2023-05-12 02:40

Have you ever wondered how people make important decisions about money in the forex market? Well, they use something called "fundamental analysis" to help them. It's like being a detective and looking at different things to understand how the world affects the value of money. In this blog, we'll learn about fundamental analysis, the important things it looks at, and how it helps traders like you make smart choices in forex trading. What is Fundamental Analysis? Fundamental analysis is a way of studying important things happening in the world that affect the value of money. Traders look at news, events, and data about countries and their economies. By looking at all this information, they can determine if a country's money is strong or weak. Important Things to Consider: To understand fundamental analysis, let's look at some important things that traders think about: Economic Indicators: These numbers tell us how well an economy is doing. Traders pay attention to things like the Gross Domestic Product (GDP), which shows the value of everything a country makes and sells. They also look at employment rates, inflation (when prices rise), how much people spend, and how much a government buys and deals with other countries. These numbers tell us about the health of an economy and can affect the value of money. Interest Rates: When we want to borrow money, we have to pay something called interest. Interest rates tell us how much we have to pay. Traders look at the interest rates set by important banks in different countries. When interest rates are high, it can make a country's money more attractive to people who want to invest. This can make the value of that money go up. Political Events: Big things happening in politics can also affect money. Elections, changes in government policies, and problems between countries can all change the value of money. Traders keep an eye on these events to figure out how they might affect money values. For example, if a country has a lot of problems in politics, its money might weaken. Market Sentiment: This is like people's overall feeling about a certain money or market. It can change based on the news, politics, and what people think will happen. When people feel good about an economy, they might want to buy its money, which can increase its value. How Traders Use Fundamental Analysis: Traders use all this information to help them make good decisions. They look at economic numbers, follow the news, and see what people think about different countries' money. They can understand what might happen by putting all of this information together. For example, suppose they see that a country's economy is doing well, interest rates are high, and people feel positive about it. In that case, they might think the value of that country's money will go up, and they might decide to buy it. On the other hand, if they see that a country is having problems in its economy, interest rates are low, and people feel worried, they might think the value of that money will go down. So, they might decide to sell it. Conclusion: Fundamental analysis is an important tool in forex trading. Traders use it to make smart decisions by looking at important things happening in the world. Traders can make better choices by studying economic factors and understanding how they affect money values. Like detectives, they gather information and use it to predict what might happen to money. As you grow older, you might find the world of forex trading and fundamental analysis fascinating and useful for making good decisions with your money. Continue reading more about 5 common mistakes for forex beginners here! You can also join the VC Plus group chat for helpful information, such as daily market updates, for free! Click this link and send "Add me" to us. Open a Forex account with VC Plus today, and grab a guaranteed US100$ Welcome Bonus (T&C apply) VC Plus provides a demo account. Therefore you can try it before you begin your actual trade!

2023-05-03 07:25

In our previous article, we detailed the function of candlesticks and how different candlestick patterns represent a shift in trend. Apart from using candlesticks for technical analysis, various indicators also provide substantial assistance in technical analysis. A good set of technical indicators can greatly increase the success rate of trades, and comparing different indicators can make trading more seamless. Here, we will share several sets of technical indicators that traders commonly use. 4 technical indicators that traders commonly use: Moving Average (MA) Moving Average Convergence Divergence (MACD) Relative Strength Index (RSI) On-Balance Volume (OBV) Moving Average (MA) Moving Average (MA) is a statistical analysis method that calculates the average price over a certain period of time and connects the averages at different times to form a line. The moving average is one of the technical indicators used to observe price trends and can help investors confirm existing price trends, predict potential future price movements, and identify signals of an upcoming price reversal. Therefore, it is widely favored by traders. Moving Average Convergence Divergence (MACD) MACD stands for Moving Average Convergence Divergence. It is derived from the dual-moving average system and is calculated by subtracting the slow-moving average from the fast-moving average. The MACD has a similar meaning to the dual moving average system but it is easier to read. Because of its simplicity, it is one of the first indicators that traders learn. When the MACD crosses above the zero line, it is a buy signal. When the MACD crosses below the zero line, it is a sell signal. A large angle change in the MACD indicates that the difference between the fast and slow-moving averages is rapidly expanding, which represents a major trend reversal in the market. Relative Strength Index (RSI) The Relative Strength Index (RSI) is a technical indicator used to analyze the market's buying and selling intentions and strength by comparing the average number of up and down closes over a period of time, in order to speculate on the future direction of price movements. The RSI is classified as an oscillating indicator used to measure the speed and amplitude of directional price movements. The RSI value ranges from 0 to 100, with the 50 median lines serving as a watershed. A value above 50 suggests a strong market, while a value below 50 suggests a weak market. Additionally, the RSI can also be used to identify whether the market is in an "overbought" or "oversold" state. An RSI value between 70 and 100 indicates overbought conditions, suggesting that prices may reverse downward, while a value between 30 and 0 indicates oversold conditions, suggesting a possible rebound. On-Balance Volume (OBV) The On-Balance Volume (OBV) indicator is a momentum indicator that accumulates or subtracts trading volume based on the market's upward or downward movements. It is also known as a sentiment indicator. The OBV indicator is used to track changes in market momentum and is presented as a continuous line chart, making it easier to analyze than a series of individual volume bars. According to the creator of the OBV, Joseph Granville, market momentum is reflected in changes in trading volume, while the price is merely an external manifestation. Volume is a leading indicator of price, with volume preceding price changes. The volume of trading reflects the activity of market participants and the ebb and flow of market sentiment. The OBV indicator is relatively simple in terms of its algorithm. Daily trading volume values are accumulated based on the market's upward or downward movements. Specifically, the volume on up days is considered positive and added to the cumulative total, while the volume on down days is considered negative and subtracted from the total. This process helps to track changes in market momentum for both bullish and bearish trends. There are lots of technical indicators to choose from. But here's the thing - there's no one "best" indicator! It all depends on the situation. Smart traders are always trying out different combinations and adjusting them until they find the perfect fit. Before they start using their new strategy in real trading, they test it out using a Demo Account. That way, they know they're making good choices and will only start trading for real when they're sure they're going to make some money! If you want to try using different technical indicators to develop a trading strategy, you will definitely need a Demo Account for testing. Start your Demo Account now to find out the strategies that suit your trading style before you start real trading!

2023-04-26 04:45

Many traders overlook the trading mindset, an important aspect of forex trading. A trader with a bad mindset may make impulsive decisions, take unnecessary risks, and lose money in forex trading. The right mindset is about managing the risks, staying disciplined, and making sound decisions even when the market is volatile. In this article, we will give you some practical advice on how to improve your trading mindset. Control your expectations Avoid excessive trading Maintain your adaptability Take care of yourself Be humble and learn from other traders Create a positive attitude Control Your Expectations First and foremost, managing your expectations and setting realistic goals is critical. While forex trading can be profitable, it’s not a get-rich-quick scheme. You must set attainable goals for your trading results, so as to trade in a disciplined way. Avoid Excessive Trading A common mistake made by many traders is overtrading. This happens when you make too many trades or trade too often. It can lead to rash decisions and quickly deplete your trading account. You should prioritize quality over quantity by carefully strategizing your trade, so that you will not need to pay costs for unnecessary trades. Trading strategies might sound challenging to understand at first. However, platforms like VCPlus can make the process much easier because it lets you use trading strategies that automatically generate buy and sell signals in just 1 click. Trading strategies on VC Plus will generate buy and sell signals Auto sell signals on VC Plus. Sign up and try it for free Maintain your adaptability. You must be adaptable to market changes and willing to adjust your trading strategy as necessary. The forex market constantly changes, and your trading strategy must adapt to stay competitive. You can attend free webinars to learn and stay updated with the forex market. Check out free webinars here. Take Care of Yourself It’s also important to take care of your physical and mental health, as it is essential to maintain a positive mindset while trading. Getting enough sleep, eating well, and exercising regularly can help you remain focused and make better trading decisions. Be humble and learn from other traders You can learn from other traders too, it will help you improve your trading mindset. Joining a free trading forum like MTDesk or following successful traders on social media can provide you with helpful information and ideas. It is also important to take everything with a grain of salt and conduct your research. You can also join the VC Plus group chat for helpful information, such as daily market updates, for free! Click this link and send "Add me" to us. Create a Positive Attitude A positive attitude is essential. Instead of dwelling on losses or mistakes, celebrate your successes and apply what you've learned to your future trades. A positive attitude can have a significant impact on your trading mindset. It can help you stay motivated and focused even when things are tough. Verdict Regarding forex trading, a trading mindset is as important as technical and fundamental analysis. You can improve your trading mindset and become a more successful trader by managing your expectations, avoiding overtrading, remaining flexible, practicing good self-care, learning from other traders, and developing a positive mindset. Continue reading more about 5 common mistakes for forex beginners here! Open a Forex account with VC Plus today, and grab a guaranteed US100$ Welcome Bonus (T&C apply) VC Plus provides a demo account. Therefore you can try it before you begin your actual trade!

2023-04-20 01:46

如果你已经接触交易一段时间，相信你一定听说过类似于“左侧加仓”和“右侧交易”这类词汇。初听之下，这似乎是一种很厉害的交易策略，但实际上，这更像是一种交易态度。交易者会根据自身的交易条件，例如资金配额、风险偏好、投资理念、交易习惯等等来建立最符合自己个性的交易方式。接下来，我们将简单介绍左侧交易和右侧交易的概念。 左侧交易 左侧交易员习惯于使用“观察”和“预判”来提前布局。在上涨过程中，当头部还未成型时，左侧交易员会主观地通过对市场的观察来预判价格已经处于顶部，并开始执行做空操作。在下跌过程中，左侧交易员会主观地认为底部已经形成，并开始执行做多操作。如果你习惯于上述交易方式，那么你就是一个左侧交易员。 因此，左侧交易员就是我们一般所说到的逆势交易者。这种交易方式所要承担的风险和时间成本相对较高。由于是提早布局，所以会在较高价格做空或较低价格做多。当判断正确时，往往会获得较高利润。这种交易方式更适合经验丰富的交易者使用，因为它需要投资者具备较强的判断能力。 右侧交易 右侧交易员习惯于等待顶部完全形成并确认已经完全扭转的情况下才会进场做空。反之，当确定底部形成并开始有反转信号显示走势的转向才开始做多。如果你是偏好这类的交易方式，那么你就属于右侧交易员。 故此，右侧交易员也能称之为是顺势交易者。因其追加策略，右侧交易员往往相较于左侧交易者的价格更高，但进场方式往往是顺势而为，以避免风险过大的情况。这是一种较为安全的交易方法，也称之为顺势交易。 左侧交易与右侧交易的比较 左侧交易 右侧交易 交易方法 逆势而为 顺势而为 交易成本 较低 较高 交易风险 较高 较低 时间成本 较高 较低 获利空间 大 小 适合人群 资金充足且经验丰富 资金较小且经验较少 在交易圈中有一句非常著名的句子 ”Don’t try to catch a failling knife”, 意思就是股价的下跌就犹如刀子的下跌，只要接得不好受伤的就会是自己。但是这偏偏又和左侧交易的理念有冲突，因为左侧交易员会在市场顶部/底部尚未完全形成时就进行反向交易，所以错误的判断将会带来难以估量的损失。但是只要在确认交易前执行 ”止损策略“，就能锁定亏损并防止其继续扩大。 结论 这两种交易方式反映了不同交易者的交易态度。交易方法并没有高低之分，只有适合与否之分。交易员必须清楚了解自身的优势与劣势，选择一个适合自己的交易方法。 根据上述解释，你是否已经了解自己是属于左侧交易员还是右侧交易员？ 如果你还不确定，可以注册一个户口测试一下，找到适合自己的交易方式！

2023-04-12 02:11

Inflation measures an economy's price increases. Demand, supply, and production costs can cause inflation. While some inflation benefits an economy, excessive or unexpected inflation can harm economic growth and stability. Inflation can also impact the forex market, influencing currency values and trading patterns. In this blog, we will cover how these 4 areas that are related to the inflation rate will directly affect the forex market. The policy of the Central Bank Monetary value Patterns of trading Prices of commodities The policy of the Central Bank Central banks are critical in managing an economy's inflation. They employ monetary policy tools such as interest rate adjustments and quantitative easing to control inflation. To reduce inflationary pressures, central banks may raise interest rates. As a result, increasing demand and exchange rates can make a currency more appealing to investors. Conversely, if inflation is low, central banks may lower interest rates to stimulate economic growth. This can make a currency less attractive to investors, causing declining demand and exchange rates. The example of the US Federal Reserve demonstrates the impact of central bank policy on forex trading. The Fed is responsible for both price stability and maximum employment. Suppose the US inflation rate exceeds the Fed's 2% target. In that case, the Fed may raise interest rates to cool the economy and reduce inflation. This may make the US dollar more appealing to investors, resulting in higher demand and exchange rates. In contrast, if US inflation falls below the Fed's target, the Fed may lower interest rates to stimulate economic growth. This may make the US dollar less appealing to investors, resulting in lower demand and exchange rates. Monetary value Over time, inflation can erode the value of a currency. When a country's inflation rate exceeds that of its trading partners, its currency may lose weight from other currencies. As a result, imports may become more expensive, leading to higher inflation and a weaker economy. For example, if the US inflation rate exceeds Europe's, the US dollar may weaken relative to the euro, making US goods and services more expensive for Europeans. The effect of inflation on currency value can also be seen in Venezuela. Venezuela has experienced hyperinflation in recent years, with annual inflation rates reaching as high as ten million percent. As a result, the Venezuelan bolivar's value has plummeted, making it difficult for Venezuelans to buy goods and services. Patterns of trading Inflation can also have an impact on forex trading patterns. For example, suppose one country's a high inflation rate. In that case, traders may sell that country's currency in favor of other coins with lower inflation rates. This may result in less demand for that currency and a lower exchange rate. For example, suppose Japanese inflation exceeds the United States. In that case, traders may sell the Japanese yen in favor of the US dollar, causing the yen to weaken. Argentina's example demonstrates the impact of inflation on trading patterns. In recent years, Argentina has experienced high inflation rates, causing the Argentine peso to depreciate. As a result, traders may sell Argentine pesos in favor of other currencies, such as the US dollar or the euro, causing the peso to fall in value. Prices of commodities Inflation can affect commodity prices, which can impact forex trading. Commodity prices tend to rise when inflation is high because producing and transporting goods becomes more expensive. Commodity-exporting countries, such as Canada, Australia, and Russia, can benefit from higher commodity prices, resulting in a stronger currency. Verdict Inflation is only sometimes beneficial to the currency market, and it will have both positive and negative effects on the forex market, depending on the context and circumstances. Ultimately, the impact of inflation on the forex will be determined by how well the policymakers are able to manage and control it, as well as other factors affecting the economy and the forex market. Forex traders must stay current on inflation trends and central bank policies to make informed trading decisions. Join VC Plus group chat for daily market updates for free! Click this link and send “Add me” to us. Continue reading The Important Economics Data that traders have to take note! Open a forex account with VC Plus today and grab a guaranteed US100$ Welcome Bonus (T&C apply) VC Plus provides a demo account. Therefore you can try it before you begin your actual trade!

2023-04-05 08:48

As traders, we must have basic trading knowledge before starting to trade. Trading knowledge covers a very wide range, including technical analysis, trading psychology, economic principles, and other aspects of knowledge. The purpose of trading is to combine this knowledge to establish our own trading system and achieve our trading goal. If traders start trading without having the most basic knowledge, they are essentially treating the market as a casino where this approach is not trading but gambling. We'd like to share three entry-level books that are perfect for beginners who want to learn more about trading. 1. Japanese Candlestick Charting Techniques Japanese Candlestick Charting Techniques was published in 1991 by Steve Nison. This book systematically introduced K-line charts to the western financial world and triggered a revolution in candlestick chart technology for securities investment. For this reason, Steve Nison is hailed as the "father of the modern candlestick chart" by Western financial circles. However, he is not the founder of K-line charts, but the first investment expert to systematically introduce Japanese candlestick charts and securities technology to the West. The book explains in detail how candle chart technology is based on a series of candle lines that combine different trend patterns. By analyzing the data of these patterns, traders can draw relevant conclusions and use this data to predict the future trend of the market. Candlestick chart technology can be used to analyze bull markets or bear markets in the securities market, as well as to identify the best entry and exit points. With this information, traders can accurately navigate the market. 2. Reminiscences of a Stock Operator Edwin Lefèvre's Reminiscences of a Stock Operator chronicles the life of legendary trader Jesse Livermore. Through this book, we gain insight into the principles and actual trading strategies used by Jesse Livermore, as told from his own perspective. The book also provides a detailed account of the ups and downs of his life as a trader, making it a valuable reference for beginners who are new to the trading market. It is important to extract the essence of his methods while avoiding the mistakes that Jesse Livermore made. Doing so can help develop a strong trading mentality. 3. Basic Economics : A Common Sense Guide to the Economy Basic Economics: A Common Sense Guide to the Economy by Thomas Sowell thoroughly explains the basics of economics. Economics encompasses resource allocation, supply and demand, policy impact, and more. Understanding these principles enables traders to build a comprehensive network of relationships. For instance, it helps them understand how policies affect supply and demand, which leads to changes in economic data. With a complete network of relationships, traders can logically infer and predict possible trends in advance. Therefore, it is crucial for traders to understand the logic and principles behind the entire economy. The content covered by the above three books is different, which makes them very beginner-friendly. If you have read all three books and want to test their principles through trading, but you are afraid of losses, there is no need to worry. VC Plus provides users with a demo account, allowing you to test your trading system continuously without risking real money. Click to sign up for demo account Trading is a long journey, and no trader can remain invincible all the time. Trading strategies must adapt to changing times. Therefore, as a trader, remember to keep learning and never stop improving.