Forex Trading during Flat Markets

Forex Trading during Flat Markets

Flat Markets.

Forex Trading during Flat Markets

Markets are often continually oscillating between patterns and ranges.
In flat markets, trend-following strategies take advantage of moving markets while swinging trading strategies perform best.
Swing trading much of the time uses a single tranche entry.
Going long close to range support/demand or short close to range resistance/supply.
Every so often, in the forex market, the operation can slow right down and it’s seriously like watching paint dry.
Daily trading ranges shorten, the charts flatten out, and indecision causes market churning to be vicious.
Without uncertainty to cause price movements, trading systems may perform poorly.
This kind of slow environment, since nothing is happening, can also have a negative effect on the psychological level.
You can feel the need to be more aggressive with your trading to help speed up the rate, just to get some returns going.

Flat Markets

The mistake of trading in all market conditions is made by many traders.
The reality is that it’s easier to just not trade sometimes.
Often, to trade with much precision or efficacy, the markets are too choppy and unpredictable.
It is these moments when traders prefer to give back all and usually even more of their recent gains.
It is not a bad thing to take time off from the markets, especially after a winning trade.
Or when the market is chopping sideways and being ‘erratic’.
Many traders end up giving back all the money they earned.
When they entered into chop times when the markets were trending.

Flat Markets

A trader does not trade at all some days.

A trader does not trade at all some days simply because the charts do not set up for the strategies properly.
Again, since we believe like we have to trade all the time, we are aiming for precision and not trading clearly.
Sitting and doing nothing requires great discipline.
The goal is to be accurate when, as opposed to an automated trade, you trade and trade manually gives you this benefit of sitting on the sidelines when the odds are not in your favor.

To refrain from trading, the flat sections must be specified precisely.
This will help to protect your nerves and deposits.
The beginner trader or super-active traders’ key issue is the absence of patience to wait for the risky sideways movement and be prepared to work on the trend.
Even if you can often earn from the channel boundaries from the rebound, you should not build a trading system on this unusual luck in any case.
Complex flat indicators are a critical element of any profitable trading strategy with the judicious application.

Flat Markets

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Flat Markets

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Forex news / Why you should be aware of International News?

Forex news / Why you should be aware of International News?

Forex News

Why you should be aware of International News?

If you want to succeed as a forex trader you should always keep the news in mind.
It will help you to protect and improve your investment by knowing what is happening.
And not only in your own country but in all the major economic power.
Because the price can suddenly move differently when important news arrives or has just been released.

You don’t need to know all the news, of course, but it’s always good to know what news is released that day.
So that you can take into account wich trades you can open that day.
It is also important that you do not ignore the news.
Because in some cases you can lose a lot of money if you are in the middle of a news trade.

There are a number of events every day.
All of which are related to a particular forex pair.
Take a look at the example below.
We also see that the news is split into different colors.
Yellow news means it won’t have much impact.
With orange news there can be an impact and with red news there is a good chance that the impact will be very large.

Forex news

Forex news

We can also see which currency is involved.
So, for example, do we see red news on the EUR at 12 noon?
Then we better not trade the euro at that time.
You can also check this yourself on, for example, forexfactory.com

Forex news.

For example if you trade only EURUSD you need to stay up to date with developments in Europe and the United States.
Events in other nations, such as financial results that are very good or poor in the long term, can also have an effect on the euro and the US dollar.
But not nearly as rapidly and dramatically.

As the US dollar has the largest amount of trade in the currency market, all the news that affects the US economy has a direct effect on the entire forex market.
Therefore it would appear, that the slump in the US housing market is not directly influenced by the US currency, but it is not.
This will have an immense effect on other financial metrics, which, in turn, will influence the value of the dollar.

The impact will bring not only financial news but political changes as well.
The election of a new president can influence the value of the currency.
For example depending on whether the world assumes that a better economic role will be given by a new man in the country’s leadership.

It will not be difficult to be aware of events if you are sincerely involved in active forex trading.
Even from the most distant nations, the internet will carry your news.
You can easily keep up with world affairs by regularly reviewing various online news publications, social networks, and blogs.

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If you are a beginner trader and to become a good professional forex trader. The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and performs daily trades.

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What is volatility in Forex Trading?

What is volatility in Forex Trading?

What is volatility in Forex Trading?

A currency is often described as 1 with a low volatility or with a high volatility.
But what does volatility actually mean?
Volatility in forex trading is a measure of the frequency and extent of changes in a currency’s value.
So this actually also means the more volatility the more risk.
But it also means more opportunities for the traders because the price movements are bigger..
And the lower the volatility, the less risk of course but also less opportunities.

How to indentify it?

Currency volatility is difficult to identify and track because volatility is unpredictable by nature.
But there are some ways to measure volatility that can help us predict what might happen.
There are two types of volatility that we have to take into account we have the historical volatility and the implied volatility.
Historical volatility has already occurred and implied volatility is a measure of traders’ expectations for the future.

The Historical volatility can be viewed in the charts. Where we can see the obvious spikes through the prices.
For implied volatility, we can can use the four CBOE indices.
That measure the market’s expectations in relation to currency volatility.

Volatility and Risk.

There are some clear differences between volatility and risk.
Volatility cannot always be estimated in advance and is therefore not in your control.
But of course you can always determine your own risk.
After all, you decide how much you bet and when you want to exit the trade.
So that you can never lose more than you want.
Trading volatile currencies always involves risk, as prices can move sharply in any direction at any time.
This big swing can magnify losses as well as gains.

Something that is common in forex trading and what I often see around me is traders deciding to take a chance in a volatile market.
Largely influenced by other traders taking the same action.
In the event of a market crash, traders can sell at a lower price, potentially resulting in large losses.
Therefore, always be aware of the risks and of course the pros and cons of any trade and especially in a volatile market.
And don’t be tempted by other traders because you want to earn money quickly on your trade.
Use your own analysis and your own judgment.
And of course most important of all ensure good risk management!

Do you want to become Success Supply and Demand Trader or want to know more about What is volatility in Forex Trading?

If you are a beginner trader and to become a good professional forex trader. The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

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Exit Profitable Trades in Forex Trading

Exit Profitable Trades in Forex Trading

Exit Profitable Trades in Forex Trading.

Exit Profitable Trades in Forex Trading.

Many traders spend more time planning entrances than exits and considering them.
Most seasoned traders agree that trading success depends on how a trader exits their trades, while proper entries are necessary.
A reality of forex trading is that, instead of leaving the market at a pre-determined goal or through a pre-planned exit strategy.
Most traders take their gains as a result of an emotional impulse.
As a result, traders who exit an emotional trade normally take far lower profits than they would like.
While traders who exit a rational and disciplinary trade are generally very satisfied with the profits they make.

Establishing where to get out before a trade even takes place helps the trade to be measured with a risk/reward ratio.
The stop loss is just as important as the benefit goal.
The stop-loss calculates the potential loss for trades while the potential profit is determined by the profit goal.
The reward opportunity, ideally, should outweigh the risk.
While we will never decide which trades will be winners and which will be losers until we take them.
If our winning trades are greater than our losing trades, we are more likely to see an overall benefit over several trades.

Exit Profitable Trades in Forex Trading.
It is arguably more important to exit from trade than to entry, as the exit is what decides the profit.
The trader positions himself to theoretically lock in higher returns by discovering several methods of exiting a trade.
There are some helpful exit strategies, all of which are easy to execute and can be implemented in a trading strategy.
At the time of the trade, a stop-loss is put and worked out beforehand.
There are probably several ways to choose a stop-loss rate.
But essentially it must be at a place where the trader does not fairly expect the market to hit before placing the trader in a lucrative position.
That merely warrants compensation for the possible risk taken.

Looking at the reward/risk ratio of any trade is one of the most important forms of exiting profitable trade when assessing exit points.
Applying a reward/risk ratio guarantees exit points that are well-calibrated and pre-set.
The trade is avoided, which helps to prevent low-quality trades from being taken if the trade does not have a desirable reward/risk.
According to the plan, the position is closed at the target price.

Do you want to become Success Supply and Demand Trader?

Exit Profitable Trades in Forex Trading.
If you are a beginner trader and to become a good professional forex trader.
The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones.
Which is already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand.
Join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

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Forex Trading

Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker.
They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

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Central Banks Forex Trading / What is the role?

Central Banks Forex Trading / What is the role?

Central Banks Forex Trading / What is the role?

What is Central Banks Forex Trading?

Central banks are at the center of every country’s financial system since they are the authorities responsible for regulating the supply of money.
And therefore for regulating the functions of the economic sector.
They have evolved from the lack of financial market stability that ruined many economies.

The first central bank was the Riksbank of Sweden, founded in the 17th century, with many followers in the 18th and 19th centuries.
So at the beginning of the 20th century, the United States Federal Reserve emerged.
The positions of central banks in various countries have evolved differently over time.

The key responsibility of the European Central Bank is to maintain price stability by maintaining, as calculated in its CPI, “inflation rates below but close to 2% over the medium term.”

Responsibilities of the Federal Reserve of the United States:

  • Conducting the monetary policy of the nation in search of full employment, stable prices, and moderate long-term interest rates by influencing the monetary and credit conditions of the economy.
  • Supervising and controlling banking institutions to ensure the stability and soundness of the banking and financial system of the nation and to protect consumers’ credit rights.
  • Maintaining the financial system’s stability and containing the systemic risk that may arise from the financial markets.
  • Providing financial services, including playing a major role in running the payment system of the country, to depository institutions, the U.S. government, and international official institutions

Central Banks Forex Trading

The most significant economic lever a central bank can regulate is interest rates.
Interest rates are seen as “the price of income” in a traditional economy.
A high-interest rate will attract foreign capital and a low-interest rate will tend to push capital to move.
in a search for a better source of income (higher yields) outside the region.

In organized meetings.

In organized meetings, by voting on the short-term interest rate, the central banks select their desired interest rate.
There are two kinds of interest rates that we should be aware of; the nominal interest rate.
And the discount interest rate at which commercial banks are lent by central banks.

One way a central bank controls interest rates is by open market operations (OMO’s).
OMO’s are essentially an activity of buying and selling that increases or lowers the supply of currency.
Which has an immediate impact on the interest rate and the value of currencies.
Each central bank has its preferred way of manipulating the interest rate through open market operations.
But we will concentrate on the Fed’s approach because it is the easiest and most influential.

Central Banks Forex Trading

Through lending and borrowing collateral securities from 22 banks and bond dealers (called primary dealers), the Fed selects the nominal interest rate (named fed fund target rate).
These practices are known as “Repo” (repurchase operations).
Traders can review the activities of the open market from time to time; they have a big impact on Forex.

The acquisition and sale of US Treasuries are free to market activities.
And the supply of money is regulated by these everyday transactions.
Treasuries are government debt that, at a fixed rate of return, is sold to investors.
So the Federal Reserve holds about half of the US debt, a statistic that seems peculiar to some, with the Central Bank holding half of the country’s debt.

Do you want to become Success Supply and Demand Trader?

Central Banks Forex Trading

If you are a beginner trader and to become a good professional forex trader.
The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand.
Join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

======================
Results – Instagram
====================== 
Forex Trading

Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market

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