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Showing posts from June, 2018

3 things to do by becoming financially free with trading

When you reach financial freedom through online trading, there are some things you can afford to do with benefits compared to other people who, for example, depend on a full-time job in business.
Spend more time with the people you love
Since you are financially free and do not have a boss, you are free to work whenever you want. This is an opportunity to do things that are important, spend time with the people you love and who love you, your family. The majority of individuals are employed full-time and are quite busy on the week with their professional schedule, however being independent through trading will allow you to adapt more easily to the availability of your loved ones but also to fully enjoy with them on weekends. since the markets are closed.

Create complementary and passive sources of income
Earning enough money in the financial markets to reach financial independence can also allow you to maximize this independence, especially by creating additional sources of income. B…

Social Trading: Different Types and Styles

Forex social trading or binary options is a practice of copying the trade of other traders that the user finds through the online social trading community.
Such a trading community can be used as its own personal support system and as a place where ideas and strategies can be discussed. Social Forex trading involves a huge number of different ways of communicating with other traders, including forums, profiles, blogs, trading signals, brokers and certain platforms that provide the opportunity to copy transactions. These forms of social communication help traders of all levels to interact with each other and improve their trading strategies.
Social Forex trading provides a unique advantage for beginners or overly nervous traders - it allows them to follow others and adhere to the strategy of more experienced traders during the trading process. Social trading also offers clear advantages to more experienced traders, as it allows them to become trading leaders and to generate additional …

What is Social Trading?

You probably know technical analysis and fundamental analysis as the two learning schools of Forex trading. We also talk about quantitative analysis, which is based more on numbers than on graphs. However, recently, we are starting to see a new way of trading: social trading.
Remember, in the early days of Forex trading, when everything was happening in stock markets (like the good old Palais Brongniart in Paris), and that the only way to have information were phone calls and news to the TV. Subsequently, phones were replaced by instant messaging, and TV by Internet information flows. With the advent of Web 2.0, information sharing has never been faster and more efficient, and this is where social trading is going to play out.

Trading 2.0
As the logic of Web 2.0 requires, traders/investors have moved from the opaque secrecy of their operations to totally transparent sharing. What is the point of revealing his secrets, will you tell me? Transparency! Investors' confidence can neve…

The Feeling in Trading

Without ceasing, we bring down the same sermons, we must be methodical or even mechanical. But we must admit that from time to time, "we feel that the market will return" while no explicit data provided by the graph would allow us to say. It is this famous feeling of which we speak in this article.
How does it work?
It is good to "feel" the market, but, except explained by an esoteric theory, this intuition necessarily has a reason. Why do we feel that the market will reverse? It does not come from anywhere, it's information that we have unconsciously but it is difficult for us to formalize. This is the sum of empirical findings, that is to say, that by seeing graphics, you will systematically notice behaviors in certain conditions and you will save them.
Now, you may be confronted with particular configurations, the latter will look like the ones you have previously encountered. Thus, by unconsciously remembering the scenario, you will have the impression of havi…

Growth: is it a good indicator of a country's economic situation?

We talk about it every day, growth, or rather recession lately. According to the politicians, a good president is a president who will have mandated during a good phase of growth. By hammering it, one would end up thinking that the balance of a country resides only on that point.
Some explanations
Before going into details, we must start by situating things. That is, what is growth? Growth is the relative change in real GDP from one year to the next. This leads us to ask ourselves, what is real GDP? This is the amount of wealth produced by a country's economy for a year at a constant price (a reference year is used to set the price). In other words, growth is the additional creation of wealth from one year to the next. So when we say "growth of 1%", it means that this year, we will have produced 1% more than last year.
In addition to these generalities, the nominal GDP is only the quantities produced multiplied by the price of these. Sounds pretty light as an economic i…

Is Gold a Safe Investment?

For several months, gold has continued to climb, and accelerating with every bad announcement. The latter has played its role of refuge in these difficult times. However, the last weeks have been marked by a fall in the price, we will see why and what prospects are to be expected for the next few months.
A bubble bursting
Beyond a simple drop, it is a collapse that has been found, in just one month, the price went from $ 1,900 an ounce (a historical high) to less than $ 1,550 ( shade in session). This brutal correction is explained by two reasons. We easily noticed that the rise preceding the break-up, was almost linear, almost no phase of decline. No doubt, it was not only the investors anxious to preserve their capital in this movement, a large part of the actors was of course speculators of all kinds. Difficult not to yield to such ease, the desperate situation in Europe or the loss of triple-A of the United States, are a blessing for speculators.

Next, to the bursting of the spec…

Have remedies for the crisis really been effective?

For more than three years now, the West has been in crisis. Faced with this, the political agents, agreeing rather little on the means, put in place different strategies to face it. Reform of the financial system, economic recovery, and now widespread rigor. Much praise and criticism from each party, however few objective findings.
The regulation of the financial system.
Finance, always placed on the dock since the situation becomes unstable. Thus, the anti-financial crisis measure of the twenty-first century was, of course, the limitation of bonuses for market operators. Supported by unites by the European states, Brussels voted in 2010 a law to regulate the often extravagant remuneration of traders. Quite generally, the premiums will be much less liquid than before, 50% of the bonus will be allocated in a conditional manner likely to be repatriated in case of banking difficulties. The idea being that in case of crisis, the trader will have to pay before the customer. Once again, a mor…

Does the golden rule deserve its name?

The right makes an evil a good, it seems that currently the liberal ideology feeds the worries related to the debt. As a result, Nicolas Sarkozy's program has a good chance of landing on a background of rigor. The measure that best embodies this ideology remains clearly the golden rule, mentioned a few months ago. We are nonetheless in a position to ask ourselves if this famous rule fits well into a serious policy or rather into a political maneuver.
The golden rule, what is it?
It is a constitutional bill that will aim to balance public finances in three years. The idea did not start today, the Prime Minister had already announced last summer that such a measure would be put on the table shortly. The main idea is to guarantee France a sovereign policy throughout the ages. In fact, since the risk of default by the States is no longer considered as zero, they are plagued by the diktat of the financial markets. In this sense, the governance of the affected nations must necessarily be …

What is Quantitative Analysis?

Of course we know technical analysis, an empirical predictive method based on the observation of graphs. Otherwise, the more cultured ones also try out the fundamental analysis. Starting from a hypothetico-deductive reasoning on the economic data, they manage to elaborate a future scenario for a sector, and from there, can invest. Besides, there is however a third type of analysis, a technique based only on mathematics, we are certainly talking about quantitative analysis.
How does it work?
This is a thorny question, as we said in the introduction, quantitative analysis is based on mathematics. Finance is not the only field on which this science is posed, it is a set of fairly generic methods for quantifying different non-measurable data. In finance, one must quantify the risks or in other words the probability of losses. Faced with this, the technical or fundamental analysis does not allow any quantification, it is always possible to advocate a scenario and its opposite, in quantita…

Do the rating agencies run the world?

Already last year, the European states rebelled against the repercussions caused by the brutal lowering of the ratings of the Mediterranean countries. Today, we thought the storm was over, but as we all know, recently Standard & Poor's did not let go of the United States.
Why is the note of sovereign states so important?
State or corporate debt ratings provided by rating agencies are used to assess credit risk. The lower the rating, the greater the risk of default. In this sense, the rating provides investors with an indication of objective reliability for their investments.
As we know, the risk is paid. The riskier the investment, the more it is paid, it is one of the basic principles of borrowing and saving: the cost of risk. Thus, the rating agencies have the role of quantifying this famous risk, the rating is the result. As a result, the lower the rating, the higher the risk, so the higher the interest. Of course, it goes without saying that countries prefer to borrow at the …

How to find the best advice on Forex

For several years, advice on Forex prices or other financial markets is growing. Nevertheless, it should not be misunderstood, a council is not a signal. Let's see today how to find the best sources of forex advice.
Who gives the advice?
Many are the entities providing advice, the great nuance of the signals, the advice is usually free. To give some examples: brokers, financial newspapers, information and analysis sites, individuals via forums and blogs, ... In short, everyone can give investment advice.
What is a forex advice?
As noted above, despite a similar character, the board strongly dissociates itself from the signal. The signal is an instantaneous input information comprising all the parameters for the position taken, that is to say: entry threshold, stop-loss, take-profit and incidentally complementary indications such as the breakeven threshold. In addition, generally, the signals are characterized by short-term positions.
Faced with this, the council becomes in every way op…

Discretionary trading and automatic trading: which will it be right for the other?

Difficult to answer to this problem which animates many debates for several years. This is why we will support the different points of view in an objective way and thus be able to draw good conclusions.
We all already have a subjective opinion on the issue, the supporters of automatic trading will tell us that through a program, there is no psychological bias to take into account. Supporters of discretionary trading will argue that an expert advisor cannot easily adapt to different market conditions. The two opinions do not contradict each other, they are complementary. As a result, there is no point in putting one side or the other aside as both support their theory with broadly valid arguments.
Automatic trading
In recent years and more and more currently, we find a plethora of expert advisors for sale on the market. Nevertheless behind sumptuous backtests lies often deception. What many beginners frustrated with discretionary trading are unaware of is that it is possible to skew a bac…

What consequences on the price of a barrel?

Nobody will be able to ignore the social movements of the North African countries and the Middle East. Whether it is Tunisia, Egypt or Libya, authoritarian regimes are giving way to democracies.
Okay, but what economic impacts?
The main malaise is located mainly in the oil countries. It is hard to deny the importance of the stability of oil production in these regions. So far, only Egypt and Tunisia have succeeded their popular revolution, these countries do not really have a big importance on the market of the barrel. The worry that has shaken the financial markets in the last few days comes from the potential contagion. Indeed, recent strong movements are mainly due to fears of political instability in Libya. Unlike other countries in North Africa, Libya is rich in oil and an integral part of OPEC. A decline in production in this area would impact heavily the price of crude as well as other correlated assets like the dollar ...
According to experts, the market is still focused on Libya…

Do you really know the Stop Loss in Forex Trading?

It is obvious that we must constantly repeat: the presence of Stop Loss on current positions for a trader is comparable to the presence of the parachute for a person who has just jumped from a plane: do not have can be fatal! Game over ...
You have all read, heard and perhaps even experienced that each open trade must be accompanied by a worst-case scenario, which is materialized by this famous Stop Loss. The worst happens when the stop loss is hit: not before or after! The whole game is the determination of this worst ...
These stop losses can therefore be set according to different modes. I will here classify them in a very subjective way, starting from the least desirable for you to the most preferable. This is only my opinion. Feel free to react if you have other techniques, if you disagree with mine or if the order of preference that I suggest is not appropriate for you.
No real stop loss and at best a mental stop loss
What is a mental stop loss ? It is a barrier that you have fixed …

Management of doubt in trading

When an individual goes to the financial markets to invest actively, for example on the Forex, doubt can seize him at any moment, and this can, unfortunately, prevent him from taking the right decisions. It must be clear: Doubt is part of a trader's life, whether he has a month or ten years of experience.
Common doubt situations
Let us take some examples of situations where phases of doubt can arise (any resemblance to situations that really existed would be pure coincidence ;-)):

On which Forex pair today will I enter position? On which TimeFrame will I intervene? What strategy will I adopt?
The Forex pair on which I have positions is super calm. Do I have to close and go on another pair or wait for the squeeze phase?
I have position signals sent to me. Do I have to go now or do I have to wait for confirmation of these signals?
I have a winning position and a great potential gain. Should I close it and if so, fully or partially?
I have a losing position: should I close it partially to l…

Guide to Time Series Forecast Indicator

TSF, Time Series Forecast is a technical analysis indicator showing the dynamics of the last point of the trend regression line at each individual time. It sounds complicated, but in reality, everything is simple. The resulting line of the Time Series Forecast indicator is a curve like the Moving Average. Each point of this curve is nothing but the last point of the regression line for a certain period. The set of these points is the TSF curve. This is why the forecast of the time series is often called the "Linear Regression Slip Line" and/or the "Regression Oscillator".

The TSF line, the Time Series Forecast (Forecast of time series) is considered by the method of least squares. With this approach, the smallest deviation of the indicator line directly from prices is achieved.
Externally, the TSF is practically indistinguishable from the MA with a short period. However, the fundamental difference of this indicator from the Moving Average is that it is more sensit…

Training of the main functions of MetaTrader 4

The trading terminal MetaTrader 4 is the main working tool of the trader. It allows you to trade in Forex markets, CFDs for metals, indices, commodities, cryptocurrencies, futures (depending on the broker and the specification for connecting your account).
With the help of the terminal, you can not only conduct trading operations, but also conduct market analysis, use automated trading programs, monitor the most important news, test your own trading strategies, and receive trading reports.
Despite the simplicity of MetaTrader 4, learning the basic functions of the trading terminal can take some time. Below is a description of the most common functions and operations in the terminal.

To start working with MetaTrader 4, learning its basic functions, you need to open a demo account, and to work with an existing account - connect it to the terminal.
You can do this by selecting "File - Open Account" or "File - Connect to Merchant Account" in the menu.
The terminal cons…