Archive for the "Trading" Category

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

pamm-pic

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

17.03.2010 Post in Trading

Nowadays everybody faces the concept of Forex currency market. Recently, such concepts as currency pair, analytics, Forex candles, day and tick charts were known and understood to the close circle of people, working at Forex currency market. Today, the advertisement about Forex can be met everywhere: on the radio, TV, the Internet, huge outside banners. They all propose opening trading accounts with one Forex company or another.

In addition, opening account, starting with $1, is offered. We can meet brokers and dealing centers, analytical reviews, and the profitable strategy is only for $5.

Due to active advertising and promotion, now most everybody knows about Forex, and everyone, wishing to get easy money, enters the market, thinking that he is ready for trading on Forex. Learning basics of technical and fundamental analysis, knowing about the Elliott waves and trying to estimate a trend reversal on the moving average, few of the currency trading beginners pay attention to one of the methods of graphic analytics – Forex candles.

It is absolutely natural that every trader uses not only Forex candles in trading. There are three graphic indicators of price and its forecast:

– bars

– lines

– Japanese candles

Often, “Japanese candles” are called Forex candles and they are considered the most indicative and efficient in trading among experienced Forex traders. And, the beginner should give special priority to Forex candles.

The graphic analysis was found about 300 years ago in Japan, and it got this name as for more demonstrative example of price movements and the difference between opening and closing figures,ordinary candles were simply laid on a table in the Middle Ages.

The core meaning of using Forex candles is in the following: if the close price is higher then the open price, a Forex candle is white; and if the close price is lower than the open price, then correspondingly, the candle is black. Thus, having analyzed the positions of black and white Forex candles and the derivated from them groups, it is possible to forecast the direction of the trend in the nearest future with a large percentage of certainty.

Added by Denis Minenkov,
InstaForex Clients’ relationship manager