Archive 4
Hidden Dangers That New Day Traders Face
On the surface, day trading looks like it should be easy. Jump in and out of trades as the price moves, make a little profit and repeat the process tomorrow. Unfortunately, many dangers are lurking in the markets for day traders and new day traders are unaware of these dangers and how
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How Much to Risk on Each Binary Options Trade
Binary options are an all-or-nothing option type where you risk a certain amount of capital, and you lose it or make a fixed return based on whether the price of the underlying asset is above or below (depending on which you pick) a specific price at a specific time. If
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Where to Take Profit When Day Trading (Exit Strategy)
Every trade requires an exit, at some point. Getting into a trade is the easy part, but where you get out determines your profit or loss. Trades can be closed based on a specific set of conditions developing, a trailing stop loss order or with the use of a profit
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How Much Capital to Risk in a Stock Trade
No matter how much investment research is done or how selective we are, many of our trades will be losers. It is for this reason that we need to control risk on every trade. Unfortunately, we don’t automatically know if it is going to be a winner or loser (otherwise, we would
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Should You Hold a Day Trading Position Overnight?
Day traders buy and sell stocks, currencies, or futures throughout the trading session. Typically, these trades close before the market does. Holding a position overnight requires careful consideration. What to Consider Before Holding a Position Overnight Each market (stocks, forex, and futures) has different factors to consider. Risk and risk management must
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How to Identify Forex Fraud?
When the initial boom of the forex market hit the Internet and the number of people that started to trading and investing have increase, it immediately became fertile ground for the shady characters of the world to jump in and commit numerous instances of forex fraud. The market got hit
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What is Forex Hedge?
A forex hedge is a transaction implemented to protect an existing or anticipated position from an unwanted move in exchange rates. Forex hedges are used by a broad range of market participants, including investors, traders and businesses. By using a forex hedge properly, an individual who is long a foreign
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Forex Stop Hunting
Stop hunting is a strategy that attempts to force some market participants out of their positions by driving the price of an asset to a level where many individuals have chosen to set stop-loss orders. The triggering of many stop losses at once typically creates high volatility and can present
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Top Reasons Why Forex Traders Lose Money
There are many factors that contribute to trader’s success in the market. Successful traders usually are the people that have accumulated a lot of experience, as well as knowledge of the market basics, and have utilized them in their favor. When people enter the foreign exchange market, their goal is
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