How to Trade page 4

Traditionally, the earning season is a favorite time of year for active traders. This is a time when the potential for making profits increases many times over. The end of each quarter ends with the publication of corporate reports. This is a period of high market volatility, and traders try to make the most of it. As surfers catch a wave, traders try to join the movement, caused by the market's reaction to the publication. It is a very important period for intraday, medium, and long-term traders.

Economic development is cyclical – a boom is always followed by a downturn. Such a downturn is called a recession, a phenomenon that recurs with varying frequency and depth. Sometimes recessions occur with little or no serious economic disturbance, but other times they can lead to crises of varying magnitude. So what is a recession, what are its characteristics, and is the world economy in a recession now?  

The ideal strategy is the one that allows a trader to capitalize on any market, regardless of whether the price is falling or rising. Such trading systems are called arbitrage trading systems. There is true arbitrage and statistical arbitrage. And while the first is available to a vast minority, the second can be handled by every trader.

Margin trading allows a trader to participate in trades that require more funds than they have on deposit. Accordingly, the trader's gain from such transactions increases. But margin trading has a downside – increased risk. It can be minimized by following the rules and taking into account a broker's trading conditions on margin so as not to get a margin call.

As a rule, the majority of newby traders start their first acquaintance with the forex market by trading in short-term time frames. But after a while, they come to the idea that to save their time and nerves they need to work in higher time frames.

Sometimes the market brings surprises to those who work in it. A rate, which has not been characterized by impulsive movements and has been moving quietly up or down, suddenly bursts like a rocket. It rises in price at breakneck speed, knocking down all orders on its way and throwing unlucky players out of the market, at some point it stops and just as rapidly comes back to the place or level close to the point of takeoff.

Technical analysis of the market gives a variety of options for predicting the price movement based on the known indicators and their derivatives, resistance and support levels, Fibonacci Retracement, trend lines, etc. But there is one more tool, specific enough, which is seldom mentioned in classical analysis literature, and that is why it arouses great interest among traders. We are talking about the so-called "round levels".

Trend trading is one of the safest ways to benefit from the foreign exchange market. It is based on the fact that traders, like the crowd, create a mass movement, pushing out of the market all those who swim against the current.

Most traders and experienced investors use technical analysis tools – indicators – in their work on the stock market. What are their differences, what are they for, and which indicator is better to use?   What are Indicators, and Why Do We Need Them? Technical analysis is based on Charles Dow's postulate that "the price discounts everything", including expectations of future events. Accordingly, it is enough to find an appropriate mathematical algorithm for price data processing to predict the behavior of securities quotes.

Copy trading is one way to minimize the risk in your investment strategy. If you are new to the world of forex or don't have time to dive into the nuances of trading, copy trading may be a perfect solution. But how can you choose one account out of dozens or even hundreds? That can be a real challenge! No worries, we have you covered! Here are five steps to pick the best account to copy.