Effective Risk Management Plan. The above three components can be achieved in following ways: 1.Read The News: Aware of current events and affair. Trading Strategies always falls apart in face of political wins and losses. 2. Be Discreet and Disciplined Follow the trend and trading rules. Gather good knowledge about world market 3. Make a Trading Plan Make the best trading strategies, trading plans and design your own set of parameters. Review all your Trading plans after every trading session. 4. Money Management Most crucial part of trading is Money Management. Always make a trading budget and place your orders accordingly. 5. Accept your losses and Move on Loss is a part of learning process. Accept your losses. (You can Try Loss Recovery Programme of  Equidious Research  and get two days free trial). 6. ...

Day trading means ‘within the day’. Hence day trading refers to trading stocks and ETFs during regular trading hours within single day. You can buy or sell shares within a short span of time, without having to undergo the tedious process of availing physical share certificates. Day trading works on the concept of price movement. You buy Stocks in NYSE or NASDAQ when the price is low and sell them when the price rises, The difference in both the prices amounts to the profit earned. To begin with, Traders use real-time charts to identify the intraday price movement. Along with price monitoring, there are several other tools that help in making your initial trades successful. Here is a guide of moves and strategies that will help you profit while doing intraday trading. Enter and Exit intraday trading at an Ideal Time A great tip for  Day Trading  is to trade with the prevalent intraday trend. It allows low-risk entries and potential for greater profit if the trend ...

Finding out goals and making strategies are the essence of effective trading of stock market. There are various factors that require being considered additionally. Apart from thinking about completely the cost factor, it will be prudent on your part to think about the worth of the Stock or Forex Market that you are ready to spend on.  According to the Stock Signals suggested by specialists, investing your money in a broad variety of stocks for both long-term and short-term will always keep you at the endearing edge. It is after doing research, being informed with what is taking place currently in the Stock, Forex and Comex market. employing investment tools such as stock technical study, basic study, etc. that you can discover the possibility of any specific NYSE or NASDAQ stock. One of the most pursued stock tips is purchasing when everybody else is selling and selling when everybody is purchasing. Well, there are different parameters to be regarded as well. Doing appro...

Mistakes by Day Traders:   Day Traders buy/sell frequently compared to other investors. Main characteristics of Intraday trading are short holding periods and too frequent transactions. This sometimes results in mistakes and heavy losses. Many times a trader meets a disastrous loss in a single day. This post details on the most common trading mistakes of intraday traders. A peek into these worst mistakes will help you avoid them. Top Worst Mistakes by Day Traders Here are the Mistakes by Day Traders which take them to ruins. Not Following Stop-Loss Orders Setting and following a stop-loss is very crucial for success in day trading. Stringent stop loss is to put a cap on the losses before they grow big. Losses below the security gap do not ruin the trader. One of the common mistakes is when any trader crosses a stop order after losing. This mistake generally happens in the anticipation of a reverse course. Rush to Book Profits Many intraday traders  m...