FAQ
- How to open a position after NFP release?
Watch the initial move after the data is released. The bigger the initial move, the better it tells the price direction. Once the initial move happens, there is usually a price pullback that can be interpreted as the entry signal for day traders. If the price moves upward, use one-minute price bars and draw a trendline from the high of the initial move to the high of the price pullback. Open a buy position when the price breaks above the trend line.
The same method applies to initial moves going downward but in the opposite direction. Once the initial move occurs, draw a trend line from the low of the initial move to the low of the price pullback. Open a sell position when the price breaks below the trend line.
- How does forex copy work?
Forex copy allows followers to replicate trading results from a master using a scheme like this:
- You register as a follower.
- You replicate the master's trades.
- The master makes a profit, let's say $1000.
- You also receive $1,000.
- You pay profit sharing/daily commission to the master.
- The total profit you receive is $1,000 minus the amount of profit sharing/daily commission.
- What is the risk/reward ratio in forex trading?
The risk/reward ratio in forex trading is the ratio between a position's potential profit and loss. This ratio is used to help traders determine the risk they are taking and ensure that the potential profit is greater than the potential loss.
- Which contests use demo accounts for trading?
- Fibo's Group Triathlon
- LiteFinance Best of the Best
- HF Markets' Virtual to Real Demo Contest
- InstaForex Sniper
- How to spot sell opportunities with 1-hour trading strategy?
In the example given, the Shooting Star candlestick formed after the price broke through the upper Bollinger Band, indicating that the bulls have lost control and the bears have taken over the market sentiment.
The Shooting Star is a bearish reversal candlestick pattern that typically forms at the end of an uptrend, and it signals a potential trend reversal. When this pattern is combined with a break through the upper Bollinger Band, it can provide traders with a powerful sell signal.
- What is spot trading in cryptocurrency?
Spot trading is buying or selling cryptocurrencies at the current market price, which is the price that a specific cryptocurrency is being traded at in the exchange at the time of the transaction. Spot trading allows you to take advantage of the immediate price fluctuations in the cryptocurrency market and can be an excellent way to capitalize on short-term price movements.
When you place an order for spot trading, you buy or sell cryptocurrencies immediately. This means that the transaction will be settled within a few minutes, and you will own the cryptocurrency you purchased or receive the funds for the cryptocurrency you sold.
- How to use OHLC in trend trading?
If a trader uses the open drive method (when the price opens above or below the previous day's price), it is best to refrain from trading for as long as possible. However, if the opening price is the same as the highest or lowest price, then this can be a good opportunity for the price to develop toward the open drive direction.
- What are the cons of trading leveraged tokens?
Here are some of the cons of trading leveraged tokens:
- High Risk. Leveraged tokens are considered high risk due to the multiplication factor. Your profits and losses can be magnified, so you must watch out for unprofitable market conditions.
- Not fit for long-term investment. Leveraged tokens are rebalanced daily, so they are not a great investment for the long term. Because of the position adjustment system, the risk of holding the tokens for a long time is considerably high. The longer you hold the token, the greater the volatility and friction costs.
- Additional management fees. Trading with leveraged tokens means that you need to pay additional management fees to the service provider. While the fee amount may sound small because they're daily rates, consider how much it would cost for a year or two.
- Volatility decay. Last but certainly not least, you can suffer from volatility decay, which is the negative impact of volatile markets. The problem is that such an impact can be much worse if you trade with a leveraged token. Even with small up-and-down price movements, volatility decay can significantly damage your investment.
- High Risk. Leveraged tokens are considered high risk due to the multiplication factor. Your profits and losses can be magnified, so you must watch out for unprofitable market conditions.
- What is intraday trading?
Buying and selling any financial asset during the same trading day is what is meant by the term intraday trading. Intraday traders attempt to benefit from the ever-changing price in order to capitalize on the fluctuations that occur during the trading day. Trading in this manner can always be profitable, regardless of whether a person is a seasoned trader or just starting out in the market.
- How much money do I need to trade a 1-hour trading strategy?
When it comes to trading with a 1-hour forex strategy, the amount of money you need to start with is up to your discretion and comfort level. However, it is important to remember to never invest more than what you can afford to lose.
