What is liquidity in forex? With video.

What is liquidity in forex? With video.

What is liquidity in forex?

What is liquidity in forex?

Liquidity in the forex market is the ability for a currency pair to trade.
I mean Buy/Sell on Demand.
So when you trade Major currency pairs you are trading a market that is extremely liquid.

But not every currency pair is liquid.
Currency pairs actually have different levels of liquidity.
And this again depends on whether it is a Major pair or a Minor pair and then of course you also have the exotic pairs.
So Forex liquidity dries up as trader’s move from major pairs to minor pairs and finally to the exotic pairs.

Liquidity Pairs.

What are High Liquidity Pairs? / what is liquidity in forex?

Firstly high liquidity in forex refers to a currency pair that can be bought or sold in large quantities without major differences in the exchange rate.
So below is a list of the major pairs, which means pairs with a high liquidity.

  • EUR/USD (Is the world’s most heavily traded currency pair, representing more than 20% of all forex transactions.)
  • USD/JPY (Is a distant second place.)
  • GBP/USD
  • USD/CHF
  • EUR/GBP
  • AUD/USD
  • USD/CAD
  • NZD/USD

 

What are low liquidity pairs? / what is liquidity in forex?

Secondly Low liquidity pairs are pairs that cannot be bought or sold without major differences in its exchange rate price level.
Like exotic pairs for example AUD/NOK (Australian Dollar/Norwegian Krone).

what is liquidity in forex

Liquidity Levels.

What are Liquidity Levels? / what is liquidity in forex?

For large institutions and traders who have to fill large orders, finding high liquidity levels is very important.
So a market’s liquidity has a big impact on how volatile the market’s prices are.
When these major players enter the market, they naturally want their orders to be filled at the best price.
However, given the size of their positions, they need to find enough counter-forces to fill their orders, and here is the key, with the minimal amount of slippage.
For example imagine a big player coming in at a low liquidity area, the volatility it would create would have a negative impact on the average price it gets.
So low liquidity often makes the market more volatile and also causes the price to change drastically.

But where exactly do we find these levels?
The answer is actually very simple where Stoploss orders are hidden.
Maybe you already know the word Stop-Hunt? This actually has everything to do with it.
So the fact that large players have to enter the market in areas of liquidity as they aim to accumulate major positions.
These areas will always attract interest as that’s where pockets of liquidity exist.
As a result allowing them to get the best average price by reducing the risk of slippage.

Finally below is a clear video about how you can trade with High liquidity levels.

 

What is liquidity in forex

 

 

Do you want to become Success Supply and Demand Trader?
Or want to know more about what is liquidity in forex?

So if you are a beginner trader and to become a good professional forex trader.
Want to know more about what is liquidity in forex?
The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones.
Which are 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.
So 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.

Join IC Market

 

Is forex trading legal?

Is forex trading legal?

Is forex trading legal?

Is forex trading legal?

Is Forex Trading Legal?
This is a question I often hear from traders.
And yes forex trading is legal and trading the financial markets is completely legal.
Although there are special rules and laws in some countries and forex trading is banned in some countries.
The rules regarding Forex trading are different in every country.
So I advise you to take a good look at what the rules are in your country.
I have described below a few countries with special rules regarding Forex trading.

Countries where Forex is restricted.

Belgium.

Since 2016, the Financial Services and Markets Authority (FSMA) of Belgium.
Has banned binary options and rolling spot forex contracts.
Belgium simultaneously banned aggressive marketing.
Ensuring investors won’t be exposed to promises of riskless profit and outsized returns.
So as a resident of Belgium you are free to trade forex.
But you will have to use the services of an overseas broker.

Malaysia.

Trading forex is legal in Malaysia but only with a registered and approved financial institution.
So the official rule in Malaysia is that it is only allowed to trade forex at licensed institutions.
Of which there are several!

India.

Firstly forex trading is legal in India.
Securities and Exchange Board of India (SEBI) is the body responsible for the Forex trading industry.
SEBI regulates all the forex brokers in India regardless of whether they are onshore or offshore brokerage firms.
But when we talk about retail trading in India, there are limitations.
The government has not forbidden Indians to trade Forex.
So they have limited trading for Indian residents to only trade currency pairs against INR (Indian Rupee).
As a an Indian resident, as long as you are trading through an Indian Brokerage.
Which allows access to Indian Exchanges such as the NSE, BSE, MCX-SX.
And providing access to currency derivatives is entirely legal.

China.

Despite being the most populated country with a sound economy, they have restricted the forex market.
As similar to other Asian countries, China has restrictions on foreign brokers, trading forex and trading software.
So if a foreign trading company wants to trade with locals, it has to open a new local company in China.

Japan.

Japanese are way ahead of what they are doing but they have also given limited live forex exposure.
So Japanese also cannot use mobile trading. Margin trading is also not allowed in this nation.
Using these restrictions over online trading, Japan is protecting its economy.

Is forex trading legal

Countries where forex is banned.

  • Zimbabwe
  • Syria
  • British Columbia (Canada)
  • Cuba
  • Sudan
  • North Korea
  • Myanmar
  • Liberia
  • Iran
  • Ivory Coast
  • South Korea
  • Belarus
  • Quebec (Canada)

In addition, there may be a ban on trading in countries that live according to the laws of Islam.
Such as Iran, Saudi Arabia, Pakistan, etc.
But trading in financial markets can be legal when using the so-called Islamic account.
Which implies trading without swaps.
(according to Sharia law, it is prohibited to receive or pay interest).

Why countries restricting or banning Forex Trading?

In conclusion some countries view gambling and forex trading as the same thing.
That is why trading forex is restricted or banned in some countries.
Because we all know if you don’t use good risk management you can lose your entire capital.
And the country wants to protect its inhabitants from that.
There is also a danger to the economy and currency of the country due to forex trading.

Do you want to become Success Supply and Demand Trader or want to know more about forex trading?

If you are a beginner trader and to become a good professional forex trader.
Want to know more about Is forex trading legal?
The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones.
Which are 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.
So 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

 

 

 

 

How to take profits in trading?

How to take profits in trading?

How to take profits in trading?

How to take profits in trading?

Today I’m going to talk about taking profits.
You probably ended up here because you are having problems taking your profits.
And what exactly is the problem?
Perhaps you will find the answer to your question in this blog.
Taking your profit is a very important element in trading.
And it will also determine a large part of your success in trading.
It is also the only time when you actually own the winnings.
The problem of not taking the right take profits can have several causes.
It could be psychological or maybe you lack the right insight in your trading strategy.
Let’s talk about the psychological aspect first.

Psychological aspect.

I think we all recognize it and everyone has certainly experienced it at least once.
For example, you have taken a very nice trade and you have your stop loss and your take profit, so let the trade run now.. Or not?
The price is moving in the right direction towards your take profit.
And now things can go wrong in your head in several ways.
Maybe you get scared and close the trade much earlier than your ultimate goal?
You want to have your profit because imagine the price turning against you again?
Then the price hits your target anyway and you regret going out earlier.
You could have made so much more profit.

Or this one I hear very often.
We go back to the nice trade we took and this time too the price goes very nicely to our take profit.
The price moves quickly towards our target.
But then it goes wrong again because you see the price moving towards target so quickly, you decide that you can move your take profit a bit more to get more profit on your trade.
I mean the price moves so fast towards your target right?
Okay you just moved take profit and now just wait for your nice profit!
But now price taps into your original take profit and reverses the other way.
Oh no were you too greedy then?
And when you analyze your trade again later, you also find out that your take profit made no sense at all and you did not stick to your plan.

So the most important lesson from this story is stick to your plan. And don’t let your mind play games with you.

Trading strategy.

And now about the technical aspect with the core focus on the higher timeframes lows & highs.
We as supply & demand traders combine these two with each other, the lows and the highs mainly represent a price range.
This price range can be determined on basically each timeframe, a lower timeframe to a higher timeframe.
I mainly use the higher timeframe lows / highs to have a good indication of the price range we traded in.
This varies from daily / 4h / 1h.

Within this range we find valid supply & demand levels that allow us to see where the institutional orders are located and the big whales that ultimately move this market.
So it is important to understand that we are learning to recognize the ultimate edges of the market, and to recognize these levels of orders.

These higher timeframe lows / highs we find our supply & demand levels on the lower timeframes which offers us potential opportunities as mentioned the sell / buy orders.
these supply / demand levels are located at 4h 1h m30 m15.

See below a number of examples on XAUUSD / US30.
Which you can use as a possible target, once again learning to properly apply the concept of supply & demand within these price ranges is also a very important point.
more about this in the course.

how to take profits in trading

how to take profits in trading

Finally a tip that I want to give you, focus on max 1 to 3 assets learn to recognize the movements understand the price ranges and follow the institutional order flow, supply & demand.

keep it stupid simple.

kev

Do you want to become Success Supply and Demand Trader or want to know more about how to take profits in trading?

If you are a beginner trader and to become a good professional forex trader. Want to know more about How to trade GBPUSD? ? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are 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

 

 

 

Forex vs real estate

Forex vs real estate

Forex vs real estate

Forex vs real estate.

This blog is about forex trading vs real estate.
However, these two investments can actually be combined very well.
This way you could very well invest the money you earn by trading forex in real estate.
This way you ensure a passive income which is returned to your bank account every month.

I also invest a lot of my forex profits in real estate this gives me some form of security.
So that I earn a fixed amount every month by renting out houses and apartments.
In this way you build up good security for your future.

Most people who want to establish a financially secure future choose to invest or trade in real estate.
And if we take a look at the list of the richest people in the world in any category they all have large investments in real estate.
Let’s look at Donald Trump, for example. Who made a fortune in real estate.
And Books like Rich Dad, Poor Dad , by Robert Kiyosaki and other property investing books written in the last fifteen years, introduced the average person to real estate investing.
Thanks to these books, many people have opened their minds to new possibilities which they can now envision for themselves.

Capital Gains Versus Cashflow / Forex vs real estate

When talking about capital gains, most people refer to the value you gained after a winning position.
On the other hand, cashflow generally means an investment vehicle that will produce money for you on a periodic basis.
That’s why I also think this is an ideal combination.
Personally, I find the best way to buy a property and rent it out for a monthly rent.
You could of course also buy a property and sell it later for a higher amount, but renting out a property naturally gives you a monthly cash flow.

The profit you eventually earn from renting out a property is of course much slower than making a big move on the forex market where you can ultimately earn a lot in 1 trade.
But it’s safer because of the low volatility.
With Forex trading, it’s faster to gain value, but you can also blow your bankroll faster.
That means to me that I have security with my real estate and a stable income every month.
And with trading I can earn a lot of money but in a lesser week or month I still have my certainty in the monthly cash flow from the real estate.
Do you understand what I mean?

Forex vs real estate

Forex vs real estate

But how do you actually start buying your first property?

Well, for example, you can already buy a house in the Netherlands with 20% to 30% equity and you can get an investment mortgage for the remaining amount.
This will of course be different in every country, but you can easily find out for yourself how it is for your situation.
But actually it comes down to the fact that it is possible for anyone with a little savings to buy a property for rent.
For this, of course, you have to look for a property in a good place in the right location.
If you don’t have enough savings, don’t be disappointed, there are still options for you.
There are also funds in which you can invest. In this case, you bet a certain amount with several people to buy an object together.
Sometimes this is possible from as little as 200 euros.
You can also get a monthly cash flow here. This will of course not be a lot in the beginning, but you can always expand this.
Always do good research into these funds so that you are sure that you are investing with the right fund.

Forex vs real estate

Oh and a small addition, you can of course invest in many objects.
For example, you can also buy a garage and rent it out.
Or a retail building, an office building or even a holiday home.
Let’s just say plenty of choice.

Are you interested?

If yes, you can start by checking investing books in the market, such as The Essays of Warren Buffet or Robert Kiyosaki’s Rich Dad, Poor Dad.
You can learn the basics, plus some tips and tricks to help you get started with investing.
These books helped many average individuals to professionals open their minds to new ideas with a brighter future.

Do you want to become Success Supply and Demand Trader or want to know more about Forex vs real estate?

If you are a beginner trader and to become a good professional forex trader. Want to know more about How to trade GBPUSD? ? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are 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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