Archive for the "Trading" Category

29.04.2010 Post in Trading

It is of common knowledge that money should be made use of, and not simply saved. The sense of money is to bring profit. There are different ways to gain money, although the international currency market Forex is the most profitable and attractive for yielding.

Statistics demonstrates that the number of clients, who allocate their assets using trust management, is increasing by 30-40% each year.   Below we will dwell on several types of trust management.

Individual trust management. In order to invest money one needs to find an experienced trader who is to have statistics of his operations on real trading accounts. You should find out the peculiarities of the trading platform applied by him on Forex. To get maximal security you should open the account for your real name. In this case the investor is only depositing and withdrawing funds whereas the trader receives the password to the trading account and an access to its management. Although it is advisable to comment on the details in the agreement accepted.

Collective trust management. This type of management appeals to those who do not have a big sum of money. Here you should analyze the guarantees as there is no legal regulation. In this situation the possible risks are significantly higher than with individual trust management, because the investor opens an account not for his name, he just allocates the funds.

Irrespective of form the trust management is at the same time a highly profitable and a partially risky investment of funds.  Remunerative – because you trust the funds to an effective Forex market participant, and risky – because you are not able to control everything, and be 100% sure of the trader’s professionalism. Nevertheless, to minimize possible risks of losses it is needed to describe all rights and liabilities for both parties in the agreement.

In this respect the third type of trust management is up-to-date, which is the participation in PAMM-system of a large and reliable broker. At the moment a line of the companies with a high status and rating offer a possibility to invest in their clients’ trading, or in managing traders, whose trading characteristics at Forex market show high yield.

There are two types of PAMM-accounts: PAMM-trader account and PAMM-investor account.

The peculiarities of these two types are that PAMM-investor account can only invest funds in PAMM-trader accounts and PAMM-trader accounts can only accept the investments from PAMM-investors.

PAMM-system has a few differences from trust management, and one of the major is that the managing trader trades mostly with his own funds and even when he accepts investments he cannot withdraw his own funds. Thus, he will always be working not only with investors’ but also with his personal funds.

An important feature of PAMM-system is risk diversification, investing funds of PAMM-investors in PAMM-accounts of various traders, which lowers the risks of losses.

For the present day, InstaForex Company offers the best by its options and conditions PAMM-system for managing traders and investors.

Added by Evgeny Galaev,
Chief Manager of InstaForex Client Relations Department

21.04.2010 Post in Trading

Starting to work professionally on Forex market every trader realizes that except a knowledge of successful strategies, systems and methods of capital managing, Forex prosperity depends on psychological state.

Being a novice at Forex, where would you take the confidence in the conducted operations from? What are you doing if you have accomplished the unlucky deal in order not to get into bigger debts? If you are in minuses, what measures do you take to return to positive results?

First of all, trading is a discipline devoted to effective ways of getting profit. The inner state influences greatly on the ability of a trader to estimate correctly chances in a certain situation.

After a trader has changed from a demo-account to a real trading account his results become much weaker. What does it depend on? Operating with the same quotes in the same trend, though the outcome appears different. Why? Everything is caused by a psychological condition. Simply, working with own money a trader is governed by personal feelings of fear and greed, which, besides, are market moving power. Panic on the currency market leads to fluctuations of the currency rates and often this motion does not reflect real process in the global economy.

How can you refrain from the impact of emotions conducting operations on Forex? You only need to master the discipline of trading procedures. As only an organized trader is able to work at the market for the time required to achieve certain goals. It is a discipline which does not allow a trader yield to market influence and leave the market in haste.

There are numerous ways how to strengthen the discipline of a trader. The important factor is working hours’ regularity, the choice of time period for working with an account of individual features of a trader. But the most suitable method is usage of a tested trading system.

Nevertheless, abiding the trading system signals is also not an easy thing. To do this, it is necessary to comprehend that there will be thousands of favourable situations for entering the market. Many traders are eager to enter the market as soon as possible; or vice versa, enter it too late, which in both cases can cause losses and correspondingly, a nervous strain. Working at currency market is extremely complicated, mostly because many negative factors affect the trader’s psychological condition.

You can be surprised, but gaining a considerable sum of money also has a negative effect on the trader’s form. In this situation a trader can start overestimating his abilities and lose concentration.  If a trader tends not to a quick profit, but acts tactically regulated, driving his average monthly earnings to a particular level, this is sure to decrease a psychological pressure of every conducted deal.

Added by Roman Tsepelev,
InstaForex development manager

14.04.2010 Post in Trading

A significant number of people not engaged in Forex international currency market believe currency speculations to be an easy occupation. While for a successful work at trading platforms a strong will, self-restrain and responsibility are required. You should always follow the market behaviour, be extremely attentive and concentrated.

Everyone who has shifted from a demo-account where he was managing virtual millions and became confident of his skills, to a real account working with own money, is sooner or later overwhelmed by fears of making a mistake and plunging his capital.

The condition of being in panic is typical of not only beginning traders, experienced traders are as much exposed to attacks of cowardice inculcated by the inner voice. Here, a question arises: how are the deals conducted if traders are afraid? They say: what the eyes fear, the hands do. But you should not take this proverb as an instruction. Instead of neglecting the existing problem it is better to examine it and to solve it. Here are a few recommendations of overcoming your fears of trading at Forex.

First of all, learn to control your emotions: they should not stand in your way to take reasonable decisions. Working at Forex involves a strong psychological pressure on a trader, that is exactly why not everybody is able to remain on Forex and trade successfully. Emotions influence absolutely on each participant of currency trading to such great extent, that if one does not learn to control himself, it will inevitably lead to significant losses, financial as well as moral.

Make an effort to trade estranged and maximally unemotional. Plenty of novices and losing traders consider that the already tested trading strategy is sure to bring profit at market. Though, this is a total misbelief. The most difficult work which is a recipe for success at market includes developing one’s own trading system, fitting all needs and principles of every trader’s work.

The trader’s liveliest fear is the fear to lose all money. To get rid of this phobia you should try to change attitude to this fear. Make yourself think about positive result by autosuggestion, persuasion, meditation – just as you like! Executing an operation it is necessary to learn acting under the influence of the positive psychological mood and not to allow the fear to doom you to failure.

Be maximally sequential, otherwise you are likely to lose. Do not undertake hasty and unreasonable actions. The deal must be scrupulously planned and the result must be foreseen with a probability of 99%. And, it must be your own viewpoint, but not blind faith to “forecast” of a dilettante from Forex forum or analytical article even written by the most professional expert (he/she is a human being and has unlucky days, and can makes mistakes).

And the last thing: daily improve yourself and bring the skills to perfection. The confidence will come with an experience and a skilled hand. The confident person has nothing to worry about, as the luck is always in his/her pocket.

A trader should believe in that he/she will make profit as a result of the trading. Absolutely every speculator can become a successful trader. If you are in positive mood, have a passion for trading and you will completely realize the responsibility for taken operations during the trading, no doubts it will make you more than a successful trader on Forex international currency market, ready to any obstacles on your bumpy road to a Million!

Added by Tatyana Makhina,
InstaForex Clients’ relationship manager

31.03.2010 Post in Trading

Forex news feed is one of the most important elements of the international currency market Forex. In point of fact, the currency market Forex exists due to the informative backup, consequently, Forex news feed is the integral part of the Forex market functioning.

Forex news feed represents the information sampling from the variety of news received from all over the world. These financial information in one way or another affects the functioning of the currency market Forex and its users – traders. Besides, nothing can effectively function for a long time amid complete lack of information that is why Forex news feed is very important part for the trading at Forex market.

The whole functioning area of the buying and selling the world currency at the international Forex market is determined by the Forex news feed. Traders at settlement of transaction follow only received information data. One of the major functions of the Forex news feed is the development of the necessary information base for the professional participants.

Forex news feed consists in the surveys of major economic news of different countries, which in any way influence the activity at Forex market. Also Forex news feed includes the main changes of the world factors, which affect the currencies quotations, which are traded at Forex.

Due to the continuous data flow the international currency market is constantly moving, increasing or declining its intensity and number of deals, and the base of these data is Forex news feed. All mentioned above can lead to a conclusion that Forex news feed is the information foundation of the international currency market Forex.

Added by Andrey Misyuk,
InstaForex Clients’ relationship manager

24.03.2010 Post in Trading

InstaForex Company introduces a new instrument for trading on the international currency market Forex.

PAMM-system consists of one or more investors’ accounts which are used by the managing trader.  PAMM-system function is managing the total capital of the investor and distributing profits and losses between all participants proportionally to the investments.

PAMM-account is a special trading account for operating in the financial markets by means of which a trust manager controls both his own capital and the investor’s one. And the funds are not transferred from account to account of the manager.  The managed PAMM-account belongs to the grantor, but all trading operations are carried out by the managing trader without the right of funds withdrawal. Amid this, all market risk is carried by the grantor.

PAMM-system affords an excellent opportunity of collective funds investment for traders.

There are two types of PAMM-accounts:

  1. PAMM-account of the Investor
  2. PAMM-account of the Trader


Features of these account types lie in that a PAMM-account of the Investor can invest funds only in accounts of PAMM Traders, and PAMM-accounts of the Traders in their turn can accept investments from PAMM Investors accounts.

PAMM-system has a few essential distinctions from the trust management, and one of them is that the manager trades primarily with his own money and even beginning working with investors he is not allowed to withdraw his funds.

An important characteristic of PAMM-system is risk diversification – funds investment by PAMM-investors in PAMM-accounts of different managing traders that decreases the risk of loss bearing.

Special for PAMM-traders InstaForex Company has devised a unique innovation in the system: investments intake from different Investors on one PAMM-account that is not offered by any of brokerage companies in the world. One-of-a-kind technique of funds calculation is the creation of the company’s management and the offspring of the programmers’ annual work.

As of today, PAMM-account system by InstaForex Company comes as the best one due to its opportunities both for managing traders and investors.

Added by Anna Shubina,
InstaForex Clients’ relationship manager