Archive for the ‘Trading’ Category

Players of Foreign Exchange Market

Tuesday, November 8th, 2011

forexForex market players comprise two groups: active and passive.

Active market players include central and commercial banks, and major brokers. They are also called market makers.

Passive market players are called market users: they can only use market services and cannot set prices.

Major banks make a massive impact on markets by selling and buying huge volumes of currency.

Central banks are regulatory authorities which set key interest rates. In some cases they are entitled to perform exchange market interventions to weaken or strengthen a national currency.

The most part of currency operations is convened by commercial banks at their own expense and for the account of their customers.

Market makers quote currency rates for other market players. They own hefty assets and directly influence the rate-making. Market makers include the following banks: Deutsche Bank, Mizuho Bank, Barclays Bank, PBS, Citi Bank, Chase Manhattan Bank, and Union Bank of Switzerland, etc.

Export and import companies are market players as well. They use international exchange mechanisms in their business activities and are both major providers and consumers of foreign currencies.

Insurance and investment funds manage asset portfolios, provide hedging (protect positions from potential losses), and make profit from purchase and sale of assets.

Brokers are mediators providing customers with access to foreign exchange market (Forex). They contribute to trading between sellers and buyers. Carrying out activities in the name and on behalf of their customers, brokers set a certain commission for these activities. Major brokers may perform as market makers and provide their customers with trading at low cost.

Assisted by brokers, private investors carry out profit-seeking activities by investing funds in Forex and exchanging currencies.

Therefore, passive market participants have to abide by the rules of the game set by active market players.

Added by Olga Vitkovskaya,
InstaForex Clients’ relationship manager

Robot or trader: which one does future pivot on?

Wednesday, November 2nd, 2011
Everybody needs a robot – something I have always said.
Everybody needs a friend who’s got shiny metal head.
Everybody needs a robot, even if you’ve found someone.
Now and then you need a friend with hormones made from Mobil 1.

Everybody needs a robot on the dashboard of their car.
If you try to drive yourself you won’t be getting very far.

These lines from a popular song are exactly about Forex trading. Once we need robots to help us in many ways today, to let them earn instead of us may be a good idea.

The big question is, whether robot traders may replace human beings on financial markets.

Robot traders (also known as expert advisers) are special software that fulfills a range of functions on Forex market. In the MetaTrader trading terminal robot traders are based on the MQL programming language. They enable to automatically implement a well-tried trading strategy. Does this mean that a man may launch robots and relax watching them getting profit?

On specialized Forex forums there is no broad consensus. Some are skeptical about such a golden goose. Others talk about ideal expert advisers which enable successful automatic trading.

1309584765_robotType ‘expert adviser’ in an indexing service and you will see thousands of juicy advertisements: Buy Expert Advisers, The Ever-Best Expert Adviser, 500% Profits. Going to buy? Hold the horses. Robot traders have both strengths and weak spots.

Forex newcomers often tend to lose their deposits as they act hot-blooded and are short of experience in trading. They can neither analyze each and every market fluctuation, nor bear in mind tens of trading instruments. And that is not something unusual: no man cans. Every human being needs time to take measured decisions.

In contrast, expert advisers are not human beings, and everything human is alien to them. They are prompt and multifunctional. They manage to control any number of currency pairs, respond immediately to market fluctuations, and instantly make accurate calculations. More importantly, robot traders have no emotions.

However, don’t be exited to download and launch a robot trader immediately. Although bait is much to use oeuvres of professionals, without knowledge you risk to go down like a lead balloon. What is a robot trader, after all? It is a reflection of someone’s trading strategy. Examine this strategy carefully before you follow it.

Moreover, no expert adviser guarantees profits without losses. It neither is responsible for outcomes of your trading, nor protects you against financial losses.

Even their strengths may turn to drawbacks. A strict strategy excludes any flexibility. A robot will never be able to deviate from what it has been programmed for. It has no intuition, reads no news and knows nothing about human psychology.

Although robot traders accurately fulfill a number of functions in Forex trading, they still need a certain portion of human control. A rational way is to practice semi-automated trading: work out a strategy and then develop a robot trader, or simply get it developed for you. At least you will know exactly how it should work. Whether you choose to use expert advisers or not; if you choose to use robots, test and adjust any of them before you start trading. A folk wisdom says: put your trust in robot but keep your powder dry.

Added by Tatyana Makhina,
InstaForex Clients’ relationship manager

Yoga and Forex

Tuesday, April 19th, 2011

Everyone strives for success. Such notion as success can refer to different things and it depends on people’s characters and cultures, recent events or value system. Often success reckons a symbiosis of financial stability, good health and decent appearance. However, financial component of this formula has been condemned for a long time. Against the background of inwardness being the main value, money has been treated as a negative element in the human aspirations.

Recent investigations proved that financial stability is closely related to other parts of person’s satisfaction – there are some proofs of describing the financial matter in the most respectable doctrines. One of the most popular activities for a person of any age and sex is yoga. Many times yoga has proven that its main goal is comprehensive development of a personality including the financial provision.

Physical improvement is not the only positive effect of yoga exercises. It helps to perfect an appearance which is possible due to internal development and improvement of the emotional climate in a person’s consciousness.

It is curiously enough that the financial element of a man’s life and the world of yoga are closely connected. First of all, yoga exercises give confidence. It follows that self-confidence is a background of the financial success for both businessmen and people who work on the financial markets.

So if you spend an hour a day on yoga, your internal state will come to a balance, you will be self-confident, your emotions will be calm and, consequently, you will reasonably and consciously trade on Forex market. Pay attention to the balance of your mind and positive result on the currency market will not be a long time coming.

Added by Anna Shubina ,
InstaForex Clients’ relationship manager

Forex and Zodiac

Friday, April 8th, 2011

How do different zodiac signs behave when trading on Forex market? What mistakes are typical for each of them? Which symbols can bring them luck? Which numbers can be their lucky charm? Which currency is the most favourable for each sign?

As any activity, Forex trading requires certain skills and qualities, such as ability to analyze current events and predict their development.

Let us have a look at Forex trading from astrological point of view and find out which numbers and symbols can be fortunate or unfortunate for a trader.

Aries

Ruling planets: Mars

Symbols and charms: horn, red-yellow square, hammer, knife, gold.

Favourable colours: scarlet, orange; unfavourable colours: violet.

Favourable numbers: 9, 11, 4, 7.

Favourable days of week: Tuesday.

Unfavourable days of week: Friday, Saturday.

Currency: US dollar

Aries traders are the driving force of the market. Aries are usually characterized by the burst of emotions. They are inclined to financial ventures, have little patience to keep positions and tend to close deals prematurely. Aries are good at high volatility and get bored during stagnation.

Taurus

Ruling planets: Venus

Symbols and charms: winged bull, eagle-owl, golden calf

Favourable colours: yellow, green, rich orange; unfavourable colours: red.

Favourable numbers: 6, 16, 2, 4.

Favourable days of week: Monday, Friday.

Unfavourable days of week: Tuesday.

Currency: Australian dollar, Swiss franc.

Taurus traders have fascinating persistence; they always stick to the proven trading tactics. However, their stubbornness is not always good for them, sometimes it can lead to considerable losses because of their desire to keep an unprofitable position. As a rule, Taureans never panic.

Gemini

Ruling planets: Mercury

Symbols and charms: mask, hand.

Favourable colours: grey, violet, light yellow; unfavourable colours: green.

Favourable numbers:  18, 15, 12, 3, 5.

Favourable days of week: Wednesday.

Unfavourable days of week: Thursday.

Currency: British pound, Canadian dollar, US dollar.

Geminis are under protection of Mercury. Traders born under this sign are in their element being surrounded by this vast flow of information. Geminis are usually excellent traders and brokers.  Quick reaction and their ability of finding a way out of a complicated situation are the secret of their success on Forex market.

Cancer

Ruling planets: Moon

Symbols and charms: heart, cancer, clover, silver.

Favourable colours: blue, white, light blue, light green, silver.

Favourable numbers: multiple of 2.

Favourable days of week: Monday, Thursday.

Unfavourable days of week: Tuesday, Saturday.

Currency: Australian dollar, New Zealand dollar.

Despite the fact that Cancers are immersed into their feelings, they still can be very successful traders. With each unsuccessful deal they accumulate experience that helps them avoid such mistakes in the future. As a rule, Cancers open accounts in the most reliable and the least risky currencies.

Leo

Ruling planets: Sun

Symbols and charms: eagle, lion, swan, amber, gold.

Favourable colours: gold, purple; unfavourable colours: white.

Favourable numbers: 11, 5, 1, 9.

Favourable days of week: Sunday.

Unfavourable days of week: Saturday.

Currency: Japanese yen, euro, US dollar.

As a rule, Leo always gets the biggest prize, both on the market and in real life.

For Leo Forex trading is kind of a theatre performance where he/she plays the main role. However, their disadvantage is that they cannot stay on top because of their greed and constant doubts. Thus, Leo traders are recommended to consider the opinion of Forex analysts.

Virgo

Ruling planets:  Mercury

Symbols and charms: aster, red poppy, cube.

Favourable colours: light blue, violet, white, green.

Favourable numbers: multiple to 5 and 12

Favourable days of week: Wednesday.

Unfavourable days of week: Thursday, Friday.

Currency: Swiss franc, Japanese yen, US dollar.

Traders born under the sign of Virgo are more successful in their job than any other sign. There are many successful people among Virgos, who earned a fortune with the help of their intellect.

Their mental structure allows them to detect the slightest fluctuations on the market. Besides, Virgo traders are very patient. With the help of technical analysis Virgos make their most grandiose plans come true.

Libra

Ruling planets: Venus.

Symbols and charms: rose, violet.

Favourable colours: dark blue, pastel colours.

Favourable numbers: 7, 15, 8, 9.

Favourable days of week: Friday, Saturday.

Unfavourable days of week: Tuesday.

Currency: British pound, Chinese yuan.

Weak psychic setup and special character of Librans is quite incompatible with trading. However, if they decide to get a trading account, this is a big step. Since Forex trading requires quick decisions, Librans might stumble and hesitate to make choice. In order to become a successful trader Librans should overcome their lack of self-confidence and work out their own strategy.

Scorpio

Ruling planets: Mars, Pluto.

Symbols and charms: pyramid, pink, peony, Ophiucus.

Favourable colours: dark red, raspberry pink, yellow.

Favourable numbers: 4, 8, 10, 11, 100, 666.

Favourable days of week: Tuesday.

Unfavourable days of week: Monday, Friday.

Currency: euro, US dollar.

On the market Scorpios are inclined to be suspicious and explosive. Scorpios are really attracting money. There are many rich people among Scorpios. No matter the situation, Scorpios always look calm and confident, though they might be burning inside.

Even when everything is lost, Scorpio can quickly restore his/her funds. After years of trading Scorpio becomes a typical trading tycoon capable of conquering the market.

Sagittarius

Ruling planets: Jupiter

Symbols and charms: centaur, horseshoe, narcissus.

Favourable numbers: 4

Favourable days of week: Thursday.

Unfavourable days of week: Wednesday.

Currency: Canadian dollar, US dollar

Optimism, inclination for risk and excitement, the ability to invest properly are invariable qualities of Sagittarius. However, traders of this sign are not that good at analysis and forecasting. In order to avoid skipping relevant information Sagittarius should pay attention to the opinion of Forex analysts.

Capricorn

Ruling planets: Saturn.

Symbols and charms: clock, stairs, zigzag.

Favourable colours: black, ashy-grey, blue, brown.

Favourable days of week: Tuesday, Saturday.

Unfavourable days of week: Monday.

Numbers: 7, 8, 3, 5, 14.

Currency: Swiss franc, British pound.

Thanks to the inherent sense of proportion, obstinacy and insistence, Capricorns have all chances for success on Forex. In order to make impressive accomplishments on Forex, Capricorns should dedicate much time to gaining practical experience through attending seminars and master classes, and also reading specialized literature.

Pisces

Ruling planets: Neptune.

Symbols and charms: pearl, fish, wave.

Favourable colours: violet, steel-blue, sea-green.

Favourable numbers: 6, 7, multiple to 7.

Favourable days of week: Monday, Thursday.

Unfavourable days of week: Wednesday.

Currency: Australian dollar, New Zealand dollar, currencies of Eastern countries.

Innate intuition of Pisceans ensures their success on Forex. They hardly would examine charts, news and indices; they are more likely to estimate trading forecasts, appraise opinions of other market participants to make their conclusions. Pisceans have a great potential to become high-class analysts.

Aquarius

Ruling planets: Uranus

Symbols and charms: key, wings, hand.

Favourable colours: lilac, emerald-green, violet; unfavourable colours: black.

Favourable numbers: 9, 13, 2, 4, multiple to 4.

Favourable days of week: Wednesday, Saturday.

Currency: euro, Japanese yen.

Constant changes of market indicators, continuous information flow and market dynamics totally fit the temperament of Aquarius. They are good at dealing with information; however, their disadvantage is being careless, inconsistent and short-sighted. Collaboration of Aquarius and Virgo or Capricorn might bring remarkable results on Forex.

Added by Alexandr Petryanin,
InstaForex Clients’ relationship manager

Successful Female Traders

Friday, March 4th, 2011

The last story we are going to tell you concerns an 83-year-old retired lady called Ingeborg Mootz.  She comes from Giessen, the tiny town in Germany. This woman managed to gain as much as half a million euros and she is not going to stop trading.

Ingeborg Mootz

Ingeborg Mootz aged 83 has the most exciting story of success on the financial markets.  She made 500 000 euros on the stock exchange for 8 years. Yet, she is not going to abandon trading. Moreover, Mrs. Mootz means to boost her profit up to 1 000 000 euros  in future.

It is worth emphasizing that Mrs. Mootz does not have any diploma in finance and never has come to deal with stock trading for the whole life.

She spent 17 years of her life in poverty.  Ingeborg was brought up in a large poor family then she got married and became a housewife for the whole life. Her husband had some savings, but she had to literally beg him for each mark. All her attempts to find a job were suppressed by her husband.  A year before her husband’ decease Ingeborg had a sudden idea to try trading on the stock exchange, but she did not have any initial funds to start with.  However, after her husband deceased she came to know that he had acquired a thousand of securities of some companies’ group. This is what happened to be Ingeborg’s start-up capital.

Since then Ingeborg was destined to success. For the first year of working on the stock market her capital had a 100% gain and it increased further by 130% for the following year.  She managed to earn a million euros for 8 years. Ingeborg does not spend her savings: she prefers to invest them into trading. What she lives on is stock dividends.

At presents, Ingeborg Mootz is one of the most well-known people in Germany. She wrote a book, containing the detailed description of her trading technique, interviews with her and other useful material. She provides instructions to everyone, particularly to retired people, on how to easily make money on the stock market.

Operating on the stock market, Ingeborg always observes several well-pronounced rules. First, she does not invest her money but in bank securities. Second, Mrs. Mootz never joins investment funds or capital accumulation programmes offered by banks. As Ingeborg says, banks are the last to be dependent on fluctuations of supply and demand; they are not troubled with insufficient or unstable cash flows, so they are always capable of paying considerable stock dividends.

Ingeborg is happy to share her knowledge with all those concerned and interested and she also calls for all retirees in Germany to dare and to put an end to tastless life, resting on the state support only. What she offers to them is beginning to master their fate themselves by making profit on the stock exchange.

Added by Anna Shubina ,
InstaForex Clients’ relationship manager