Trading Educational Articles

Forex trading is the buying and selling of different currencies on the foreign exchange market. On the other hand, cryptocurrency trading involves buying and selling digital currencies (e.g. Bitcoin, Ethereum, etc) on a decentralized digital exchange.

At this article, we will compare two (2) of the most used trading strategies in Forex and crypto trading. The swing trading and the scalping trading strategy.

Most forex traders use a classic trading platform to login with their credentials and place orders from there. Orders and positions are placed manually to the platforms and traders have a solid perception of the account’s ownership, control and holding.

This article will not analyze any technical indicator, nor will explain trading platforms settings, tricks, spreads, or any other adjustment you will need to apply to your trading plan to gain higher profits.

Psychology and forex trading may appear at first sight as two very nonrelated concepts. On the other hand, though psychology encompasses a lot of areas in our daily lives. Therefore, traders should become aware of and if possible, to be trained in how to handle it with success.

Price action trading is a popular trading strategy used in financial markets and it is best to be applied to short- and medium-term investments, rather than long term ones. The main characteristic of this method is that it analyzes, and places trades based on the price movement of an asset and its chart.

Carry Trading is a popular investment strategy in financial markets and especially in the foreign exchange (forex) markets. The main idea behind this strategy is to borrow money in a currency with a low interest rate and invest it in a currency or any other asset with a higher interest rate. The profit from the interest rate differential is the goal of Carry Trading strategy.

Trend reversal trading strategy is a very attractive trading strategy which in case it is applied correctly can achieve high win rates and consistent profits. As always, a solid trading plan is needed with wise take profit and stop loss limit levels since market conditions may suddenly change.

At this article we will start a section in regards of Technical Analysis, and we will begin with one of the most famous technical indicators, the Ichimoku Kinko Hyo indicator.

Fundamental analysis is a comprehensive approach which requires a deep understanding of accounting, finance and economics. At the forex trading sector, this method is used mostly for evaluating and predicting the value of currencies. This can be done by analyzing various economic, social and political factors that can influence a currency’s supply and demand.

Proprietary trading, also known as "prop trading", is a form of trading where financial institutions, such as banks, investment banks, and hedge funds use their own capital to trade in financial markets.

Algorithmic trading is also known as automated trading by computers which are programmed to take certain actions in response to varying market data and conditions.

The Fibonacci sequence is the art of mathematics, where each number of the sequence is the sum of the two (2) preceding numbers (e.g. 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, etc). In forex trading, the Fibonacci indicator is one of the most popular tools used by traders to identify potential levels of support and resistance on price charts.

What is scalping in forex? This question is quite easy to answer, but it has two very important factors as requirements: Leveraged trading and as tight as possible spreads. The best forex trading scalping strategies use leverage which enables traders to borrow capital from a broker in order to gain more exposure to the forex market, using at the same time only a very small percentage of their full asset value.

The "percentage in point" or "price interest point" (PIP) is one of the most basic concepts in forex trading. In forex trading, a pip is the smallest price movement which can be recorded in a currency pair.

There are many platforms developed for traders which offer many special features and services. Using a trading platform and a forex trading chart traders try to analyze the market and to identify any possible trends or price movements.

Having a vast knowledge of forex and the financial industry is not enough to make you a successful trader. As many things in life, psychology is the key!

Every trader should set up a solid trading strategy, which it should have been previously tested in detail. Once tested, the "follow the plan" method should guarantee that things will go smooth and as expected.